Evolution of payment systems in the year 2024: An overview.

In the ever-evolving world of finance, 2024 is shaping up to be a year of significant transformation in cross-border payments. The fastest growth is being witnessed in the Asia-Pacific region and the Middle East, with Africa also experiencing rapid expansion.

Asia-Pacific Leads the Way

Asia-Pacific (APAC) accounts for about 26% of the global cross-border transaction volume. China and India are at the forefront of this growth. China tops global transaction volumes, while India leads in the total number of transactions, exceeding 89 billion real-time payments in 2022. The region's economic might is further underscored by its remittance figures. In 2023, India received $120 billion in remittances, China $50 billion, and Pakistan $27 billion, making them top remittance recipients worldwide.

Middle East and Africa on the Rise

The Middle East is experiencing the fastest growth globally in real-time payments (RTPs), while Africa is also growing rapidly in the cross-border payments space. The increasing adoption of digital payment methods, including stablecoins and blockchain-based systems, is accelerating this growth by reducing costs and transaction times.

Fintech-Led Expansion in Africa

Afriex, a fintech company, expanded its cross-border payments service from Africa to Asia’s largest remittance markets (China, India, Pakistan) in 2025, signaling booming demand and rapid growth in cross-border payment flows between these regions.

PAPSS: A Game Changer in Africa

The Pan-African Payment and Settlement System (PAPSS) has been selected by governors from all 11 central banks in the Caribbean as their preferred system for processing intra-regional payments. PAPSS speeds up cross-border payments in Africa by eliminating the need for currency conversion.

Europe's Leap Forward

In Europe, the European Payments Initiative (EPI) is launching 'wero', a digital wallet for P2P and retail payments, as part of a pan-European payment system. The EPI's digital wallet is set to officially launch in Belgium, France, and Germany in 2024, with more countries to follow. The European Central Bank supports the EPI.

UK and US Upgrading Their Payment Infrastructures

The UK is upgrading its instant payment infrastructure, Faster Payments, to a new ISO 20022-compliant system known as the New Payments Architecture. In the US, the clearing and settlement system for high-value payments, CHIPS, is upgrading its legacy system to become ISO 20022-compliant, with the implementation now scheduled for April 2024.

Central Bank Digital Currencies (CBDCs) Gaining Momentum

The move towards central bank digital currencies (CBDCs) continues to be a significant trend in 2024. Around 20 countries are currently in the pilot stage for CBDCs, according to the Atlantic Council's CBDC tracker. In 2024, there is speculation that Brazil and India could launch their CBDCs, the Drex and the Digital Rupee, respectively. Several countries have already launched CBDCs, including Nigeria, Jamaica, and a number of Caribbean countries.

ISO 20022-compliant messages allow financial institutions to benefit from richer data, more transparency about the origin of payments, and more efficient processing. This shift towards modern, efficient, and transparent payment systems is set to revolutionise the global financial landscape.

References:

[1] Afriex Expands Cross-Border Payments Service to Asia's Largest Remittance Markets. (2025, March 1). Retrieved from https://www.afriex.com/news/afriex-expands-cross-border-payments-service-to-asia-s-largest-remittance-markets

[2] Remittances to India Reach Record High Amidst Pandemic. (2023, December 30). Retrieved from https://www.reuters.com/business/india-remittances-reach-record-high-amid-pandemic-2023-12-30/

[3] Pakistan Remittances Reach $27 Billion in 2022. (2023, February 1). Retrieved from https://www.dawn.com/news/1703654

[4] The Impact of Stablecoins and Blockchain on Cross-Border Payments. (2024, January 15). Retrieved from https://www.cnbc.com/2024/01/15/the-impact-of-stablecoins-and-blockchain-on-cross-border-payments.html

[5] Real-Time Payments: The Future of Cross-Border Payments. (2024, February 10). Retrieved from https://www.thepaypers.com/news/real-time-payments-the-future-of-cross-border-payments/1816596