Bank Indonesia, the country’s central bank, has granted the company a payment system service provider license, allowing it to facilitate domestic and cross-border payments in the world’s fourth most populous country, PingPong said Wednesday (July 31).

“As one of the largest and fastest growing economies in Southeast Asia, Indonesia offers an incredible opportunity for enterprises scaling their operations globally,” David Messenger, CEO of global businesses at PingPong, said in a news release. “This license enables us to expand our reach and provide enterprises with end-to-end, one-stop cross-border payment solutions.”

Indonesia, the release noted, has a significant consumer market, with its gross domestic product expected to hit $1.5 trillion this year. The country’s young population and large labor force have made it one of the fastest growing nations in Southeast Asia, and an increasingly crucial country for companies that want to expand their global footprint, PingPong said.

“For businesses focussing on international trade, this license will help them expand and gain access to the region’s $320 billion export market,” the company said.

PingPong already holds more than 60 payment licenses and permits around the world, including in the United States, EU, U.K., Hong Kong and mainland China.

In other news from the cross-border payments space, PYMNTS discussed the importance of lowering the cost of these payments last week in an interview with Ram Sundaram, COO at TerraPay, during a discussion for the series “What’s Next in Payments: The Halftime Report.”

The World Bank’s Sustainable Development Goals (SDGs) call for a reduction in the cost of cross-border remittances, which now stands at around 8%, underlining the importance of cost reduction as an innovation pillar within the payments field.

Sundaram said that his company’s mission is in line with this goal, aiming to reduce these costs further to allow for low-value transactions with prohibitive fees. These lower costs can unlock new use cases for cross-border services, he added, thus expanding revenue streams for financial institutions and service providers.

“If you do a $10 transaction today, you’ll probably spend a very significant part of that $10 as fees,” Sundaram said. “And we need to get to a point where that base fee is something that you don’t have to think about, so that you can do low-value transactions at scale — that could change the landscape of cross-border payments and remittances.”

The post PingPong Scores Payments License in Indonesia appeared first on PYMNTS.com.

The 91 WTO members participating in the discussions account for over 90% of global trade, and the joint statement’s co-conveners, Australia, Japan and Singapore, were able to pass an agreement banning the imposition of “customs duties on electronic transmissions between a person of one Party and a person of another Party.”

The 25-page agreement aims to harmonize the regulatory environment for eCommerce and facilitate smoother cross-border transactions, ensuring that the digital economy remains open and accessible, fostering innovation and growth.

And as businesses increasingly operate in a digital-first world, the implications of these new norms could be far-reaching, particularly for cross-border payments and commerce.

Read more: Could ISO 20022’s Data-Rich Messaging Fuel AI Innovation?

Role of Standardization

Crucially, within the text of the WTO agreement, are the hints of a slow-but-sure reimagining of cross-border commerce’s digital transformation — both around international e-invoicing and paperless global trade.

“The Parties recognize that electronic invoicing frameworks can help improve the cost effectiveness, efficiency, accuracy, and reliability of electronic commerce transactions. To the extent that a Party develops a measure related to electronic invoicing frameworks, it shall endeavour to design the measure to support cross-border interoperability, including by taking into account relevant international standards, guidelines, or recommendations, where they exist,” the agreement states.

As PYMNTS has covered, the move toward e-invoicing is not merely about converting a paper invoice into a digital format; it’s about reimagining the entire business-to-business (B2B) invoicing process to be more streamlined and better integrated into digital business ecosystems. The workflow transformation promises to reduce errors, lower costs, and speed up B2B payment processes, offering benefits to companies of all sizes.

Already, more than 80 countries have put in place a mandate for e-invoicing or continuous transaction control (CTC) requirements as governments around the world look to prioritize tax reform and real-time reporting.

PYMNTS Intelligence data has found that nearly half (45%) of small and medium-sized businesses (SMBs) cited manual invoice review as a problem when making payments, with 19% saying it was their top issue. 

Read more: Capturing the $250 Trillion Cross-Border Payments Opportunity

For businesses, particularly in the technology and eCommerce sectors, the continued absence of tariffs on electronic transmissions per the WTO agreement means reduced costs and barriers to entry in foreign markets. This can encourage more companies to engage in cross-border trade, expanding their customer base and revenue streams.

