Cross-Border Payments: Who is going to rule in a trillion-dollar battle in the coming years?
Dharmesh S Mehta
Product Manager | Global Transaction Banking | Fintech | Payment Driving & strategy at Gulf International Bank
Despite the fact that the world is moving toward decentralization, cross-border payments are on the rise. International transfers are expected to grow by 5% annually until 2027.
FXC Intelligence’s market size data shows that the cross-border payments industry as a whole will have a total market size of $190.1tn in 2023, rising by 53% to the end of the decade.
Globalization, digitalization, and the rise of eCommerce have changed the way people shop around the world, creating a truly global market. In these circumstances, suppliers have the opportunity to enter new markets and reach new customer bases; however, in order to do so, they must first understand the minute details and expectations of consumers in other locations, which is why suppliers must understand the global market and the respective payment methods that are convenient to the consumers.
Cross-border payments are at the forefront of global financial and economic activity. Despite the benefits they offer, cross-border payments do come with a few drawbacks:
High costs
Speed
Regulatory and compliance requirement
领英推荐
Lack of transparency?
Optimizing cross-border payments by making them faster, cheaper, more transparent, and inclusive would have significant implications for economic growth, global trade, development, and financial inclusion. Furthermore, the changing cross-border payments landscape will benefit those who elevate and focus on the client experience.
Application programming interfaces (APIs) are seen by majority of the Financial Institutes as the most important technology for improving the client experience. It is the enabler that allows them to grow their network through collaborations with network connectivity providers, improve their capabilities, and create a truly digital client experience, however, have to upgrade their legacy systems in order to take full advantage of APIs.
While everyone has a different prediction for this bet, such as AI, cryptocurrency, super apps, or B@B consolidation, it is not easy to rule on a trillion-dollar market , let us discuss all the trends and its implication on the cross border payments in the upcoming articles.
Stay tuned for my future post, which will cover all you need to know about cross-border payments.
References
Intriguing insights into the evolving landscape of cross-border payments; the potential for growth and innovation in this sector is truly remarkable.