Unlocking Cross-Border¹ Card Transfers in Europe: Visa Direct’s Real-Time² Advantage

As globalization accelerates and digital commerce becomes the norm, consumers and businesses demand cross-border transfers that are as fast, secure, and transparent as domestic payments.

Card transfers are emerging as the alternative method for moving money internationally, offering speed, transparency, and reliability. Yet legacy correspondent banking systems and fragmented infrastructures continue to create friction. For banks and fintechs across Europe, this is both a challenge and a major growth opportunity: modernise cross-border money movement now, or risk being left behind.

Market Opportunity & Growth

The opportunity in European cross-border payments is vast.

• Modernisation could unlock more than $120 billion in new corporate payments opportunities across Europe.³
• The Agora project is setting the stage for European payment innovation designed to extend cross-currency functionality—making cross-border payments faster and more inclusive.
• Investor sentiment is aligned. In the first half of 2024, European cross-border payment companies attracted approximately $175.7 million in venture capital funding, accounting for 55.2% of global VC deal value in this segment. This substantial share underscores strong investor confidence in European innovation and efficiency within the cross-border payments space.⁴

Together, these forces point to a European payment landscape primed for transformation—driven by demand for real-time, secure, and affordable money movement.

Why Fast Cross-Border Card Transfers Matter

Customer need is at the center of this transformation:

• For businesses: International suppliers and customers are now part of daily operations. Real-time cross-border payments are essential for managing liquidity, ensuring supply chain stability, and supporting global growth.
• For individuals: Sending money to family and friends abroad is a necessity for millions of Europeans. They expect transfers that are quick, reliable, and competitively priced.
• For online shoppers and merchants: The surge in global e-commerce has created expectations for real-time payment confirmations and secure settlement across currencies.
• For freelancers and gig workers: A growing digital workforce depends on seamless, transparent payouts from clients worldwide.

Across all of these groups, expectations are clear: international transfers should be as simple and instantaneous as local ones.

Trends Shaping Cross-Border Card Transfers in Europe

Several trends are defining how banks and fintechs approach cross-border money movement:

1. Superior Customer Experience
   End users expect faster processing, transparency on fees and FX rates, and real-time visibility. For banks, addressing these issues by delivering a reliable, intuitive, and transparent payment experience is now a clear market differentiator.
2. Demand for End-to-End Platforms
   Financial institutions need unified solutions that enable seamless integration, consistent uptime, enhanced reporting, and broad corridor coverage – so they can launch and scale quickly.
3. Compliance and Fraud Prevention
   Fraud and financial crime mitigation remain top priorities. Banks require solutions that align with FATF standards, integrate with regulatory initiatives like the VIS’s Project Mandala, and provide real-time transaction monitoring.

Pain Points in the Europe Cross-Border market

Despite progress, several obstacles remain:

• Outdated Correspondent Banking: Slow settlement, limited transparency, and high fees inadequately meet consumer expectations. Research shows that European consumers are most frustrated by high and unpredictable fees (48%), currency conversion challenges (41%), and slow or unpredictable settlement (26%).⁵
• Manual Processes: Limited automation strains corporate back offices and adds operational costs, with 41% of banks citing integration obstacles and manual processes as a primary trigger for seeking new cross-border payment solutions.⁶
• Compliance Hurdles: High false-positive rates, delays in onboarding, and inconsistent controls slow down payments, with 44% of businesses citing security and fraud concerns—including compliance-related false positives—as a top pain point in cross-border payments.⁵
• Lack of Standardization: Fragmented approaches across countries limit interoperability and stall real-time execution, with 27% of banks reporting high operational costs from managing multiple correspondent banking relationships--a direct result of inconsistent standards and limited interoperability.⁷

For banks, overcoming these barriers is no longer optional. Customers are increasingly gravitating toward fintech alternatives that promise simplicity and speed.

For European banks, aligning with these initiatives is both a necessity and a strategic opportunity to lead in global money movement.

Visa Direct: Enabling Real-Time² Cross-Border Card Transfers

This is where Visa Direct reshapes the playing field. It equips banks and fintechs across Europe with the infrastructure and reach to deliver fast, secure, and real-time² cross-border payments.

Key Advantages of Visa Direct:

• Real-Time² Transfers: Provide funds delivery to eligible accounts, even on weekends and holidays, matching customer expectation for immediacy.
• Global Reach: Connect to 195+ countries & territories and 150+ currencies through Visa’s trusted network, opening new markets and corridors.
• Seamless Integration: A single API suite can help simplify global payment connectivity and accelerates go-to-market speed.
• Compliance & Security: Built-in fraud protection, AML, and sanctions screening align with Europe’s strict regulatory environment.
• Enhanced Reporting: Robust data and risk management tools give institutions control, oversight, and customer insight.

By addressing the key challenges of speed, interoperability, and security, Visa Direct enables banks and fintechs to deliver world-class customer payment experiences that drive loyalty and growth.

The European cross-border payments market is entering a defining moment. Remittances, international trade, and digital commerce are reinforcing the demand for real-time cross-border payments. Customers – both individuals and corporates – expect international money movement to be as real-time and transparent as local payment systems.

The opportunities for institutions are enormous: increased revenues, stronger customer loyalty, and a chance to lead in Europe’s digital future. However, the standards for success are exceptionally rigorous. To succeed, banks must prioritize seamless integration, compliance, fraud mitigation, and superior customer experiences.

Visa Direct can help enable exactly that – fast, secure, real-time² cross-border transfers through a globally connected, trusted platform.

As Europe’s digital payments landscape requires, Visa Direct can help financial institutions unlock new opportunities, keep pace with evolving customer expectations, and deliver the future of cross-border payments.