We are at an inflection point in the global payments agenda. While the official sector has set out challenging targets for cost, speed, and transparency in cross-border payments, there are emerging threats to trust and security that demand significant resources and industry focus. Security is frequently the most important factor for SMEs and consumers when choosing a cross border payment provider; however, providers will need to see a positive business case for continued investment in payments security. This paper explores the role of trust and security in payments, explores various challenges, examines how financial institutions and paytechs are addressing them, and lays out some opportunities for public-private collaboration.

New challenges include:

• Generative AI enhanced fraud – the dramatic increase in plausibility of phishing and deepfake scams directed at payments users trick people into revealing sensitive information, sending money or buying fake products
• Greater complexity of the payments ecosystem – financial institutions and paytechs see and react to greater demand for embedded payments and complex partnerships with tech platforms across multiple dimensions
• Sanctions screening requirements within cross-border payments continue to grow in volume and complexity of implementation