Ripple Unveils New Guide to Solving Cross-Border Payment Challenges for Fintechs

Cross-border has been an important niche for the Ripple network since it was developed in 2012 by David Schwartz and other developers.
Ripple has now published a Guidebook for cross payments, something that investors and developers can all learn from.

A week ago, Ripple Labs launched its cross-border blockchain payment services in the United Arab Emirates, aiming to revolutionize how international transactions are handled, making them faster, cheaper, and far more transparent. Today, the Ripple team published a detailed article that breaks down how their technology works, the challenges it faces, the various types of payments it supports, and the benefits of embracing blockchain for cross-border transactions.

The timing couldn’t be more relevant. Last year, the global B2B cross-border payments market reached a staggering $31.6 trillion, with projections suggesting it could climb to $50 trillion by 2032. Meanwhile, global e-commerce sales hit an estimated $6 trillion in 2024, and an increasing portion of that involves cross-border payments.

Methods of Cross-Border Payments

Cross-border payments are now woven into the fabric of our daily lives and global commerce. For individuals, they help families stay connected and give consumers access to products and services from around the world. For businesses, they open the door to international growth, making it easier to reach new markets, hire global talent, and manage operations smoothly. Fast, reliable payments improve cash flow, reduce costs by cutting out middlemen, and build stronger relationships with customers and partners. As the team puts it, “When businesses can offer a fast, reliable, and transparent payment method to international partners or customers, it builds trust and strengthens relationships. ”

These payments can be processed in different ways. ACH transfers are reliable and cost-effective for things like recurring bills or payroll, though they take a few days to clear. Wire transfers are ideal for large sums but tend to be slower and more expensive. Card payments offer convenience and built-in currency conversion but often come with higher fees. And then there are Money Transfer Operators (MTOs). ” MTOs allow consumers to send money without a bank account. They are widely used for remittances and person-to-person payments,” Ripple explained.

What are the challenges faced?

Traditional money transfers, especially those that rely on systems like SWIFT, can often feel frustratingly outdated. Sending money across borders typically takes several days, leaving both senders and recipients in a state of uncertainty. As the report points out, “further delays caused by time zone differences or manual processing errors can turn these already-slow payments into a crawl.” Much of the process still depends on manual inputs, and as the report notes, “a typo in an account number, an incorrect SWIFT code or incomplete payment instructions can all cause a transaction to fail.”

Beyond the delays, fees stack up as funds pass through multiple banks and intermediaries, eating into the amount received. On top of that, there’s very little visibility into the status of a transaction, which can be especially stressful when trying to support family abroad or meet urgent business obligations.

Another major challenge lies in the regulatory complexity. As the report highlights, “cross-border payments also cross regulatory regimes.” Each transaction must comply with the rules of both the sending and receiving countries. This includes anti-money laundering (AML) checks, know-your-customer (KYC) requirements, sanctions screening, tax reporting, and more.

The report states that “Ripple Payments offers a cross-border stablecoin payment solution that is a modern alternative to traditional cross-border payment rails.” In December 2024, Ripple Labs launched its stablecoin, Rlusd. With RLUSD, businesses are given a tool for quick, reliable, and affordable payments across borders.

Additionally, through a “single onboarding” process, businesses can tap into Ripple’s extensive global payout network, which “covers over 90% of the world’s financial exchange market” and supports both stablecoin and local fiat currency pay-ins and pay-outs.