Last week saw much of the North American cross-border payments industry descend on Las Vegas for Fintech Meetup. The event is different as it facilitates tens of thousands of 1:1 meetings, a number of which I enjoyed myself. Plus, it has a small number of high-quality panels, one of which I was pleased to moderate: ‘Breaking Borders: How Top Banks are Winning Customers with Cross-Border Payment Innovation and Partnerships’.

On the panel, I was joined by Emanuela Saccarola, MD, Head of Cross Border Payments, Citi; Kumar Narayan, Executive Director, Global Head of US Dollar Clearing, J.P. Morgan; and Mary Ellen Brown, MD & Head of GTB Business Transformation, TD Securities. 

Here’s some of the key takeaways from what proved to be an insightful discussion about the digitalisation of cross-border payments and the opportunities presented by partnerships:

• As of 2024, the B2B cross-border payments market had a total global size of $31.6tn, and is set to reach $50tn by 2032, with around 92% of flows still handled by banks as of 2023. However, with non-bank players innovating rapidly and taking growing share, there is a need for banks to step up their response – they are aware of this, but deciding on the right approach is key.
• Consumer money transfers have served as a blueprint for innovation on the B2B side, however there can be something of a disconnect here, with some corporate clients looking to slow down transactions for security reasons, rather than pursuing instant transfers. There is also a greater need for liquidity solutions in the B2B space, although banks traditionally have seen FX as a central part of serving corporate customers as part of a broader holistic approach. 
• Partnerships are increasingly being seen as an appealing option for banks, as it doesn’t always make sense for them to build everything in-house. This can see fintechs who are otherwise challengers to banks instead being complementary to them, enabling them to reach new markets and increase their levels of service. However, it also requires fintechs to be able to work with banks, with not all would-be partners passing required due diligence. 
• The ongoing digital transformation of the financial sector also provides a backdrop for further innovation, with things the sector thought impossible five years ago now becoming increasingly commonplace. APIs have been an unsung hero of this, quietly unlocking a host of new capabilities, while AI and blockchain are currently the subject of significant work at an internal level for many banks, not all of which is yet being communicated externally.

How can I find partners for my next cross-border payments initiative?

Daniel Webber

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Daniel is Founder and CEO at FXC Intelligence. Daniel is a leading influencer in the global payments space internationally. He is frequently invited to speak at industry conferences and provide insights and data on the sector. Daniel is widely quoted across the sector including in The Economist, Wall Street Journal, Reuters and Daniel is also a contributor for Forbes.com. FXC Intelligence's weekly industry newsletter is the most widely read in the international payments market.