Learn #banking, #fintech and #payments jargon: Cross-border payments

By | July 21, 2021

Cross-border payments


Cross-border payments are those type of payment where the payer and payee reside in different jurisdictions.

Many of these are also cross-currency payments – that is, payments where the payer and payee are respectively debited and credited in different currencies. Payments within monetary unions or payments in a common invoice currency may be cross-border but not cross-currency.


In layman terms a cross border payment is a payment done across countries. The most known cross border payments are the remmitances, money migrant workers send to their home country.

Note that cross-border payments is a vast and very lucrative domain. As payment rails for cross-border payments we have:

  • Swift correspondent banking rail, where diferent banks from diferent countries send payments through Swift
  • Fintechs rails like Wise (former TransferWise) or older estableshed services like VISA , Maastercard, MoneyGram etc.
  • New blockchain based solutions like Ripple Network etc.


This is a series of posts with definitions for the jargon used in #banking, #fintech and #payments.

Too many people use some terms without understanding them beyond the definition.

Too many “experts” use the terms but they never had experience with the actual implementation of anything in #banking, #fintech and #payments.

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