Cross-border payments are the backbone of global business.
For Singapore companies, getting international transactions right means faster growth, lower costs, and stronger business relationships.
But with regulations tightening and technology evolving, how do you keep your payments smooth, secure, and compliant?
This guide gives you the latest facts, trends, and actionable tips for managing cross-border payments and finances in 2025.
Why Cross-Border Payments Matter for Singapore Businesses
Singapore is a global trade and finance hub.
With over 80% of its GDP linked to international trade, Singapore companies rely on fast, secure, and compliant payment systems to stay competitive.
Whether you're paying overseas suppliers, receiving funds from clients abroad, or managing regional subsidiaries, efficient cross-border payments are a must.
Key benefits of getting it right:
- Faster access to global markets
- Lower transaction costs and FX fees
- Better cash flow and liquidity
- Stronger compliance with local and international laws
In 2025, the value of cross-border payments worldwide is projected to hit $250 trillion, up from $150 trillion in 2017. Asia leads this growth.
The Evolving Payment Infrastructure
Singapore Payments Network (SPaN)
SPaN is a game-changer for business payments.
Launched by the Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore (ABS), SPaN will unify eight national payment schemes—including FAST, GIRO, PayNow, and SGQR—under one umbrella by 2026.
This means:
- Easier integration for businesses
- More resilient and innovative payment systems
- Streamlined compliance and operational efficiency
ISO 20022 Standard
By the end of 2025, all Singapore payment providers must adopt ISO 20022, a global messaging standard for financial transactions.
This brings:
- Richer transaction data for better compliance and analytics
- Faster reconciliation and fewer errors
- Smoother international payment flows
Instant and Digital Payments
- PayNow and FAST: Near-instant domestic and selected international transfers
- Blockchain-based payments: Secure, low-cost, and fast—ideal for high-volume or high-value transactions
- Digital wallets: Growing in popularity for small businesses and freelancers
Compliance and Regulatory Updates
Stricter Enforcement in 2025
Singapore's financial institutions faced a 22% increase in regulatory fines in 2024, mainly for AML/KYC and transaction monitoring breaches.
The MAS is ramping up enforcement with:
- More frequent audits and data-driven compliance checks
- Heavier penalties for non-compliance
- Enhanced public-private partnerships (e.g., COSMIC platform for financial crime data sharing)
Key Regulations to Know
- Payment Services Act (PSA): Governs all payment service providers, including fintechs and digital wallets
- Anti-Money Laundering (AML) and Know Your Customer (KYC): Mandatory checks on all cross-border transactions
- Singapore Financial Reporting Standards (International) (SFRS(I)): Aligns with IFRS for transparent, accurate financial reporting
How Cross-Border Payments Work in Singapore
Step-by-Step Process
- Choose a Payment Method
- Bank transfers (SWIFT): Secure, but may be slow and costly
- Fintech platforms: Faster, lower fees, often better FX rates
- Digital wallets: Instant for small transactions, ideal for e-commerce
- Verify Fees, Exchange Rates & Processing Times
- Compare providers for the best rates and lowest hidden fees
- Check for real-time FX rates and transparent charges
- Comply with Regulations
- Complete AML/KYC checks for all counterparties
- Keep records for audits and reporting
- Initiate Payment
- Use secure, regulated platforms (PayNow, FAST, blockchain)
- Provide accurate recipient details and payment purpose
- Monitor and Reconcile
- Track payments in real-time
- Reconcile transactions with accounting systems (SFRS(I) compliant)
Best Practices for Smooth Transactions
- Use platforms that integrate with global networks and offer instant or near-instant settlement
- Maintain real-time financial records and automate reconciliation
- Train your finance team on compliance and digital payment tools
- Screen all transactions for sanctions, AML, and KYC compliance
Data Table: Cross-Border Payment Methods and Features (2025)
| Payment Method | Speed | Cost | Compliance Level | Best For |
|---|---|---|---|---|
| Bank Transfers (SWIFT) | 1–3 days | High | Strict | Large transactions in traditional industries |
| PayNow / FAST | Instant | Low | High | Domestic & some international transactions |
| Digital Wallets | Instant | Low–Medium | High | SMEs, e-commerce, freelancers |
| Blockchain Payments | Minutes | Low | High (regulated) | High-value or frequent payments |
| Fintech Platforms | Same day | Low | High | Supplier payments, payroll, international B2B payments, currency exchange |
Trends Shaping Cross-Border Payments in 2025
- Instant payments are the new normal: 65% of cross-border transactions in Singapore now settle in under 20 seconds.
- Digital wallets and fintechs are closing the gap: Small businesses increasingly prefer digital wallets for their speed and low fees.
- Regulatory scrutiny is rising: Fines for non-compliance are up 22% year-on-year, with AML/KYC breaches most common.
- Blockchain and AI are transforming risk management: Automated compliance checks and smart contracts are reducing fraud and errors.
Managing International Finances: Best Practices
1. Optimize Currency Management
- Use multi-currency accounts to reduce FX conversion costs
- Lock in rates with forward contracts for predictable budgeting
2. Strengthen Treasury and Liquidity Management
- Use real-time dashboards to track cash flow across borders
- Automate payment scheduling and reconciliation
3. Stay Ahead on Compliance
- Regularly update AML/KYC policies
- Use digital tools for transaction screening and reporting
4. Leverage Government and Platform Support
- Tap into MAS and Enterprise Singapore grants for digital upgrades
- Use Savvy Platform for business setup, compliance, and financial management
How Savvy Platform Can Help
Our goal is to elevate Singapore's profile worldwide as a prime destination for entrepreneurial ventures.
We cater to enterprises across the spectrum, ranging from nascent startups and individual contractors to colossal conglomerates and investment giants.
By leveraging our expert team of business administrators based in Singapore, our clientele reaps the benefits of enhanced synergy.
We handle the mundane yet essential tasks, including administrative paperwork, statutory compliance, locating suitable office spaces, acquiring necessary business licenses, and much more, freeing up our clients to focus on their primary business objectives.
For the cost equivalent to hiring a novice staff member, you gain access to comprehensive support provided by our seasoned professionals.
