BNY has enabled a Pay-to-Wallet capability for cross-border bank-to-wallet payments, with KB Kookmin Bank among initial users.
According to the official press release, the service runs on existing SWIFT payment messages and correspondent banking infrastructure, so participating banks can reach wallet recipients through channels they already use.
How the capability works
The service uses BNY's global payments capabilities, including its USD clearing network and 24/7/365 processing, to support bank-to-wallet transfers across approved markets and corridors. For banks, the main change is in infrastructure. They do not need to build their own technology stack or set up separate integrations with individual wallet providers. Instead, they can route payments to wallets through the same correspondent banking channels used for conventional cross-border transfers.
According to BNY, this approach is intended to reduce implementation complexity and time-to-market concerns for banks responding to client demand for wallet-based payouts. Fabian Khoshbakht, Head of Global Payments & Trade, APAC at BNY, described the capability as a way for participating banks to access digital wallet payment flows through existing infrastructure, without building layers of integration with wallet providers.
Demand from wallet-led markets
The launch focuses on the Asia Pacific. BNY describes the region as wallet-led and groups it with other high-growth corridors where digital wallets are becoming central to cross-border payments. Figures cited in the announcement show that retail digital wallets already account for 50% of point-of-sale transactions in the Asia Pacific and are projected to exceed 60% by 2027.
This shift affects how cross-border payments are delivered. As more recipients prefer to receive funds in wallets, sending banks face growing client demand to offer payout options that match those preferences. BNY's capability is designed to let banks meet that demand by linking SWIFT-based payment flows to wallet endpoints.
Banks across the Asia Pacific are among the first to use the capability, including South Korea-based KB Kookmin Bank. Raphael Baik, Head of Division, Foreign Exchange Business at KB Kookmin Bank, pointed to rising client demand for payment options that reflect how recipients want to receive funds. It was also added that the capability could help the bank broaden access to digital wallet payments more efficiently.
In addition, Cynthia Hsu, Head of Wholesale Banking Product Division at Taishin Bank, said Pay-to-Wallet capabilities could support the continued modernisation of cross-border payments and expand customer choice. The capability was also described as an opportunity for the bank to collaborate with BNY and its global network on meeting customer needs.
The Pay-to-Wallet capability will initially be enabled with selected participants in the Asia Pacific. BNY plans to expand it globally over time, but the announcement does not give a timeline or name additional markets.
For banks that rely on correspondent networks, the development shows that wallet payouts are becoming reachable through established cross-border infrastructure rather than only through separate, provider-specific integrations.
