“My transaction took forever to complete,” complains a small business owner who relies on PayPal to send money to her supplier. A walk-in customer, however, mentions how his payment with M-PESA barely took a minute the day before. Just like that, she’s sold—M-PESA unofficially gains a new customer. This perfectly illustrates how quickly speed—or the lack of it—can sway customer loyalty.
A new report on Emerging Trends in Cross-Border Payments authored by Favour Aroghene Ndulu (Payment Marketing Expert) and Paschal Okeke (Head of Ops & Expansion at CrissCross) emphasises the critical role of rapid transaction speeds and exceptional customer experiences for businesses operating globally.
This sentiment is especially true in regions where slow transaction speeds plague users, like Portugal, where delays aren’t even caused by slow internet but by legacy systems and outdated infrastructure. Over the years, these demands have driven significant innovations in cross-border payment systems.
This article highlights key findings from the Emerging Trends in Cross-Border Payments report featuring insights from industry leaders like Solomon Amadi (SVP Payment, Moniepoint), Dickson Nsofor (CEO, Kora), and James Cope (CEO, Criss Cross). Let’s look at how technological breakthroughs are making instant payments a reality.
TL;DR:
- Cross-border payments in Africa are especially sensitive to delays, where speed is a crucial factor for businesses and remittances.
- 72.2% of respondents rank transaction speed as the top factor in choosing a payment service.
- 44.4% of respondents consider security a critical factor in accelerating processing times.
- Transaction speeds in some regions: UK, Singapore, and Thailand average around 0.5 seconds, while Portugal sees delays of 5-10 seconds due to outdated infrastructure.
- Blockchain, optimised APIs, and decentralised systems are emerging as key technologies to reduce transaction delays.
The role of domestic payment rails in cross-border speed
It all starts at home. Domestic payment rails are the systems that make sending money within a country quick and hassle-free. Take Brazil’s PIX, India’s UPI, or Nigeria’s NIBSS, for instance. These platforms enable instant local transactions, building a strong foundation for faster and more efficient international payments.
For payment companies, it’s worth considering that the magic happens when these local systems are connected to global payment networks, minimising delays and creating a more reliable transaction experience for everyone involved.
By examining the ways platforms like Paystack and Flutterwave have connected local merchants in Africa to international buyers, payment providers can uncover growth opportunities and create stronger links between domestic and global markets.
Read Also: Paystack partners NIBSS to launch Direct Debit in Nigeria
Blockchain technology is the next frontier for faster payments
The promise of blockchain is cutting out middlemen like traditional financial institutions giving payments a faster and smoother ride. Imagine sending money directly to someone across the globe without waiting for a bank to process it.
This technology enables peer-to-peer transactions where payments can move in real-time, and it is a big move to consider when optimising systems, particularly in terms of speed and cost-effectiveness.
Though blockchain is still new in many African countries, its potential is hard to ignore. For example, companies like Zone in Nigeria are testing blockchain-powered payment solutions, showing early signs of what’s possible. Over time, stakeholders believe that blockchain could lower costs, speed up payments, and add an extra layer of security with its transparent, tamper-proof ledger that keeps track of every transaction.
“More businesses need to leverage blockchain for business payments and cross-border settlements, such as moving money between business entities, repatriating funds from emerging markets, or facilitating FX transactions,” says Paschal Okeke Head of Ops and Expansion, Criss Cross.
What’s more, with decentralised finance (DeFi) built on blockchain, international payment companies might not even need foreign exchange intermediaries to stay ahead.
Simplified cross-border transactions using customer-centric solutions
The true disruptors in the cross-border payment space will be those who reduce the steps needed to complete a transaction. Much like Amazon’s success in retail with a one-click ordering system, payment providers who can evaluate their user journeys to remove friction from the cross-border payment experience will be the ones that lead the way.
Many businesses still face the frustration of traditional banking systems where payments can disappear into a “black hole” for days with no real-time updates. Blockchain’s transparent ledger is already addressing this by the way.
At the same time, real-time payment networks like Brazil’s PIX and the UK’s Faster Payments have replaced old batch-processing methods with instant transfers. With these systems in place, transactions move across borders in seconds, even late at night or on weekends.
“It’s important to note that for most customers, the underlying technology doesn’t matter; they prioritise speed and cost, Solomon Amadi, SVP of payment at Moniepoint says. “Whether a transaction leverages blockchain or more traditional infrastructure is irrelevant to them as long as it delivers fast and reliable results.”
One algorithm at a time, AI and Machine Learning are speeding up payments
AI is already playing a pivotal role in the evolution of cross-border payments. Imagine if compliance checks happened instantly, how much faster would payments move?
Jeremy Awori, head of Ecobank Group, shared with The EastAfrican that regional banks are increasingly leveraging AI to enhance customer experience and accelerate settlement speeds.
Investing in similar technologies will keep your cross-border platform afloat considering the competition.
Machine learning, for one, takes efficiency a step further by optimising the entire payment journey, picking the best transaction routes based on factors like currency exchange rates, transaction fees, and regulations. For businesses and individuals, this means providing quicker payments at lower costs.
Exploring AI-driven compliance checks and KYC processes can significantly reduce processing times without sacrificing safety—everything users expect.
Optimised APIs to singularise operations
For cross-border payment providers operating globally, open banking and Application Programming Interfaces (APIs) simplify complex operations.
Rather than establishing local systems in every country, a single API can efficiently link brokers, liquidity partners, and financial institutions, significantly speeding up cross-border settlements.
Payment businesses might need to consider implementing this solution to boost efficiency and reduce operational overhead. Additionally, these APIs allow real-time access to exchange rates, which protects transactions from currency fluctuations and ensures smooth payments worldwide.
In Africa, multi-currency account APIs are already making headway in countries like Nigeria, Ghana, and Kenya. However, for wider adoption, especially across the continent, businesses can welcome partnerships to push these innovations further.
But how fast can a transaction get?
Blockchain and APIs are speeding things up but the pace still depends on factors like technology, cost, and infrastructure.
With instant domestic systems like Zelle setting new benchmarks, and in countries where real-time systems are already in place, expectations for cross-border payments are rising.
The G20’s goal of having 75% of cross-border payments reach the recipient’s account by 2027 is ambitious, but achievable. Although high-speed countries are already meeting these targets, delays still happen in other regions due to regulatory controls, market hours, and manual checks.
Ultimately, Africa is moving towards faster payments. According to the guide, cross-border payments are expected to hit $40 billion by 2025 in the region, but you know the drill. How quickly a transaction can be completed still depends on where it’s going and the systems in place.
The report also shares market opportunities for cross-border payments in Africa, marketing and growth strategies for 2025 and more.
Learn about other emerging trends in the cross-border payment landscape. Read the full report here.
