This collaboration, powered by Kinexys – the blockchain and digital assets unit of J.P. Morgan – marks a step forward in India's financial landscape.
This agreement allows Indian businesses the flexibility to make and receive US dollar payments at any time, including weekends and holidays. The service will be available through Axis Bank's operations in Gujarat International Finance Tec-City (GIFT City), an international financial services hub. The real-time payment capabilities aim to improve cross-border transactions, offering businesses a more efficient and accessible way to handle their international payments.
The collaboration between Axis Bank and J.P. Morgan's Kinexys promises to offer significant benefits to clients, including simplifying the payment process and unlocking liquidity. This 24/7 payment option allows businesses to bypass traditional cut-off times for dollar payments, improving operational efficiency. The move is expected to provide Indian companies with greater flexibility when dealing with clients in different time zones, such as the Middle East, where Sunday is a standard working day.
The partnership's payment infrastructure ensures that transactions are completed with no deductions, preserving the full amount of the payment until it reaches the recipient. Therefore, this advancement improves the client experience, particularly for cross-border payments, by offering more payment options and ensuring smoother transaction flow.
The introduction of this real-time payment capability aligns with the growing demand for simple cross-border financial services, offering businesses the ability to manage their global payments efficiently.
The global cross-border payments market is projected to grow significantly in the coming years. According to a 2023 report by Grand View Research, the global cross-border payments market size is expected to reach USD 35.4 trillion by 2027. This growth is driven by increased globalisation, digital transformation in financial services, and rising demand for faster, more efficient payment solutions. In this context, the Axis Bank-J.P. Morgan collaboration is a strategic move that aligns with these global trends.
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