APAC, Interoperability and Reducing Complexity

How cross-border payments in the region need greater control, choice and confidence.

Too often interoperability stops at national borders.  Interoperability serves as the foundational bridge that allows different domestic payment systems, national currencies, and regulatory frameworks to communicate and exchange funds seamlessly across borders. Countries can have made significant advances in internal real-time payments, but businesses still face long waits for international transfers. This is a particular challenge in the APAC region. It has built successful domestic rails, like India’s UPI and Singapore’s PayNow, which have long outpaced the traditional banking model and there is not yet a seamless regional network. The problem is that the banking model still governs much of international settlement.

Of course, APAC is a huge region, with a wide range of economies. Market sizing data from FXC Intelligence shows that ‘outbound cross-border payments from the Asia-Pacific region totalled $13.5tn, 31% of outflows globally, and are set to grow faster than global averages to reach $24tn by 2033’[1]. This would represent a 36% share of all global cross-border volumes. Digitisation is behind this. It’s expected to drive B2B volume, which will in turn drive demand.

The region has a generally positive attitude towards improving cross-border payments. All are above 50%, but Hong Kong has the highest share of positive-sentiment articles, at 69%[2]. Money 2020’s new research describes it as ‘a fluency hub’ between Asia and the West’. To that end, it is cementing its role by focussing on internationalising the renminbi through wholesale market infrastructure. In terms of digital currency, this includes initiatives in CBDCs (via Project Ensemble) and stablecoins, where the Market Authority has recently announced a licensing regime. The growing focus on institutional tokenisation is also reflected in initiatives in Singapore.

Some of the region’s growth will be driven through its largest bilateral trading relationship: China & Sub-Saharan Africa. Recent figures find that ‘34% of African businesses now source imports from China, up from 23% a year earlier, and China-Africa trade reached $134bn in the first five months of 2025 alone’[3]. Yet, the majority of settlement between the two regions has historically gone via USD correspondent banking in London or New York.

One of the challenges for the region is the extent of different, largely domestic networks. Like the car industry in the early 20^th century, there are many different and competing companies and systems. In the 21^st century, this breeds uncertainty as to which architecture will achieve scale. There are at least five: bilateral QR-payment linkages, real-time payment interconnections, Project Nexus (run by the Bank for International Settlements), CBDCs such as Project mBridge and in some markets there are stablecoin-based options.

It’s time to reduce complexity. Without a hub model, countries must build and maintain multiple one-to-one connections. This is an improvement on routing via London/New York, but we can make this better.

At Freemarket we do this through our payment network. We’re one of the most advanced future-rails global payment networks, processing tens of billions of dollars every year and giving our clients control, choice and confidence in your global money movements. So there’s no more chasing confirmations, managing complex banking chains or waiting days for payments to settle. Working with regulated partners we give you access to lending, programmable money, FX and banking services.

The Freemarket network offers:

• Control – through total position visibility, 24/7. You choose the speed, routing, timing and settlement of all your payments, which are tracked in one account.

• Choice – of the rails that work for you. Access a panel of banks and strategic partners to move money, find liquidity and work in a basket of currencies.

• Confidence – to trade and move money. Our best in class compliance service onboards every member and checks every transaction in real time.

We believe APAC is driving innovation in domestic real-time payments, but it has not yet solved regional interoperability. So we’re present in the region, supporting money movement by providing the critical link between businesses and banks. We offer over 30 fiat currencies all within our own network and work with partners around the globe. Interoperability is the key to global growth. It will free up finances to plough back into the local and global economies. It’s time to reduce complexity and drive growth through greater interoperability.

So wherever you are in the world, or wherever you want to send money, together we are Freemarket. Come and join us!