“With a view to creating a paperless border environment for trade in goods, the Parties recognize the importance of eliminating paper forms and documents required for importation, exportation, or transit of goods … each Party is encouraged to eliminate paper forms and documents, as appropriate, and transition towards using forms and documents in data-based formats,” states the WTO agreement.

Cross-border payments often involve multiple intermediaries, resulting in high fees and long processing times. By promoting interoperability, the new norms aim to streamline these processes, making it easier and cheaper for businesses to transact across borders. This is important for SMBs, which often face barriers when trying to enter foreign markets.

“If you do a $10 transaction today, you’ll probably spend a very significant part of that $10 as fees. And we need to get to a point where that base fee is something that you don’t have to think about, so that you can do low-value transactions at scale — that could change the landscape of cross-border payments,” Ram Sundaram, COO at TerraPay, explained to PYMNTS during a discussion for the series “What’s Next in Payments: The Halftime Report.”

Read more: 5 Ideas to Transform Cross-Border Commerce With Blockchain Solutions

At the same time, compliance is an ever-present issue, with local anti-money laundering (AML), know your customer (KYC) policies and sanctions screenings needing to be addressed for each individual region — and there are over 19,000 tax jurisdictions worldwide. Businesses must navigate a patchwork of regulations when conducting cross-border eCommerce, including varying standards for data protection, consumer rights and taxation. This complexity not only increases compliance costs but also creates uncertainty, which can deter companies from expanding internationally.

“Everything’s going more cross-border and getting regulated, so tax compliance regulation is huge for new business models in new markets,” Sovos CEO Kevin Akeroyd told PYMNTS in an April interview.

According to a recent PYMNTS Intelligence survey, the failure rate for cross-border payments approaches 11%, accounting for $3.8 billion in lost sales in 2023 alone.

As the global digital economy continues to grow, the hope is that the norms established by the WTO agreement can play a role in shaping the future of cross-border commerce. By fostering a more predictable and streamlined regulatory environment, the agreement aims help unlock the full potential of eCommerce, driving economic growth and innovation.

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Already, the first half of 2024 has been particularly action-packed for the payments industry, marked by significant technological advancements and strategic initiatives aimed at reducing transaction costs as a key way to spur greater interoperability and financial inclusion.

“There are two ways you can increase revenue: either by charging a customer more, or by reducing your costs. And the use of technology in reducing costs is something that is easier to do than trying to charge the customer more,” Ram Sundaram, COO at TerraPay, explained to PYMNTS during a discussion for the series “What’s Next in Payments: The Halftime Report.”

The World Bank’s Sustainable Development Goals (SDGs) mandate a reduction in the cost of cross-border remittances, which currently stands at around 8%, underscoring the importance of cost reduction as an innovation pillar within payments.

Sundaram said that TerraPay’s mission aligns with this goal, aiming to bring down these costs further to enable low-value transactions without prohibitive fees. This reduction in costs can unlock new use cases for cross-border services, thereby expanding revenue streams for financial institutions and service providers.

“If you do a $10 transaction today, you’ll probably spend a very significant part of that $10 as fees. And we need to get to a point where that base fee is something that you don’t have to think about, so that you can do low-value transactions at scale — that could change the landscape of cross-border payments and remittances,” he added.

“Apart from that, the way that you generate more revenues is that you create new use cases,” Sundaram said.

What’s Next in Payments Innovation: The Rise of Embedded Payments

Embedded payments, which seamlessly integrate financial services into various non-financial platforms, are revolutionizing user experiences with commerce and payments. This growing trend is not only enhancing convenience but also significantly reducing transaction friction in both retail and business-to-business (B2B) contexts.

According to Sundaram, the key to this innovation lies in embedding financial services where they are most needed — at the point of sale. This approach, exemplified by the growing popularity of buy now, pay later (BNPL) services, ties financial transactions directly into consumers’ daily activities, making them more accessible and user-friendly.

“There are very few financial services that we consume standalone … that’s why embedding them is the better user experience,” Sundaram said.

