Executive Summary

Cross-border payment initiatives such as BIS Nexus and similar interoperability frameworks are redefining how money moves globally. By focusing on person-to-person (P2P) transfers, these projects demonstrate that domestic instant payment systems can be stitched together into a seamless cross-border fabric.

But P2P is only the starting point. The future of cross-border payments lies in person-to-merchant (P2M) and person-to-business (P2B) transactions. These flows are central to e-commerce, SME participation, and everyday consumer experiences. Without them, central solutions risk being confined to remittances — while alternative networks, fintech-led wallets, and stablecoins capture the real growth.

This paper highlights why P2M and P2B must be the next frontier for cross-border systems, identifies the structural gaps in today’s designs, and outlines RS Software’s vision for overlay services that can bridge these gaps.

The Current Focus: P2P as the Proof of Concept

P2P is the logical starting point. Central cross-border initiatives have wisely chosen to begin with low-value remittances. These are politically palatable, socially impactful, and technically simpler to enable. P2P flows do not require merchant onboarding, invoice data, or complex dispute handling.

Technical feasibility comes first. Account-to-account P2P transfers allow interoperability pilots to demonstrate that instant settlement across borders is achievable. They also serve to test the messaging standards, API connections, and resiliency mechanisms of central operators.

Inclusivity drives adoption. Governments and IPSOs often view P2P as a way to make remittances cheaper and faster, addressing a key G20 objective. This makes P2P a natural place to start — but not where the story can end.

Why P2M and P2B are the Next Frontier

Global commerce is shifting. Cross-border e-commerce is projected to exceed $7 trillion by 2030, with SMEs and micro-merchants forming the backbone of this growth. Unless cross-border payment frameworks extend to merchants, these transactions will remain in the hands of card networks, wallet ecosystems, and emerging stablecoin-led solutions.

Consumers want utility, not just remittance. Migrants and mobile professionals increasingly want to pay directly for their families’ everyday expenses — from school fees and groceries to rent and utilities. These are not occasional transfers but recurring cross-border P2B transactions disguised as remittances, and they represent the natural next use case for central frameworks.

Merchant trust requires more than speed. For merchants, receiving money instantly is not enough. They require transparency in FX conversion, predictable reconciliation processes, and robust dispute-handling frameworks. Without these assurances, merchants will continue to view cross-border bank transfers as risky and may prefer alternative digital payment providers.

Fragmented QR adoption limits reach. Domestic instant payment systems have embraced QR-based acceptance, but most use different technical standards. A QR code issued in one country may be unreadable in another. Without QR interoperability, consumers and merchants will not enjoy a truly seamless cross-border payment experience.

Gaps in Current Cross-Border Frameworks

Merchants are not consistently identified. Current cross-border designs mainly focus on individuals. There is no shared way to recognize and validate merchants across countries, which makes cross-border merchant acceptance harder.

Payments don’t carry enough business data. Current designs are transaction-centric, aligned to ISO 20022 payments messaging. They don’t include important details such as invoice references or reconciliation information — data that SMEs and businesses depend on to close their books accurately.

QR codes stop at the border. While QR adoption is booming domestically, interoperability across countries has not yet been built into central cross-border frameworks. Today, for example, a UPI QR code issued in India cannot be scanned and paid universally in Singapore, even with the UPI–PayNow integration focused on remittances. This shows the need for solutions that can translate QR formats in real time to make merchant payments seamless.

Commerce disputes are not fully addressed. P2P reversals are relatively simple; commerce disputes such as refunds, partial settlements, or chargebacks are far more complicated. Today’s central frameworks have not yet specified how these flows will be handled. This leaves gaps in consumer protection and merchant trust.`

Foreign exchange is still unclear. Current quoting tools exist, but they do not give consumers full visibility into the exchange rate at the moment of purchase. For P2M and P2B payments, clear and predictable FX is essential for trust.

RS Software’s Vision: Overlay Services for Commerce

Merchants should be easy to recognize across borders. RS proposes a Merchant Registry Bridge — a shared directory that makes sure merchants registered in one country can be identified and trusted in another. This reduces onboarding delays and helps merchants accept payments more widely.

QR codes should work anywhere. A Dynamic QR Translator should be created to convert one country’s QR format into another in real time. This would let consumers scan and pay seamlessly across borders, without worrying about whether the QR code format is compatible.

Reconciliation should be automatic. RS envisions Reconciliation-as-a-Service, which adds invoice numbers and payment details to transactions and produces clear reports for businesses. This saves merchants and SMEs from manual work and gives them confidence that every payment is properly accounted for.

Disputes should be simple to resolve. Cross-border commerce often involves refunds, returns, or partial payments. RS suggests adding Commerce Dispute Workflows that streamline these processes, ensuring fair treatment for both consumers and merchants.

Exchange rates should be clear at checkout. RS advocates for Embedded FX at Checkout, where consumers can see the exchange rate upfront — clearly shown, locked in, and validated — before they approve a purchase. This builds trust in both the payment and the network.

Strategic Implications

Without P2M and P2B, cross-border frameworks risk stagnation. If central systems remain focused solely on remittances, their adoption will be limited to occasional transfers. Meanwhile, alternative payment networks will capture the high-growth commerce flows.

With P2M and P2B, they become commerce-ready infrastructures. By enabling everyday merchant and business payments, central solutions can significantly increase corridor adoption, attract SMEs, and deliver on the G20’s four goals: cost, speed, transparency, and inclusion.

RS Software’s role is to make this leap possible. By building overlay services for merchant onboarding, QR interoperability, reconciliation, dispute handling, and FX transparency, RS helps transform central solutions from proofs of concept into trusted, widely adopted platforms for global commerce.

Executive Insight

The future of cross-border payments is not just P2P.
Central interoperability projects have proven that instant remittances are possible. But unless they expand to P2M and P2B flows — everyday commerce, SME collections, bill payments — they risk being confined to remittance use cases.

  • Migrants want to pay for groceries, rent, and school fees directly
  • Merchants need reconciliation, FX transparency, and dispute handling
  • QR interoperability remains fragmented.

Our view: The next frontier is enabling commerce. With overlays for merchant registries, QR translation, reconciliation APIs, and FX-at-checkout, cross-border systems can shift from remittance platforms to commerce-ready infrastructures.

That’s where RS Software brings unique value.

Conclusion

P2P has proven that instant cross-border connectivity is possible. But the true test of central solutions will be their ability to extend into P2M and P2B use cases — the transactions that shape commerce and everyday life.

RS Software believes that the future of cross-border payments depends on bridging this gap. By delivering the overlays that address merchant identity, QR interoperability, reconciliation, dispute automation, and FX transparency, we can help central cross-border solutions evolve from remittance rails into commerce-ready ecosystems that power global growth.