The payments processing industry is undergoing rapid transformation. Driven by growing digital commerce, evolving consumer habits, and regulatory changes, businesses across the globe are under pressure to deliver fast, secure, and cost-efficient transactions. While innovation is opening new opportunities, the road to building a globally competitive payments processing solution is riddled with complexity.
The state of the global payments market
According to McKinsey’s 2023 Global Payments Report, the global payments revenue pool reached $2.2 trillion in 2022 and is expected to grow by 6% annually through 2027, with digital wallets and account-to-account (A2A) payments driving much of this growth.
Emerging markets, especially in Asia-Pacific and Africa, are leapfrogging card-based systems with mobile-first solutions. Meanwhile, established markets are focused on modernising legacy infrastructure to support real-time payments and cross-border efficiency.
Key challenges in global payments processing1. Fragmented infrastructure
The global payment processing landscape remains fragmented, with each country operating within its own regulatory, technological, and operational frameworks. This makes cross-border transactions complex and expensive.
- Payment rails vary significantly (e.g. SEPA in the EU, FedNow in the US, UPI in India).
Local settlement practices and banking hours can delay processing times.
2. Compliance and security
Navigating regulatory compliance, such as AML, PCI DSS, GDPR, and local licensing requirement,s adds overhead to every payments business. At the same time, the rise in fraud and cyberattacks demands strong security controls.
- Payment processors must balance ease of use with robust authentication and fraud detection systems.
- Regulatory obligations differ across jurisdictions and often change rapidly.
3. Rising operational costs
Processing costs, vendor fees, and integration maintenance can eat into margins, especially for startups and scale-ups. Real-time processing and global scalability require significant investment in infrastructure and talent.
4. Customer expectations
Users expect instant payments, low fees, and a smooth checkout experience, regardless of location or payment method. Meeting these expectations while staying compliant and profitable is a key challenge.
Solutions and strategies for successModular platforms with API-first architecture
Modern payment platforms are increasingly adopting API-first designs that simplify integration with banking systems, payment gateways, fraud tools, and compliance vendors.
SDK.finance, for example, provides a white-label payments platform with 470+ API endpoints, allowing businesses to build tailored payment solutions without starting from scratch. This approach speeds up time to market while reducing development costs.
Embracing cloud infrastructure
Cloud-native payment systems offer better scalability, real-time updates, and reduced infrastructure costs. They also facilitate easier compliance management by centralising logs, access controls, and data residency requirements.
Pre-integrated vendor ecosystems
Leveraging platforms with pre-built integrations for KYC, card issuing, payment gateways, and FX services significantly reduces the integration burden.
Focus on real-time data and analytics
Real-time analytics help payment providers identify bottlenecks, monitor fraud attempts, and optimise transaction flows. This improves operational visibility and enhances customer trust.
Looking ahead
As global payment flows continue to increase, driven by e-commerce, remote work, and embedded finance, the ability to process transactions reliably and securely will become a core business differentiator.
To compete, payment providers must rethink legacy models and invest in platforms that prioritise speed, compliance, and flexibility. Choosing the right technology foundation is no longer optional. It’s essential for building a payments business that can scale across borders.
