Cross-Border Payments
Cross-border payments refer to financial transactions where the payer and payee are located in different countries, involving the transfer of funds across international borders. This concept encompasses various methods, including bank transfers, remittances, and digital payment systems, and is critical for global trade, e-commerce, and personal remittances. It involves complexities such as currency exchange, regulatory compliance, and settlement systems to ensure secure and efficient money movement.
Developers should learn about cross-border payments when building applications for international markets, such as e-commerce platforms, fintech services, or remittance apps, to handle currency conversion, compliance with regulations like AML/KYC, and integration with payment networks. Understanding this concept is essential for creating seamless user experiences in global financial systems, reducing transaction costs, and ensuring security in multi-currency environments.