Streamlining cross-border payment processes

In the realm of fintech, a significant project is underway with the aim of revolutionising cross-border payments. The goals of this project mirror those of many fintech companies, with the ambition to make these transactions cheaper, faster, more transparent, and more inclusive. This roadmap, published by the Committee on Payments and Market Infrastructure (CPMI) of the Bank of International Settlements in October 2020, has set the stage for a new era in international money transfers.

However, the future of one of the leading brands in cross-border payments, Travelex, remains uncertain. The COVID-19 pandemic has dealt a severe blow to Travelex's travel money business, compounding the challenges it faced following a cyber attack in December 2019 that forced the company to cease operations. Despite efforts to find a buyer, Travelex has been taken over by its debt holders, and its stock is declining. The company's owner, Finablr, has also uncovered $1bn in hidden debt, leading to speculation about its financial stability.

The restructuring process for Travelex may be painful, but it is not alone in its struggles. Finablr, it seems, is also facing bankruptcy. The frictions in cross-border payments, while a challenge, have enabled many businesses to offer these services. However, the project aims to improve the efficiency and inclusivity of these transactions, and the most attainable outcome for now seems to be reducing rather than removing these frictions.

The group that will take over the cross-border payments project after the CPMI report publication is called the "Global Cross-Border Payments Group" (GPG). The roadmap, expected to be delivered to G20 finance ministers and central bank governors in October 2020, will initiate an implementation phase. The focus areas in the roadmap are extensive and have been previously identified.

The current state of Travelex raises questions about its potential for survival. As the industry moves towards a more efficient and inclusive future, it remains to be seen how Travelex will navigate these challenges and whether it will find a way to reclaim its position as a leading player in cross-border payments.