As any West Berliner over the age of 40 can attest, you don’t need a coastline to feel like you’re living on an island. Yet, while the Iron Curtain is becoming a distant memory even in the minds of those it once divided, European businesses today face a similar barrier that makes it practically impossible to trade or engage beyond their borders.
This isn’t a physical wall: it is the failure of the established banking industry to provide fast, reliable, and affordable international payments.

Cross-border transactions have always been time-consuming and expensive, but in the pre-internet days, this never mattered much to most businesses. Today, however, any business of any size can potentially be a multinational – especially digital businesses, which typically look to the Web (and so, the world) for their customers, rather than just their local High Street. Yet while the internet has made commerce borderless, the banking industry hasn’t kept pace by supporting seamless international payments for all, strangling the global growth ambitions of digital-first businesses.

While most domestic transactions are seamless and straightforward, especially following the Open Banking revolution, all but the biggest enterprises face significant challenges in doing business beyond their borders. They must contend with slow, cumbersome, and costly international payments; indeed, for many digital businesses, the fees and charges can outweigh the value of the transactions they are trying to complete. Traditional banking systems are meanwhile plagued by delays, high fees, and unreliable processes. Transactions can take days or even weeks, and the associated costs can be prohibitive for SMEs that do not have the financial capacity to absorb such expenses.

This is bad news for everyone. The exclusion of agile, innovative businesses from international commerce undermines overall market competitiveness, reinforcing the dominance of large corporations and limiting consumer options. So why, given that technology has transformed so many other aspects of international business, have international payments failed to evolve?

Barriers to Efficient International Payments

The challenges of cross-border transactions go beyond simple data transfers. Effective international operations require specialised processes, including risk assessments, Know Your Customer (KYC), and Know Your Business (KYB) protocols. Banks must also navigate complex legal landscapes in various jurisdictions and establish relationships with correspondent banks and national regulators.

Traditional banks possess the capabilities to address these needs but often choose not to invest in the necessary infrastructure.
From a purely financial perspective, supporting the unique requirements of digital businesses, particularly those with international ambitions, may not seem profitable. Establishing the requisite systems, hiring experienced and expert personnel, and forming global partnerships demand substantial resources at a time when banks are already struggling to replace legacy systems. It may not be a priority for them now, but the emergence of fintechs specialising in cross-border payments is a warning shot across their bows.

Legacy-free challengers

While traditional banks may be hesitant to adapt, fintech is stepping into the breach. This new breed of financial service provider offers fast, reliable, and affordable international payments tailored to the needs of digital businesses. Free from the constraints of legacy systems, harnessing the latest technologies and – most importantly of all – investing in the required relationships and skills, these fintechs are designed to meet the demands of today’s global digital economy.
Traditional banks might view these fintech solutions as serving niche markets, but this perspective could change as digital businesses continue to grow. The COVID-19 pandemic, for instance, prompted companies of all sizes to re-evaluate their supply chains and explore new international markets, highlighting the need for efficient cross-border payment systems.

Banks can continue to promote their (domestic) open banking achievements, but without providing truly global services, their claims will increasingly fall flat. If the growing community of digital businesses question why their financial partners cannot support their international needs, adjusting their ad campaigns and marketing messages will be among the least of their worries.

The question facing the traditional banking industry is how long they can afford to maintain their parochial, inward-looking focus. When ambitious digital businesses feel like they’re living on an island, it’s only natural that they will start looking for a bridge to the rest of the world.

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We all know that convenience is paramount in today’s time. Digital wallets and mobile wallets have transformed the way we make payments now, and as a part of the fintech industry, we witness this revolution in several regions across the globe. Financial institutions, merchants, card providers, and many other small to mid-sized businesses are at the forefront, leaning towards online payments because it is easier, safer, and more efficient to manage their digital money. These entities strive to deliver a seamless payment experience by shifting away from a product-centric approach.

APAC serves as a host for a rapidly growing number of tech-savvy consumers who are heavily dependent on their mobile devices for everyday tasks. For the APAC audience, mobile wallets are handy owing to the growing use of new tech-smartphones that accommodate convenient and easy online payment modes. Making contactless transactions or payments is more preferred than spending physical cash. 

