The world of cross-border payments is enormous, connecting nations and economies across continents. Countless transactions worth approximately <a href="https://www.fxcintel.com/cross-border-payments-market-sizing-data">~$37 trillion</a> flow like waves within this vast ocean annually. That's almost a quarter of the total global GDP! With its value projected to reach ~<a href="https://home.bluesnap.com/cross-border-payments-guide/">$60 trillion by 2027</a>, this is only the beginning.

Obstacles like high fees, slow processing times, and complex regulatory requirements are akin to turbulent waves, making the journey difficult for global businesses. As a result, these processes lead to transaction expenses of <a href="https://www.jpmorgan.com/onyx/documents/mCBDCs-Unlocking-120-billion-value-in-cross-border-payments.pdf">$120 billion</a> annually due to currency conversion, bank, and other transaction charges. Additionally, frozen funds and delayed settlements cost your business indirectly as they affect your bottom line and contribute to a loss in the time value of money.

Envision an international payment gateway where these challenges no longer exist and effortless cross-border payment systems become the norm. The payment system manages your payment process while you grow globally. That’s <a href="https://www.skydo.com/">Skydo</a>.

With Skydo, businesses, especially tech services exporters, can solve many issues and revolutionise their operations in the following ways.

“Back in November 2021, I was expecting my first payment from a new client based out of Canada. I felt frustrated and clueless about the whereabouts of a $7,000 payment from Aidetic's first client in Canada.&nbsp;

The client had made the payment via SWIFT nine days ago, and I was being chased for a confirmation that the funds had been received. The relationship manager at * bank informed me that the payment had not been 'sighted' yet, leaving me to wait in frustration. These delays and problems were not new to me since I started a technology export business.

Just then, I saw a tweet from Movin, the founder of Skydo, expressing interest in speaking with export business owners in India who were facing challenges in receiving cross-border payments. I immediately wrote to Movin, and we connected over a Zoom call. I discovered that Skydo's product was specifically designed to solve the exact problem I was facing.&nbsp;

Without hesitation, I signed up as one of their first customers. Shortly after, I obtained virtual accounts in the US, UK, Canada, and Europe. From that point on, I instructed my client to transfer money into these accounts for all future payments. Thanks to Skydo, this aspect of my business has become smooth and seamless.” - Abhishek Agarwalla, Founder, Aidetic.

India's economic growth and global influence are rapidly expanding, paving the way for highly efficient cross-border payments and exciting new business opportunities. Here are some detailed insights into the new business opportunities that can open up.

Emerging technologies are poised to revolutionise the ecosystem and bring about significant changes across various industries. These game-changers include virtual accounts, digital currencies, and artificial intelligence (AI).&nbsp;

These innovations will reshape how we transact, detect fraud, and conduct business. Their implementation will undoubtedly have a profound impact on tech services exporters.

For instance, AI helps prevent money laundering by identifying suspicious patterns and enhancing security for financial institutions and exporters in international trade. At the same time, virtual accounts speed up payments and benefit tech service exporters by reducing transaction time and cost.

Moreover, technology like blockchain, the backbone of digital currencies (CBDCs), provides a decentralised and transparent ledger, ensuring secure and traceable transactions. It lowers the risk of fraud and reduces transaction costs as it bypasses intermediaries.

<a href="https://www.linkedin.com/company/skydo-official/">Skydo’s</a> Founder, <a href="https://www.linkedin.com/in/movinjain/">Movin Jain</a>, on emerging technology, commented, “I fully believe that cross border payments will become instant, and very low cost, just like UPI, by 2030, with very minimal failure and fraud rate.”

Regulatory Changes in B2B Cross Border Payments: Challenges and Opportunities

Dealing with international payments can be challenging due to various tax and regulatory compliance issues.&nbsp;

When you accept cross-border payments in India in foreign currency, you may encounter fluctuations in exchange rates that can significantly impact your revenue. Alternatively, accepting payments in your local currency may be easier to manage but could involve additional costs for <a href="https://www.skydo.com/blog/get-the-most-out-of-your-forex-savings-with-skydo?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">currency conversion</a> and GST.

