JPMorgan Payments Experts Discuss Future of Cross-Border Transactions

In a recent conversation with PYMNTS, two payments experts from JPMorgan, Naveen Mallela, Managing Director of Onyx Coin Systems, and Gayathri Vasudev, Global Head of Cross-Currency Payments, provided valuable insights into the international payments space.

Emerging Technologies in Cross-Border Payments

Mallela and Vasudev emphasized to PYMNTS the crucial role of advancing technologies like artificial intelligence (AI), blockchain, and application programming interfaces (APIs) in enhancing cross-border payment flows. They argued that these technologies are no longer luxuries but imperatives for businesses, especially as the demand for high-volume, low-value payments increases. Vasudev highlighted to PYMNTS the integration of machine learning and AI in payment processing, which automates tasks like repairs, sanctions screening, and continuous monitoring, ensuring smooth transaction flows in the majority of cases.

Real-Time FX Rates and Payment Tracking

Vasudev also pointed out to PYMNTS the transformative potential of using APIs for offering real-time foreign exchange rates and payment tracking. These advancements, she noted, could completely overhaul the cross-border payment experience.

Cash Flow and Liquidity Forecasting

Mallela further explained to PYMNTS the relevance of AI and machine learning in cash flow and liquidity forecasting. He stressed the importance of developing event-driven infrastructure that dynamically responds to real-time events, enhancing adaptability in the financial landscape.

Blockchain’s Role in FX Settlement

Discussing blockchain technology with PYMNTS, Mallela highlighted its potential in cross-border payments, particularly in creating shared ledger infrastructure. This approach, he explained, could streamline processes by unifying bank operations on a single platform, enhancing transparency, trust, and security. Mallela also underscored blockchain’s role in facilitating liquidity marketplaces and improving FX settlement processes, including accommodating more emerging market currencies.

The Future of Embedded Payments

Looking forward, Mallela shared with PYMNTS his vision of digital currencies, including central bank digital currencies (CBDCs), tokenized deposits, and stablecoins, driving the next wave of innovation in cross-border payments. He emphasized the importance of digital identity solutions, KYC utilities, and an end-to-end uplift in user experience.

Vasudev predicted to PYMNTS a shift towards embedded payments, where cross-border transactions become integral to every firm’s business model. She envisioned a future where cross-border payments are seamlessly integrated into various business operations, effectively acting as payments without borders.