Singapore Fintech Festival 2024 Highlights Crucial Progressions in Transnational Payment Transactions
Mastercard has made a significant stride in the APAC region by launching Pay Local, a service that allows customers to link their credit and debit cards to local digital wallets [1]. This move is part of Mastercard's plan to expand Pay Local to various regions, including LatAm, the EU, the Middle East, Africa, and Southern Asia [2].
Meanwhile, Wise, a foreign money transfer company, has made history by gaining direct access to Japan's payment clearing network in October [3]. This move is expected to streamline international money transfers for customers. Wise has also partnered with Standard Chartered's SC Remit, allowing for instant mid-market rate money transfers in 21 currencies across Asia and the Middle East [4].
In another development, Wise has secured access to the Philippines' instant payments system this week [5]. This expansion further strengthens Wise's position in the cross-border payments market.
Amazon, too, is exploring blockchain technology for facilitating cross-border payments for independent MSMEs on its network [6]. The tech giant partnered with HSBC and payments infrastructure provider StraitsX for a demo of tradable digital tokens for cross-border payments. These digital tokens facilitate smart contracts, programmable payments, and digital currencies, potentially simplifying cross-border payments for MSMEs [7]. However, it's important to note that the demo was conceptual, and Amazon has no immediate plans to launch a related service or product [8].
Ant International, the company behind Alipay, is also expanding its cross-border payments solutions. Ant International's wallet-focused cross-border payments solution Alipay+ already covers many players in the APAC region [9]. The company is focusing on improving Alipay's coverage in popular travel destinations to support international MSMEs [10].
The global B2B cross-border payments market is substantial, with cross-border payment flows exceeding $150 trillion globally in 2022 [11]. While exact figures specific to B2B cross-border payments alone are less commonly broken out explicitly, the total global B2B payments market was over $88 trillion in 2022 and is forecast to surpass $111 trillion by 2027 [12]. The digital B2B payments market, which includes cross-border digital payments, is projected to reach $27.8 trillion by 2032 [13].
As for stablecoin-based cross-border payments, the total annualized volume is estimated in the tens of billions of dollars, with some companies reporting volumes that represent significant shares of this niche market [14].
This week, the Singapore Fintech Festival is taking place, with a focus on AI and quantum technology [15]. The event underscores the growing importance of fintech in the global economy.
References: 1. Mastercard launches Pay Local in APAC region for linking credit, debit cards to digital wallets. (n.d.). Retrieved from https://www.finextra.com/pressarticle/91313/mastercard-launches-pay-local-in-apac-region-for-linking-credit-debit-cards-to-digital-wallets 2. Mastercard to expand Pay Local to LatAm, EU, Middle East, Africa, and Southern Asia. (n.d.). Retrieved from https://www.pymnts.com/news/payments/2022/mastercard-to-expand-pay-local-to-latam-eu-middle-east-africa-and-southern-asia/ 3. Wise becomes first foreign money transfers company to access Japan's payment clearing network. (2022, October 27). Retrieved from https://www.finextra.com/pressarticle/89984/wise-becomes-first-foreign-money-transfers-company-to-access-japans-payment-clearing-network 4. Wise partners with Standard Chartered's SC Remit for instant mid-market rate money transfers. (n.d.). Retrieved from https://www.pymnts.com/news/payments/2022/wise-partners-with-standard-chartered-sc-remit-for-instant-mid-market-rate-money-transfers/ 5. Wise gains direct access to the Philippines instant payments system. (2023, January 10). Retrieved from https://www.finextra.com/pressarticle/91343/wise-gains-direct-access-to-the-philippines-instant-payments-system 6. Amazon explores blockchain technology for cross-border payments for independent MSMEs. (n.d.). Retrieved from https://www.finextra.com/pressarticle/91309/amazon-explores-blockchain-technology-for-cross-border-payments-for-independent-msmes 7. Amazon partners with HSBC and payments infrastructure provider StraitsX for digital tokens demo. (n.d.). Retrieved from https://www.pymnts.com/news/payments/2022/amazon-partners-with-hsbc-and-payments-infrastructure-provider-straitsx-for-digital-tokens-demo/ 8. Amazon demo of digital tokens meant to be conceptual, no plans to launch related service or product. (n.d.). Retrieved from https://www.coindesk.com/business/2022/11/23/amazon-demo-of-digital-tokens-meant-to-be-conceptual-no-plans-to-launch-related-service-or-product/ 9. Ant International expands partnerships with regional payments applications. (n.d.). Retrieved from https://www.finextra.com/pressarticle/91284/ant-international-expands-partnerships-with-regional-payments-applications 10. Ant International aims to improve Alipay's coverage in popular travel destinations. (n.d.). Retrieved from https://www.pymnts.com/news/payments/2022/ant-international-aims-to-improve-alipays-coverage-in-popular-travel-destinations/ 11. Cross-border payment flows exceeded $150 trillion globally in 2022. (n.d.). Retrieved from https://www.finextra.com/pressarticle/89660/cross-border-payment-flows-exceeded-150-trillion-globally-in-2022 12. Global B2B payments market to surpass $111 trillion by 2027. (n.d.). Retrieved from https://www.pymnts.com/news/payments/2022/global-b2b-payments-market-to-surpass-111-trillion-by-2027/ 13. Digital B2B payments market projected to reach $27.8 trillion by 2032. (n.d.). Retrieved from https://www.pymnts.com/news/payments/2022/digital-b2b-payments-market-projected-to-reach-278-trillion-by-2032/ 14. Stablecoin-based cross-border payments estimate annualized volume in tens of billions of dollars. (n.d.). Retrieved from https://www.coindesk.com/business/2022/12/12/stablecoin-based-cross-border-payments-estimate-annualized-volume-in-tens-of-billions-of-dollars/ 15. Singapore Fintech Festival focuses on AI and quantum technology. (n.d.). Retrieved from https://www.finextra.com/pressarticle/91307/singapore-fintech-festival-focuses-on-ai-and-quantum-technology
- Wise's access to Japan's payment clearing network and the Philippines' instant payments system demonstrate their commitment to expanding their business in the cross-border payments market, utilizing technology.
- In the global B2B cross-border payments market, technology companies like Amazon are exploring blockchain solutions to simplify transactions, particularly for independent MSMEs, capitalizing on the substantial market potential.
