Cross-border payments refer to the movement of money between different countries. They can be used for a variety of purposes, such as paying for goods and services, sending money to friends and family, or making international business transactions.
Cross-border payments work by using a network of banks and financial institutions that are able to transfer money between different countries. This can be done through a variety of methods, including wire transfers, credit card payments, and digital payment platforms.
There are a variety of parties that use cross-border payments, including individuals, businesses, and financial institutions. For example, an individual may use a cross-border payment to send money to a family member living in another country, while a business may use a cross-border payment to pay for goods or services from an international supplier.
The actual movement of money across borders can happen in a variety of ways, depending on the payment method used. For example, with a wire transfer, money is transferred directly between banks using electronic messages. With a credit card payment, the money is transferred through the credit card network, which handles the currency conversion and movement of funds. Digital payment platforms, like PayPal and Alipay, also facilitate the movement of money across borders.
Overall, cross-border payments are a vital part of the global economy, and they enable individuals, businesses, and financial institutions to move money easily and efficiently across borders.
This page was last updated on January 14, 2023.