In today’s digitally connected global economy, cross-border payments have become both a necessity and an opportunity for businesses of all sizes. From freelancers collaborating with international clients to startups scaling worldwide, the ability to efficiently send and receive funds across borders is critical to success. However, the landscape of cross-border payments is riddled with complexity. As someone who has led multiple startups and navigated the intricacies of scaling businesses internationally, I, Violetta Bonenkamp, will unpack the true value behind industry initiatives driving this vital sector forward.
The Revolution in Cross-Border Payments
Cross-border payments have evolved significantly in recent years. Traditional methods, like correspondent banking, often entail significant fees, slow processing times, and a lack of transparency. Today, cutting-edge initiatives are reshaping the sector, driven by goals such as lower costs, faster payments, and financial inclusivity. Notably, initiatives such as SWIFT GPI, ISO 20022, and Central Bank Digital Currencies (CBDCs) are leading the charge toward efficient transactions.
However, despite these developments, complexity remains a stumbling block for small businesses and solo entrepreneurs alike. Whether you’re paying international suppliers or receiving revenue from clients abroad, the process is still marred by unnecessary fees, differing regulations, and inefficiencies.
Let’s demystify some key industry initiatives.
Key Industry Trends and Statistics
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Central Bank Digital Currencies (CBDCs): According to the Atlantic Council, over 90% of central banks globally are exploring or developing CBDCs by 2023. These digital currencies promise faster settlement speeds, reduced currency conversion risks, and enhanced transparency. Learn more about progress on CBDCs through resources such as Atlantic Council's CBDC tracker.
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Projected Market Growth: The cross-border payments market, valued at $212.55 billion in 2024, is expected to grow to $320.73 billion by 2030. Growth is largely fueled by consumer-driven payments, particularly remittances, which surpassed $669 billion in 2023 and now represent more financial support for developing nations than foreign aid.
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ISO 20022 Migration: The ongoing global shift to ISO 20022 aims to standardize financial messaging across institutions, offering richer data and simplifying transactions. This migration helps small businesses build trust through increased payment transparency.
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FINANCIAL STABILITY BOARD & G20 Roadmap: Initiatives like the G20’s roadmap prioritize frictionless, cost-effective payments globally, creating a framework for interoperability among different payment systems.
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Emerging Market Focus: Notably, countries in Africa, Latin America, and Southeast Asia show significant adoption of innovative cross-border payment methods, making them ripe for exploration by entrepreneurs seeking to tap into high-growth regions.
Steps for Navigating Cross-Border Payments Efficiently
Navigating the labyrinth of global payments as an entrepreneur or startup founder doesn’t have to be complicated. Here’s your actionable guide:
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Evaluate Your Payment Needs: Identify your key regions, transaction frequencies, and average payment sizes. Are you handling goods or services? Is agility more critical than cost-savings?
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Research Payment Providers: Platforms like Wise and Payoneer have disrupted traditional payment systems, offering competitive fees and fast transfers. Compare features to find what aligns with your needs.
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Embrace Technology: Explore tech-forward solutions like CBDC pilots or ISO 20022-compliant platforms that prioritize transparency, speed, and security.
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Monitor Regulations: Stay informed about evolving regulations in the countries you work within. Resources like the OECD Blockchain Forum offer policy insights that can directly affect payment frameworks.
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Collaborate Smartly: Partner with financial institutions that specialize in cross-border payments within your niche. J.P. Morgan’s treasury solutions, for instance, streamline FX and liquidity management.
Most Common Mistakes to Avoid
Every entrepreneur faces challenges, especially when it comes to managing finances across borders. Here are some common pitfalls, and how to avoid them:
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Ignoring Hidden Fees: Many platforms boast exchange rate transparency, but deeper inspection often reveals inflated margins or processing fees. Choose a provider based on both upfront and hidden costs.
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Overlooking Financial Inclusion for Niche Markets: Emerging markets bring opportunities, but different payment infrastructures and consumer behaviors require customized strategies. Assess regional payment trends before scaling.
