For those of us who’ve kept one eye on the development of real-time cross-border payment networks in Asia, it often feels like watching paint dry on a rainy day. There’s excitement at the start—the whispers of a revolutionary change, press releases that seem to hold the promise of seamless, instant transactions—but then comes the waiting. And waiting. And, inevitably, a small sigh of disappointment. I should know, because I’ve been one of the hopefuls, poised to see multi-lateral, real-time payment systems reshape the way money moves across borders in ASEAN.
But let’s be honest: progress has been less a straight path and more a winding road that sometimes doubles back on itself. The ASEAN network and similar initiatives have given us plenty of reasons to frown at the pace, often leaving us to wonder if we’re inching forward or just in an elaborate holding pattern. Yet, as I watch this landscape evolve, I can’t help but think—maybe we’ve been looking at it all wrong.
In a world where options are abundant, from streaming platforms to meal delivery services, why should cross-border payments be any different? Do we need to hold out for one unified, all-conquering solution when the real value might be in the sheer range of choices? As with any good ecosystem, diversity isn’t a flaw—it’s a strength. So perhaps it’s time to embrace the chaos and let many flowers bloom. Because in the end, we might find that more choice isn’t just a luxury; it’s exactly what cross-border payments need to thrive.
The Asia Pacific Cross-border Payment Landscape Today: A Patchwork of Initiatives
Asia’s cross-border payment landscape is anything but uniform. It’s a region where innovation thrives on contrasts—advanced financial hubs coexist with developing economies, and cutting-edge payment solutions rub shoulders with legacy systems. This dynamic backdrop has spawned a flurry of initiatives aimed at achieving the elusive goal of real-time cross-border payments. Yet, instead of a coordinated symphony, we’ve ended up with a cacophony of overlapping and sometimes competing efforts.
Take the ASEAN Payments Network as an example. Launched with ambitions to link national payment systems across member states, it painted a vision of seamless, frictionless transfers. The idea? A small business owner in Bangkok could send money to their supplier in Jakarta as easily as making a local payment. The reality? The initiative, while promising, has been bogged down by logistical and regulatory challenges that make moving money across ASEAN borders more akin to navigating a labyrinth than taking a direct path.
And it’s not just ASEAN. Across Asia, there are bilateral agreements between countries, ambitious projects to integrate systems like Thailand’s PromptPay with Singapore’s PayNow, and national efforts to expand domestic real-time payment capabilities into the cross-border space. Even broader initiatives like the Regional Payment Connectivity (RPC) framework are in play. On paper, it sounds great. In practice, it means multiple frameworks, each with its own timelines, priorities, and quirks.
The result is a fragmented network that leaves businesses and consumers in a unique position. On one hand, they benefit from the sheer number of options that cater to different needs—whether it’s cost-effectiveness, speed, or compliance. On the other, they face a complex decision-making process when trying to choose the most suitable cross-border solution.
Yet, this seemingly chaotic spread of initiatives is not necessarily a problem. Instead, it may reflect the region’s pragmatism in approaching payments: if one path falters, there’s always another to explore. As much as we might want to sigh and roll our eyes at the slow pace of multi-lateral progress, it’s worth considering the possibility that having multiple flowers in bloom isn’t a flaw—it’s part of a larger unstated strategy. And that might just be what makes the region resilient, adaptable, and ready for the future.
The Critiques Behind the Frustration
It’s easy to see why the current state of cross-border payment initiatives can lead to frustration. The vision was grand: a seamless network where borders fade away in the realm of financial transactions, turning cross-border payments into an experience as effortless as buying a cup of coffee at your local shop. But the reality has been far more sluggish, marked by incremental progress and uneven adoption.
Critics, myself included, have often pointed to the ASEAN network’s attempts to build this seamless ecosystem with skepticism. The promise of interconnected, real-time payment systems has sometimes felt like a mirage—something that shimmers enticingly on the horizon but remains out of reach. Why? The challenges are numerous, and they’re not always obvious from the outside.
For one, there’s the regulatory maze. Harmonizing financial regulations across multiple jurisdictions is an arduous task, and in a region as diverse as Asia, it’s even more complicated. What works for Singapore may not align with the rules in Indonesia, let alone Cambodia or Vietnam. Each country brings its own set of priorities, rules, and political considerations, making true multi-lateral cooperation a slow and complex process.
Then, there’s the issue of infrastructure. While some countries in Asia boast world-class financial technology and infrastructure, others are still building foundational capabilities. Connecting these disparate systems into a cohesive whole that supports real-time transactions is a feat of engineering and coordination that requires time—and often more time than anyone would like to admit.
Beyond these challenges lie competing interests. Payment providers, financial institutions, and tech startups all want a piece of the cross-border pie. This sometimes results in parallel initiatives that don’t align, creating redundancies instead of efficiencies. Even when two systems manage to integrate successfully, the next challenge is ensuring consistent user experiences and seamless operations.
But perhaps the most fundamental critique is one of expectation. The industry and its stakeholders have been eager to chase a one-size-fits-all solution that promises to unify and simplify cross-border payments. Yet, perhaps the focus on finding a singular, perfect solution is what’s slowing us down. Instead of bemoaning the patchwork nature of today’s payment initiatives, as I have done many times in the past, we might need to adjust our expectations and see that this variety is an asset, not a flaw.
In trying to get everyone to march to the same beat, we may be missing the point. Real-time cross-border payment systems will never be a one-note symphony—they are, and perhaps should be, a complex, evolving melody where different notes overlap, clash, and ultimately contribute to a richer, more resilient system.
