The global evolution of payments: why legal architecture matters more than ever

Legal frameworks are critical to support the rapid technological advancements in global payments. 

At this year’s Singapore FinTech Festival, practice partner for Ogier in Luxembourg Bertrand Geradin, who also leads the firms Technology and Web3 team in the jurisdiction, joined Aaron Xu, Head of the Global Institutions Business Group at PingPong, for a fireside chat at the Luxembourg Pavilion, in association with the Luxembourg House of Financial Technology (LHoFT) and Luxembourg for Finance (LFF). Their conversation focused on the global evolution of payments. 

In this briefing, Bertrand focuses on some of the takeaways from the discussion, which covers the key questions of how to navigate complex regulations across jurisdictions and how to ensure data privacy and protection across borders. 

Cross-border payment regulation 

Payments have shifted from being a background utility to becoming one of the most strategically important layers of the global digital economy. And as technology advances, the legal frameworks that support payment models are becoming just as critical as the technology itself.

Domestic payments have progressed faster than anyone could have predicted. Systems like FedNow, PIX in Brazil, UPI in India, Faster Payments in the UK, SG’s Faster Payments and SEPA Instant have transformed expectations around speed and user experience. Yet the moment a transaction crosses borders, familiar frictions reappear. Different licensing regimes, divergent KYC / AML standards, varying consumer protection rules and settlement processes all add layers of complexity. Technology can deliver near-instant settlement across continents while regulation often cannot.

This is why legal architecture matters. Today’s business models – whether global marketplaces, SaaS platforms, logistics providers or creator-economy platforms – increasingly embed financial services at their core. Multi-currency wallets, instant payouts, local collection accounts and tokenised settlement rails are becoming part of the user experience. But behind these capabilities sit real regulatory responsibilities: defining which entity is the regulated payment provider, determining how customer funds are safeguarded, allocating AML obligations across jurisdictions, and ensuring compliance with vastly different legal regimes in Europe, the US, Asia, the Gulf or Africa. The customer sees simplicity - the legal framework underneath carries the weight. 

Regulation on the rise

Another striking trend is the growing global convergence of regulatory priorities. While frameworks differ in detail, regulators everywhere – from Europe to Singapore, the UK, the US and the Middle East – are homing in on the same themes: trust, transparency, operational resilience, cyber-security and clarity around digital assets and stablecoins. The direction of travel is unmistakable. 

Looking ahead, the next phase of transformation will likely come from three forces: the interconnection of instant-payment systems across regions, the emergence of tokenised money and programmable settlement and the use of AI to power real-time compliance and risk management. Each development will require new legal interpretations and new safeguards. 

Payments are no longer just about technology. They are fundamentally about trust, and trust ultimately rests on strong legal foundations. 

How Ogier can help

Industry participants in blockchain, digital assets, fintech and decentralised technologies must analyse and map regulatory requirements across jurisdictions before they can leverage Luxembourg’s financial and legal ecosystem.

Ogier is a leading legal player dedicated to supporting Technology and Web3 businesses. Our multi-disciplinary Technology and Web3 team is experienced in navigating the cryptocurrency, blockchain and other innovative technology spaces, helping clients match the pace of developments by offering practical solutions. Ogier's Technology and Web3 team in Luxembourg provides comprehensive legal, regulatory and tax advice to help get your cryptocurrency or digital asset project off the ground.

To learn more about these topics or to learn more about how Ogier can help you in this space, contact our team.  

About Ogier

Ogier is a professional services firm with the knowledge and expertise to handle the most demanding and complex transactions and provide expert, efficient and cost-effective services to all our clients. We regularly win awards for the quality of our client service, our work and our people.

Disclaimer

This client briefing has been prepared for clients and professional associates of Ogier. The information and expressions of opinion which it contains are not intended to be a comprehensive study or to provide legal advice and should not be treated as a substitute for specific advice concerning individual situations.

Regulatory information can be found under Legal Notice