• SWIFT’s dominance is coming under threat from agile competitors and payments aggregators, but maintains it isn’t going anywhere
• Blockchain illustrates how systems such as self-sovereign identities mean that there’s more than just FX at play when it comes to payments
• Big banks are fighting back to take on regional fintech platforms and smaller banks will have to focus on domestic markets

Seamless digital transactions are already making banking less visible and more accessible, no matter who you are or where you live. To this end, cross-border payments are becoming a touchstone for financial innovation — and those who are not already thinking outside the box will be left behind.

We are seeing a rapidly evolving payment space. Features such as payments-as-a-service, one-click payments, invisible payments, spread payments and even payments subscription services all vie for market share in a landscape that has in recent years evolved away from traditional financial institutions (FIs) as the sole providers of these services. The adoption of ISO 20022, which facilitates transactions across borders between FIs and non-FIs, is increasing rapidly, with over 200 global initiatives already using the standard.

The coronavirus pandemic has also accelerated the move to cashless transactions globally, following a directive from the World Health Organization to use contactless payment wherever possible. At the height of the pandemic, some countries reported reductions in ATM withdrawals of 50% over just a few days. At the same time, the global payments economy has been significantly affected, with an estimated 25% to 30% decrease in cross-border consumer to business payments. However, the industry remains confident that the post-pandemic world will still see the cross-border payments sphere continuing its rapid evolution.

SWIFT says that old dogs can learn new tricks

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