Regulatory advancements can streamline payment processes, enhance transparency, and reduce transaction costs, thereby facilitating smoother cross-border transactions.&nbsp;

For instance, <a href="https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">Skydo</a> simplifies the process of <a href="https://www.skydo.com/blog/automated-firc-simplifying-international-payments-compliance">generating FIRAs</a> by automating it, thus avoiding the need for manually creating and managing documents. The platform guarantees compliance with Indian tax laws, and you can easily download all FIRAs through our dashboards with just one click, saving time and avoiding mistakes.

In a Nutshell: Future-Proofing Your Business for 2030 and Beyond With Cross Border Payments Trends&nbsp;

When selecting cross-border business payment solutions, it's crucial to consider future trends. Look for providers that offer scalability, flexibility, and robust security measures. It's also wise to check their compatibility with emerging technologies like artificial intelligence, machine learning, and data analytics, as these can enhance the payment process and provide valuable insights.

Additionally, consider their compatibility with emerging technologies such as artificial intelligence, machine learning, and data analytics, as these advancements can enhance payment processes and provide valuable insights.

With <a href="https://www.skydo.com/">Skydo</a>, you can effortlessly navigate the vast ocean of Cross-border payments, empowered by their user-friendly interface and fortified by their robust security measures.&nbsp;

<a href="https://www.skydo.com/">Connect with us</a> to harmonise traditional finances with the revolutionary forces of technology, allowing your business to transcend borders effortlessly!

Ans: Cross-border payments involve the transfer of funds between parties in different countries, facilitating international trade and transactions. <a href="https://www.skydo.com/blog/NOSTRO-account-international-transactions/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">NOSTRO accounts</a> play a crucial role in these transactions.

Ans: Cross-border payments operate through financial institutions using <a href="https://www.skydo.com/blog/NOSTRO-account-international-transactions/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">NOSTRO accounts</a>. The process involves multiple intermediaries and can be time-consuming. Swift Cross cross-border payments and blockchain technologies aim to streamline and expedite these transactions.

Q3. How does blockchain solve the problems of cross-border payments?

Ans: Blockchain for cross-border payments addresses inefficiencies by providing transparency, security, and faster processing. It eliminates the need for multiple intermediaries, reducing costs and enhancing the overall efficiency of international payments.

Q4. What are the challenges with cross-border payments?

Ans: Challenges in cross-border payments include high transaction costs, delays, and reliance on correspondent banks. B2B cross-border payments, especially in India, face complexities that necessitate innovative solutions for seamless and cost-effective transactions.

Explore the future of cross-border payments and uncover emerging trends and innovations expected to shape the industry in 2030 and beyond

Future of Cross Border Payments: 2030 and Beyond

Future of Cross Border Payments: 2030 and Beyond Th

Movin Jain

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Imagine: A skilled artisan in Jaipur selling beautiful, handcrafted goods on Amazon Global to a New York resident. For years, this business model has been working fine due to the de minimis. De minimis was an umbrella exemption for low-value goods, worth under $800, to enter the US duty-free. It was simple and profitable for Indian exporters, thanks to the low entry costs.&nbsp;

But that stability is now on shaky grounds. On August 29th, 2025, the United States officially removed the de minimis exemption for India..&nbsp;

Lifting the exemption rule means low-value parcels will face a high amount of tariffs and paperwork. The move has been so sudden that India Post, the government-run postal service, and a lifeline for many small Indian exporters, has suspended most parcels to the US. Reason? They were not prepared to handle the new compliance requirements.

This blog will explore the deeper nuances of the de minimis exemption, why its removal has rocked Indian exporters, and provide a roadmap for adapting to this rule and surviving in the new trade environment.

What Was the 'De Minimis' Exemption? (And Why It Was a Game-Changer)

The term de minimis is Latin for “too small to matter”

In the U.S., small-value imports are cleared under the de minimis exemption (<a href="https://www.congress.gov/crs-product/R48380">Section 321 of the Tariff Act</a>). This allows goods below a certain value to enter without duties or full customs paperwork, often processed under Entry Type 86.

The exemption was introduced in 1938 with a limit of just $1. For many years, the value stayed low until it was raised to $200 in the early 1990s. In 2016, the threshold was increased again to $800 per person per day, making it easier for exporters and e-commerce sellers to ship low-value parcels into the U.S.

