Cross Border Payments Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 206.87 Billion |
| Market Size (2029) | USD 295.27 Billion |
| CAGR (2024 - 2029) | 7.36 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Cross Border Payments Market Analysis
The Cross Border Payments Market size is estimated at USD 206.87 billion in 2024, and is expected to reach USD 295.27 billion by 2029, at a CAGR of 7.36% during the forecast period (2024-2029).
- Technological advancements, shifting consumer preferences, and the globalization of commerce are rapidly reshaping the cross-border payments landscape. Notably, emerging markets in Africa, Latin America, and Asia are witnessing a surge in cross-border trade.
- As smartphones become more accessible and remote living gains traction, consumers are increasingly recognizing the time-saving benefits of e-payment solutions. As of 2024, GSMA reports that approximately 4.88 billion people globally own smartphones, marking a surge of 635 million new users in just the past year. This upward trend is expected to continue annually.
- Currently, the global fintech development trend emphasizes digitalization, automation, and informatization. Blockchain payment systems are leveraging the Rich Communications Services (RCS) protocol, an advanced SMS simulator capable of transmitting multimedia data and facilitating service discovery. With RCS integration, customers can utilize mobile applications for cross-border payments without needing to convert currency at a bank.
- In developing nations like Vietnam, the government, under a Memorandum of Understanding (MoU), is advancing cross-border payment connectivity for retail transactions. This includes innovations like quick response (QR) codes and instant payments. By engaging in this agreement, Vietnam aims to bolster its regional trade, investment, tourism, e-commerce, and other economic sectors through enhanced cross-border payment systems.
- The regulatory landscape for cross-border payments is in flux. For instance, Europe's shift from PSD2 to PSD3 is reshaping how merchants ensure secure transactions. Adhering to these evolving regulations is crucial for smooth transactions.
- However, challenges persist. Geopolitical tensions can muddle compliance processes and lead to fluctuations in foreign exchange rates, introducing unpredictability for businesses involved in cross-border dealings.
- Post-COVID-19, the cross-border payments market has undergone notable transformations, largely influenced by evolving consumer behaviors. Innovations in fintech, particularly blockchain technology and real-time payment systems, are redefining the cross-border payments arena. These advancements not only expedite transactions but also make them more cost-effective and secure, aligning with consumer demands for heightened efficiency.
Cross Border Payments Market Trends
Increase Trend Towards Remittances Drives the Market
- As global economies become more interconnected, the demand for a swift, secure, and efficient cross-border payment system is on the rise. Immigrant families in developing nations frequently send remittances, and these transactions incur cross-border payment fees.
- According to the World Bank, 81% of cross-border payment transactions are made to support friends and family living abroad. Recently, international remittances have surged, witnessing a 61% increase in just the past year.
- Cross-border remittances are processed through various traditional channels, including SWIFT/correspondent banking, postal services, Rupee Drawing Arrangement (RDA), and the Money Transfer Service Scheme (MTSS). India ranks as the top global market for inward remittance flows, followed closely by China and Mexico. While the majority of India's inward remittances originate from the Middle East and the USA, most outward remittances are directed to Nepal and Bangladesh.
- In India, banks collaborate with foreign correspondent banks to establish NOSTRO accounts. Transfers are processed using the SWIFT messaging infrastructure. SWIFT is a vital tool for banks and financial institutions, facilitating international payments. The network boasts over 11,000 financial institutions spanning more than 200 countries, including banks, securities dealers, asset management firms, clearing houses, depositories, and exchanges.
- Moreover, the increasing remittances from migrant workers are propelling market growth. These workers regularly send money back home, underscoring the need for reliable and cost-effective online solutions for cross-border payments.
North America is Expected to Hold a Major Share of the Market
- In North America, technological advancements, shifting consumer behaviors, and the globalization of trade are rapidly reshaping the market. Common methods for cross-border payments in the region encompass bank transfers, credit card payments, and alternative methods like digital wallets and mobile payments. Each method presents its own advantages and challenges in terms of speed, cost, and accessibility.
- When purchasing from foreign companies, more than half of U.S. enterprises rely on electronic checks and bank transfers. Industry experts note that in 2023, 56 percent of U.S.-based B2B companies utilized eChecks for cross-border transactions, with a similar percentage choosing bank transfers.
- Yet, the adoption rate for eChecks remains notably low at just eight percent. This disparity indicates a potential growth opportunity for digital payment providers, especially since over 50 percent of surveyed B2B professionals prioritize digitization for cross-border transactions.
