Major points from Fintech Week London event
Cross-Border Payments: Shaping the Future of Fintech
The fintech industry gathered at the Fintech Week London conference, with over 1,000 decision makers from around the globe, focusing on payments and the role of regulation in driving innovation without hindering fintechs.
The discussion on regulation highlighted its potential to foster innovation in cross-border payments while ensuring a solid foundation for better cross-border transactions. However, the impact of regulation varies across regions, and its implementation will continue at a slow pace due to factors such as political instability and a focus on financial crime.
The panel on international payments featured experts like Elizabeth Lumley from The Banker, Niyati Joshi from B4B Payments, Stephen Oluwatobi from Kora, Luke Stubbs from Shoosmiths, and Breno Maximiano from Gnosis Pay. Breno emphasized the potential for blockchain technology to revolutionize cross-border payments, while Luke underscored the need for regulatory clarity to support the growth of cross-border payments. Niyati discussed the role of partnerships in facilitating cross-border payments, and Stephen shared insights about the importance of understanding local markets.
Blockchain technology, including stablecoins and Central Bank Digital Currencies (CBDCs), was discussed as a potential solution for cross-border payments. However, interoperability with existing local rails is necessary for it to become an international payments layer. Countries like Brazil are developing effective solutions, such as Pix, but these need to be tailored based on the region.
The G20 Roadmap for Enhancing Cross-Border Payments is promoting the development of payments infrastructure, but its impact on financial inclusion varies across regions. For instance, in Africa, market-led solutions like M-PESA have emerged due to unique country requirements. Digital IDs are relevant to cross-border payments, but have faced challenges in certain countries due to regulatory friction and data sovereignty concerns.
AI was discussed at the conference, but the conversation felt more practical than hype-led. The future of cross-border payments may involve multiple initiatives, leading to a choice for users rather than one dominant solution emerging. However, orchestration will remain a significant challenge.
To implement effective cross-border payment solutions, businesses should consider adopting modern, flexible, and compliant payment infrastructure. Key strategies include leveraging alternative payment methods, integrating digital wallets and pay-to-wallet solutions, exploring multi-currency accounts and local payment networks, considering emerging technologies such as CBDCs, prioritizing payment solutions with automated compliance and regulatory features, and using professional-grade cross-border payment platforms without minimum volume restrictions.
Targeting emerging markets, where digital innovations and improved payment accessibility are driving rapid growth, is also crucial. Advanced technologies enable better financial inclusion and expanded participation in the global economy in regions like Latin America, Asia, and Africa, representing high-opportunity areas.
Staying informed on regional payment ecosystems and regulatory changes is crucial to maximize cost efficiency, speed, and customer reach. By combining scalable technology, compliance-ready solutions, localized payment methods, and multi-currency financial products, businesses can navigate the complex landscape of cross-border payments effectively.
Investing in technology, specifically blockchain, could be a strategic move for businesses looking to revolutionize cross-border payments, as highlighted by Breno Maximiano from Gnosis Pay at the Fintech Week London conference. In addition, understanding regional business environment, payment ecosystems, and regulatory changes will be crucial for businesses to successfully navigate the complex landscape of cross-border payments, as suggested by the discussion on key strategies for implementing effective solutions.
