Ecommerce is growing at a breakneck pace, and as more businesses expand globally, they’re running into a critical piece of the puzzle: foreign exchange (FX). Whether for paying suppliers overseas or receiving payments from international customers, managing FX can be tricky, costly, and time-consuming. The landscape is changing, however, thanks to fintech innovations like digital wallets, real-time payments (RTPs), and blockchain. These technologies make cross-border payments faster, more transparent, and less expensive – exactly what businesses need to thrive in today’s global marketplace.
Digital wallets have come a long way from just storing your money – they’re now set to transform how FX transactions happen. Traditionally, banks act as the intermediaries for these transactions, causing delays and imposing fees. By cutting out the middlemen and using fintech infrastructures like blockchain and RTP systems, digital wallets enable near-instant FX conversions with lower fees. This is nothing short of a game changer for cross-border payments, where delays can hurt businesses and currency fluctuations can eat into profits. In regions like Asia-Pacific, where real-time payments are becoming the norm, digital wallets are integrating with local systems to make currency exchange and funds transfers nearly instant. Another big plus? Digital wallets that leverage blockchain technology bring a new level of transparency to international transactions – from exchange rates to fees – in real time. For ecommerce businesses, this means more control over their money and lower costs, which ultimately leads to better service for customers.
Another key trend shaping FX is the explosion of RTPs. Our latest industry report, Fintech 2025+, revealed that RTP transactions are expected to reach USD 511.7 billion by 2027, marking a 21.3% annual growth rate. With the G20’s ambitious goal to see 75% of cross-border payments reach recipients within an hour by 2027, the RTP boom offers great potential to transform the efficiency of international transactions to match these ambitions.
This presents a unique opportunity for global ecommerce businesses to improve cash flow and optimise their supply chains. For example, RTPs enable faster disbursements to suppliers, improving efficiency and reducing the risks associated with delayed payments. For businesses selling internationally, RTPs can reduce the cost and complexity of cross-border transactions, allowing companies to meet the demands of global customers without the delays associated with traditional banking systems.
As cross-border payments become faster, new challenges arise, particularly when it comes to managing FX risk. Exchange rates can fluctuate in seconds, underscoring the need for technology that can securely and speedily adapt to this new environment.
The concept of automated hedging tools is fast becoming a reality, set to change the game for businesses that manage frequent cross-border transactions. Powered by advanced artificial intelligence (AI), these systems can monitor the market and make real-time adjustments to protect your business from unfavourable currency shifts – without any manual effort. This will enable global ecommerce companies to more easily handle fast-changing exchange rates. Another exciting development on the horizon is the automation of currency swaps and forward contracts. These tools allow businesses to lock in an FX rate for future payments, offering a layer of protection against unpredictable market moves. As real-time payments and digital wallets become more integrated, automating these contracts will become a key strategy for keeping cash flow smooth and predictable.
Smart contracts and blockchain are also poised to revolutionise FX risk management by automating transactions based on predefined, or ‘programmable,’ conditions – like a currency hitting a favourable rate. This hands-off approach ensures that you get a rate that meets your business objectives without having to constantly monitor the markets. With blockchain at their core, smart contracts are set to deliver greater transparency, speed, and security for cross-border transactions.
The key takeaway here is that the world of FX is evolving, and businesses that adapt to these changes will be well-positioned for success in the global market. As ecommerce continues to expand across borders, the role of FX will become increasingly central to the success of global businesses. Innovations like digital wallets, blockchain, AI, and RTPs are setting the stage for a more seamless, transparent, and cost-effective FX process. However, these advancements also come with the need for businesses to stay vigilant about FX risk, particularly in a world where real-time payments are becoming the norm.
For a deep dive into the trends, technology, and transformation driving global commerce today, check out Fintech 2025+, our latest industry report developed in partnership with Oxford Economics and The Paypers.
This editorial piece was first published in The Paypers' Global Ecommerce Report 2025, which provides a complete overview of key trends and strategies to help businesses worldwide succeed. Download your free copy today to explore in-depth insights on global ecommerce trends, the latest innovations in payment solutions, and strategies to stay ahead in a competitive market.
Alex Lawrence is the Global Head of Content Strategy & Industry Engagement at Convera, a global payments company specialising in commercial cross-border payments. He has led content and thought leadership initiatives for Amazon’s consumer payments division with Amazon Pay, as well as editorial strategy for KeyBank and Better Mortgage in New York. He is the host of the Converge Podcast, covering macroeconomic insights and digital transformation in financial services.
Convera is a global payments company specialising in cross-border transactions and real-time payments, providing innovative financial solutions to businesses and institutions to enhance efficiency and economic growth.
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