By comparison, most other countries set much lower limits.&nbsp; Canada at about C$40, the European Union at €150, and many others, including China, even lower. The U.S. threshold has therefore been on the higher side internationally.

How This Fueled Indian E-commerce Exports

The jump in the U.S. de minimis limit to $800 in 2016 opened new doors for Indian exporters, especially small and medium businesses.

The U.S. government withdrew the de minimis exemption to tighten import controls, boost tariff revenue, and address security concerns.

Package volumes under the rule surged from 1<a href="https://www.congress.gov/crs-product/R48380?">39 million in FY2015 to nearly 1.36 billion in FY2024</a>, overwhelming customs systems. Officials argued that the loophole made it easier for high-risk items,&nbsp; including fentanyl precursors, to enter the country in untracked parcels. Fentanyl has been a major driver of the opioid crisis, linked to hundreds of thousands of deaths in the U.S.

A Reuters investigation (“<a href="https://www.reuters.com/investigates/special-report/drugs-fentanyl-shipping/?">Fentanyl Express</a>”) showed how simple it was to buy precursor chemicals online. Reporters spent about $3,600 to acquire enough raw material to manufacture at least 3 million fentanyl pills — often disguised in shipments labelled innocuously as “Adapter” or “Pigment Ink.”

While most of the problem traces back to Chinese suppliers, the blanket policy change has affected exporters worldwide, including those in India.

The removal of the $800 de minimis exemption, coupled with steep new U.S. tariffs, has sent shockwaves through India’s export community. The brunt of the impact is falling on small and micro exporters, the very businesses that had relied on low-value, duty-free shipments to build direct-to-consumer sales in the U.S.

Industry analysts warn that India’s shipment volumes to the U.S. could fall by 15–25%, while landed costs are expected to rise by 8–15%. Exporters now face two tough choices: absorb these costs and see margins shrink, or pass them on to U.S. buyers and risk losing competitiveness.

On top of losing duty-free entry, Indian goods are also being hit with an additional 50% tariff across several categories. That has turned <a href="https://laex.in/daily-issue/which-sectors-are-worst-hit-by-tariffs/">sectors once thriving under U.S. demand into some of the hardest hit:</a>

For many of these sectors,&nbsp; especially garments, jewellery, and shrimp, the U.S. has long been the single largest market. Now, Indian exporters are being forced to rethink pricing, margins, and in some cases, the very viability of their U.S. business.

With the suspension of India Post’s de minimis channel, exporters are now facing a compliance gap. Shipping companies must collect tariffs upfront, itemize duties against each product, and remit payments to U.S. authorities. This shift demands significant tech and infrastructure upgrades — but the rollout has been rushed, with limited clarity from U.S. regulators.

Previously, most small parcels entered under Entry Type 86, a simplified process for low-value shipments. That system has now been replaced by Entry Type 11, which requires:

Errors carry higher risks: misclassifying a shipment,&nbsp; once treated leniently, is now considered a punishable compliance offence.

The impact is sharpest on small and mid-sized exporters dealing in India’s hallmark: high-variety, low-volume goods. These businesses dominate categories like textiles, handicrafts, jewellery, and niche components, which together form a significant share of India’s exports to the U.S.

Export hubs in Gujarat, Tamil Nadu, and Karnataka, which power much of India’s U.S.-bound trade, now face slower orders, tighter compliance costs, and the risk of losing competitiveness in their most important market.

A Roadmap for Resilience: How Exporters Can Adapt

The removal of the $800 de minimis exemption is a major disruption for Indian exporters. But it’s also forcing businesses to rethink strategy and build resilience. Here’s how exporters can adapt in practical, actionable ways:

For years, the U.S. was the most attractive destination for Indian SMEs — large, profitable, and easy to access. Now, exporters must reduce over-dependence by expanding into other markets:

Higher tariffs demand tighter operations. Exporters can preserve margins by:

With Entry Type 86 gone, compliance is heavier. Exporters should:

The loss of de minimis is a clear setback, but it could make India’s exporters stronger in the long run:

At Skydo, we’re here to stand with exporters through this transition. By simplifying global payments with live forex rates (no hidden markups), instant FIRA and (eBRC generation for Amazon exporters), 24-48 hours settlement and India-based support, we’re helping Indian businesses stay compliant, protect margins, and continue scaling globally.