Abstract
Digital payment systems now power how countries trade with each other by making global commerce faster while becoming more accessible and creative. We cannot achieve full global economic growth because different nations do not have the same trade rules and regulations. This paper studies the connection between digital payment systems and international trade laws through analyzing the main problems of diverse rules, security threats, and currency market fluctuations. This analysis focuses on blockchain and IoT innovations that show great potential for improving cross-border payments yet their full adoption remains limited by unclear regulations. Collaborated rules and broader technology use will create a global financial platform that serves businesses and users effectively.
Introduction
The global digital payments market is projected to reach $14.78 trillion by 2027, growing at a CAGR of 13.10% from 2022 to 2027.¹ Fintech innovations such as cross-border UPI (Unified Payments Interface), blockchain-based remittances, and central bank digital currencies (CBDCs) are transforming international transactions, making them faster, cheaper, and more accessible. However, as digital payment systems expand beyond borders, regulatory fragmentation remains a critical challenge, with varying compliance requirements across jurisdictions creating inefficiencies, legal uncertainties, and risks of financial crime.
Despite the World Trade Organization (WTO) and Financial Action Task Force (FATF) promoting standardization in digital financial services, countries continue to impose inconsistent Anti-Money Laundering (AML), Know Your Customer (KYC), and data protection laws. For instance, India’s UPI expansion into the UAE, Singapore, and France has highlighted the need for mutual regulatory recognition and interoperability, yet global alignment remains elusive. According to the Bank for International Settlements (BIS), inefficiencies in cross-border payments cost businesses and individuals over $120 billion annually in transaction fees and compliance delays.²
This research explores the intersection of digital payment systems and international trade laws, analyzing the gaps in regulatory harmonization and proposing policy recommendations for seamless cross-border fintech solutions. By assessing existing trade agreements, financial regulations, and emerging digital currency frameworks, this paper aims to provide a roadmap for governments, financial institutions, and fintech firms to align digital payment policies with global trade norms, ensuring both security and efficiency.
📌Analysis of Bills and Acts
📌 Summary of Reports from Government Agencies
📌 Analysis of Election Manifestos