On the contrary, the use of digital wallet payments has been more popular among small businesses in APAC because most customers who like dealing with mobile-friendly options that offer digital wallet payments have found seamless and easy payment processes to be more user-friendly and secure. In addition to this, digital wallet transactions provide high-level security services through biometric authentication and tokenization, which in essence reduces the level of fraudulent activity. Since it’s simple to integrate the digital wallet acceptances into the existing payment systems and doesn’t require much training, businesses nowadays can seamlessly adopt mobile payments as many point-of-sale (POS) systems are already equipped with NFC technology.

Therefore, partnering with the right merchants and implementing proper security measures and protocols can empower SMBs and SMEs to build credibility with their clients, allowing them to foster robust and loyal relationships. 

Let’s delve into the intricacies of the top 4 wallets in the APAC region:

Apple Pay 

Apple Pay is popular among tech enthusiasts as it works seamlessly with Apple devices,it is highly evident that iPhone and Apple product users only can use Apple Pay. We all know that when it comes to security, Apple stands tall, as its security features include tokenization and biometric authentication, which also contribute to its popularity.

Apple Pay is widely accepted as it provides users with opportunities to make contactless payments at stores, restaurants, and transit stations, which ensures the convenience and efficiency of cashless transactions. However, regional differences exist due to variations in infrastructure, regulations, and consumer preferences across APAC countries. While Apple Pay is well-established in markets like Japan and Australia, its adoption may be slower in countries with less developed banking systems or where Android devices are more prevalent.

Nevertheless, APAC countries are actively endeavoring to bolster Apple Pay acceptance by collaborating with banks, merchants, and payment networks. For example, in Singapore, the government’s push for cashless payments has spurred widespread adoption of Apple Pay across retail outlets and transit systems, showcasing concerted efforts to expand its usage.

Google pay 

Google Pay has experienced a significant rise in popularity across the APAC region, leading to a growing user base. Gpay enjoys popularity in India as it gives users the option of paying by scanning the QR code, which makes it accessible to a wide range of consumers, including those in rural areas. Moreover, it ensures smooth connections with many Indian banks and merchants, which acts as a catalyst for its widespread adoption.

If we talk about sectors, Gpay is widely being used in retail, e-commerce, transportation, and utilities. This versatility has made it a preferred payment method among consumers and businesses. Even after being enjoyed by users for convenience and security, Gpay still faces regional disparities in how it is used and adopted.

APAC countries such as India and Singapore have accepted Gpay as an easy mode of online payment. However, other countries in the APAC region are gradually understanding and adjusting themselves to the growing trend of contactless transactions. Financial institutions, card merchants, and merchants are actively promoting and encouraging their customers to use Google Pay through promotional activities, rewards, and integrating or merging their services with e-commerce platforms. This effort is speeding up the acceptance and use of Google Pay across various industries and markets in the APAC region.

Samsung Pay 

Unlike the other electronic payments, Samsung Pay incorporates Magnetic Secure Transmission [MST] technology, which makes it one of a kind as it enables users to pay via vintage magnetic stripe card terminals. This service has helped Samsung Pay grow in markets with a significant percentage of obsolete terminals, such as those in APAC. In South Korea, Samsung Pay is widely accepted at convenience stores, restaurants, and public transit systems, offering users a convenient payment solution.

On the other hand, regional differences exist due to factors such as the market penetration of Samsung devices and the availability of NFC-supporting terminals. While Samsung Pay has gained attention in countries like South Korea and Australia, its adoption may be slower in markets with fewer Samsung users or limited NFC infrastructure.

PayPal 

We all know that PayPal is known globally; this versatility makes it a preferred payment method for cross-border transactions, payments, and online shopping. Paypal is consumer- and retailer-friendly because of its policies, and its wide acceptance among merchants makes it popular. It is used in various sectors, like e-commerce, freelancing, travel, and digital services. In countries such as Australia and Singapore, users can buy goods and services on international websites, pay freelancers, and make bookings using PayPal.

Further to this,  PayPal is well established in mature markets like Australia and Japan, but its penetration may be slower in the less developed countries that have lower virtual connections, regulatory constraints, market competition, and consumer trust. To expand its market acceptance, PayPal is now collaborating with e-commerce platforms and merchants. 