- As consumers gravitate towards buy-now-pay-later options, businesses are similarly seeking convenient trade credit solutions to defer payments. A significant majority of B2B buyers expressed a desire to utilize trade credit for their purchases.
- Moreover, the surge in e-commerce transactions is fueling the demand for cross-border payment solutions in the region. While there are occasional quarterly fluctuations, the country's eCommerce sales have demonstrated consistent annual growth. As online retail platforms expand, businesses are increasingly reaching out to international customers, underscoring the need for dependable payment systems to facilitate smooth cross-currency transactions.
Cross Border Payments Industry Overview
The Cross Border Payments market is highly competitive and fragmented, primarily driven by the presence of major players. These key players employ strategies such as mergers, acquisitions, and product innovations to maintain a competitive edge and broaden their global footprint.Key player include Adyen N.V., The American Express Company, Payoneer Inc., and others.
The cross-border payments market is poised for growth driven by technological advancements and changing consumer preferences towards digital solutions. However, challenges such as high transaction costs and regulatory complexities remain significant hurdles that need addressing. As fintech innovations continue to emerge, they offer promising solutions that could enhance efficiency and reduce costs in this vital segment of the financial landscape.
Cross Border Payments Market Leaders
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Adyen N.V.
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Stripe, Inc.
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Payoneer Inc.
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PayPal Holdings, Inc.
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The American Express Company
*Disclaimer: Major Players sorted in no particular order
Cross Border Payments Market News
- October 2024: Emirates NBD, a banking group in the MENAT (Middle East, North Africa, and Türkiye) region, has entered into a strategic agreement with Partior. This partnership will explore participation in their blockchain-based clearing and settlement platform, a collaboration that will offer Emirates NBD’s clients 24/7 availability and faster, more seamless payment flows.
- October 2024: Temenos launched a SaaS enterprise service for cross border payments, empowering Payment Service Providers (PSPs), including banks, electronic money institutions (EMIs) and fintechs, to swiftly launch and lower the cost of cross border payment services.
Cross Border Payments Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Assessment of Impact of macroeconomic trends
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Emergence of Fintech and Digital Technology Advancements
5.1.2 Enhanced Interoperability Among Different Payment Systems
5.2 Market Restraints
5.2.1 Limited Access to Payment Infrastructures and Geopolitical Risks
6. MARKET SEGMENTATION
6.1 By Transaction Ype
6.1.1 B2B Transaction
6.1.2 Wholesale Transaction
6.1.3 C2C Transactions
6.1.4 Other Transactions
6.2 By Geography***
6.2.1 North America
6.2.2 Europe
6.2.3 Asia
6.2.4 Australia and New Zealand
6.2.5 Latin America
6.2.6 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Adyen N.V.
7.1.2 The American Express Company
7.1.3 Stripe, Inc.
7.1.4 Payoneer Inc.
7.1.5 PayPal Holdings, Inc.
7.1.6 FIS
7.1.7 TransferMate
7.1.8 Western Union Holdings, Inc.
7.1.9 Remitly Global, Inc.
7.1.10 MoneyGram Inc.
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
Cross Border Payments Industry Segmentation
Cross-border payments market refers to financial transaction that occur between parties located in different countries. Cross-border payments involve the transfer of funds or assets from one country to another, typically through banks or other financial institutions.
The cross border payments market is segmented by transaction type (B2B transaction, wholesale transaction, C2C transactions other transactions), geography (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Transaction Ype | |
| B2B Transaction | |
| Wholesale Transaction | |
| C2C Transactions | |
| Other Transactions |
| By Geography*** | |
| North America | |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
Cross Border Payments Market Research FAQs
How big is the Cross Border Payments Market?
The Cross Border Payments Market size is expected to reach USD 206.87 billion in 2024 and grow at a CAGR of 7.36% to reach USD 295.27 billion by 2029.
What is the current Cross Border Payments Market size?
In 2024, the Cross Border Payments Market size is expected to reach USD 206.87 billion.
Who are the key players in Cross Border Payments Market?
Adyen N.V., Stripe, Inc., Payoneer Inc., PayPal Holdings, Inc. and The American Express Company are the major companies operating in the Cross Border Payments Market.
Which is the fastest growing region in Cross Border Payments Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Cross Border Payments Market?
In 2024, the North America accounts for the largest market share in Cross Border Payments Market.
What years does this Cross Border Payments Market cover, and what was the market size in 2023?
In 2023, the Cross Border Payments Market size was estimated at USD 191.64 billion. The report covers the Cross Border Payments Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Cross Border Payments Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Cross Border Payments Industry Report
Statistics for the 2024 Cross Border Payments market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Cross Border Payments analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
