XTransfer Highlights the Need for Stronger Financial Infrastructure and AI-Driven Risk Management to Transform Cross-Border Payments in Emerging Markets
As global trade continues to expand and digital commerce becomes increasingly interconnected, businesses in emerging markets face a growing need for secure, efficient, and reliable cross-border payment solutions. While technological innovation has created new opportunities for international trade, it has also introduced more sophisticated fraud risks and operational challenges that can hinder business growth.
According to XTransfer, one of the world’s leading B2B cross-border payment platforms, addressing these challenges will require more than just technological advancement. Emerging economies must invest in stronger financial infrastructure and encourage closer collaboration among regulators, financial institutions, and technology providers to create a safer and more efficient international payment ecosystem.
The company shared these insights during Web Summit Rio 2026, one of the world’s largest technology conferences, where industry leaders gathered to discuss the future of finance, artificial intelligence, digital transformation, and global commerce.
The Growing Complexity of Cross-Border Payments
Cross-border payments have become an essential component of the modern global economy. Businesses of all sizes increasingly rely on international transactions to source materials, manage supply chains, reach new customers, and expand into foreign markets.
However, despite rapid technological progress, many emerging markets continue to face structural challenges that make international payments slower, more expensive, and more vulnerable to fraud.
Speaking during the panel discussion titled “Move Fast, Break Fraud: AI Transforming Risk Management in Global Finance,” XTransfer executives emphasized that fragmented financial systems remain one of the most significant obstacles to creating secure and scalable payment networks.
Financial infrastructure in many developing economies often consists of disconnected systems, varying regulatory standards, and inconsistent technological capabilities. These gaps can create opportunities for fraudsters while making it more difficult for legitimate businesses to conduct international transactions efficiently.
As transaction volumes continue to rise across global markets, the need for stronger risk management frameworks has become increasingly urgent.
Fraud Remains a Major Challenge for Global Finance
Financial fraud continues to evolve at an unprecedented pace. Criminal organizations and cybercriminals are constantly developing new techniques to exploit weaknesses within financial systems, payment networks, and digital platforms.
As businesses increasingly embrace digital trade, fraudsters are taking advantage of growing transaction volumes and expanding international payment channels to launch more sophisticated attacks.
Violas Xiao, Chief Executive Officer of Singapore and Latin America at XTransfer, highlighted the dynamic nature of financial crime and the challenges facing institutions that manage global transactions.
According to Xiao, fraudsters continuously adapt their strategies, making it necessary for financial organizations to remain vigilant and proactive in their approach to risk management.
The challenge becomes even more complex in cross-border environments, where transactions often involve multiple jurisdictions, currencies, regulatory frameworks, and financial institutions.
In these situations, identifying suspicious activities and preventing fraudulent transactions requires advanced technology capable of analyzing vast amounts of data in real time.
At the same time, institutions must balance security requirements with the need to provide seamless payment experiences for legitimate customers.
Achieving that balance remains one of the most important goals for the global payments industry.
Why Financial Infrastructure Matters
One of the key themes highlighted by XTransfer at Web Summit Rio was the importance of strengthening financial infrastructure across emerging economies.
Financial infrastructure serves as the foundation upon which payment systems, regulatory compliance frameworks, and risk management processes are built.
When infrastructure is fragmented or outdated, financial institutions face difficulties sharing information, detecting suspicious activities, and coordinating responses to emerging threats.
Weak infrastructure can also increase transaction costs and processing times, creating inefficiencies that negatively impact businesses engaged in international trade.
For small and medium-sized enterprises (SMEs), these challenges can be particularly burdensome.
Many SMEs depend on efficient cross-border payment services to maintain supplier relationships, manage cash flow, and compete in global markets. Delays, excessive fees, and fraud-related disruptions can significantly affect their ability to grow and operate successfully.
XTransfer believes that modernizing financial infrastructure will play a critical role in helping emerging markets unlock greater economic opportunities while reducing exposure to financial crime.
The Role of Industry Collaboration
Technology alone cannot solve every challenge associated with cross-border payments.
According to XTransfer, effective fraud prevention and payment modernization require stronger cooperation among multiple stakeholders across the financial ecosystem.
Regulators, banks, payment providers, fintech companies, and technology firms must work together to develop common standards, improve information sharing, and create more secure operating environments.
Such collaboration can help establish stronger compliance frameworks, improve transaction transparency, and enable faster identification of suspicious activities.
As global commerce becomes increasingly interconnected, coordinated efforts across industries and jurisdictions will become even more important.
Cross-border fraud rarely respects national boundaries. Consequently, combating financial crime effectively requires international cooperation and shared responsibility among market participants.
By fostering stronger partnerships between public and private sector organizations, emerging markets can strengthen their financial systems while supporting sustainable economic growth.
AI Becomes a Critical Tool in Risk Management
Artificial intelligence is rapidly becoming one of the most transformative technologies in the financial services industry.
