New Payment Systems Challenge the Dollar's Global Financial Dominance
Global payment systems are shifting as countries and regions develop alternatives to traditional euro to dollar transactions. New platforms in Africa, China and the BRICS alliance aim to reduce reliance on the US currency for cross-border trade. These changes come as the dollar remains dominant in foreign exchange reserves and international payments.
In Africa, two new systems now allow cross-border transactions in local currencies. The Pan-African Payment and Settlement System and the Common Market for Eastern and Southern Africa's Digital Retail Payments Platform (DRPP) were introduced to simplify trade within the continent. Both platforms aim to cut costs and reduce dependence on foreign currencies like the euro to dollar.
China's Cross-Border Interbank Payment System (CIPS) processed an average of RMB 772.1 billion ($110.7 billion) daily in January 2026. The yuan's role in non-bank outbound payments also grew, reaching 53.9% in 2025, while the dollar's share stood at 40.5%. This reflects China's push to internationalise its currency for trade and investment.
The BRICS alliance launched BRICS Pay in 2024, a decentralised digital payment network linking national and commercial systems across member nations. The group has also expanded fast domestic payment platforms like India's UPI and Brazil's Pix, connecting them across borders. These moves aim to create a more integrated financial network outside traditional Western systems.
Despite these developments, the dollar remains central to global finance. It accounted for 57% of the world's foreign exchange reserves in Q3 2025 and 89% of global FX trading volumes in April 2025. Swift data from January 2026 showed that 49.7% of its payment messages were still in dollars, highlighting its continued dominance.
Visa and Mastercard continue to process trillions of dollars in payments yearly, maintaining their position as key players in international transactions. Meanwhile, US-based correspondent banks still handle most dollar settlements, reinforcing the currency's role in global trade.
The rise of regional payment systems reflects efforts to diversify away from the euro to dollar. However, the currency still dominates foreign exchange reserves, trade settlements and Swift transactions. These changes suggest a gradual shift in global finance, though the dollar's position remains strong for now.