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Research Outline
Prepared for Jeremy H. | Delivered May 26, 2020
Foreign Exchange International Payments
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Goals
The key developments and shifts in the US Cross-border payments (a.k.a Foreign Exchange International Payments) category, including disruption & innovation in the space, customer expectations, winners, and losers.
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Early Findings
New Technologies
The US cross border payments space is seeing an increased use of advanced technologies like
b
l
o
c
k
c
h
a
i
n
, artificial intelligence, and
machine
learning.
Recent developments in these technologies have "made more solutions possible without causing
slowdowns
."
With its automatic public ledger for transactions,
B
l
o
c
k
c
h
a
i
n
opens up a myriad of paths for cross-border payments in the US. Visa and MasterCard are a few companies that have been vocal about "
pushing
the bar for the adoption of distributed ledgers powered by
b
l
o
c
k
c
h
a
i
n
to replace their traditional networks."
Both companies already leverage
b
l
o
c
k
c
h
a
i
n
-
b
a
s
e
d
distributed ledgers in cross-
border
settlements. In 2020 and beyond,
b
l
o
c
k
c
h
a
i
n
is forecast to have a more significant in the
c
r
o
s
s
b
o
r
d
e
r
payments space.
Faster US Payments System
In 2019, the US Federal Reserve unveiled plans to release a real-time payment and
settlement
service that will support faster payments across the US.
This real-time domestic payments scheme is driving banks to extend inter-bank processing hours.
F
i
n
t
e
c
h
firms are upgrading their systems to allow real-time processing, with some even incorporating 24/7 processing
capabilities
.
SUMMARY
Within the initial hour of research, we were able to provide some developments and changes in the US cross border payments space.
Of note, there was a lot more information on cross border payments in other countries/regions than the US. As described by one publication, the US is
lagging
behind regions like Europe in relation to cross border payments. We found that the US cross border payments space is facing some challenges.
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