In today’s interconnected world, businesses are no longer confined to domestic borders. As businesses expand into new markets, cross-border payments become a critical and complex element of global growth. Navigating multiple currencies, understanding local payment preferences, and working within different regulatory frameworks present significant hurdles.  

In this version of "Insider Insights", we explore the challenges businesses face as they scale internationally, and the innovations transforming the payments ecosystem as we move towards a World without Currency Borders^TM.  

Navigating Complexity: More Than Just Currency Exchange

As businesses grow beyond their home markets, the complexity of cross-border payments becomes apparent. Aaron Koh, Head of Payment Methods for APAC and Singapore Country Manager at Unlimit, explains, "One of the biggest challenges businesses face is adapting to local payment methods. For instance, a retailer in Singapore may rely heavily on credit cards and digital wallets, but expanding into Mexico or Brazil introduces a whole new landscape where cash might still dominate. Understanding local preferences is just the beginning."

Beyond payment methods, the intricacies of handling multiple currencies present significant hurdles. “If you’re operating in five different countries, you’re dealing with five different currencies. The complexity of reconciling and settling funds across borders quickly adds up,” says Aaron.

The friction of cross-border transactions goes beyond foreign exchange (FX) rates – it touches everything from compliance with local regulations to currency conversion, liquidity management, and cash flow. "It’s not just about exchanging money, but ensuring the entire payment process is as seamless and efficient as possible," he adds.

The Shift to Real-Time: Moving Beyond Manual Processes

Over the past decade, the payment space has evolved drastically. Aaron recalls how, early in his career, processes were manual and cumbersome. “Everything from onboarding customers to executing transactions required manual intervention. Today, we’ve moved to real-time payments, API integrations, and seamless digital experiences.”

This shift has paved the way for innovative solutions like multi-currency accounts and automated foreign exchange management, giving businesses the ability to scale faster while minimising operational inefficiencies. "We're seeing an expansion in the suite of products offered to businesses, enabling them to send and receive payments in multiple currencies without the traditional delays," says Aaron.

The Next Frontier in Cross-Border Settlements: Stablecoins and More

Looking into the future of payments, Aaron points to two significant trends. The first is the interlinking of real-time payment infrastructures across countries. "We’re already seeing this within Asia, where countries like Singapore, Malaysia, Thailand, and Indonesia have linked their domestic payment systems. As a consumer, you can travel across borders without the need for cash – just scan a QR code and pay instantly."

Aaron is optimistic that this trend will expand globally. He cites initiatives like the Monetary Authority of Singapore’s Project Nexus, which aims to create a global network of linked payment systems. “Imagine being able to use your GrabPay wallet to pay in a restaurant in Mexico or Italy without needing to worry about currency conversions or foreign transaction fees. That’s the future I envision,” he says.

The second emerging trend is the rise of stablecoins as a settlement method. "Stablecoins offer a way to settle transactions between institutions more efficiently, bypassing some of the traditional banking hurdles that slow down cross-border payments. While it's still in the early stages, this is a development worth watching closely," Aaron explains.  

The Power of Collaboration in Overcoming Challenges

The payments ecosystem thrives on collaboration between businesses, financial institutions, and regulators. “The success of an ecosystem comes from the active participation of all its players,” Aaron emphasises.

So how can businesses overcome the challenges of cross-border payments? Aaron’s advice is simple: work closely with your financial partners. "The key is information sharing. Don’t hesitate to ask your account manager or relationship manager about the options available to you. Many businesses are unaware of the solutions their providers can offer, whether it's multi-currency accounts, FX management, or cross-border cash flow solutions.”

A Borderless Future: What’s Next?

The future of cross-border payments is one of seamless global integration. As real-time payment infrastructures expand and innovations like stablecoins continue to evolve, the possibility of a World without Currency Borders^TM becomes more tangible. Aaron envisions a world where businesses and consumers can make payments anywhere, using any method, without the friction of currency exchange.  

For now, businesses looking to expand internationally should focus on leveraging the innovations that are already available – whether that’s multi-currency accounts, real-time payments, or even new settlement options – to turn cross-border payments from a challenge into a competitive advantage.

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For more information on how M-DAQ Global supports businesses in seamless cross-border FX and payments, visit here: www.m-daq.com. Follow M-DAQ Global on LinkedIn page to stay updated on latest developments in cross-border FX and payments.