Financial institutions increasingly rely on AI-powered systems to analyze large volumes of transaction data, identify unusual behavior patterns, assess risks, and automate compliance processes.
Recognizing the growing importance of AI in risk management, XTransfer has invested heavily in developing proprietary technologies designed specifically for international trade payments.
The company’s flagship solution, TradePilot, represents a central component of its risk management strategy.
TradePilot is an AI-powered platform built to address the unique challenges associated with B2B cross-border payments.
The system automates numerous operational processes, including transaction monitoring, customer due diligence, risk assessment, compliance screening, and customer profiling.
By leveraging machine learning algorithms and advanced analytics, TradePilot can detect potential risks more efficiently than traditional manual review processes.
The platform continuously evaluates transaction data, helping identify suspicious activities before they become significant threats.
This approach not only enhances security but also improves operational efficiency by reducing the need for extensive manual intervention.
Delivering Measurable Results
According to XTransfer, the implementation of TradePilot has produced significant improvements in fraud prevention and risk management performance.
The company reports that its fraud rate has been reduced to just 0.003%, a figure that ranks among the lowest levels in the industry.
Such performance demonstrates the effectiveness of combining artificial intelligence with robust compliance procedures and risk management frameworks.
For businesses using the platform, lower fraud rates translate into greater confidence when conducting international transactions.
Secure payment environments are particularly important for SMEs, which often lack the resources to absorb substantial losses resulting from fraudulent activities.
By minimizing fraud risks, XTransfer helps businesses focus on growth opportunities rather than operational uncertainties.
The company’s success also highlights the growing role that AI can play in creating safer and more resilient financial ecosystems.
Human Expertise Remains Essential
Despite the significant benefits offered by artificial intelligence, XTransfer emphasized that technology alone cannot replace human expertise.
While AI systems can process data at extraordinary speed and scale, successful financial services operations still depend heavily on trust, regulatory understanding, and local market knowledge.
Xiao stressed that human judgment remains a critical component of effective risk management and customer service.
Financial regulations vary considerably across jurisdictions, requiring specialized expertise to ensure compliance with local laws and industry standards.
Similarly, understanding cultural nuances, customer behavior patterns, and regional business practices often requires insights that technology cannot fully replicate.
As a result, XTransfer views AI as a powerful tool that enhances human capabilities rather than replacing them.
The company’s strategy focuses on combining advanced technology with experienced professionals who can interpret complex situations and make informed decisions when necessary.
This hybrid approach enables the organization to maintain high standards of security, compliance, and customer service across diverse markets.
Expanding Global Reach and Supporting SMEs
XTransfer has experienced significant growth as businesses increasingly seek efficient solutions for international trade payments.
Today, the company serves nearly 900,000 small and medium-sized enterprises across more than 200 countries and regions worldwide.
Its platform enables businesses to send and receive international payments, manage foreign exchange transactions, and access financial services designed specifically for global trade activities.
The scale of the company’s operations reflects the growing demand for digital payment solutions that can simplify international commerce while reducing costs and risks.
In 2025 alone, XTransfer processed more than US$60 billion in transaction volume, further establishing itself as one of the largest B2B cross-border payment platforms globally.
These figures underscore the increasing importance of fintech innovation in supporting international trade and economic development.
Strong Momentum in Latin America
One of the company’s fastest-growing markets is Brazil, where demand for cross-border payment services has surged in recent years.
Between January and May 2026, XTransfer recorded an impressive 246% year-over-year growth rate in Brazil.
This rapid expansion has been driven by several factors, including increased participation in global trade, growing digital adoption among businesses, and strategic partnerships with leading local financial institutions.
Brazil’s dynamic economy and expanding international business activity have created significant opportunities for payment providers capable of delivering secure and efficient cross-border solutions.
XTransfer’s success in the region demonstrates how technology-driven financial services can help businesses overcome traditional barriers associated with international transactions.
The company expects continued growth as more Brazilian businesses seek access to global markets and require reliable payment infrastructure to support their operations.
Building the Future of Cross-Border Finance
Looking ahead, XTransfer believes the future of international payments will be shaped by the convergence of advanced technology, modern infrastructure, and stronger industry collaboration.
Artificial intelligence will continue to play a central role in enhancing security, improving operational efficiency, and reducing fraud risks. However, sustainable progress will also require investments in financial infrastructure and closer cooperation among stakeholders throughout the global financial ecosystem.
For emerging markets, these developments represent a significant opportunity to accelerate economic growth, improve financial inclusion, and strengthen participation in global commerce.
By combining AI-driven innovation with robust regulatory frameworks and collaborative industry partnerships, financial institutions can create payment networks that are safer, faster, and more accessible.
As digital trade continues to expand worldwide, organizations that successfully balance innovation, security, and compliance will be best positioned to support the next generation of global business activity.
XTransfer’s message at Web Summit Rio 2026 reflects this vision: a future where advanced technology, strong infrastructure, and international cooperation work together to transform cross-border payments and empower businesses around the world.
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