How cross-border payments can offer a clear way to differentiate

It's a dynamic time in the cross-border payments ecosystem for consumers and financial service providers alike. With consumers not loyal to one payment method or provider, banks and fintechs who can provide the optionality, security, speed, and reliability to consumers, stand to become the platform of choice, and leap ahead of the competition.

A recent study by Visa Direct, ‘Unlocking the Future: Banking on Cross-Border Payment Habits’, found that 77% of surveyed consumers use multiple payment methods to make cross-border payments today.¹ Yet 66% of these consumers are actively seeking a provider they can consistently rely on to offer them a wider variety of payment methods across cards, accounts, and digital wallets.¹ Consumers (71%) are also seeking more guidance as to what payment options are available and which one they should choose use.¹ At present, it seems there’s no single provider which offers the diversity in payment options that consumers want. This creates a huge opportunity: the bank or fintech who can offer this optionality could stand to win the loyalty of almost 800 million consumers.²

What methods are consumers using today to make their cross-border payments?

Today, consumers are making cross-border transactions using many different payment methods and providers. Most surveyed consumers (over 50%) making ecommerce and international travel transactions, used their credit or debit cards through brick-and-mortar retail banks.¹ But, digital payment services, like PayPal, are growing in popularity as the second most used payment method across ecommerce, travel, and remittance transactions.¹ A significant number, 33%, are still wiring money, while 13% are using money orders.¹

Consumers want more choice

There are more payment providers in the cross-border space than ever: and the number is increasing. The providers that will stand out in this crowded space will be the ones consumers come back to frequently because they offer something no one else does: a reliable, secure, frictionless experience. Across the 13 countries surveyed, 76% of consumers, especially those sending or receiving remittances, want more payment method options.¹ Many are dissatisfied with what's currently available and therefore, use a range of different payment methods. Having more payment options is especially important to consumers in the Philippines (88%) and Mexico (82%).¹ Consumers are frustrated by providers that offer only one or two payment methods, instead of a full suite of options and the flexibility and choice that goes with it.

The next step after prioritizing consumers’ needs is to look for a money movement collaborator, like Visa Direct which makes moving money easy and fast, all through a single point of integration. It can help fintechs and banks provide the payment methods consumers are looking for, all with one integration. If they can provide this optionality, banks and fintechs have a real opportunity to attract the almost 800 million consumers² currently making cross-border transactions, as well as to pull ahead of the competition.

To learn more about consumers’ preferences in cross-border payments, download the whitepaper.

DISCLAIMER

Visa Direct clients and participants should always consult and seek approval from their internal compliance teams on fraud controls and processes. Visa Direct clients and participants are solely responsible for their own compliance with applicable laws and regulations.

1. ”Unlocking the future: banking on cross-border payment habits”. 17 June – 2 July, 2024. 13 countries: U.S., Canada, Brazil, Mexico, UK, France, Germany, Sweden, Australia, Hong Kong, Philippines, Singapore, UAE. All studies, surveys, research, and materials owned or commissioned by Visa shall not be used, reproduced, copied, or recirculated without the prior consent of Visa.
2. ”Unlocking the future: banking on cross-border payment habits”. 17 June – 2 July, 2024. 13 countries: U.S., Canada, Brazil, Mexico, UK, France, Germany, Sweden, Australia, Hong Kong, Philippines, Singapore, UAE. All studies, surveys, research, and materials owned or commissioned by Visa shall not be used, reproduced, copied, or recirculated without the prior consent of Visa. Calculated by applying the percentage of the general population making cross-border transactions to the current population size in each market. Calculated by applying the percentage of the general population making cross-border transactions to the current population size in each market.