Emerging technologies such as blockchain, stablecoins and central bank digital currencies are expected to transform cross-border payments by helping businesses move money across borders faster and at lower cost.

Cross-border payments remain one of the most expensive and inefficient parts of the global financial system.

Transactions can take several days to settle and often involve multiple intermediary banks, increasing fees and operational complexity for businesses and consumers.

However, emerging digital infrastructure can reduce these frictions, particularly for businesses operating across emerging markets.

Ola Oyetayo, co-founder and CEO of Verto, said there is a need to integrate manufacturing enterprise resource planning (ERP) systems directly with fintech payment rails to automate the order-to-pay cycle.

“This would reduce manual errors and delays in payment processing,” he said.

He also emphasised the importance of a multi-currency payment infrastructure that allows manufacturers to hold, receive, and make payments in multiple currencies such as the US dollar, euro, pound sterling and naira without constant conversion losses.

Blockchain and distributed ledger technology (DLT) are among the most promising innovations. By enabling peer-to-peer value transfer on decentralised networks, blockchain can reduce the need for multiple intermediaries and shorten settlement times from days to minutes, according to experts.

Payment companies and financial institutions are increasingly experimenting with blockchain-based systems to process international payments in real time while improving transparency and security.

Several financial institutions are already experimenting with blockchain-based cross-border payment systems.

The FinTech Weekly report cited an example of UBS, a Swiss bank that has piloted a digital cash platform that enables real-time settlement of payments across multiple currencies.

Other innovations include Tokenisation, which allows financial assets or money to be represented digitally on programmable networks.

This technology can automate settlement processes and simplify compliance checks, reducing delays and operational costs in international payments.

Another rapidly growing innovation is stablecoins, which is a digital currency backed by traditional currencies such as the US dollar because they operate on blockchain networks, stablecoins allow funds to move globally 24 hours a day, bypassing many of the delays associated with traditional banking systems.

Stablecoins are becoming an important tool for global payment infrastructure, particularly for businesses making frequent cross-border transfers.

Central bank digital currencies (CBDCs) could also play a major role in the future of international payments. These digital versions of national currencies, issued by central banks, are being designed to enable faster settlement between countries and reduce reliance on correspondent banking networks.

Project mBridge, a collaborative ‘multi-CBDC’ initiative involving the BIS Innovation Hub, Thailand, China, UAE, and Hong Kong created a shared blockchain platform for real-time, cross-border, and foreign exchange (FX) transactions.

It enables direct, 24/7 settlement in central bank money, bypassing correspondent banks to reduce costs and risks.

The Society for Worldwide Interbank Financial Telecommunications report titled ‘Swift takes bold steps to unlock the benefits of digital finance on a global scale’ reveals that SWIFT is upgrading its infrastructure to enable instant, 24/7 cross-border payments, with 75 percent of transactions already reaching beneficiary banks within 10 minutes.

“The initiative, involving over 30 banks, integrates blockchain-based shared ledgers to improve interoperability with digital currencies and emerging financial technologies,” it said.

One of its offerings are instant cross-border payments as SWIFT is connecting domestic instant payment systems to enable near-instant international transfers.

SWIFT is developing a blockchain-based, highly scalable shared ledger to allow tokenised asset and currency transactions across different platforms.

Interoperability as the new infrastructure, which includes a CBDC (Central Bank Digital Currency) platform, aims to link traditional banking with emerging technologies.

The future outlook is that the Minimum Viable Product(MVP) for the new payment scheme is expected in H1 2026, intended to support over 4 billion accounts.

For African manufacturers and exporters trading with markets in Asia, Europe and North America, faster and cheaper payment systems could unlock new opportunities by reducing the financial friction associated with international commerce.

Remittances, a major source of income across many African economies, could also become faster and more affordable as digital payment rails reduce the cost of sending money internationally.

As global commerce becomes increasingly digital, the evolution of payment technology will determine how efficiently money moves across borders and how easily businesses can participate in the global economy.

The convergence of blockchain, stablecoins, CBDCs, tokenisation, and real-time payment systems will redefine global payments infrastructure over the next decade.

These emerging technologies are reshaping the future of cross-border payments, promising faster, cheaper, and more transparent international transactions for businesses and consumers.