Bny launches Pay-to-Wallet service for Asia Pacific

BNY has launched a Pay-to-Wallet service for cross-border payments, allowing banks to send money from bank accounts to participating retail digital wallets.

The offering uses existing SWIFT payment messages and correspondent banking infrastructure. It is being introduced with selected participants in Asia Pacific, including initial users such as Kookmin Bank in South Korea.

The move reflects the growing role of digital wallets in consumer payments, particularly in parts of Asia Pacific where they have become a common way to receive and spend money. The service is designed to help banks offer bank-to-wallet transfers without building separate links to individual wallet providers.

Under the arrangement, banks can route cross-border payments to approved wallet endpoints in selected markets and corridors through BNY's existing payments network. The service also draws on its USD clearing network and round-the-clock processing model.

Regional demand

Retail wallet adoption has risen sharply across Asia Pacific. According to BNY, digital wallets already account for 50% of point-of-sale transactions in the region and are expected to exceed 60% by 2027.

That trend has increased pressure on banks to offer payment options that reflect how recipients prefer to receive funds, especially in remittance and consumer transfer markets. In many wallet-led economies, traditional bank transfers may be less useful if mobile wallets are more widely accepted for everyday spending.

Fabian Khoshbakht, Head of Global Payments & Trade, APAC, at BNY, said the shift in payment habits was reshaping cross-border payment flows.

"Digital wallets are becoming central to the cross-border payments landscape, particularly in wallet-led markets across Asia Pacific and other high-growth corridors," said Fabian Khoshbakht, Head of Global Payments & Trade, APAC, at BNY.

"To meet this growing demand, banks need capabilities they can deploy without building layers of integration with wallet providers. BNY's enablement of a Pay-to-Wallet capability provides a practical and scalable way to support payments from bank accounts to participating digital wallets through trusted existing infrastructure, making it faster and easier for participating banks to access digital wallet payment flows," Khoshbakht said.

Bank interest

KB Kookmin Bank is among the early institutions using the service. The South Korean lender cited customer demand for a broader range of payout methods.

"We see growing demand from our clients for payment options that better reflect how recipients want to receive funds," said Raphael Baik, Head of Division, Foreign Exchange Business, at KB Kookmin Bank.

"A Pay-to-Wallet capability can help us broaden access to digital wallet payments more efficiently," Baik said.

Taishin Bank also signalled interest in the model as banks consider how to update cross-border payment services for retail and small-business customers.

"We see strong potential for Pay-to-Wallet capabilities to support the continued modernization of cross-border payments and expand customer choice," said Cynthia Hsu, Head of Wholesale Banking Product Division at Taishin Bank.

"This is an exciting opportunity for us to collaborate with BNY and its global network to see how we can further meet customer needs," Hsu said.

Broader strategy

The rollout adds to competition among banks, payment companies, and fintechs seeking to improve how money is delivered across borders. For incumbent banks, one challenge has been reaching recipients who use wallets rather than bank accounts without replacing long-established cross-border payment rails.

BNY's approach keeps banks on familiar infrastructure by using SWIFT messages and correspondent banking links already embedded in international payments. That may appeal to institutions that want to expand payout options while limiting operational change.

The service will start in selected Asia Pacific markets before expanding to other regions over time. As of the end of June 2026, BNY served nearly all of the top 100 banks globally and had USD $62.6 trillion in assets under custody and/or administration and USD $2.2 trillion in assets under management.