Building consumer trust through secure cross-border money movement

Every day, billions of dollars move seamlessly through domestic payment networks, powering things like morning coffee purchases to all-inclusive luxury resort stays. These transactions can happen with such reliability and security that many people may barely give them a second thought. Security isn’t just an expectation anymore — it’s become an unconscious assumption deeply embedded in how consumers and businesses interact with money.

This subconscious trust in security may have become so ingrained that consumers might not always think about the sophisticated fraud prevention systems, encryption protocols and regulatory frameworks that protect their domestic transactions. The system seems to work so well that its complexity may not be top of mind for many end users.

When perception meets cross-border reality

Naturally, consumers may bring these same deeply ingrained security assumptions to cross-border payments. When someone needs to send money internationally, they might assume the same invisible safety net exists — the same protections they may never have to think about domestically. In fact, 88% of consumers expect stringent fraud and security measures to be in place for cross-border payments.¹

However, the reality may reveal a concerning trust gap. In contrast to their domestic counterparts, cross-border transactions move through multiple intermediaries before arriving at their final destination. Each stop can cause delivery delays, obscure transparency for payment arrival timelines and create complex user experiences. What's more, each intermediary may represent a higher risk for sensitive information being shared, potentially compromising security. When multiple institutions are involved in each transaction, reporting the status to customers can become more difficult. Customer service at one institution may not be able to check payment status as money moves through another bank’s system, resulting in a potential degraded customer experience. In addition to the lack of visibility into payment status, the costs and transaction fees for sending payments vary greatly and are not always clear.

Foreign exchange (FX) rates change constantly and it may not always be evident to consumers how these changes impact cross-border transactions. This can create uncertainty about the actual amount consumers and businesses will receive and can present liquidity risk and financial uncertainty for those relying on precise payment amounts.

This all leads to distrust, with two in three surveyed consumers reporting that they’ve stopped a payment due to fraud concerns.¹

What consumers expect from cross-border transactions

So what exactly do consumers expect? And what could it take to earn their trust?

• A simplified, digital user experience for sending and receiving money across borders that doesn’t require manually entering long account and routing numbers
  • Some banks continue to require individuals to appear in person to transfer large amounts of money due to anti-money laundering (AML) and anti-fraud requirements²
• The ability to send and receive money quickly with transparent delivery timeframes
  • 44% of respondents said that they're concerned about the speed of receiving payments²
• More payment methods so they have the freedom to decide what works best for them
  • 67% of surveyed consumers said they want more options for cross-border transactions¹

It’s evident that consumers know what they want. The good news is that many consumers haven’t developed strict money movement habits — yet. That means there’s time to introduce reliable cross-border money movement with the security, ease of use and clear guidance that consumers seek. This can build not only trust but also loyalty, as it can eliminate the decision fatigue that occurs when choosing among today’s cumbersome options.

How to level-up cross-border offerings

By working with a trusted global network, cross-border money movement can be as seamless as domestic payments with an added benefit — companies that adopt digital payment networks for cross-border transactions could drive $2.4M in additional profit within 3 years.³

It’s entirely possible for cross-border payments to have the same sophisticated security and protocols present in domestic transactions — but it requires the right partner.

Visa Direct can makes it easy to move money to different countries, work with distinct currencies and move money between digital wallets with efficient processing times. And with a partner backed by the Visa brand, building and maintaining trust with customers is possible with features that enhance security, improve settlement visibility and foster predictability, including:

• EMV 3-D secure authentication: Reduce fraud with an additional layer of online transaction verification
• Tokenization: Protect cardholder information by replacing sensitive payment data with a unique token
• Continuous fraud monitoring: Detect and prevent fraudulent activities throughout the transaction process
• Streamline processes: Reduce the number of intermediaries, decrease points of vulnerability and simplify oversight with one connection

Be a reliable and trusted partner in your customers’ financial activity. Download the whitepaper on cross-border innovation, Modern money movement: Make everywhere easy, to learn more about this new era of possibility in money movement.

Disclaimer:

Case studies, comparisons, statistics, research and recommendations are provided “AS IS” and intended for informational purposes only and should not be relied upon for operational, marketing, legal, technical, tax, financial or other advice. Visa Inc. neither makes any warranty or representation as to the completeness or accuracy of the information within this document, nor assumes any liability or responsibility that may result from reliance on such information. The Information contained herein is not intended as investment or legal advice, and readers are encouraged to seek the advice of a competent professional where such advice is required.

Sources:

1. Visa. 17 June – 2 July, 2024. “Unlocking the future: Banking on cross-border payment habits.” 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. Visa Direct. 2024. Modern money movement: Make everywhere easy.
3. Forrester study commissioned by Visa. November 2022. “The Total Economic Impact of Visa Direct.”