Cross-border payments set for 'unprecedented change'

The cross-border payments industry is seeing levels of “unprecedented change” globally, including in regulation, where Australia is struggling to keep apace despite the competition watchdog’s probe into the $9 billion foreign currency transaction market.

That’s the view of OFX chief executive Skander Malcolm who identifies three themes dominating cross-border payment, including that a larger number of small and medium businesses are utilising global payments to tap into new customers or for their supply chain, and that rapid technological change is spawning a rash of new products and services.

He says the third trend is a higher level of regulatory scrutiny and change that is facilitating new models, an area where Australia has lagged.

“We actually have regulators who are moving at different speeds,” he said.

“Australia is in the catch-up camp and is moving more carefully or slowly than others … The downside for Australia is there are a whole bunch of fintechs in the UK that started here [in Australia], and are using their UK licence in Australia.”

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Source: Cross-border payments set for ‘unprecedented change’ | afr.com