How to manage settlement, fees, and compliance with cross-border payment solutions

The Asia-Pacific region reached USD 12.8 trillion in cross-border payments in 2024 and is projected to reach USD 23.8 trillion by 2032. At the same time, real-time payments are gaining ground, with 54.6% of wholesale cross-border transactions credited within one hour in early 2025. These shifts shape expectations around transparency, speed, and predictability. You plan for growth, yet settlement, fees and compliance often become bottlenecks. 

Current challenges in cross-border payments

Cross-border payments come with several challenges that complicate global operations. Settlement remains complex, with routes often involving multiple institutions, regional rails, and legacy processes. These differing clearing cycles and data formats fragment reporting and make timing harder to predict, especially when transactions rely on long chains of intermediaries.

Costs add another layer of difficulty. International payments often include hidden or high fees, where FX spreads and intermediary charges aren’t always visible upfront. With the cross-border payments market generating USD 193 billion in revenue in 2023 and shifting toward lower-cost account-to-account networks, many organisations are reassessing how to better manage these expenses.

Regulation also contributes to operational strain. AML and KYC checks, sanctions screening and jurisdiction-specific data rules differ widely. And roughly 15% of industry compliance spending is tied directly to these requirements—shaped further by data-localisation laws in places such as India and Brazil.

Finally, visibility and cash-flow issues arise when transactions move through multiple corridors. Delays or missing data create uncertainty, making reconciliation slower and affecting working-capital planning.

What modern cross-border payment solutions offer

Modern cross-border payment solutions now focus on four core capabilities that address speed, clarity, and regulatory assurance.

Settlement improvements

Solutions reduce multi‑step routing by connecting to local clearing networks or direct rails. Many support real-time or near real-time settlement, giving your team clearer timelines and more predictable fund availability.

Multi-currency support

Pricing structures now emphasise clarity. You gain visibility into FX rates, routing choices, and related charges. Multi-currency options also help you manage exposure when handling international payment flows.

Regulatory checks

Automated AML and KYC checks, sanctions screening, and ISO 20022‑based data formats reduce manual review time. These capabilities help you meet varying jurisdictional requirements without heavy operational overhead.

Integration and data visibility

API integration enables straight-through processing and provides real-time data across settlement, transaction status, and reconciliation. Dashboards consolidate information to support finance and operations teams.

How they manage settlement, fees, and compliance

• Settlement management: Providers use direct rails and local clearing networks to shorten settlement cycles. Local currency or pre-funded account models strengthen predictability and support cash-flow planning.
• Fee management: Transparent breakdowns and routing logic allow you to select cost-effective paths. FX tools and multi-currency settlement options reduce conversion-related losses.
• Compliance automation: Jurisdiction-aware rules, structured data, and automated screening limit exceptions and reduce manual steps. These features help maintain consistent reporting across multiple markets.
• Risk reduction: Local currency accounts, clearer conversion timing and predictable settlement flows reduce exposure to timing gaps or rate movements.
• Data enrichment: API-based integration improves synchronisation with ERP, treasury and accounting systems. Centralised dashboards offer visibility across settlement status, FX activity and cross-border payment methods to support accurate audit and reporting.

Benefits to merchants

• Stronger cash flow and working capital planning: Shorter settlement cycles and more consistent timings help you plan payouts and manage liquidity. When a higher share of global transactions settles within hours rather than days, your forecasts become steadier and your treasury team can make decisions with more confidence.
• Lower operational effort: When reconciliation data arrives in structured formats and matches more reliably across systems, your finance team spends less time reviewing exceptions. Automated compliance checks and standardised reporting reduce the need for manual intervention.
• Reduced FX and settlement exposure: Multi-currency settlement and clearer conversion points reduce the risk of unexpected rate movements. Predictable conversion supports more accurate pricing and lowers the likelihood of needing corrective actions later.
• Better compliance outcomes: Automated AML and KYC screening, consistent data structure, and jurisdiction-aware checks ease the load on internal compliance teams. These safeguards reduce the chance of delays linked to incomplete data or missing documentation.
• Improved customer and partner experience: Faster and more predictable international payment flows strengthen confidence for both buyers and partners. Clearer timing on when funds will arrive helps you support reliable service across borders.
• Easier expansion into new markets: When your provider supports local clearing networks, cross-border payment methods, and regional rules, you reduce the preparation work needed to enter a new market. This helps you evaluate new opportunities with fewer unknowns.

Cross-border payment best practices

Choosing the right provider

Look for regional currency coverage, clarity on supported payment methods, and direct connections to local rails. Check whether the provider meets your compliance expectations and provides the data details your finance teams need.

Internal readiness

Align your ERP, treasury, and accounting systems with your payment flows. Review data quality, mapping, and reconciliation steps to support accurate reporting.

Monitoring and governance

Use dashboards for settlement tracking, fee transparency, and compliance updates. Make use of audit trails and assign clear responsibilities across your finance and payments teams.

Regulatory changes to watch

Keep an eye on evolving regulations, including new messaging standards, data localisation rules, and cross-border screening requirements. These updates shape how you manage real-time payments and maintain compliance.

Cost-benefit analysis and risk assessment

Evaluate each global payment use case. If you maintain legacy systems in certain markets, assess the impact on fees, timing, and risk exposure. Review settlement routes and compare the cost of local clearing against cross-border alternatives.

Conclusion

Cross-border payment activity continues to accelerate, with real-time capabilities reshaping expectations around settlement, fees, and compliance. By using modern cross-border payment solutions with richer data, clearer routing, and automation built in, your teams gain more control over global transactions and plan with greater confidence.