Asia Pacific businesses are demanding faster cross-border payments as a wider range of payment providers and methods reshapes the international payments market, according to new research from Nium and financial research firm Celent.
The study found that 73% of businesses in the region want international payments completed within minutes or instantly, but only 10% currently receive payments at that speed.
The research surveyed 210 businesses and 210 banks across 17 markets.
The gap also reflects a disconnect between businesses and banks. Only 29% of banks surveyed believe businesses expect cross-border payments to be completed within minutes or instantly.
As expectations rise, businesses are increasingly turning to non-bank providers.
Nearly two-thirds, or 64%, of Asia Pacific businesses surveyed use at least one non-bank method for outgoing international payments, with more than 15% of cross-border payment volume moving through non-bank channels.
The shift could put pressure on banks’ traditional role in cross-border payments. Some 63% of businesses in Asia Pacific expect their reliance on banks for international payments to decline over time.
At the same time, banks remain important to businesses’ broader financial relationships. About 70% of respondents said additional or related services from their banks would increase their loyalty, suggesting that banks could retain customers even as payment volumes increasingly move across different providers.
“The future of money movement isn’t going to be defined by banks or non-bank providers alone,” said Anupam Pahuja, chief business officer at Nium.
Businesses increasingly have different ways to move money depending on what they need. The challenge now is making those options work together without adding more complexity, while giving businesses the choice, speed, and certainty they expect.
Speed was not the only consideration for businesses choosing cross-border payment methods.
Businesses were more likely to rank ease of payment as their top consideration than total cost, while cut-off times, visibility into payment timing and transparency around fees were among areas identified as needing improvement.
The findings point to growing demand for greater certainty around international payments, including when funds will arrive, how much a transaction will cost and whether it will be completed successfully.
Failed payments can create costs beyond the transaction itself.
Some 34% of businesses surveyed cited vendor or partner dissatisfaction and attrition as the biggest impact of delayed or failed payments, while 28% pointed to delayed orders and supply chain disruptions.
Celent estimated that failed payments cost the average business surveyed more than $100,000 annually, based on the frequency of failures and the cost of investigating and repairing them.
The research also highlighted challenges facing banks as new payment technologies emerge.
Globally, half of the banks surveyed described cross-border payments as a major opportunity, while 53% said new technology and partnerships would lead them to expand their activities in the market.
In Asia Pacific, however, 63% of banks said they are struggling to make a business case for newer forms of money, including stablecoins, tokenized deposits and central bank digital currencies.
The findings suggest that while banks see opportunities to expand their cross-border payment capabilities, questions remain around the commercial viability and practical adoption of emerging forms of digital money.
The research was published in a report titled The Value of Certainty in Uncertain Times by Nium and Celent.