By Karl Turnbull, Chief Revenue Officer.
We’ve arrived in 2025, and the cross-border payment sector is poised for true transformation.
Many businesses have entered the cross-border playing field thanks to the variety of new digital tools available in the current
As I sat down to describe the trends of the cross-border payment industry for 2025, it struck me just how diversified and global the space has become.
Navigating the cross-border space nowadays requires us to look more closely at specific market sentiments and regional regulations to identify the biggest opportunities for increasing revenue.
It’s impossible to assess today’s cross-border payment market without accounting for the impact of the global state of the economy. From my perspective, cross-border payments are more than just a transactional capability to be addressed. As businesses expand internationally, it becomes more and more important to adopt seamless and efficient cross-border payment solutions.
A Deloitte report reveals that European growth will likely increase gradually in 2025, with the Euro area’s GDP growth set to increase from 0.8% to 1.2%.
Mixed growth is expected across the Americas, with the most notable growth surge predicted in Argentina. Though the U.S. is likely to face slightly decreased growth, the U.S. economy is still set to outperform its developed economic peers. Most large economies in Asia and Asia Pacific are expected to see slight growth as well, while African and Middle Eastern countries are likely to see strong growth.
Inflation rates and global growth remain turbulent in the wake of various socioeconomic and political factors, making operational resilience an essential objective for businesses to work towards in their payment systems. Supply chains continue to diversify and evolve, especially as AI and machine learning become more prominent tools used to enable automation and other critical functions.
Emerging economies are also driving innovation, pushing us toward real-time payments and digital-first strategies. The challenge isn’t just moving money across borders, it’s doing so in a way that minimises friction while also reducing costs.
Over the course of 2024, it became clear that cross-border payments will be a key component to driving innovation across the entire financial services sector. As we proceed deeper into 2025, each organisation dealing with international transactions will need to consider how the intricate regulatory webbing being stitched together across different regions of the world will impact their financial operations.
I see first-hand how cross-border payments are changing alongside new market demands, with the numbers coming out of the B2B space being particularly notable.
The World Economic Forum refers to cross-border payments as “an engine for economic growth,” naming international travel, global e-commerce, and global remittances as three prominent drivers of the growing popularity of cross-border payments. In a similar vein, the International Trade Administration reports that the global B2B e-commerce market has a predicted value of US$36 trillion by 2026.
In a new report on the future of cross-border payments, McKinsey states:
“Although estimated revenue per cross-border transaction remains healthy at more than $20, evidence of changing dynamics and increasing pressure in the most established segments (such as B2B and remittances) is growing and becoming increasingly commonplace across the value chain.”
McKinsey’s insights highlight a clear trend: while revenue per transaction remains strong, shifting dynamics are creating new pressures. The challenge for businesses like payment service providers will revolve around staying ahead of these shifts while still delivering value across the entire ecosystem.
Cross-border technology initiatives need to focus on efficiency and accessibility in the coming year. Meeting customer expectations has become more complex as businesses must consider the effectiveness of their payment setup on both the global and local levels.
One of the most significant innovations shaping the future of cross-border payments is the growing use of stablecoins. These digital assets—pegged to fiat currencies like the US dollar or euro—offer an efficient and cost-effective way to facilitate transactions across borders without the volatility typically associated with cryptocurrencies.
Stablecoins present an opportunity to reduce settlement times, lower transaction costs, and provide an additional layer of transparency for businesses engaging in cross-border trade. By operating on blockchain networks, stablecoins enable near-instantaneous value transfers, removing many of the intermediaries that slow down traditional correspondent banking processes.
This shift is already gaining traction. According to the Bank for International Settlements (BIS), over 90% of central banks are exploring digital currencies, and stablecoins have emerged as a practical bridge between traditional finance and decentralised payment networks. Financial institutions are increasingly integrating stablecoin transactions into their payment infrastructure, recognising their potential to improve liquidity and enable frictionless international payments.
As businesses seek faster, more predictable payment solutions, stablecoins are becoming a key enabler of real-time, cross-border financial flows. However, their adoption will depend on regulatory clarity, particularly as jurisdictions worldwide define their stance on digital assets.
At Freemarket, we’re closely monitoring these developments and working to ensure our clients have access to the most efficient, compliant, and scalable payment solutions available.
The regulatory environment for cross-border payments is becoming more dynamic.
We’ve seen many new technologies impact how cross-border payments perform, including tools like AI and blockchain. With the EU’s Instant Payment Regulation deadlines looming, businesses operating at the global level must contend with the increasing complexity of payment settlements in different regions.
In Asia, we’re witnessing a more fractured approach to achieving real-time cross-border payment initiatives. Forbes details the double-edged sword this approach presents to the region, offering businesses and consumers more payment options tailored to specific needs, but also the complexity of choice that can slow down decision-making processes when enabling cross-border payments.
As a CRO, regulations appear to me as both a challenge and an opportunity. I’m not just looking on the positive side, either. New regulations equal new opportunities to invest in innovative technologies early, especially if you can find a dependable partner to collaborate with. Adapting to new rules without disrupting your operations requires an approach that embraces flexible cross-border payments.
Additionally, businesses must increase their compliance awareness in 2025. It will no longer be enough to be compliance savvy in your home region alone. You need a thorough understanding of the different regulations (both existing and those in development) in any and all regions you plan to expand to. Along with compliance considerations, you’ll also need to take into account local preferences, like local payment rails or preferred currencies.
The future of cross-border payments looks bright…but also undeniably complex.
Preparing for the changes 2025 will bring makes it necessary to find reliable payment partners who can help you develop your cross-border payment strategy. A comprehensive compliance framework is equally important, as cross-border payments and settlement times will continue to be a point of focus for regulators due to the increasing global accessibility of industries like e-commerce and iGaming.
At Freemarket, it’s our goal to provide clients across different sectors with a streamlined platform for both cross-border payments and currency exchange. With access to our global bank network, you can take a tailored approach to expansion and cross-border transactions.