A Reframe: “Let Many Flowers Bloom”
If there’s one lesson we can take from the evolving landscape of cross-border payments, it’s that perhaps the search for a singular, unified system is both unrealistic and unnecessary. Instead of lamenting the patchwork of projects and half-finished initiatives, it’s time to reconsider the narrative: diversity, even in payments, isn’t a flaw—it’s a feature.
The phrase “let many flowers bloom” feels particularly apt here. In a region as vast and varied as Asia, the idea that one solution could address the needs of all its economies is overly ambitious at best. Each country has its own unique financial system, regulatory environment, and technological capacity. What works perfectly for Malaysia might be a logistical nightmare for Myanmar. The current landscape, with its multitude of initiatives, reflects this reality: different solutions are taking root to solve different problems, catering to varied market demands.
This diversity is not just an indicator of inefficiency; it’s a demonstration of resilience. Picture a well-tended garden where different flowers bloom at different times and under different conditions. If one type of flower falters, others thrive, ensuring that the garden is never barren. Similarly, in the payment ecosystem, if one initiative struggles, others can fill the gap, keeping the wheels of commerce moving.
More importantly, variety in solutions can drive competition and innovation—and we’re seeing that today. External providers like Visa, Mastercard, Nium, and Thunes provide market drive connectivity. DBS created their own with DBS Remit.
When multiple initiatives vie for relevance, each has an incentive to outdo the other in speed, cost, security, and user experience. This competitive pressure can push the boundaries of what’s possible, leading to improvements that benefit everyone involved. It’s not just a question of getting one real-time cross-border network up and running; it’s about nurturing an environment where options proliferate, giving businesses and consumers a buffet of choices that fit their needs.
In this context, the slower-than-expected pace of multi-lateral real-time initiatives might actually be a hidden blessing. While we wait for grand-scale integrations like the ASEAN network to catch up, smaller, more agile players have stepped in to innovate and fill the void. These alternatives can tailor solutions to specific cross-border corridors, focus on niche user groups, or tackle unique challenges that a one-size-fits-all system might overlook.
The shift in mindset, then, should be away from yearning for uniformity and toward embracing the patchwork as part of a vibrant, ever-changing ecosystem. Real-time cross-border payments might never march to a single tune, but they don’t need to. The multitude of voices, platforms, and systems creates a symphony of choice that ultimately serves consumers and businesses better.
Spoilt for Choice – The Future Outlook
As we shift our perspective from yearning for one dominant real-time cross-border payment network to embracing a more varied reality, we should consider what this abundance of choice means for businesses and consumers. In many ways, we are stepping into an era where having multiple options isn’t just a possibility—it’s the standard. While that can seem daunting, it ultimately serves as a powerful asset for the financial ecosystem.
Take the world of streaming services as an example. Once limited to one or two major players, we now face an array of options tailored to specific interests, regions, and price points. The result? Consumers have more power than ever to choose services that fit their needs. Cross-border payments are following a similar path, where businesses and consumers alike will soon find themselves able to choose between different payment rails, each offering distinct advantages in speed, cost, transparency, and compliance.
Imagine a mid-sized company in Ho Chi Minh City looking to pay a supplier in Manila. The company might choose from an ASEAN Payment Connectivity solution emphasizing regional integration, a bilateral option fine-tuned for the Vietnam-Philippines corridor, or a global fintech platform that promises high-speed processing and competitive rates. Each route could bring unique benefits, from lower fees to faster settlement times to enhanced regulatory alignment. This wealth of options empowers businesses to align payment strategies with their operational goals and cash flow needs.
The same holds true for consumers. Whether it’s migrant workers sending remittances or tourists needing real-time currency conversion, having access to a multitude of payment channels makes the experience more convenient and personalized. Instead of being forced into one route, individuals can pick solutions that prioritize what matters most to them: speed, cost, security, or user-friendliness.
However, it’s important to acknowledge that while choice is often beneficial, too much choice can lead to decision fatigue—just like an overly complex restaurant menu that leaves diners overwhelmed and paralyzed. For businesses, navigating an increasingly crowded payment landscape means investing more time and resources into understanding which solutions best align with their strategic needs. For consumers, it can mean sifting through multiple options to find the one that ticks all the boxes. And for regulators, this expanded ecosystem poses the challenge of monitoring a sprawling network of interconnected and sometimes overlapping systems.
Despite these potential drawbacks, the advantages of competition and innovation far outweigh the complexities. When payment providers know their users have alternatives, they’re motivated to innovate, enhance transparency, and lower fees. This natural competition pushes the industry forward, sparking technological advances and improved service quality that would be unlikely in a more limited-choice environment. The very diversity that sometimes makes this ecosystem feel disjointed is also what propels it forward.
Ultimately, the cross-border payment landscape in Asia is transforming into an ecosystem marked by choice. While the slow progress of large-scale, multi-lateral initiatives can be frustrating, the proliferation of alternative solutions—driven by startups, regional banks, and tech giants—creates a vibrant tapestry. As with most things in life, the real value lies in having options, but it’s important to navigate this buffet wisely to avoid the pitfalls of decision overload. As these “flowers” continue to bloom, businesses and consumers will find themselves not only spoilt for choice but hopefully equipped to make those choices effectively.
So, as we look to the future, the question isn’t whether one unified cross-border payment system will dominate but rather how this entire bouquet of solutions can shape a more flexible, inclusive, and competitive financial ecosystem—without overwhelming the very people it’s meant to serve.
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