Cross-Border Payments Simplified: The EMI Advantage With Trumia

"Traditional banks rely on legacy systems that were never designed for the speed and scale of global business today. This is why Electronic Money Institutions (EMIs) are currently changing the market. An EMI is a licensed financial entity that can issue electronic money, provide IBAN accounts, process payments, and hold client funds in safeguarded accounts. Unlike banks, EMIs cannot offer traditional loans or credit, but they can do almost everything else when it comes to facilitating digital payments."

"Despite globalisation, sending money across borders is often still too slow, expensive and sometimes downright opaque. The G20 has highlighted four stubborn problems: cost, speed, transparency and access. High costs: Fees accumulate at every step (because of correspondent banks, currency conversion, intermediary charges), making small or frequent transfers inefficient. Delays: Transfers can take days because they pass through a chain of intermediaries, each relying on legacy systems and manual processes."

Electronic Money Institutions (EMIs) are licensed financial entities that issue electronic money, provide IBAN accounts, process payments, and hold client funds in safeguarded accounts. EMIs cannot offer traditional loans or credit but can facilitate a wide range of digital payment services with greater flexibility than legacy banks. Around 250 EMIs are authorized in the UK, safeguarding billions in client funds. Upcoming EU regulation (PSD3) will strengthen the EMI model and align payment services and consumer protection with traditional banks. Cross-border payments still face high costs, delays, limited access, and lack of transparency. Regulatory fragmentation increases compliance complexity for AML and KYC requirements.

Read at Business Matters