Better Liquidity and Faster Settlement for Payment Service Providers (PSPs): XREX Pay

Overview

Payment Service Providers (PSPs) are the backbone of today’s digital commerce. From e-commerce platforms to subscription services and travel agencies, PSPs provide the infrastructure that keeps money moving quickly and securely across borders. The global payments market continues to expand, with revenues expected to exceed USD $3.1 trillion by 2028 (McKinsey).

Yet behind the growth story lies a major challenge: PSPs must manage liquidity, FX volatility, and lengthy settlement times across dozens of currencies and banking partners. For smaller and mid-sized PSPs, the burden is even greater—affecting both profitability and customer experience.

Furthermore, digital wallets, stablecoins, and alternative payment methods are becoming mainstream, placing additional pressure on PSPs to innovate and adapt. At the same time, regulatory scrutiny has increased worldwide, requiring PSPs to balance compliance with operational efficiency.

The Challenge

For many PSPs working with online merchants, settlements can often take much longer than expected. Because funds often need to move through correspondent or intermediary banks, transactions arrive later than expected, leaving merchants frustrated. To bridge liquidity gaps and ensure timely payouts, these PSPs are forced to over-reserve working capital—tying up cash that could otherwise be used for growth and reducing overall profitability.

For PSPs in Europe expanding into Africa and Latin America, inconsistent USD availability within local banking systems makes it difficult to process smooth payouts. Merchants face unpredictable settlement times, while the PSPs themselves struggle to maintain reliability and trust as they enter new markets.

Common Pain Points for PSPs

Liquidity shortfalls: PSPs often need to hold large idle balances to increase working capital turnover.
Settlement inefficiencies: Multi-bank pathways create bottlenecks and reconciliation challenges.
High operating costs: Cross-border payments routed through correspondent banks significantly increase fees and overhead.
Unreliable USD access: Particularly in emerging markets, limited dollar supply disrupts merchant payouts.
Merchant dissatisfaction: Delays in receiving funds damage PSP credibility and hinder customer retention.

The Solution: XREX Pay for PSP Liquidity and Settlement

XREX Pay provides PSPs with enterprise-grade infrastructure that streamlines liquidity management and accelerates settlement, while ensuring regulatory compliance.

Real-time settlement with USDT: By leveraging blockchain-based stablecoins, transactions can be finalized within minutes. This enables PSPs to deliver faster payouts to merchants and reduces the need to over-reserve working capital.
Standardizing with USDT: XREX Pay helps PSPs consolidate fiat collections (e.g., USD, SGD) into USDT, enabling them to move funds across borders more efficiently and at lower cost.
On-demand liquidity: PSPs gain dependable access to USD liquidity through USDT, ensuring consistent and timely payouts.
Regulatory assurance: XREX Pay is licensed as a Major Payment Institution (MPI) by the Monetary Authority of Singapore (MAS), providing PSPs with the compliance foundation needed to operate securely and at scale.
Strategic backing: XREX Group is invested in by Tether, the world’s largest stablecoin issuer. XREX Pay strengthens its position in the market with added credibility and access to cleaner USDT.

The Results: Operational Efficiency and Stronger Merchant Trust

PSPs adopting XREX Pay realize tangible benefits:

Improved working capital usage: By eliminating the need to over-reserve idle funds for delayed settlements, PSPs can put their capital to more productive use—supporting business expansion, investing in innovation, and enhancing merchant services.
Lower operating expenses: By standardizing cross-border payments in USDT, PSPs can avoid the inefficiencies of handling multiple currencies. This reduces the complexity of managing FX conversions and lowers the overall cost of international settlement.
Faster settlement: When using USDT as the settlement medium, payments that once required several days through traditional banking channels can be completed within minutes on blockchain networks. This speed enables merchants to access their funds almost instantly, enhancing competitiveness and boosting overall satisfaction.
Global expansion readiness: Dependable access to USD liquidity enables PSPs to enter new and emerging markets without being constrained by local banking limitations, unlocking growth opportunities worldwide.
Strengthened credibility: Faster, transparent, and fully compliant settlements build merchant confidence. PSPs are better positioned to retain existing clients while attracting new ones who value reliability in their payment partner.
Reduced AML risk: With XREX Pay, PSPs gain direct access to rigorous monitored USDT. This significantly lowers the risk of exposure to tainted funds and enhances AML safeguards.

For PSPs seeking to optimize liquidity management and accelerate cross-border settlements, XREX Pay provides the compliant and enterprise-grade infrastructure needed to thrive in a fast-changing payments landscape. Contact our Business Development Team today to optimize your business growth.

Conclusion

PSPs are vital enablers of digital commerce, yet they face significant obstacles in managing liquidity and ensuring timely settlements. By leveraging XREX Pay’s blockchain-powered infrastructure backed by MAS licensing and Tether’s strategic investment, PSPs can reduce costs, access reliable liquidity, and deliver seamless merchant payouts.

About XREX Group

XREX Group is a blockchain-enabled financial institution working with banks, regulators, and users to redefine banking together. We provide services to businesses in or dealing with emerging markets, and novice-friendly financial services to individuals worldwide.

Founded in 2018, XREX offers a full suite of services such as digital asset custody, wallet, ,fiat-crypto conversion, cryptocurrency exchange, and fiat currency on-off ramps.

Sharing the social responsibility of financial inclusion, XREX leverages blockchain technologies to further financial participation, access, and education.

XREX Singapore operates under the Major Payments Institution (MPI) license issued by the Monetary Authority of Singapore (MAS). XREX Taiwan is a regulated VASP, which completed its Compliance Statements on Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) with Taiwan’s Financial Supervisory Commission (FSC) in March 2022 and submitted the AML registration to Taiwan’s Financial Supervisory Commission (FSC) by March 31, 2025.