Visa Cross-Border solutions: Enhancing Australia's B2B payments

Visa Cross-Border Solutions (VXBS), powered by Currencycloud, is at the forefront of transforming multi-currency transactions in Australia.

This initiative, deeply rooted in Visa's acquisition of Currencycloud in 2021, aims to simplify and enhance cross-border money movement for banks, fintechs, FX brokers, and other payment institutions.

"We’ve developed a suite of modular building blocks that can easily integrate with a company’s existing technology infrastructure," Vice President and Head of Integrated Money Movement: APAC at Visa, Rohit Narang, explained.

This suite includes functionalities such as multi-currency wallets, real-time foreign exchange (FX) rates, and the ability to transact in over 200 countries and territories. These solutions, Narang emphasised, are part of Visa’s broader 'B2B4X' model, which focuses on improving the end-user experience.

Since securing an Australian Financial Services (AFS) licence in June 2022, Visa Cross-Border Solutions can now better serve the Australian market.

"We've secured key clients such as Send Payments, OFX, and ACY Securities," Narang highlighted. The company is also collaborating with both existing and new clients to explore the application of their modular capabilities across various sectors.

Key Trends Shaping Australia's Payment Landscape

As Visa Cross-Border Solutions expands its footprint in Australia, Narang identified four pivotal trends shaping the local payments landscape.

The first trend is the push to make B2B payments as seamless as B2C transactions, driven by the development of open APIs and the growing demand for integrated B2B payment solutions.

Another significant trend is the rising popularity of mobile wallets and digital banking, with many Australian banks integrating competitive FX rates and multi-currency wallets. The third trend, according to Narang, is the increasing use of artificial intelligence and machine learning to analyse transactional data, which helps in preventing fraud and personalising services. Finally, there is a growing emphasis on embedded payment solutions, particularly among small and medium-sized businesses (SMBs).

"The embedded finance industry in Australia is projected to grow by 37.7% annually," Narang noted, underscoring the importance of seamless payment experiences for SMBs.

Accelerating Business Payments

The evolving payments ecosystem is poised to significantly accelerate business payments in Australia. Narang highlighted three key areas where this acceleration will occur: interoperability, payment transparency, and convenience.

"Payment providers are prioritising interoperability to ensure smoother operations between different systems," Narang explained.

This focus is crucial for facilitating faster and more efficient cross-border transactions. Furthermore, increased efforts are being made to improve payment transparency in Australia, which not only boosts the security of cross-border payments but also builds consumer trust.

Narang also pointed out that businesses are increasingly seeking convenient and capable payment solutions to manage cross-border money movement and scale their operations. To meet this demand, collaboration with the right partners in the payment ecosystem is essential, as it introduces a variety of payment options and drives innovation in payment solutions.

Maintaining a Competitive Edge in the Fintech Industry

In an industry characterised by intense competition, Currencycloud, now under the Visa Cross-Border Solutions brand, is differentiating itself through innovation and customer-centric solutions.

Our acquisition by Visa has significantly enhanced our ability to offer comprehensive cross-border payment solutions,” Narang said.

This collaboration has strengthened Currencycloud’s global network, allowing it to provide greater transparency, flexibility, and control to businesses making international payments.

One of the key milestones in Currencycloud’s journey was its early involvement with Swift’s Global Payments Innovation (GPI) in 2019. “We were the first non-bank to sign up, demonstrating our commitment to improving the speed and transparency of international transactions,” Narang explained. The company has since introduced innovative features such as Weekend FX and real-time FX, which enable businesses to stay competitive and offer the best possible prices to their customers.

Currencycloud also distinguishes itself through strategic partnerships with financial institutions and fintech firms worldwide. These collaborations are crucial in enhancing its global reach and delivering robust financial solutions tailored to the dynamic needs of its clients. “Our high-security framework, adhering to the ‘four nines’ industry standard of availability, ensures that our clients and partners are protected and confident in the integrity of their transactions,” Narang emphasised.

A Leader in Innovation

To maintain its position as a leader in the payments industry, Visa Cross-Border Solutions is focusing on several key initiatives. One of these is fostering interoperability with open APIs, which enables seamless and agile transaction experiences for businesses.

"We are also leveraging data to enhance the efficiency and transparency of financial services," Narang explained. By allowing users easy access to real-time tracking data, Visa Cross-Border Solutions can personalise services and improve overall security.

Another key initiative is addressing the shift towards digital payments, such as mobile wallets.

"According to the Australian Banking Association, mobile wallets have overtaken cash as a preferred method of payment in Australia," Narang said. Visa is working to make digital payments more accessible and efficient, ensuring that users in Australia have a diverse range of payment solutions to bring their digital payment experiences to life.

Expanding Footprint in Australia

The future looks promising for Visa Cross-Border Solutions in Australia. Since securing the AFS licence, the company has expanded its presence and partnerships in the country.

"We continue to diversify our client portfolio across various sectors, including licensed derivative brokerages, payment service providers, banks, and wealthtech companies," Narang shared.

Looking ahead, Currencycloud plans to pursue more collaborations with banking institutions across Australia to expand multi-currency accounts and cross-border payment solutions. Through these efforts, Visa Cross-Border Solutions is positioning itself as a leader in the evolving landscape of cross-border payments and financial services, ensuring it meets the dynamic needs of its customers.

The Future of Cross-Border Payments in Australia

Looking ahead, Narang sees a bright future for cross-border payments in Australia. The adoption of digital payment solutions continues to gain momentum, with a strong focus on speed and efficiency.

"According to the Australian Banking Association, 98.9 percent of transactions now take place digitally in Australia," Narang noted, highlighting the country’s early adoption of digital banking technology.

As more payment players collaborate and innovate, Narang believes that banks and financial institutions offering cohesive, integrated solutions will lead the future of cross-border payments.