The Application and Challenges of Blockchain Technology in Cross Border Payment Systems
Research Article
Open Access
CC BY

The Application and Challenges of Blockchain Technology in Cross Border Payment Systems

Xiaojun Qin 1*
1 Nankai University
*Corresponding author: 2210880@mail.nankai.edu.cn
Published on 30 July 2025
Volume Cover
AEMPS Vol.203
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-80590-275-1
ISBN (Online): 978-1-80590-276-8
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Abstract

With the rapid growth of international trade and cross border capital flows, traditional payment systems such as SWIFT are increasingly challenged by inefficiencies, high fees, and a lack of transparency. As a response, blockchain technology, characterized by decentralization, immutability, and traceability, has emerged as a potential solution for modernizing cross border payments. This paper offers a comprehensive analysis of the current state of blockchain technology in this domain, reviewing its applications, key advantages, and limitations. By examining how distributed ledgers and smart contracts can streamline payment processes, reduce intermediary costs, and enhance transparency and compliance, the study highlights blockchain’s transformative potential. However, challenges such as regulatory fragmentation, limited technological maturity, and accessibility barriers remain significant obstacles to large scale adoption. Relying on secondary data and existing literature, this study also emphasizes the need for future empirical research and case based analysis to evaluate performance, security, and scalability of blockchain based systems in real world cross border payment scenarios.

Keywords:

Blockchain, Cross Border Payments, Financial Technology, Smart Contracts, Payment Innovation

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Qin,X. (2025). The Application and Challenges of Blockchain Technology in Cross Border Payment Systems. Advances in Economics, Management and Political Sciences,203,50-56.

References

[1]. Cipriani, M., Goldberg, L. S., & La Spada, G. (2023). Financial sanctions, SWIFT, and the architecture of the international payment system. Journal of Economic Perspectives, 37(1), 31-52.

[2]. Rijanto, A. (2021). Blockchain technology adoption in supply chain finance. Journal of Theoretical and Applied Electronic Commerce Research, 16(7), 3078-3098.

[3]. Drigă, I., & Dura, C. (2022). Retail payments landscape in Europe. Annals of the University of Petroşani, Economics, 22(2), 181–192.

[4]. Gaviyau, W., & Sibindi, A. B. (2023). Global anti-money laundering and combating terrorism financing regulatory framework: A critique. Journal of Risk and Financial Management, 16(7), 313.

[5]. Komalavalli, C., Saxena, D., & Laroiya, C. (2020). Overview of blockchain technology concepts. In Handbook of research on blockchain technology (pp. 349-371). Academic Press.

[6]. Forbes Technology Council. (2019, March 12). How blockchain is transforming cross-border payments. Forbes. https: //www.forbes.com/councils/forbestechcouncil/2019/03/12/how-blockchain-is-transforming-cross-border-payments/

[7]. Reuters. (2024, October 9). Is blockchain the next big thing for insurance companies? Reuters. https: //www.reuters.com/legal/legalindustry/is-blockchain-next-big-thing-insurance-companies-2024-10-09/

[8]. International Monetary Fund. (2022). Digital money and payment systems: New challenges for regulation and supervision (IMF Working Paper No. 2022/151). International Monetary Fund.

[9]. Financial Stability Board. (2023, February 23). G20 Roadmap for Enhancing Cross-border Payments: Priority actions for achieving the G20 targets.

[10]. International Telecommunication Union. (2023). Global internet usage statistics. Retrieved June 3, 2025, https: //www.itu.int/en/ITU-D/Statistics/Pages/stat/default.aspx

References

[1]. Cipriani, M., Goldberg, L. S., & La Spada, G. (2023). Financial sanctions, SWIFT, and the architecture of the international payment system. Journal of Economic Perspectives, 37(1), 31-52.

[2]. Rijanto, A. (2021). Blockchain technology adoption in supply chain finance. Journal of Theoretical and Applied Electronic Commerce Research, 16(7), 3078-3098.

[3]. Drigă, I., & Dura, C. (2022). Retail payments landscape in Europe. Annals of the University of Petroşani, Economics, 22(2), 181–192.

[4]. Gaviyau, W., & Sibindi, A. B. (2023). Global anti-money laundering and combating terrorism financing regulatory framework: A critique. Journal of Risk and Financial Management, 16(7), 313.

[5]. Komalavalli, C., Saxena, D., & Laroiya, C. (2020). Overview of blockchain technology concepts. In Handbook of research on blockchain technology (pp. 349-371). Academic Press.

[6]. Forbes Technology Council. (2019, March 12). How blockchain is transforming cross-border payments. Forbes. https: //www.forbes.com/councils/forbestechcouncil/2019/03/12/how-blockchain-is-transforming-cross-border-payments/

[7]. Reuters. (2024, October 9). Is blockchain the next big thing for insurance companies? Reuters. https: //www.reuters.com/legal/legalindustry/is-blockchain-next-big-thing-insurance-companies-2024-10-09/

[8]. International Monetary Fund. (2022). Digital money and payment systems: New challenges for regulation and supervision (IMF Working Paper No. 2022/151). International Monetary Fund.

[9]. Financial Stability Board. (2023, February 23). G20 Roadmap for Enhancing Cross-border Payments: Priority actions for achieving the G20 targets.

[10]. International Telecommunication Union. (2023). Global internet usage statistics. Retrieved June 3, 2025, https: //www.itu.int/en/ITU-D/Statistics/Pages/stat/default.aspx

Cite this article

Qin,X. (2025). The Application and Challenges of Blockchain Technology in Cross Border Payment Systems. Advances in Economics, Management and Political Sciences,203,50-56.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

About volume

Volume title: Proceedings of ICEMGD 2025 Symposium: Resilient Business Strategies in Global Markets

ISBN: 978-1-80590-275-1(Print) / 978-1-80590-276-8(Online)
Editor: Florian Marcel Nuţă Nuţă, Li Chai
Conference website: https://2025.icemgd.org/CAU.html
Conference date: 20 September 2025
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.203
ISSN: 2754-1169(Print) / 2754-1177(Online)

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