Singaporean bank DBS and Dubai-based lender Mashreq will collaborate to allow the Middle Eastern bank's retail customers to make same-day, near-instant cross-border payments in certain markets, the two banks said on Thursday.

The service, powered by DBS's cross-border payment solution that covers up to 132 currencies across 190 markets, will allow Mashreq's retail customers to make peer-to-peer international payments in selected markets across the Asia Pacific, Europe and the Americas.

Demand for e-commerce transactions has increased across the globe, with global cross-border payment flows also projected to exceed $250 trillion by 2027, up from almost $150 trillion in 2017, the banks said in a statement.

"Global cross-border payment flows have surged as businesses, investors and talent pursue opportunities in new markets," said Terence Yong, global head of sales and global transaction services at DBS Bank.

"Our longstanding relationship with Mashreq aims to facilitate the seamless flow of capital, ultimately benefitting businesses, end-consumers and communities." (Reporting by Sameer Manekar in Bengaluru; Editing by Janane Venkatraman )