Cross-border payments are broadly defined as fund transfers for which the sender and the recipient are located in different jurisdictions. As such, cross-border payments cover corporate and retail payments with remittances included in the latter category. Cross-border payments may or may not involve currency conversion.
Over the past few decades, the increased international mobility of goods and services, capital and people has contributed to the growing economic importance of cross-border payments. Factors that have supported the growth in cross-border payments include manufacturers expanding their supply chains across borders, global investment flows and international trade and e-commerce.
Cross-border payments are by definition more complex than purely domestic ones. They involve more, and in some cases numerous, players, time zones, jurisdictions and regulations. Typically, cross-border payments are perceived to lag domestic ones in terms of cost, speed, access and transparency.