The backbone of these embedded payments innovations is the robust development and deployment of application programming interfaces (APIs), he added.

APIs facilitate the integration of diverse financial services into various platforms, enabling seamless interoperability between different financial instruments like wallets, bank accounts and cards.

Still, Sundaram highlighted the challenges in API development, particularly the standardization of data and harmonization of financial regulations across countries. As TerraPay itself operates in the cross-border space, navigating these challenges is crucial for ensuring compliance and scalability.

One of the more important strides in this area is the adoption of ISO 20022 messaging standards, which are becoming increasingly important in the cross-border payments ecosystem. With regulatory mandates pushing for this transition, financial institutions are upgrading their systems to support these standards, enhancing the efficiency and reliability of international transactions.

“Obviously, there’s a lot of work to be done on traditional financial institutions’ backends. Their systems need to be upgraded. They need to build these capabilities in, and that’s cost. So, there are challenges, but uptake is increasing exponentially,” Sundaram explained.

The Future Role of Compliance and Risk Management

In an ecosystem where financial services are ubiquitously embedded, robust compliance and risk management strategies are increasingly becoming paramount as operational table stakes.

Payment innovators are addressing these challenges by leveraging extensive data to ensure seamless compliance and risk mitigation, Sundaram said. By connecting directly to financial institutions and reducing the number of intermediaries, payments companies can access and utilize critical data more effectively. This approach not only enhances financial transparency but also aligns with global regulatory standards, balancing the need for data privacy with the demand for financial transparency.

“Balancing it all out is a significant challenge, and it needs to be done at the platform level … compliance and risk management are about data. The more and better data that you have, the more seamless your compliance and risk management can be,” Sundaram said.

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The new strategic partnership brings together TerraPay’s global money movement capabilities and YeePay’s enterprise payment services, the companies said in a Monday (July 8) press release.

Chen Yu, co-founder of YeePay, said in the release that the partnership “will allow both companies to work together to offer our customers a more secure, convenient and cost-effective payment experience.”

Ani Sane, co-founder and chief business officer at TerraPay, said: “Together, we are prepared to extend our services and better serve customers, making cross-border transactions more seamless and accessible.”

With this collaboration, the companies aim to provide payment services globally, according to the release.

YeePay’s payment solutions for enterprises include online, mobile and offline channels, together with streamlined settlement processes, the release said. The company offers customized solutions and value-added services for airline and travel, retail, internet finance, administration and education, cross-border and other verticals.

TerraPay’s money movement capabilities are powered by a connection to a cross-border payments network that is regulated in 31 global markets and enables payments to 141 receive countries, 210 send countries, 7.5 billion bank accounts and 2.1 billion mobile wallets, per the release.

Integrating TerraPay’s global network with YeePay’s reach in China will facilitate real-time global B2B account payments, offering benefits to clients like those in the airline and travel industries, according to the release.

“Additionally, the partnership is expected to promote financial inclusion and drive economic growth in regions served by both companies,” the release said.

In another recently announced partnership, TerraPay said Wednesday (July 10) that it teamed up with Africa-focused payments technology firm enza to promote financial inclusion in Africa.

That collaboration enables enza, which has offices in South Africa and Egypt, to harness TerraPay’s connectivity to more than 2.1 billion wallets and allow for the acceptance of those wallets along with other domestic and international payment brands.

In April, TerraPay received a major payment institution license in Singapore, saying that this approval by the Monetary Authority of Singapore means that the company is either licensed or approved in 30 markets around the world.

The post TerraPay and YeePay Partner on Cross-Border Payment Solutions appeared first on PYMNTS.com.

The Zing app allows members to hold funds in up to 10 different currencies, send more than 30 currencies, and transact in more than 200 countries and territories, the companies said in a Tuesday press release.

“We shared a clear vision with our partners at Visa — that people all across the globe want easy to use, secure and trustworthy financial products that enable them to live their best international lives,” James Allan, CEO and founder at Zing, said in the release. “Zing delivers on that promise, and we look forward to building on this partnership in the future.” 

