Posted on: 15th April 2025

Cross-Border Payment Innovations in Asia

In today's digital world, sending money across borders should be as easy as sending a text message. And in Asia, that's quickly becoming a reality.

From real-time transfers to QR code payments, the region is full of exciting innovations, making cross-border payments faster, cheaper, and more secure.

In this article, we'll look at the key developments shaping this space – and what they mean for businesses and consumers alike.

Real-Time Payments: The New Normal

Waiting days for an international payment to clear is becoming a thing of the past. Across Asia, countries are linking their real-time payment systems to allow instant border transfers.

One great example is the connection between Singapore's PayNow and Thailand's PromptPay.

This system lets people send money using a mobile number, and the funds arrive in seconds – even if the sender and receiver are from different countries.

India is also expanding its Unified Payments Interface (UPI) to work with Singapore, Malaysia, and the UAE systems. Users can transfer money internationally without relying on costly and slow traditional methods.

These innovations make life easier and support trade, travel, and family remittances, all of which are major parts of the region's economy.

QR Code Payments Across Borders

QR codes have become common in Asia, especially for mobile payments. Now, countries are working together to make cross-border QR payments possible.

In Southeast Asia, Indonesia, Malaysia, Singapore, and Thailand are connecting their national QR payment systems. That means a tourist from Malaysia can shop in Thailand and pay by scanning a QR code – using their own currency and local bank app.

This is especially helpful for small businesses and travellers. It simplifies spending abroad and avoids foreign card fees – all while supporting the use of local currencies.

CBDCs and Blockchain: The Next Frontier

Central banks in Asia are also exploring digital currencies and blockchain to improve cross-border payments.

The mBridge project is a joint effort by the central banks of China, Hong Kong, Thailand, and the UAE. It's testing how central bank digital currencies (CBDCs) can make real-time, low-cost payments across countries – all without converting to US dollars.

China has also developed CIPS (the Cross-Border Interbank Payment System), which supports global transactions in Chinese yuan (RMB). It's part of the country's push to give businesses an alternative to the SWIFT network and increase the use of its currency worldwide.

Blockchain and digital currencies could make cross-border payments faster, more secure, and more transparent – especially for larger business transactions.

Fintechs Shaking up the Market

It's not just governments driving innovation. Fintech companies are playing a huge role, too.

Wise (formerly TransferWise) recently became the first foreign firm to connect directly to Japan's Zengin payment network. This allows the company to process payments more efficiently and with lower customer fees.

Stripe, another big name in fintech, is using AI to help businesses in Asia manage cross-border payments . This technology helps with fraud prevention, exchange rate handling, and smoother checkouts for online shops.

These players are creating more market choices and helping reduce costs, which is good news for businesses and consumers alike.

Partnerships and Regulation: Building the Right Foundations

Regulatory support and international partnerships are key for cross-border payments to work smoothly.

One major initiative is Project Nexus, led by the Bank for International Settlements (BIS). It aims to connect instant payment systems across countries, starting with India, Malaysia, the Philippines, Singapore, and Thailand.

India is also pushing to promote UPI internationally. The goal? To make it a global network that can rival giants like Visa and Mastercard but with lower costs and easier compliance.

By working together, governments and regulators can help make cross-border payments safer and simpler for everyone.

What it Means for You

So, how do these innovations affect everyday people and businesses?

For consumers, it means quicker and cheaper ways to send money home, pay for travel, or shop internationally. You don't need to worry about high bank fees or long delays.

These payment systems can unlock new markets for businesses, especially small ones. Whether selling online or working with partners abroad, easier cross-border payments mean faster cash flow and fewer headaches.

And for the wider economy, these changes support financial inclusion, helping more people get access to digital financial tools – no matter where they live.

Looking Ahead: What's Next for Asia?

Asia is leading the way when it comes to modernising cross-border payments. The region has bold ideas and practical solutions, from digital currencies to real-time mobile transfers.

As more countries connect their systems and embrace new technologies, we'll likely see even more benefits – not just for Asia but also for global trade and finance.

At Holborn, we support our clients through this evolving landscape. Whether you're managing international payments or exploring growth in new markets, we're here to help you navigate the change.