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Cross-border payments market UPSC NOTE

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  Global Cross-Border Payments Market Market Size : Valued at $181.9 trillion in 2022 , projected to grow to $356.5 trillion by 2032, with a...

 Global Cross-Border Payments Market

  • Market Size: Valued at $181.9 trillion in 2022, projected to grow to $356.5 trillion by 2032, with a CAGR of 7.3%.

  • From manual processes and checks to modern wire transfers and digital systems, cross-border payments have seen significant technological advancements.

  • Emerging technologies like blockchain, Central Bank Digital Currencies (CBDCs), and instant payment systems are reshaping the market

Challenges in Cross-Border Payments

  • Intermediaries and regulatory costs make transactions expensive.

  • Traditional systems and complex regulatory requirements slow down processing times.

  • Not all individuals or businesses have access to efficient cross-border payment systems.

  • Lack of clarity on fees, transaction processes, and compliance requirements affects trust and efficiency

Way Forward

  • Harmonize anti-money laundering (AML) and counter-terrorist financing (CFT) regulations across countries to reduce friction and improve efficiency.

  • Leverage new technologies like blockchain and digital wallets to enhance speed, reduce costs, and improve transparency.

  • Include non-bank entities in the payment systems and streamline compliance to make cross-border payments more accessible and inclusive

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Learnerz IAS | Concept oriented UPSC Classes in Malayalam: Cross-border payments market UPSC NOTE
Cross-border payments market UPSC NOTE
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Learnerz IAS | Concept oriented UPSC Classes in Malayalam
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