As global trade adapts to shifting geopolitical and economic landscapes, the underlying payment infrastructure is undergoing rapid transformation. For decades, cross-border payments relied heavily on USD-based correspondent banking networks. Now, regional
coalitions in Africa, the Middle East, Asia, and Europe are establishing sovereign payment systems designed to boost local currency usage, streamline transactions, and foster financial inclusion.
This shift marks more than a technological evolution, it reflects a deeper global movement to reclaim financial autonomy, strengthen systemic resilience, and decentralize control amid growing external pressures.
In this blog, we’ll explore how different regions are approaching this transition, identify emerging patterns, and consider what lies ahead for the future of cross-border payments.
Regional partnerships emerge across Africa
Africa is advancing in payment integration through initiatives like the Pan-African Payment and Settlement System (PAPSS), launched under the AfCFTA. While PAPSS provides a critical framework for cross-border payments, its current USD-based clearing mechanism
limits its full potential for local currency usage.
In parallel, regional blocs such as COMESA are working on practical solutions for local currency settlement that better reflect regional trade flows. The East African Community (EAC) is progressing towards a shared regional currency, with recent updates
indicating renewed political commitment and institutional preparation.
Sovereign infrastructure implementation in the Middle East
The Middle East has developed robust infrastructure through initiatives such as BUNA, a cross-border payment platform operated by the Arab Monetary Fund. BUNA enables settlement in both regional and global currencies and serves commercial and central banks
alike.
In the Gulf, the AFAQ system has been operational for several years, facilitating real-time payments in national currencies among GCC member states. Together, BUNA and AFAQ represent a growing regional ecosystem that is technically advanced and politically
aligned with national objectives.
Caribbean region joins the shift
In 2025, the CARICOM Single Payment System was launched with the goal of reducing regional dependence on the US dollar and improving access to affordable financial infrastructure. As reported by the Canada-Caribbean Institute, the initiative will prioritise
local currency transactions within the bloc, promote digital payment adoption, and build the foundations for a future regional clearing and settlement mechanism.
For small and mid-sized economies, this is a strategic step toward financial sovereignty and economic coordination.
Networked frameworks reshape Asia’s regional approach
Asia has embraced an interconnection model for its domestic payment systems. What began as an initiative at the BIS Innovation Hub is now being executed by the independent organisation Nexus Global Payments (NGP). The project will connect national instant
payment systems across borders to enable seamless and affordable retail transactions.
Central banks from India, Singapore, Thailand, Malaysia, and the Philippines are among the key participants. Nexus Global will link platforms like UPI, PayNow, and DuitNow, allowing real-time payments across countries using only mobile numbers or aliases.
The initiative avoids building a central clearinghouse, relying instead on synchronised protocols that support interoperability and local control.
Sovereignty and scale drive Europe’s strategic vision
Europe is reasserting its strategic position through public infrastructure and regulatory reform. The TARGET Instant Payment Settlement (TIPS) system allows real-time settlement of euro-denominated payments across SEPA. Recently, the European Payments Initiative
(EPI) announced a collaboration with Europa, a public-private effort to create a pan-European payments brand.
The goal is to deliver interoperable wallets and merchant services that reduce dependence on non-European providers. Backed by regulatory clarity from the Markets in Crypto-Assets (MiCA) framework and mandates requiring instant payment access across the
eurozone by 2025, the EU is building a coordinated and sovereign digital payment infrastructure.
Implications for trade, treasury, and regional growth
The rise of regional payment systems is set to reshape how cross-border trade and financial operations are conducted. However, the impact will not be uniform across all market participants. In the near term, large corporates operating within established
trade corridors may experience limited change. These firms already benefit from structured treasury networks and long-standing correspondent relationships. By contrast, the most immediate and tangible benefits are expected to emerge for individuals, micro-enterprises,
and small to medium-sized businesses. For these groups, the availability of cross-border payments that are faster, cheaper, and settled in national currencies could be transformative.
Eliminating the delays associated with batch-based systems and working-hour constraints has important consequences for treasury operations, particularly in liquidity management. If payments can be initiated and received 24×7, treasurers must rethink how
they manage cash positions in real time, across multiple accounts and jurisdictions. The traditional reliance on next-day settlement forecasts will gradually be replaced by tools that provide immediate visibility over inflows and outflows, supporting dynamic
decision-making.
The growing use of local currencies for settlement is another structural shift, reducing the need to pre-fund foreign currency accounts or hedge extensively against USD volatility. This will enhance working capital efficiency and help support bilateral trade
within regional blocs. For many treasurers, especially in emerging markets, this will reduce dependence on hard-currency liquidity buffers that can be costly or inaccessible.
Moreover, these systems often embed data-rich messaging and programmability features, which allow for enhanced reconciliation, automated compliance, and better integration into enterprise resource planning (ERP) systems. The result will be a treasury environment
that is faster, leaner, and more responsive.
In the long run, regional payment systems will not only improve the mechanics of cross-border trade but also catalyse broader economic growth. By facilitating access to affordable financial infrastructure, they will enable more inclusive participation in
regional value chains and stimulate intra-regional commerce.
