International payment part 2: pain points and solutions

  1. Pain points in international payments are: 1. cost, 2. speed, 3. no transparency, 4. ease of access. Root cause is lack of international payment rail.
  2. A number of fintech start-ups have sprung up to address these problems, but true disruption would require both at the infrastructure level as well as business level.


  1. market size
  2. technology discontinuity
  3. fragmentation: lack of standard
  4. excessive waste or cost / is there an opportunity to create efficiency

The fundamentals

Pain points in international payments:

  1. expensive
  2. slow
  3. lack of transparency
  4. ease of access

How is money moved across border?

The cause of the pain (the why)

Source: Glenbrook partners

Current application level solution:

  1. SWIFT messaging
  2. Nostro and Vostro accounts / correspondent banking,
  3. and wire transfer for domestic money movement.
  • Lowered the cost: By netting, pooling, and direct connection to major correspondent banks
  • Provided transparency: Transparency on timing by providing estimates of arrival and show status of where the money is. Also provided transparency on fees
  • Improved delivery time: Speed up timing through direct connection. However, can’t avoid the slowness and limitation of the underlying rail
  • Ease of use: Digital access through computer and mobile. Focused on user experience and product design
  1. speed is limited by the limited operating hours of the rail: CHIPS operate from 9 to 5 ET and Fedwire operate from 7:30 to 7:00 ET.
  2. Still too much fragmentation
  3. Still excess costs and wastes without standardized international wire

Current infrastructure level solution

Visa B2B connect





passion for #fintech #payments #RTP real time payment #Banking as a Service #digital strategy #blockchain

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Ming-Chieh Lee

Ming-Chieh Lee

passion for #fintech #payments #RTP real time payment #Banking as a Service #digital strategy #blockchain

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