For instance, in China, in 2020 PayPal has collaborated with local e-commerce giants like Alibaba and Tencent to facilitate cross-border transactions and expand its user base.

The increasing use of digital wallets and mobile payments is changing how we handle transactions. These methods offer great convenience, security, and simplicity. In the APAC region, businesses can benefit from using digital wallets because they match the preferences of tech-savvy customers, become more digital, and make purchasing easier and more convenient. 

Using digital wallets also provides businesses an advantage in a fast-changing market that’s becoming more digital. By using digital wallets, businesses can make buying things easier, make payments more secure with features like fingerprint or face recognition, and handle transactions across borders smoothly. This helps them meet the needs of today’s customers and grow their business in a digital world.

In short, adopting digital wallet payment methods helps businesses in the APAC region keep up with new trends and be leaders in innovation. This leads to better connections with customers and opens up new ways to grow and make money.

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In today’s fast-paced business environment, digital transformation is essential for financial institutions to stay ahead of the curve. Consumers have a digital-centric mindset and it’s crucial for institutions to re-evaluate how they provide services, ensuring they cater to this mentality. To create an omnichannel modern banking environment, institutions need to examine where opportunities exist to elevate interactions and meet or exceed consumer expectations. The foundation of this transformation is the adoption of eSignatures, which streamlines the signing process and eliminates the need for physical documents.

Nearly all banking activities, from wire transfers to credit card transaction disputes, require some form of signature. eSignatures can and should be leveraged throughout the entire institution to streamline operations, close the consumer experience gap and discover untapped ROI. However, it’s not enough to simply choose any eSignature solution – it’s imperative to select one that is an integrated one that will seamlessly integrate with your current systems. APIs enable software to connect and perform a series of tasks, including digitizing services and incorporating eSignatures.

APIs Integral to Transformation

Application programming interfaces (APIs) have significantly changed the way financial institutions operate technologically and will continue to influence the evolution of the financial services industry. APIs enable the integration of an increasing array of internal and external banking systems, applications, data, strategies, and activities. As the foundation of an institution’s digital transformation strategy, it is especially important that an eSignature solution seamlessly interfaces with the core processing platform, as well as the other existing business applications.

While most institutions are taking advantage of eSignatures in some capacity, there is still a large usage gap. For example, it is very common to leverage eSignatures for lending or account opening, while other transactions, such as wire transfers, credit card disputes, and other account maintenance tasks, rely on manual, paper-based procedures. Adopting an eSignature platform that can easily integrate with an institution’s existing technology infrastructure is critical to enabling end-to-end digital transactions in a paperless environment, as well as delivering an enhanced, more engaging experience to customers in both a remote environment, as well as in-person at the branch.

Streamlined Operations, Increased Accuracy

In today’s market, financial institutions are facing increasing pressure to work faster and smarter. Incorporating eSignatures allows employees to initiate digital transactions directly from their business systems, reducing the manual effort required to upload documents for eSignature processing. Automating these processes not only saves time but also enables employees to focus on the customer, providing a more engaging and robust experience.

Manual tagging and dragging of signature fields are common with many eSignature solutions, which can be time-consuming and error-prone.  Integrating eSignatures eliminates this need entirely, automatically placing the required signature fields in all applicable areas without employee interaction. Selecting an eSignature platform with a seamless, streamlined interface enables employees to complete transactions faster in a completely digital environment. Automated archiving and filing into the content management system improve the overall accuracy of each transaction, eliminating the possibility of accidental human error. This ensures that critical business documents and lending collateral are not legally compromised by errors or omissions, reducing the risk, protecting the validity of signed documents, maintaining compliance, and ultimately saving time.

Conclusion

Integrated eSignatures provide an end-to-end solution, allowing completed and eSigned documents, along with relevant audit files, to be fully indexed, categorized, and stored within ECM/Imaging systems for permanent record keeping and future retrieval requirements. This eliminates the need for manual scanning, indexing, or human intervention to store and protect your critical business records.

As financial institutions accelerate their digital-first strategy, having an eSignature platform that effectively integrates with current systems is critical. Additionally, employees are able to complete more transactions faster, while providing customers a frictionless experience. Implementing an eSignature platform that can be easily integrated across all applications is key to ensuring transactions are processed seamlessly and error-free within an institution’s business environment.