Challenge and opportunity: The future of cross-border transactions
By: Ken Wong
March 31, 2021 - 1 minute 30 seconds
In an ever-expanding economy, our clients are challenging us to make their global payments and collections needs more efficient, faster, safer and available 24/7. However, payments are only as good as the payment network. For a payment to go smoothly every time, it would be ideal if every bank around the world is on the same network; however, the payment eco-system is quite fragmented. To support a unified system, we need to connect the various payment networks to create a ubiquitous eco-system; a network of networks.
The number of countries implementing a faster payments system is growing which creates a unique opportunity to ensure that they are interoperable for cross-border payments by building them to agreed industry standards. Otherwise, the differences in the technical and policy implementation of the various payment networks may potentially create diverging standards that would make interoperability between these payment networks difficult.
The beauty of this challenge is that it creates an opportunity for the global payments community to prepare for future innovation by agreeing on some basic standards to ensure impending interoperability.
We are excited for the future of global payments, and to help inspire how that future unfolds. Our colleagues have actively participated and support the Banker's Association for Finance and Trade's (BAFT) authoring of the paper "Enabling Faster Payments Across Borders".
The objective of the paper is to advocate strategic thinking through faster payments system operators to ensure the necessary components are incorporated in their base design, so they are not overlooked or lost. The paper articulates a series of recommendations surrounding interoperability, business processes, and regulatory and compliance, as well as guiding principles that should be considered when developing or enhancing a new or existing faster payment system.
We are proud to have been part of the working group that explored the potential of cross-border payment capabilities and of our colleagues for providing the insights and expertise on the development of a global, faster payment system.
The number of countries implementing a faster payments system is growing which creates a unique opportunity to ensure that they are interoperable for cross-border payments by building them to agreed industry standards. Otherwise, the differences in the technical and policy implementation of the various payment networks may potentially create diverging standards that would make interoperability between these payment networks difficult.
The beauty of this challenge is that it creates an opportunity for the global payments community to prepare for future innovation by agreeing on some basic standards to ensure impending interoperability.
We are excited for the future of global payments, and to help inspire how that future unfolds. Our colleagues have actively participated and support the Banker's Association for Finance and Trade's (BAFT) authoring of the paper "Enabling Faster Payments Across Borders".
The objective of the paper is to advocate strategic thinking through faster payments system operators to ensure the necessary components are incorporated in their base design, so they are not overlooked or lost. The paper articulates a series of recommendations surrounding interoperability, business processes, and regulatory and compliance, as well as guiding principles that should be considered when developing or enhancing a new or existing faster payment system.
We are proud to have been part of the working group that explored the potential of cross-border payment capabilities and of our colleagues for providing the insights and expertise on the development of a global, faster payment system.
Click here to read the full Enabling Faster Payments Across Borders report
Director and Head of Product Strategy and Innovation, Global Transaction Banking, TD Securities
Director and Head of Product Strategy and Innovation, Global Transaction Banking, TD Securities
Director and Head of Product Strategy and Innovation, Global Transaction Banking, TD Securities