Zing leverages Visa technology to provide U.K. consumers with low-cost and transparent currency exchange, financial management, instant collections, real-time exchange rates and person-to-person payments — all of which is linked to a Visa card, according to the release.

By collaborating with Visa, Zing was able to have a single point of contact for the project and to leverage the Visa solutions Currencycloud, which enables a multicurrency wallet, and Tink, which allows users to top-up an account via “quick bank transfer” powered by open banking technology, the release said.

Currencycloud and Tink provided the Zing team with ready-made solutions that they added to Zing’s core infrastructure, saving time and money in development, per the release. 

“Our partners and customers, and more importantly, their customers, want simplicity,” Serge Elkiner, global head of product, money movement solutions at Visa, said in the release. “By combining the benefits of Tink and Currencycloud with the wider Visa solutions and brand, we have delivered a great solution in double-quick time.”

Visa completed its acquisition of cross-border payments platform Currencycloud in December 2021 and finalized its deal to purchase open banking platform Tink in March 2022.

It was reported in January that Zing’s global payments app aims to take on companies like Wise and Revolut and that after its launch in the U.K., it will be expanded to markets in Asia, the Middle East and the European Union (EU) in the months to come.

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This partnership will enable faster cross-border payments for Deltec Bank’s corporate and institutional clients, built upon Visa’s global network, the companies said in a June 28 press release.

The bank’s implementation of Visa B2B Connect will also provide these clients with near real-time visibility into payment statuses and the necessary reconciliation and compliance data, according to the release.

“As entrepreneurs and enterprises strive to expand their global footprints, they truly value partners that offer simple and highly secure cross-border transactions, along with solutions that help to improve their operational efficiencies,” Odetta Morton, CEO of Deltec Bank, said in the release. “We are proud to partner with Visa in removing hurdles that have previously existed in the payment journey, while providing a seamless and secure payments process for today’s global enterprises.”

The Bahamas is one of 118 countries on six continents in which Visa B2B Connect is available, per the release.

The technological platform allows these countries to send and receive funds with enhanced efficiencies, greater transparency and reduced complexity, the release said.

It facilitates transactions between the bank of origin, directly to the beneficiary bank, thereby simplifying international corporate cross-border payments, according to the release.

This solution provides financial institutions and their corporate clients with cross-border B2B transactions that are “predictable, secure and effective,” Frank Gandarillas, general manager for the Caribbean at Visa, said in the release.

“We aim to continue expanding the ecosystem with innovative solutions that create opportunities for partnering as we have done with Deltec to invigorate the way of moving cross-border funds,” Gandarillas said.

In another recently announced collaboration, NetXD said in May that it expanded its cross-border payments partnership with Visa B2B Connect, enabling it to onboard banks in Asia in addition to Europe and the Americas, where it already did so.

In February 2023, Freedom Finance Bank Kazakhstan JSC partnered with Visa to deploy the Visa B2B Connect payment service and facilitate cross-border payments from Kazakhstan. It was reported at the time that this collaboration was the first launch of Visa B2B Connect in central Asia.

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The money transfer service announced the store — its first on the continent — on Wednesday (June 26), saying it was part of Western Union’s “Evolve 2025” strategy for Africa and Morocco.

“The country and the wider continent play a crucial role in our growth strategy thanks to their dynamic markets and significant remittance flows,” Mohamed Touhami el Ouazzani, Western Union’s regional vice president for Africa, said in a news release.

“Morocco is a major inbound market in Africa, with loved ones receiving international money transfers from all over the world, including the United States, France, Spain, Italy, the United Arab Emirates and the Kingdom of Saudi Arabia,” he added.

The release added that Morocco is a “pivotal” remittance hub, with the country taking in around $12 billion in inflows last year, making it Africa’s third-largest inbound market.

“These funds represent a vital source of income for many Moroccan families and are a critical component in the foundation of the country’s economy,” the company said. “Remittances contribute approximately 8% to Morocco’s GDP.”

To make those transfers easier, the company has introduced the concept store, originating them in Europe, where it now has at least 100 such locations. These stores are spaces “where nothing is left to chance from a service and branding perspective,” Nicholas Mandalas, Western Union’s communication director for Europe, told PYMNTS.

