If you pay for something online or in a physical store, the money is transferred from your account to the pop over to this site merchant’s by an electronic system. If the transaction is within the same country, it’s simple, but if you wish to pay outside of the country, there are currency conversions and transaction charges. The transaction can also take longer because of the numerous parties involved, which include international banks, banks in the US, and other payment systems.

Cross-border payments that are efficient and cost efficient as domestic payments are becoming more popular as the world becomes increasingly interconnected. These transactions can range from sending money to someone from another country to buying an item on the internet or off-line.

With the increasing globalisation in all aspects of our lives it is more commonplace, and even everyday events are now carried out in various currencies. People typically make these transactions when they travel abroad, send money to friends in other countries or purchase items from foreign eCommerce sites.

In a business setting, B2B cross border transactions comprise the largest share of the total value, predicted to reach US$1.6t in 2022. Consumer-to-Consumer payments (C2C) or remittances are the least important but they are still significant at US$0.8t. These transactions are driving growth in the cross-border mobile wallet and ecommerce industry.