The Continuing Case for Cryptocurrency in Cross-Border Payments

The challenge of making cross-border payments faster, less expensive, more accessible, and more transparent has given rise to fintechs, working groups, initiatives by legacy players in finance, and others, all focused on making these difficult transactions more scalable and digestible. Meanwhile, the larger themes of payments evolution—notably the widening field of instant payments and a push toward open banking and interoperability—have spawned new tools for tackling old problems.

This Javelin Strategy & Research report looks at cross-border payments and the varied reasons for their inherent difficulties, focusing on cryptocurrencies and digital assets as tools for solving—or lessening—those problems. Cross-border payments represent a massive opportunity for innovators and disruptors, and the cryptocurrency industry can claim both mantles. There is also much competition from other forms of money movement—notably systems like India’s Unified Payments Interface and Brazil’s Pix—that are seeking to redefine the space. The advantage in recasting cross-border payments will go to the innovators that can bridge the historical gaps seamlessly and at scale.

Key questions discussed in this report:

• What are the historical barriers to efficient and accessible cross-border payments?
• How can cryptocurrencies and digital assets be employed to break down those barriers?
• What should be the roles of traditional stakeholders—such as central banks, retail banks, and money transfer operators—in cross-border solutions involving cryptocurrencies and other digital assets?
   

Companies Mentioned:

Abra, Accenture, BDO Unibank, Cashaa, Celo, Circle, Citibank, Crypto.com, Electroneum, Knomad.org, LaLa World, Mastercard, MoneyGram, National Payment Corporation of India, Neutronpay, Nuvei, PayPal, Pouch.ph, Remitly, Ripple, Solana, Stellar, SureRemit, Swift, Tether, The Atlantic Council, The Digital Dollar Project, Viamericas, Visa, Walmart, Wells Fargo, Western Union, Wirex, Wise, Worldpay