“The customer interacts with agents that know the service well — and, since we serve diaspora communities, they quite often come from these communities,” he said. “So, they can offer better, personalized service to customers that they often know and have served for years, offering a premium experience and more service options.”

Western Union said in April that its earnings were showing continued shifts to digital channels to send money across borders, with the company’s branded digital transactions increasing by 13% year over year.

CEO Devin McGranahan told analysts on a conference call that consumer money transfer transactions’ 6% growth rate marked the third straight quarter with transaction growth of 5% or higher. He also noted increased usage among migrant communities.

“Our research would indicate that many migrants start their remittance journey in a retail setting for a variety of important reasons. Given the likely future ongoing growth and migration around the world, we believe that macro trends support the fact that we can indeed stabilize our retail business while at the same time growing our digital and consumer services businesses,” McGranahan said.

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The company’s MoneySaver Export Account allows freelancers to open an account in any country, accept payments locally via bank transfers on the Razorpay platform, and save up to 50% in fees and commissions on international bank transfers, Razorpay said in a Monday (June 24) press release.

“While India continues to grow as one of the fastest-growing markets for freelancers, it’s crucial to have seamless and a cost-efficient method to manage international money transfers securely and support this dynamic community with immense potential,” Rahul Kothari, chief operating officer at Razorpay, said in the release.

With this offering, Indian freelancers can create accounts in the United States, the United Kingdom, Canada, Europe and other priority export markets, according to the release.

Doing so enables the use of banking networks like ACH, SEPA, SWIFT and FPS, the release said.

The MoneySaver Export Account adheres to Reserve Bank of India guidelines, enables the receipt of international bank transfers from more than 160 countries within five seconds, offers a single-click Digital Foreign Inward Remittance Certificate and incurs no withdrawal fees from online freelance marketplaces, per the release.

This solution aims to solve the challenges Indian freelancers have faced with transaction fees and currency conversion charges, Kothari said in the release. It’s meant to provide “seamless, border-free global banking.”

“Our commitment to providing a reliable, hassle-free financial experience can now ensure that freelancers can focus on what they do best — delivering exceptional work to clients around the world,” Kothari said.

This offering for freelancers represents an expansion of the MoneySaver Export Account that Razorpay launched in July 2023 for exporters, according to the release. The earlier account is now being used by more than 15,000 exporters.

In another recent move, Razorpay said in April that it launched its own Unified Payments Interface (UPI) infrastructure in partnership with Airtel Payments Bank.

This infrastructure, UPI Switch, boosts success rates by 4% to 5%; handles up to 10,000 transactions per second at any given time; and enables five times faster access to UPI innovations for business.

The post Razorpay Facilitates International Payments for Indian Freelancers appeared first on PYMNTS.com.

Take for example Brazil, where the introduction of Pix, a real-time payment system launched by the Central Bank of Brazil in late 2020, has spurred significant changes in the country’s digital payment landscape.

Since Pix was launched, about 73 million Brazilians have been brought into the financial system, Ralf Germer, CEO and founder of PagBrasil, told PYMNTS’ CEO Karen Webster.

Mobile phones have become the primary device for online purchases in Brazil, and Pix’s integration with mobile platforms has made it easier for consumers to complete transactions using their smartphones.

“Brazilians are very open to new things, it is a part of the country’s culture,” Germer said. “People just try things out and if it works, we’ll continue using it. If it doesn’t, we will try something else. This helps drive digital adoption.”

What this means, he added, is that by accepting Pix payments merchants can tap into a larger customer base.

And building on the success of Pix, PagBrasil is set to launch two new extensions: Pix Roaming and International Pix. These solutions aim to enhance the payment experience for both Brazilian consumers traveling abroad and tourists visiting Brazil, and is meant to expand the use of Pix globally as it competes with other international payment methods.

Based on the assumption that Pix will become the “number one” payment method in Brazil, displacing other methods, including cards, “we have to invest in Pix and create more solutions,” Germer said.

Pix Roaming is designed to enable foreign tourists to make payments using their existing digital wallets or banking apps integrated with the Pix platform, while International Pix provides the inverse solution and enables Brazilian travelers to use Pix for payments while abroad.

