In a time of incredible instability, cross-border payments have helped kept the global economy moving. As a result, the transaction value of global remittance and cross-border payments is expected to rise from $37.2 trillion in 2020 to $39.9 trillion by 2026.
The growing demand for cross-border transactions means that users need secure, fast and reliable payments — something that’s not always easy to come by in a space that’s been beset with slow transaction speeds and other obstacles.
The popularity of cross-border payments is growing across all markets, but especially with smaller and medium-sized businesses. One report shows 38% of these businesses sent and received more cross-border payments in 2021 than in 2020. Nearly three-quarters said these payments plaid a vital role in keeping their business afloat during the pandemic.
Consumers Getting More Comfortable With Cross-Border Payments
It’s not just businesses feeling more at easy with sending and receiving cross-border payments. Consumers are also becoming more comfortable with the practice, although many of them note that technology difficulties are one of the shortcomings of the practice.
A recent Mastercard report found that:
- More than one-third of people surveyed complained of the time it takes for cross-border transactions to reach their conclusion.
- 73% said they would be more likely to use online systems if they were quicker.
- 73% said delays in payment confirmation make them anxious when carrying out cross-border payments.
- 40% said sometimes they never receive a confirmation notification.
Meanwhile, cross-border merchants are finding out that just accepting credit card or debit card payments no longer suffices.
There are now more than 450 primary local payment methods in use around the world. As consumers have gotten increasingly jaded about using past payment methods, insisting on traditional practices like cash and credit cards can hamper spending potential.
For example, retailers in the U.K. who disregard their customers’ payment options risk losing 44% of their customers, one survey found.