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Neglecting Real-time Payment Systems: As speed becomes increasingly critical, relying on traditional payment setups could unnecessarily delay cash flow. Leveraging instant payment corridors such as PromptPay-PayNow linkages could be a game-changer.
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Underestimating Marketing Speak: Many initiatives promise the moon but deliver limited practical advantages. Scrutinize offerings and don’t be swayed by hype.
Deep Insights: Beyond the Buzz
As a serial entrepreneur who has expanded business operations across Europe, Asia, and the U.S., I’ve learned the hard way that success in cross-border payments isn’t just about selecting the right platform. It’s about understanding the infrastructure behind the systems, collaborating strategically, and staying agile as regional policies shift. For example:
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Blockchain’s Role in Instant Payments: Governments are realizing blockchain’s potential for secure, real-time cross-border transfers. Entrepreneurs should seek payment networks already tapping into blockchain's efficiency.
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Alignment of Industry Initiatives: Fragmentation is a critical barrier. Look for providers and systems that focus on interoperability, platforms that bridge SWIFT, ISO 20022, and regional systems seamlessly.
Conclusion
Cross-border payments directly affect your business’s ability to scale, build client trust, and maintain operational efficiency. Industry initiatives are progressing toward better systems, but for entrepreneurs, the key lies in sorting the practical from the promotional.
Keep realistic benchmarks: Choose services providing speed, transparency, and flexibility, while avoiding high overhead costs. By educating yourself on trends and aligning with forward-thinking providers, you can position your business for seamless growth in a truly global market.
Dive deeper into the technological advancements shaping the cross-border payments landscape in the Finextra article on industry initiatives. As we embrace this new era of interconnected commerce, let’s not just adapt but lead the charge forward, one payment at a time.
FAQ
1. What are cross-border payments?
Cross-border payments are transactions where money is transferred between two parties in different countries. Typically, they involve banks, payment service providers, or innovative fintech platforms. Learn more about cross-border payments
2. What are some challenges associated with cross-border payments?
Common challenges include high fees, slow processing times, complexity due to varying regulations, and a lack of transparency. Explore challenges in cross-border payments
3. How are emerging markets benefiting from cross-border payment innovation?
Emerging markets, such as Africa, Latin America, and Southeast Asia, are adopting new payment methods that drive financial inclusivity and provide opportunities for entrepreneurs and consumers. Discover insights on emerging markets
4. What is the G20 Roadmap's role in cross-border payments?
The G20 Roadmap aims to reduce costs, increase transparency, and establish frictionless frameworks for global transactions by prioritizing interoperability among payment systems. Learn more about the G20 Roadmap
5. What advancements have SWIFT GPI brought to cross-border payments?
SWIFT GPI has revolutionized traditional cross-border payments by enabling faster, more secure transactions with tracking capabilities. Read about SWIFT GPI's impact
6. How do CBDCs enhance cross-border payments?
Central Bank Digital Currencies (CBDCs) promise faster settlements, minimized currency exchange risks, and improved transparency in global transactions. Explore CBDC advancements
7. What is ISO 20022 and why is it relevant?
ISO 20022 is an international standard for electronic data exchange in financial services, offering richer data for easier, transparent cross-border transaction processing. Learn more about ISO 20022
8. What trends are shaping the cross-border payment industry?
Major trends include real-time payments, blockchain integration, financial inclusivity in developing countries, and the growing influence of digital currencies. Discover current trends
9. How are real-time payment corridors transforming cross-border payments?
Initiatives like PromptPay-PayNow linkages enable instant mobile transfers between countries, making cross-border payment flows faster and more convenient. Explore real-time payment systems
10. Why is financial inclusion critical for cross-border payments?
Financial inclusion ensures that individuals in developing nations can access affordable payment systems, reducing dependency on costly foreign aid and increasing economic growth. Learn about financial inclusion impact
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.
