VIDEO | Switching payments to ‘always-on’

The eagle-eyed among us have noticed a rise in advertisements promoting a fresh remittance service entering the market. The appification of cross-border payments demonstrates the transformation of the industry, as it shifts towards digital solutions in response to the growing demand for speed and efficiency.

To satisfy this need for speed, payment services provider Mastercard has recently introduced Move– a service offering near-real-time, cross-border commercial payments 24/7. In its year in operation, Move has proven successful among the 95% of the world’s banked population which it serves; its reach is well-suited for the age of international transactions.

Mastercard’s Pratik Khowala, Executive VP of Global Transfer Solutions, and Rasika Raina, Executive VP of Mastercard Move, have much to share on this innovation. At the 2025 Sibos Conference, in Frankfurt, Germany, Mahika Ravika Shankar, Deputy Editor at Trade Finance Global (TFG), had the opportunity to find out more about industry achievements, trends, goals, and what Mastercard brings to the table. 

Cross-border payments serve all types of clients, including individuals, SMEs, and corporations. All are united by the desire for instant transaction speed, or, as Raina described, “that dream-like state of instant payment nirvana”. But to get there requires international harmonisation and compliance on the regulatory domain. 

But customer expectations of even faster payments prove to be a double-edged sword: they fuel innovation but come at a significant cost for those trying to navigate often incongruous regulatory frameworks. 

Khowala pointed out that “We just need to take care of all the regulatory needs that every jurisdiction has so that we can move money in the same way. We need to get integrated into the local payment scheme.”

Collaboration can act as a bridge over the rocky road of regulation. Announced just under a fortnight before Sibos 2024, the Citi and Mastercard collaboration marked a turning point for Citi clients, offering better interoperability across 65 countries.

With cross-border payments generally valued at $150 trillion per annum, prioritising a user-first experience is non-negotiable; for “everything to happen in a microsecond”, as Raina remarked, remains the primary goal. 

The remit of remittances

The remittance industry has attracted much R&D. Ironically, “a large percentage of our remittance flows are actually geared towards what some call ‘blue collar workers’,” noted Raina. “Sometimes what happens is the recipient is actually sitting at the kiosk at an agent waiting for the cash to come in.” The remittance industry is competing with primitive-like processes at the same time. 

In 2024, approximately $860 billion was transferred to low- and middle-income countries. With asynchronous financial infrastructures pervading the expansive geography covered by remittance payments, “the ecosystem that governs the remittance is very fragmented amongst the instrument types. For example, some people send to bank accounts, some people send to a wallet, some people send to cash,” emphasised Raina. As a result, she said, “liquidity positioning has to happen upfront.” This is a complex yet essential function that providers like Mastercard have to bridge. 

Instantaneous payments have faced challenges. For instance, Santander’s international payment service, Pago FX, launched in 2020 and was discontinued a year and a half later, given operational complexities, costly processes, and the unprecedented backdrop of the COVID-19 Pandemic.

Fortunately, since then, fintechs have been succeeding by leaps and bounds – a ‘remittance race’ that has created unprecedented levels of connectivity and inclusivity for cross-border payments. But the unique set of challenges posed remains, since, as Raina reinforced, remittance markets are a “capital-heavy business.” 

Outlook for SMEs and corporates in cross-border momentum

Flexibility for SMEs will help alleviate any challenges they may face in accessing global markets, achieving growth, and mitigating costs. Mastercard aims to “enable them to send money to all their trade corridors,” said Khowala. As an example, provision of forward contracts can help SMEs who “want to buy currency for three days from now,” he explained.

Transaction speed across borders remains a sticking point for SMEs, with at least one-third of these organisations having previously experienced issues worldwide, including delays or failures. Many SMEs will likely lack the capacity to handle slow transfers, compounded by regulatory burdens. 

The issue is similar for corporates – but scaled up. 

Raina reminds us that the bureaucracy for large corporates has additional layers of complexity – “The problem is that the way the remittance industry has evolved into real-time, the corporate industry hasn’t.” But growth among corporates will inevitably be fueled by real-time payments, combined with cost savings: a reality which Khowala recognises cannot be shied away from.

Cutting costs without cutting corners

Remittance providers are being asked to handle competing priorities.

Raina mentioned the challenges of the G20 roadmap to reduce the cost of remittance payments – “The G20 goals are driving towards under 3%, our structure doesn’t allow us to get to that 3% very easily.” As of Q1 2025, the cost of remittances has risen to 6.49%, a 3.67% increase from 6.26% in Q4 2024.

The aim to lower the cost of remittances presents a significant challenge to an already expensive process. It must be possible to manage profit margins while recognising the progress made by the likes of Mastercard Move.

At the same time, Mastercard continues to invest in the very fundamentals of its cross-border payment offering – security and fraud protection. “Security is in everything we do. If I cannot make secure payments, then I shouldn’t be in the business. So that is a given,” claimed Raina.

In response to the G20 goals for enhanced safeguards on cross-border payments, the Financial Action Task Force (FATF) updated its standards accordingly. 

The saturation and sophistication of fraud within the payments sphere are unavoidable. “They are all in the P2P space”, said Raina. 

No continent is safe from the variety of scams that threaten all forms of payment. Europe has seen a 35% increase in phishing scams, while the Middle East has experienced a 22% growth in cross-border fraud. Additionally, mobile money fraud is on the rise in Africa.

As has been demonstrated globally, AI-driven fraud detection services have achieved an average accuracy of 95%. Khowala speaks optimistically of digitisation and AI as having the potential to “help us in a meaningful way.” From real-time transaction and behavioural analysis to risk assessment, AI has helpfully automated and optimised fraud prevention services. 

The recent announcement of the European Central Bank picking Portuguese startup Feedzai as the chosen one to slash fraudulent digital euro activity, centralised investment marks an encouraging trend. Corporations and governments harmonising the user experience harkens benefits for all.

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The cross-border payments industry faces significant pressure. To survive and grow, “it will come down to collaboration and innovation,” Khowala emphasised.

Mastercard is prepared: collaborations and partnerships with Citi, Corpay, and Buna are diversifying Mastercard Move’s industry shake-up as they continue to redefine the ‘near-real-time’ possibilities.