Real-Time Payments and What They Mean for Cross-Border Money

Domestic payments in many countries are now instant. Nigeria's NIBSS Instant Payment system made real-time bank transfers part of everyday life years ago. In the United States, the Federal Reserve launched FedNow in 2023 alongside the private RTP network. Yet sending money between countries can still take days and cost several percent. Having run an international money transfer business, I see the gap between domestic speed and cross-border friction as one of the biggest opportunities in payments.

Why domestic got fast first

Inside one country there is one currency, one central bank and one set of rules. Cross-border payments involve two currencies, foreign exchange, correspondent banks, sanctions screening in more than one jurisdiction and different operating hours.

Linking instant systems

Central banks and international bodies are working on connecting domestic instant payment systems so that a transfer can move from one to another directly. Regional efforts in Africa aim to let payments settle between countries in local currencies without routing through other currencies first. If these links scale, the cost and delay of cross-border payments can fall sharply.

What still has to be solved

• FX: fair, transparent conversion with enough liquidity.
• Compliance at speed: screening and monitoring that work in seconds, not hours.
• Data standards: common message formats such as ISO 20022 so information travels with the payment.
• Fraud: instant and irrevocable payments are attractive to fraudsters, so confirmation of payee and behavioural monitoring become essential.

Examples of instant payment systems

Nigeria's NIBSS Instant Payment system made real-time bank transfers routine for millions of Nigerians. India's Unified Payments Interface processes billions of transactions every month. Brazil's Pix became one of the most widely used payment methods in the country within a few years. In the United States, FedNow and the RTP network are expanding real-time payments. These systems show that instant, low-cost domestic payments are achievable at scale.

Linking systems across borders

The next step is connecting them. Bilateral links between national systems already allow instant transfers in some corridors, and international efforts aim to connect multiple systems through shared hubs. In Africa, the Pan-African Payment and Settlement System is designed to let payments between African countries settle in local currencies, reducing reliance on dollars and correspondent banks.

What businesses should do now

• Review treasury processes: instant payments change how much cash you need to hold and how you forecast it.
• Upgrade fraud controls: real-time payments are hard to reverse, so verification must happen before sending.
• Use richer data: modern payment messages carry more information, which improves reconciliation.
• Review providers: compare cross-border partners on speed, total cost and transparency.

A leader's view: prepare treasury for instant money

When payments settle instantly, treasury management changes. Cash forecasts must be updated more frequently, because money arrives and leaves at any hour, including weekends. Liquidity buffers may shrink, since businesses no longer need to hold cash for multi-day settlement. Supplier relationships can change too: some suppliers will offer discounts for instant payment, and some customers will expect to pay instantly and receive goods immediately.

Leaders should review payment policies with these shifts in mind. Who can initiate instant payments, and with what limits? How are new beneficiaries verified before the first payment? What monitoring operates outside business hours? Instant payments are difficult to recall, so prevention is the only reliable protection against fraud and error.

For businesses operating across Africa and between Africa and other regions, faster cross-border settlement can reduce working capital tied up in transit, improve supplier relationships and lower foreign exchange risk by shortening exposure periods. Treasurers should track developments in national and regional payment links, test new providers and build the capability to take advantage as corridors become faster and cheaper. The organisations that prepare now will benefit first.

What it means for businesses

Treasury teams will be able to manage cash across countries with less idle balance. Exporters will be paid faster. Families will receive remittances in seconds. Companies that redesign their processes around real-time money, rather than end-of-day batches, will gain a lasting advantage.

Common questions

What is an instant payment system?

A payment system that transfers money between accounts within seconds, at any time of day, with immediate confirmation to the sender and recipient.

Why are cross-border payments slower than domestic ones?

They pass through multiple banks, currencies, time zones and compliance checks. Linking national instant payment systems is one way to speed them up.