Supporting Cross-Border Payments at Scale
Cross-border payments are financial transactions requiring a transfer of funds across international borders, whether purchasing goods directly from a company in another country, sending money to a friend abroad, or paying an international supplier for industrial goods. These transfers often require currency conversion, adhering to different regulatory frameworks, and working through different payment systems within each jurisdiction.
The cross-border payments market is expanding rapidly, driven by several factors. Globalization is impacting companies of all sizes as they rely on complex, international supply chains, a global customer base, and international investors. Online marketplaces and direct-to-consumer (D2C) models have enabled consumers worldwide to purchase goods and services from international sellers. An increase in employees working abroad means more people sending portions of their income to their home countries, while the rise of remote work and the “gig economy” allows more people to work for companies in other countries.
Meanwhile, rising demand on the part of businesses and consumers for fast, secure, and low-cost international transactions has accelerated fintech innovations and the evolution of regulations around open banking to make cross-border payments faster, cheaper, and more accessible.
As a result, the cross-border payments market is projected to grow from $39.57 trillion in 2023 to $156 trillion by 2030, and real-time cross-border payments are expected to account for 20% of global payments by the same year.
It is critical to recognize, however, that along with the rapid rise of cross-border payments, there has also been a massive increase in fraud and suspicious payments. Supporting the increase in cross-border payments while battling increasing fraud is putting a tremendous burden on the IT infrastructure of financial services firms.
How GridGain Supports Cross-Border Payments
Banks that want to stay competitive must be prepared to support the various requirements of cross-border payments at scale, including:
- Real-time Data Sharing: Cross-border payments require the secure and efficient exchange of vast amounts of financial data via APIs. GridGain's in-memory computing platform ensures data is readily available for real-time access and analysis, enabling faster transactions and improved customer satisfaction.
- Scalability and Performance: As cross-border payments increase, bank infrastructures must enable Increased transaction throughput with reduced latency. GridGain's unified, scalable architecture ensures ultra-fast processing of massive datasets, even during peak usage periods. GridGain’s increased performance and simplified management reduces the burden on both the database infrastructure and administration teams, lowering operational costs.
- High Availability: As banks expand the types of cross-border payment services they offer, they require constant system uptime to guarantee reliable access to financial data. GridGain's distributed architecture eliminates single points of failure, ensuring data is always accessible and services remain uninterrupted.
- Security and Compliance: Security is paramount for cross-border payments. GridGain prioritizes data protection with robust encryption, access controls, and audit trails, complying with the strictest regulatory requirements around the world. GridGain includes a continuously learning AI/ML framework to detect and prevent fraud in real-time.
- Flexibility and Innovation: Banks are under constant pressure to offer new cross-payment services. GridGain's flexible platform allows businesses to easily adapt and innovate to keep pace with the evolving payments landscape.
To learn more about how GridGain’s unified real-time data platform can support cross-border payments at scale, read RESOURCE? for a quick primer, download this eBook, or contact us directly.