UK needs regulatory clarity and access to trusted infrastructure to unlock cross-border payments potential
A report developed by The Payments Association Cross Border Working Group in partnership with Payall has examined the persistent frictions in the global cross-border payments market, which reached nearly $1qn in 2024. It also assesses examples of new technologies and partnerships in the market that are building a faster, more inclusive, and more resilient global payments ecosystem.
The paper, “Navigating the next wave of cross border payments: can innovation conquer the challenges ahead?” details how long-standing inefficiencies persist, including FX volatility, restricted liquidity and significant regulatory fragmentation.
It also highlights the ongoing decline of correspondent banking relationships, Over the last decade, the number of active correspondent banking relationships worldwide has declined by approximately 20–25%, alongside a phenomenon known as ‘de-risking,’ which has increased costs and disproportionately reduced financial inclusion, particularly for emerging markets.
Emerging technologies such as stablecoins, tokenisation, and digital assets could offer potential pathways for faster, cheaper, and more transparent payments. However, the report adds that this innovation alone cannot solve structural issues without regulatory clarity and trusted systems underpinning them. The paper offers up a ‘Global Single Shared Platform’ approach that integrates with existing bank systems and currencies, enabling coordinated, secure cross-border transactions while supporting both traditional and digital assets moving forward.
Dr. Ruth Wandhöfer, industry expert and author of the whitepaper, commented on the need for pragmatism: “Stablecoins promise faster, cheaper, programmable money – but they’re not a silver bullet. Without harmonised regulation and trusted infrastructure, innovation risks rebuilding on shaky ground.”
The report showcases that fintech and bank partnerships (including Payall–Mastercard and Ripple–OpenPayd) are already delivering real-world solutions that address these long-standing challenges, demonstrating the power of cross-sector collaboration.
Addressing the necessary pace of change, Gary Palmer, CEO of Payall, expressed caution about purely technological enthusiasm: “Trust must be the first mission of any cross-border payments technology. Real-time multicurrency ledgers, integrated FX, and digitised compliance ensure every transaction executes reliably. A Global Single Shared Platform can uphold that trust, working with existing bank systems while empowering innovators to protect banks and preserve confidence across the ecosystem.”
Echoing the call for regulatory action, but with a firm eye on the potential of new digital assets, Riccardo Tordera-Ricchi, director of policy & government relations at The Payments Association, said: “Our trade body’s views on stablecoins is well-known and we have been vocal about priorities – we need to solve the limits and backing assets unresolved issue. The Bank of England has taken significant steps forward but still the proposed regime is the most punitive for stablecoins issuers and not in line with regulatory global best practice and industry trends.”
The industry insight paper concludes that cross-border payments innovation will succeed only when technology, regulation, and trusted infrastructure converge. With ongoing efforts in the EU, US, and UK to modernise payment rules and strengthen consumer protection, the future of cross-border payments will be shaped not by stablecoins, tokenisation, or digital assets alone, but by the convergence of these innovations with trusted infrastructure, sound regulation, and global collaboration.
This whitepaper was commissioned by Payall as part of its ongoing efforts to explore developments in cross-border payments. The findings and recommendations herein were developed in collaboration with Payall and are intended to inform industry discussion on innovations and challenges ahead.