US-headquartered custody bank BNY has launched its pay-to-wallet capability that makes it possible for banks to send cross-border payments from bank accounts to participating retail digital wallets, using existing Swift payment messages and correspondent banking infrastructure.
The bank’s enablement of a pay-to-wallet solution combines its global payments capabilities, including its US dollar clearing network and 24/7/365 processing capabilities, to support cross-border bank-to-wallet payments across approved markets and corridors.
The capability provides banks with tools to meet growing client demand for pay-to-wallet services without having to build their own technology infrastructure and by reducing implementation complexity and time-to-market concerns.
“Digital wallets are becoming central to the cross-border payments landscape, particularly in wallet-led markets across Asia-Pacific and other high-growth corridors,” says Fabian Khoshbakht, BNY’s head of global payments and trade for Asia-Pacific. “To meet this growing demand, banks need capabilities they can deploy without having to build layers of integration with wallet providers.”
Banks across Asia-Pacific, including Kookmin Bank in South Korea, are among the initial users of this pay-to-wallet capability.
“We see growing demand from our clients for payment options that better reflect how recipients want to receive funds,” adds Raphael Baik, KB Kookmin Bank’s head of division for foreign exchange business. “A pay-to-wallet capability can help us broaden access to digital wallet payments in a more efficient way.”
In Asia-Pacific, retail digital wallets, BNY points out, already account for 50% of point-of-sale transactions and are projected to exceed 60% by 2027, underscoring the growing importance of wallet connectivity in the payment ecosystem.
“We see strong potential for pay-to-wallet capabilities to support the continued modernization of cross-border payments and expand customer choice,” notes Cynthia Hsu, Taishin Bank’s head of wholesale banking product division. “This is an exciting opportunity for us to collaborate with BNY and its global network to see how we can further meet customer needs.”
The pay-to-wallet capability will be enabled with selected participants in Asia-Pacific, with plans to expand globally over time.
