The critical role of security and compliance in the future of global payments

We’re in a world where money moves in seconds across borders, platforms, and time zones. From real-time payments to digital wallets and new-age rails, the way we transact is changing fast. But with all this speed and innovation comes a new set of challenges. The more connected we get, the more complex and risky the system becomes. That’s why security and compliance can’t sit in the background anymore. They have to be part of the product, the process, and the promise. Because if you want to build a payment platform that lasts and scales globally, you don’t just need tech. You need trust.

The Ecosystem Is Booming; So Are the Risks

According to McKinsey’s Global Payments 2024 Report, global payment volumes are expected to grow at a steady 5% annually, reaching $3.1 trillion by 2028 from $2.4 trillion in 2023. Digital wallets alone now handle 42% of all cross-border peer-to-peer transfers. That’s a big leap from a few years ago. But as more players, platforms, and pathways enter the mix, the chances of fraud, data theft, and regulatory mishaps grow too.

This isn’t a hypothetical threat. RBI’s Annual Report 2024–25 revealed that bank fraud in India tripled, soaring from ₹12,230 cr in 2023–24 to ₹36,014 cr in 2024–25. Cross-border fraud is even trickier to deal with multiple countries, weak enforcement, and patchy regulations make it a haven for bad actors.

Contactless payment systems are particularly vulnerable. A study titled  “SoK: Security of EMV Contactless Payment Systems” outlines a range of attack vectors that target widely used card networks such as Visa and Mastercard. These findings underline the urgency of adopting advanced cryptographic protections, secure chip technology, and real-time authentication methods to safeguard transactions.

Compliance Can’t Be an Afterthought

It’s not just cybercriminals you have to worry about. Regulators are stepping up too. The European Union’s CESOP mandate (Central Electronic System of Payment information) framework, which took effect in 2024, now requires PSPs to report every cross-border transaction involving EU residents. It’s a serious clampdown on VAT fraud and a clear signal: transparency is non-negotiable. Then there’s PCI DSS v4.0, which rolled out in April 2024. It raises the bar on data security for anyone handling cardholder data. Yet, only 14.3% of global companies were fully compliant last year. That’s worrying, not just from a legal standpoint, but because every compliance gap is a doorway to reputational damage and revenue loss.

Embedding Trust by Design

In this context, security and compliance can no longer be relegated to back-end processes or last-mile checks. Instead, they must be embedded by design, that is, integrated into every layer of product development, operations, and customer engagement. Forward-thinking companies are already investing in AI-driven fraud analytics, real-time sanctions screening, automated KYC/AML workflows, and end-to-end encryption via secure APIs.

The convergence of regulatory technology and cybersecurity offers a compelling value proposition. Not only does it enhance customer protection and operational resilience, but it also positions payment platforms to adapt more nimbly to evolving global regulations. This dual advantage is critical in a scene where compliance mandates can shift rapidly across geographies.

From Risk to Competitive Advantage

It’s clear that in the race to win over global customers, trust is the ultimate currency. If you can prove to your users, regulators, and partners that their money and their data is safe with you, you’ve already won half the battle.

Security and compliance aren’t cost centres. They’re growth engines, trust builders, and your strongest differentiator in a hyper-connected world. The future of global payments isn’t just about how fast you move but about how safely and responsibly you get there.