Multinational firms face rising costs in cross-border payments due to tariffs, inflation, and currency volatility, with remittance fees still topping 6%. Stablecoins are gaining traction as faster, lower-cost, Foreign Exchange risk-reducing options, especially in costly payment corridors. The GENIUS Act (July 2025) created a unified regulatory framework for fiat-backed stablecoins, boosting trust through 100% reserves and strict reporting. Regulated stablecoins now support instant settlement and compliance, prompting banks to rethink fees and deposit models. Stablecoins offer interoperability, transparency, and efficiency. Nearly half of institutions use them, with 41% planning adoption, but stronger risk and compliance measures are needed as usage grows.

RTP are now essential, with FedNow’s 2023 launch enabling continuous settlement and updating treasury practices. Regulation J clarified legal expectations, making RTP more accessible, especially for small banks. Global RTP use is soaring, with significant growth projected by 2030. Previously, the US payment system was slow and fragmented. FedNow’s instant settlement reduces risks, streamlines compliance, and improves efficiency, but requires real-time capabilities and investment by CFOs and treasury teams. Merchants benefit from lower costs and quick reconciliation, but integration and fraud risks remain. FedNow and updated regulations drive payment modernization and reward adaptability and tech readiness.

ISO 20022 is a global financial messaging standard that delivers strategic value beyond compliance. With Fedwire adopting it in July 2025 and Swift ending coexistence by November, institutions need to migrate or use translation tools. Structured data in ISO 20022 enhances automation, improves fraud management, and reduces manual review. Previously, most Swift transaction fields used unstructured data, limiting analytics. Now, institutions can target searches and unlock customer insights. The standard supports G20 goals for faster, more transparent cross-border payments, boosting interoperability and compliance. Adoption advances transparency and efficiency, with open banking and new Consumer Financial Protection Bureau (CFPB) rules also driving industry change.

AI is transforming financial services, with agentic AI driving payment innovation and shifting human roles to oversight. Unlike prompt-based models, agentic AI handles multistep payment tasks autonomously, speeding processes and cutting manual input. This shift supports software-initiated transactions that optimize finances and reduce intervention.

Agentic AI improves clearing, settlement, and back-office efficiency. Pilots like Agent Pay and tokenization boost transaction speed and security, while stablecoins offer programmable payments. In embedded finance, AI agents automate accounts payable and recommend workflow enhancements.

Trust and accountability are essential, with governance, audit logs, and compliance safeguards ensuring ethical, regulatory alignment as agentic AI expands.

AI-powered fraud, including deepfakes and synthetic identities, is becoming more difficult to detect as criminals use advanced tools to evade controls. Financial institutions are responding by adopting biometrics, liveness checks, deep learning analytics, and agentic AI for secure identity verification. Real-time KYC and intelligent document processing improve both security and customer experience. Next-generation defenses, such as zero trust networks, multi-factor authentication, encryption, and adaptive risk scoring like Visa’s Advanced Authorization, are reducing losses. As fraud tactics evolve, banks are implementing explainable AI and audit controls to ensure fairness and compliance while maintaining a seamless customer experience.