North America advances cross-border payments, research reveals

By Divya Shah

North America’s cross-border payments sector is undergoing a period of transformation as financial institutions, FinTechs and regulators work to modernise payment infrastructure while responding to increased geopolitical uncertainty and evolving regulatory requirements.

According to research by Money20/20 and FXC Intelligence, the region remains one of the most influential players in global cross-border payments, supported by the dominance of the US dollar, advanced financial infrastructure and growing investment in emerging payment technologies. 

The Americas accounted for approximately 21% of global outbound retail cross-border payments in 2025, representing $9.4 trillion in transaction volume. While the market is expected to continue expanding, growth is projected to be slower than in developing regions because North America already benefits from mature banking networks and widespread digital payment adoption. Business-related transactions continue to dominate, with B2B and B2C payments accounting for 86% of regional cross-border payment flows. 

 One of the most prominent themes shaping industry discussions is interoperability. Nearly 38% of analysed industry coverage focused on efforts to connect legacy systems with newer technologies and payment networks. Financial institutions are increasingly working to enhance connectivity across payment rails, driven by initiatives such as the migration to ISO 20022 standards, cross-border real-time payment projects and blockchain-based settlement solutions.  

Lucy Ingham, VP of Research at FXC Intelligence, said, “Our research and market sizing data highlight an industry balancing significant technological opportunity with growing geopolitical complexity. How North America navigates interoperability, regulation, and its differing national priorities will be critical to the future of cross-border payments.”

The United States has emerged as the leading market in this area, with significant attention on developments involving Swift, banking partners and digital ledger technologies. 

 Regulation and policy have also become central issues across the region. Around 36% of industry coverage focused on changing regulatory frameworks, ranging from biometric identification requirements in Mexico to discussions around cross-border capabilities for the US FedNow system.  

Regulatory developments affecting remittances have attracted particular attention given the importance of US-Mexico payment flows, one of the largest remittance corridors globally. Industry participants continue to monitor how new compliance obligations and supervisory measures may affect cross-border transaction efficiency and costs. 

Geopolitical developments represent another major driver of industry activity. Trade disputes, tariff policies and changing international relationships influenced more than a third of all cross-border payments discussions.  

In Canada, industry attention was heavily focused on trade tensions with the United States and the renegotiation of regional trade agreements. Meanwhile, Mexico’s cross-border payments landscape was strongly influenced by remittance trends, immigration policies and related regulatory responses. These developments highlight the increasing link between international politics and payment infrastructure strategy. 

 Technology innovation remains a powerful force within the sector, particularly in the United States. Stablecoins, tokenisation and blockchain solutions were discussed in 33% of analysed articles, making them among the most prominent technology themes across the region.  

Regulatory clarity around digital assets has encouraged financial institutions and payment providers to explore tokenised deposits, blockchain-based settlements and stablecoin-driven payment products. Companies have launched initiatives ranging from tokenised banking services to digital currency-powered cross-border payment networks.  

Despite the growing attention, stablecoins still account for a very small share of total cross-border payment volumes, indicating that mainstream adoption remains in its early stages. 

 Real-time payments have also gained substantial momentum, appearing in nearly one-third of industry coverage. Efforts to connect domestic instant payment networks with international systems are accelerating across the United States, Canada and Mexico. 

Industry participants view real-time payments as a critical step toward meeting customer expectations for faster and more transparent international money movement. The 2026 FIFA World Cup, jointly hosted by the three countries, further highlighted the need for efficient cross-border payment infrastructure capable of handling higher transaction volumes and international consumer activity. 

 The research also highlights growing interest in embedded finance and artificial intelligence. Embedded financial services are becoming increasingly integrated into remittance platforms, digital applications and AI-powered commerce environments. Meanwhile, AI is being applied to payment routing, risk management, compliance processes and emerging agent-based commerce models, helping firms improve efficiency while exploring new customer experiences. 

Overall, North America’s cross-border payments sector is characterised by strong innovation momentum but varying priorities across its major markets. The United States continues to lead infrastructure development and technological experimentation, while Canada focuses heavily on trade-related challenges and Mexico remains concentrated on financial inclusion, remittance flows and regulatory reform.  

Together, these trends suggest the region is moving toward a more modern and interconnected payments ecosystem, although balancing innovation, regulation and geopolitical realities will remain a key challenge in the years ahead.