How cross border payments are reshaping fintech in ASEAN

Cross border payments are increasingly shaping the direction of fintech development in ASEAN and across the global financial system. As digital commerce, overseas employment, and international trade expand, the ability to move money quickly and efficiently across borders has become a core financial need rather than a niche service. This shift has pushed fintech innovation toward solutions that prioritize speed, lower costs, and system interoperability, redefining how individuals and businesses engage with the global economy.

Unlike domestic payments, cross border transactions operate within complex financial ecosystems influenced by governments, central banks, private institutions, and end users. In the ASEAN and ASEAN plus three region, the challenge is not simply technological adoption but ensuring that innovation supports financial stability, preserves monetary sovereignty, and promotes inclusive growth. Regional cooperation and digital infrastructure upgrades have helped reduce long standing inefficiencies, allowing payments that once took days to be completed in seconds in some markets.

The scale of opportunity is significant. According to FXC Intelligence and regional financial analyses, the cross border payment market in the Asia Pacific region is projected to reach 23.8 trillion dollars by 2032. Vietnam is often cited as a bright spot within this outlook, driven by rapid digitalization of financial services and increasing demand linked to exports, e commerce, and cross border trade. These conditions have created fertile ground for fintech solutions that can support both local enterprises and international transactions.

This broader evolution is reflected in recent collaborations between financial institutions and payment technology providers, including a newly signed Memorandum of Understanding between MSB and KSher in Vietnam. The partnership aims to strengthen international payment infrastructure and improve cross border cash flow for businesses and individuals. By combining banking capabilities with payment technology, the collaboration seeks to address persistent challenges related to transaction speed, cost efficiency, and user experience.

KSher Founder and Chief Executive Officer Bryan Zhou underscored the intent of the cooperation, saying, "MSB is an important strategic partner of KSher in Vietnam. We believe that with this cooperation, both sides will jointly create breakthrough progress in the field of cross-border payments, while providing optimal, secure, and effective solutions for the community of e-commerce enterprises." Under the agreement, MSB will support KSher through payment connection infrastructure, specialized collection solutions, and preferential foreign exchange policies, while integrating online banking services to streamline transactions.

From the banking perspective, the partnership also aligns with a broader push toward integrated and sustainable payment ecosystems. Speaking during the signing, MSB Deputy General Director Phạm Hồng Phong said, "This signing cooperation is a combination between MSB's financial banking capabilities and KSher's strength in cross border payment technology. Through integrated payment solutions, we hope to bring seamless and convenient experiences to enterprises in transactions, cash flow management, and sustainable business development in the international market." The emphasis reflects a growing recognition that cross border payments are central to long term competitiveness.

As fintech continues to mature, cross border payments are emerging as a critical enabler of regional connectivity rather than just a transactional function. For ASEAN economies, especially those with strong export and digital trade sectors, improvements in international payment systems can unlock new opportunities for small and medium enterprises while supporting broader economic integration. In this evolving landscape, the future of fintech is increasingly defined by how effectively money can move across borders with trust, efficiency, and accessibility.