FEATURE
The development of new technologies is key to enabling individuals and businesses to participate in cross-border consumerism . The establishment of open banking standards and APIs is fostering interoperability among banks and technology providers . Open banking , designed to encourage competition and innovation in the banking sector , leverages technology and new business models .
The integration of cross-border payments as a product offering could be the next frontier for embedded finance solutions . For example , while shopping for international products or services , a payee could have the option to choose the best foreign exchange rate embedded in their shopping experience resulting in efficient payment .
The creation of Central Bank Digital Currencies has been described as a valuable tool for promoting financial inclusion and tackling remittance challenges in Africa . The adoption of Money Transfer Operators and Mobile Network Operators have significantly increased . Digital wallets connected to diverse payment methods such as cards , accounts , and mobile money are experiencing increased availability and adoption .
Distributed Ledger Technology with block chain is challenging the traditional operating model of cross-border payments and has proved to be faster , more efficient , cheaper , transparent , and secure .
Mobile money transaction volumes in Nigeria doubled to around 800 million in 2020 , according to the Central Bank of Nigeria .
Consumers and businesses have seen the benefits of domestic real-time payments offering 24x7 year-round availability . It is no wonder they are expecting the same experience with international payments . Therefore , it is essential to offer similar solutions that will increase interoperability .
This can be achieved by :
• Linking domestic real-time payment systems
• Aligning operating hours of RTGS systems
• Allowing instant payment schemes to become the channel for incoming international payments
• Increased traceability of transactions and transparency of fees
The implementation of the Transactions Cleared on an Immediate Basis , scheme is gaining popularity in the Southern African Development Community , SADC region with participation from both banks and non-banks . Successful adoption of this scheme in all countries
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