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How to Open a Bank Account in the UK as a Non-Resident

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The EU Is Working to Improve and Extend Cross-Border Payments Globally

Business guides

Jan 2, 2025

4 min. read

James Irwin

Author

The EU is the world’s second-largest economy but just one part of the global payments market. In October, the Eurosystem announced plans to improve global payments and connect to the rest of the world through a series of new initiatives.

Key Takeaways

Cross-border payments are transactions between parties in different countries
The Eurosystem could soon introduce improvements to cross-border payments
One initiative involves building a cross-currency settlement service based on TIPS, the Eurosystem’s existing instant payment system
Secondary plans involve exploring ways to link with fast payment systems globally
The initiatives support the EU retail payments strategy and G20 roadmap goals

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What Are Cross-Border Payments?

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Cross-border payments are transactions between parties in different countries, usually involving some combination of individuals, companies, or financial institutions.

Global economic activity is helping the cross-border payments industry grow larger. According to FXC Intelligence, the size of the cross-border payments market was $190 trillion in 2023. That value could rise by 53% and reach more than $290 trillion by 2030.

However, cross-border payments come with numerous challenges. Effective cross-border payment systems must provide low transaction costs, fast settlements, conversion between currencies, and compatibility between participating services, financial institutions, and countries.

The Eurosystem now aims to address some of those issues with a variety of improvements to cross-border payments. Here’s how things could change.

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EU Could Extend TIPS Internationally

On Oct. 21, the Governing Council of the European Central Bank (ECB) announced new initiatives to improve cross-border payments both inside and outside the EU.

Each effort builds upon the Eurosystem’s TARGET Instant Payment Settlement (TIPS), which has allowed individuals and companies to perform real-time payments 24/7 through participating payment service providers since 2018.

The first initiative involves building a cross-currency settlement service in TIPS. This will allow payments in one TIPS currency to be settled in a different TIPS currency or a central bank currency. Initially, settlements will support the euro, Swedish kronor, and Danish krone.

Another initiative could involve linking with global fast payment systems, including through the creation of a cross-currency settlement service for TIPS based on the European Payments Council’s One-Leg Out Instant Credit Transfer scheme. Compatible global fast payment systems are expected to express interest and join the initial exploration.

Other exploratory work could involve joining the Bank for International Settlements (BIS) multilateral instant payment systems network, Project Nexus, initially focusing on several central banks in Asia. It could also involve a bilateral link with India’s Unified Payments Interface (UPI).

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Supporting Broader Goals

Each initiative will help support broader goals, including supporting a G20 roadmap focused on enabling “faster, cheaper, more transparent and accessible” payments.

The plans will also contribute to the Eurosystem’s retail payments strategy, which aims to support consumer and business payments outside the EU.

Accordingly, those goals could improve the financial system globally and in the EU while providing superior options to financial users at every level.

A UK multi-currency account can streamline how you manage your finances. Whether for business or personal use, a multi-currency account provides you with added freedom and flexibility and removes barriers to payments and transfer methods.

Here is everything you need to know about UK multi-currency accounts.

A Payset UK multi-currency account is a single account with which you can hold, send, and receive funds in up to 38 currencies. This allows business or personal account holders to save endless time and money on foreign exchange, and money transfers, which from a traditional bank account would be far more expensive and slow.

From your personal UK-based IBAN account, you can transfer money to bank accounts around the world as well as send and receive free and instant transfers to and from other Payset clients. You can send funds using a diverse network of payment networks, including SWIFT, SEPA, Target2, Faster Payments, CHAPS, and more.

When you exchange funds from one currency to another, there are no margins added to our exchange rates and the fees are clearly displayed before you click send. If you, for example, work with multiple currencies, make purchases in other countries, travel frequently, invest in foreign currencies, pay staff in other countries, or receive payments in other currencies, a multi-currency account can save you time, money, and work compared to a traditional bank account.

There are lots of banking institutions and financial services that will aid you in opening a multi-currency account. Often they can allow you to convert and transfer a considerable number of currencies.

Before you open a UK multi-currency account with any platform or service, make sure you have explored all of the different options available to you and have found the best type of account to suit your financial needs.

How Does a UK Multi-Currency Account Work?

A UK multi-currency account works in the same way as a standard bank account or electronic wallet. Although the services provided will change depending on where you choose to open your account and who you choose to open the account with, all multi-currency accounts should allow you to:

Withdraw money

Send and receive payments in multiple currencies internationally

Access your funds for electronic transfers

Earn interest on your account total

In the same way that fees can occur with a standard bank account you may run into additional charges with a UK multi-currency account.

You could be charged for a number of actions including; making withdrawals, account opening and closure fees, transfer fees, and more.

The frequency or amount of these charges will often vary and if you ask your banking agency they will usually be able to tell you exactly how much you will be charged and which services you will be charged for before you open your account.

Alternative Options to Consider Before Opening a UK Multi-Currency Account

There are many alternatives to opening a UK multi-currency account. For example, there are also money transfer services and online electronic wallets such as Payset that allow you to send your money in over 34 currencies without the need for a UK multi-currency account. You can start sending money across the globe or in person today using your existing bank account.

Frequently asked questions

What is a UK multi-currency account/IBAN?

Are there limits to the amount of money I can send and receive with a UK multi currency account?

Which currencies can I send and receive in my UK multi currency account?

How do I add money to my UK multi currency account?

Types of UK Multi-Currency Accounts

Multi-currency IBAN accounts
Personal multi-currency accounts
Multi-currency accounts for business
Multi-currency cash passports
Multi-currency wallets

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