Every day, millions of people around the world face a common challenge: moving money across borders quickly, safely, and affordably. As we step into 2025, this challenge has never been more pressing – or more solvable.
As someone who has witnessed the pain points of cross-border transactions first-hand, including long delays, opaque costs, and frustratingly complex systems – it’s clear that the demand for change is not just growing; it’s urgent.
Consumers today expect more. They want transactions that are fast, affordable, and seamless—experiences that feel intuitive, not transactional. And why shouldn’t they? With the increasing penetration of smartphones and digital tools, the way we move money should match the ease of sending a text message or ordering a ride. Yet, for too many people, remittances remain slow, expensive, and difficult to access.
It’s a challenge that extends to small businesses too. Despite thriving regional trade, these businesses are juggling high operational costs and talent investments while grappling with the complexities of cross-border payments. The call for faster, safer, and more cost-effective solutions has never been louder.
Key trends ahead
As we look ahead to 2025, I believe the intersection of speed, ease, and inclusion will redefine what’s possible in payments and remittances. Here are three key trends shaping this future of remittances and cross-border transactions.
1. Blockchain powering efficiencies in cross-border transactions
One of the major pain points in bank transfers is the lack of transparency. Disguised as bank fees and unexplained charges, banks typically deduct a big chunk from a sender’s transfer amount. Alarmingly, neither the sender nor the receiver is aware of these charges until the transaction is processed, and the recipient ends up with less than what was intended.
Digital remittances have already alleviated this problem by offering faster, more affordable, and transparent solutions. Blockchain technology has the potential to build on this progress, reducing processing times and costs while providing complete transparency at every step. Instarem, for instance, has adopted Ripple’s blockchain payment solutions to enhance treasury operations and processes, significantly improving efficiency for our extensive base of SME clients.
Still, blockchain technology is not immune to risks such as fraud, regulatory uncertainty, and data security vulnerabilities. It is therefore crucial for the industry to strike a balance between blockchain’s efficiencies and implementing robust safeguards to protect users.
2. The rise of smarter payment systems
Generative AI is revolutionizing the payments ecosystem. Longstanding innovations like voice-based remittances have for many years enabled users to initiate transactions with simple commands, bringing unparalleled accessibility. Today, AI-powered chatbots are streamlining customer support, resolving issues around the clock, and driving cost efficiencies.
Looking ahead, virtual remittance assistants could further automate complex processes like payment tracking and error detection. These AI-driven tools are also pivotal for financial inclusion, particularly for underserved communities, by making payment systems more intuitive and accessible.
3. Stronger cross-border collaboration
The growing alignment of regulatory frameworks across Southeast Asia is a powerful force driving innovation in cross-border payments. Policies such as Singapore’s Payment Services Act and Malaysia’s expanded DuitNow network are nurturing an environment where financial services can thrive securely and aid SME growth aspirations.
Interoperability is gradually becoming a standard rather than an exception, allowing businesses to transact seamlessly across borders. This collaborative approach is setting the stage for a more connected and equitable global payments ecosystem.
The path forward
The convergence of blockchain, AI, and cross-border collaboration is charting a new course for global payments. Yet, at the heart of this transformation lies a simple but powerful vision: making financial services faster, easier, and more inclusive for everyone.
As we look to the future, the stakes couldn’t be higher. Whether it’s an individual sending money home to their near and dear ones or a small business scaling across borders, innovation must translate into meaningful impact. The tools and technologies to solve these challenges exist, the end goal is bringing them together to create a system that works for everyone.
Yogesh Sangle is the Global Head of Instarem.
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