What are cross border payments?

A cross border payment refers to a transaction involving individuals, companies, banks or settlement institutions operating in at least two different countries that don’t necessarily share a border. Currently, there are 0.7 international transactions per capita every year, up from 0.5 in 2014.

When the two countries involved in the transaction use different currencies, the parties making the transaction need to complete a foreign currency exchange to complete the payment. A fintech solution that enables cross-border payments and minimizes or eliminates transaction fees and exchange rates makes these types of transactions seamless and more cost effective.