Key takeaways
- Connecting domestic instant payment systems lets people send money internationally through the banking apps and payment methods they already use.
- Payment interoperability requires more than compatible technology. Participating institutions also need agreed rules for FX, compliance and settlement.
- Live connections in Asia and initiatives such as PAPSS in Africa show how cross-border payment infrastructure is developing beyond traditional banking routes.
- For High-Risk merchants, access to domestic payment networks doesn't automatically mean access to international transfers. The corridor and business category still determine what's possible.
Domestic bank transfers can reach their recipients in seconds. Move the same payment across a border, and the process often becomes more complicated. Banks may rely on intermediaries, different operating hours or additional checks before funds arrive.
That gap has prompted central banks and payment operators to connect their domestic networks. Instead of building an entirely new international payment system, they're finding ways to make existing ones communicate.
The approach is already working in several Asian corridors. Elsewhere, projects are taking shape that could make international transfers faster and less dependent on traditional banking routes.
What are connected local payment rails?
Local payment rails are domestic networks that transfer money between participating banks and, in some cases, digital wallets. Examples include India's UPI, Thailand's PromptPay, and Kenya's Pesalink.
Many of these networks support real-time payments, allowing recipients to access funds within seconds. The difficulty comes when money needs to move between countries with different systems.
Payment interoperability makes those connections possible. Payment networks agree on how to exchange transaction information and process transfers between participating institutions.
Cross-border payments require more than a technical connection. Banks and payment operators still need suitable FX arrangements, compliance checks, and a way to settle their financial obligations.
A technical connection between two networks is only one part of the process.
How do interconnected payment systems work?
The sender starts a transfer through their usual banking app. The payment enters a domestic network, passes through an agreed cross-border connection and reaches the receiving country's payment system. From the customer's perspective, the process can resemble a domestic transfer. Behind the scenes, several institutions may still be involved.
A recipient can receive money immediately even when the banks involved settle their obligations later. Fund availability and local-currency settlement are related, but their timing depends on how the scheme works.
Traditional international payments vs connected local networks
Connected systems can reduce steps in certain transfers. That doesn't guarantee lower fees or faster processing in every corridor.
Where are payment networks already connected?
Thailand and Singapore: PromptPay & PayNow
Thailand's PromptPay and Singapore's PayNow have supported cross-border transfers since 2021.
Customers of participating banks can send money using the recipient's mobile number, without entering the full international bank details normally required for a transfer. According to the Bank of Thailand, the service was designed to complete transfers within minutes. At launch, the daily limit was SGD 1,000 or THB 25,000.
The connection demonstrates how established domestic networks can handle eligible international payments without requiring customers to learn a new payment process.
India and Singapore: UPI-PayNow
India and Singapore launched their UPI–PayNow connection in February 2023. It allows eligible customers to transfer money between participating accounts and wallets using familiar payment identifiers.
Adoption has continued to grow.
In September 2026, the Monetary Authority of Singapore reported that transaction volumes through the connection had more than doubled each year since launch. The figures show growing demand for instant cross-border payments where the infrastructure is available.
Project Nexus: connecting multiple countries
Bilateral connections work, but building a separate integration for every country pair takes time.
Project Nexus, initially developed by the Bank for International Settlements, proposes a shared connection model. Under this approach, each participating domestic payment system connects to Nexus rather than building individual links to every other network.
Partners from India, Malaysia, the Philippines, Singapore, and Thailand established Nexus Global Payments in 2025. Indonesia officially joined in 2026.
The initiative is moving towards live implementation. It should not yet be treated as a fully operational six-country retail payment network.
Africa: PAPSS & local-currency transfers
Africa is developing its own approach through the Pan-African Payment and Settlement System (PAPSS). The system facilitates cross-border payments between participating African financial institutions, allowing transactions to be processed in local currencies.
In February 2026, PAPSS announced a partnership with Kenya's Pesalink. The connection brings together more than 80 Kenyan financial institutions and over 160 PAPSS participants.
The network expanded further when the Bank of Central African States (BEAC) joined in July 2026. By then, PAPSS reported coverage across 28 African countries.
Access still depends on which institutions and services are live in a particular market. For businesses trading across African borders, the development creates additional possibilities for local currency settlement without routing every payment through a major international currency.
What could connected rails change for High-Risk merchants?
Forex brokers and iGaming operators already use faster domestic networks. The challenge is making payments work reliably when customers, banks and merchants operate in different countries.
Connected cross-border payment systems could improve certain payment flows, particularly where users prefer local bank transfers or mobile wallets. Consider a Forex broker serving customers in Southeast Asia. An eligible customer might eventually fund an account through their usual banking app, even when the receiving institution operates in another country.
That depends on whether the corridor supports commercial transactions and whether the provider accepts the broker's business category. For High-Risk businesses, these restrictions can matter more than the network's speed.
Country-level differences still matter. A method widely used in Malaysia may have little relevance to customers in Kenya.
SPAYZ.io examines these differences in its guide to payment methods across regions, including the role of domestic bank transfers and mobile wallets.
What's holding wider adoption back?
Connecting payment networks introduces operational work that individual domestic systems don't necessarily have to handle.
Different countries impose different customer identification and transaction-monitoring requirements. Payment limits also vary, and some networks were originally designed for personal transfers rather than merchant payments.
FX adds another complication.
A payment may move quickly between two domestic systems, but institutions still need access to the required currencies. Limited liquidity can affect the exchange rate offered or prevent a transaction from being completed.
Settlement arrangements can differ too. Instant confirmation doesn't necessarily mean the merchant has immediate access to the funds.
These constraints help explain why connected local networks are likely to operate alongside correspondent banking and SWIFT-based messaging arrangements for the foreseeable future.
Managing local payments with SPAYZ.io
As national payment networks become more connected, merchants still need reliable access to the local payment methods their customers use.
SPAYZ.io supports 55+ payment solutions across 35+ countries in Asia, Africa, and the MENA region, including bank transfers, eWallets, and mobile payments, through a single API integration.
For businesses managing P2P payment operations, the SPAYZ.io P2P Agent Dashboard provides real-time transaction monitoring, automated commission calculations and agent management tools.
Contact the SPAYZ.io team to discuss available payment methods and settlement options for your target markets.
FAQ about cross-border payments
Can instant payment networks replace SWIFT?
They can provide alternative routes for eligible payments in supported corridors. SWIFT primarily handles financial messaging, while banks and payment systems move and settle funds. Both approaches can continue to operate alongside each other.
Are connected local payment rails cheaper than traditional international transfers?
They can reduce intermediary costs, but pricing depends on the participating institutions, FX rates and transaction fees. Businesses should compare the total cost and the amount ultimately received.
How can merchants speed up payment settlement times?
Start by checking when funds become available after a successful transaction. Review settlement schedules by payment method and country, then examine whether local payout options can reduce delays.
How can Forex brokers offer faster payouts in local currencies?
Brokers need payout providers with access to eligible domestic methods in their target markets. They should also check transaction limits, settlement terms and whether the provider can report payment status at the transaction level.
