Key Challenges Faced by Banks, Credit Unions, and Solution Providers in Managing Cross-Border Payments
High operational costs due to factors like the presence of multiple intermediaries, the regulatory framework, and currency conversion
Long settlement time due to compliance checks at multiple levels
Lack of digitization and standardization across the payment value chain can lead to manual errors and pose security concerns
Lack of transparency in tracking payments and associated charges
Archaic payment systems that cause interoperability issues and operational inefficiencies
Bad customer experience due to inefficient STP processes and delays in reconciliation
Our high-value and cross-border payment solution includes
Modern technology stack that allows API-based and digital-first approaches to solutioning
ISO 20022 native architecture design to ensure interoperability, better compliance, improved security, and fraud prevention
Ability to configure cross-border banking services with the core offerings and scale as per demand
Blockchain integration to increase operational efficiency, reduce transaction costs, and secure information exchange
Feature-rich offerings, such as instant cross-border payments, SWIFT Go/GPI service, and multi-currency wallets, for a better customer experience
Robust UI/UX design and data dashboards to provide smooth payment tracking and high visibility on cash flows
AI-enabled intelligent routing to increase acceptance rates and monitor payment fraud in real-time
Opus offers the digital transformation of high-value and cross-border payments.
Achieves faster time to market, innovation-led growth, and operational efficiency through a modern tech stack
Capitalizes on ISO 20022 model to achieve interoperability and standardization
Enhances the end customer experience with simplified processes and quicker settlement
Improves STP rates due to real-time forex rates and automated reconciliation.
Provides lower operational costs and process transparency through blockchain and DeFi models
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Frequently asked questions
Any type of transaction that involves a payer and a payee from two different countries is termed a cross-border payment. Such a transaction requires currency conversion for settlement.
Financial institutions, FinTechs, or any merchant who wants to sell their products or services to global customers requires cross-border payments. To provide a higher value-add to the customer, it’s imperative to optimise the offerings based on the local preferences of their target market. This includes allowing local payment methods at the time of checkout.
In a cross-border banking process, the bank of the payee or customer will initiate a payment with a partnering bank in the receiving country. The partner bank will then process the payment to the bank of the seller entity as a domestic transaction. In certain situations, there might be more intermediaries that form part of this payment process.
Cross-border payments are usually costlier due to the presence of several intermediaries, the regulatory framework, and currency exchange fees. Unlike a domestic transaction, a cross-border payment may take several days to process. Security is another major concern for such transactions.
A cross-border payment is one of the most significant uses of blockchain technology. It uses distributed ledger technology to secure transactions across the funnel while removing intermediaries. Blockchain allows bi-directional messaging that enables almost real-time processing for cross-border payments.