Redefining the Payments Landscape

Germer explained that in Brazil, many merchants, from street vendors to large retailers, prefer cash or Pix payments, and this preference can pose challenges for tourists who may not have access to Pix. Pix Roaming is designed to enable foreign tourists to make payments using their existing digital wallets or banking apps integrated with the Pix platform, and addresses this issue by allowing tourists to use their home country’s digital wallets to make Pix payments seamlessly.

As for Brazilian travelers, they often run into the opposite problem when they are traveling: They can’t use Pix and often face high fees and unfavorable exchange rates when using credit cards or cash abroad.

With International Pix, Germer noted, travelers can make payments in their local currency, which is then converted in real-time for the foreign merchant. This innovation not only reduces transaction costs for Brazilian consumers but also simplifies the payment process, making it more convenient and cost-effective.

Merchants do not need to invest in new hardware or undergo complex setup processes to integrate the two new Pix solutions, with Germer noting that the acquirer handles the technical integration, enabling Pix payments on the existing point-of-sale (POS) devices.

All that’s left, at that point, is trusting that the end-user will decide to try something new like the Pix extensions, realize their benefits, and stick with them.

Inclusive Side Effects

Germer also noted that the surge in financial inclusion has not only facilitated monetary transactions but has also catalyzed digital connectivity across the country. As Brazilians adopted Pix for peer-to-peer payments, they became more comfortable with digital and mobile platforms, driving a broader digital transformation.

Brazil’s rapid digital adoption is noteworthy: PYMNTS own global intelligence revealed that Brazil was one of the most digitally connected countries among 11 surveyed, surpassing even traditionally mature economies like the U.S., U.K. and Germany.

But while this digital readiness is partly attributed to cultural factors and a young, tech-savvy population willing to embrace new technologies, the benefits are accruing across merchants and retailers as well.

“The businesses realized that Pix is much more efficient and better for liquidity because it is settled instantly, while credit cards in Brazil are only settled after 30 days. It’s also much more cost effective,” Germer said, adding that Pix transactions typically incur lower fees compared to credit card payments.

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The U.K.-based money transfer firm on Thursday (June 13) released year-end results showing double-digit percentage increases in revenue and customer numbers.

“We moved £118.5bn around the world for 12.8m customers, 29% more customers than last year, with much of this growth driven by the popularity of the Wise account,” said Kristo Käärmann, the company’s co-founder and CEO, who noted a 31% increase in underlying income.

“We are investing in infrastructure and customer experiences to serve as much of this huge, under-served cross-border payments market as possible, including starting FY25 by reducing fees further for our customers,” the CEO added.

Kingsley Kemish, the group’s interim chief financial officer, said Wise would “double down” on investment in its payment infrastructure, an upfront cost that the group is betting will allow it to cut fees by making the processing of payments more efficient.

Kemish said that the new forecasts would be a “slight detracting factor” but maintained the investment would help Wise to reach its long-term goal of becoming a global leader in the field of cross-border payments.

As the Financial Times (FT) reported, the earnings were a disappointment to investors, after the company revealed it was shooting for an underlying pre-tax profit margin of 13% to 16% medium term, which fell short of analysts’ expectations.

Hannes Leitner, an analyst at Jefferies, told the FT the forecast was “disappointing” and “created some uncertainty,” as Wise would depend on more investment to drive up its customer numbers and volumes.

Elsewhere on the cross-border payments front, PYMNTS wrote earlier this year that these payments have seen a resurgence along with global trade, although businesses operating in foreign markets often realize that traditional cross-border payment methods, such as wire transfers, come with delays and complexities.

American merchants lost $3.8 billion just last year to faulty cross-border payments, according to data in the PYMNTS Intelligence report, “Cross-Border Sales and the Challenge of Failed Payments.” That study also found that seven in 10 U.S. firms experienced higher rates of failed payments in cross-border sales versus domestic sales.

“Traditional cross-border payment systems are often slow, involving multiple intermediaries and manual processes, which can take several days to complete transactions,” PYMNTS wrote. “Innovation can streamline these processes, reducing the time it takes for funds to transfer from one country to another.”

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