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Cross-border payments boom, but loyalty lags, study shows

By Puja Sharma

February 05, 2025

  • AI Security
  • B2B remittances
  • Cross Border Card payments
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Dahabshiil, Mama Money, MFS Africa, Paga Group, Cross Border Payments, Digital Transformation, Online Payments, Social Business Money Transfer Operator, Payouts, Financial Inclusion, SMEs, FinTech, Financial Institutions, AfricaNew research from Visa reveals a significant opportunity for cross-border payment providers to become consumers’ trusted choice. Cross-border payments are projected to reach $250 trillion (€243 trillion) by 2027, yet only 16% of consumers report having a preferred provider.

The gap is clear – 71% of consumers want guidance on the best payment options, and 66% are looking for a single, reliable “go-to” provider. Now is the time for banks and FinTechs to step up and fill this need.

Visa’s report, Unlocking the Future: Banking on Cross-Border Payment Habits, highlights the evolving landscape of international transactions, driven by increased global travel, ecommerce, and remittances. With cross-border payments projected to reach $250 trillion by 2027, the report, based on a survey of 6,500 consumers across 13 countries, underscores a crucial insight: while consumers are using multiple payment methods, they have yet to establish a preferred go-to provider.

A striking 77% of respondents reported using various payment options, but 66% expressed a desire for a single, reliable provider that offers simplicity, security, and speed. The study found that consumers frequently engage in cross-border transactions—30% make weekly ecommerce purchases, 45% send or receive remittances monthly, and 66% travel abroad annually. Despite this regularity, only 16% of consumers rely on a default payment method, indicating a significant opportunity for financial institutions to foster loyalty.

Security remains a top priority, with 90% of consumers expecting strong fraud protection. Notably, Gen Z is particularly cautious, with 75% halting transactions over security concerns. The most commonly used payment methods include credit/debit cards, digital wallets, peer-to-peer (P2P) services, and bank transfers. However, preferences vary by country; for instance, German consumers prefer digital payment services over credit cards, while Filipinos lean towards mobile payments due to lower banking penetration.

The report further highlights that consumer behaviour is fluid, with many individuals still exploring options. A majority (71%) seek more education and guidance on selecting the best payment method, reinforcing the need for financial service providers to simplify choices and enhance customer experience. Additionally, 52% of consumers prefer holding multiple accounts, allowing them to switch providers if dissatisfied.

The demand for seamless, transparent, and secure transactions is driving innovation in cross-border payments. Visa’s report suggests that banks and FinTechs that can deliver a frictionless experience stand to gain significant market share. As consumers form habits around international transactions, financial institutions must act swiftly to establish themselves as the trusted partner for global payments.

Key Insights:

  • Gen Z’s trust issues: 75% of Gen Z have halted cross-border payments due to security concerns, highlighting the need for providers to build up trust with younger generations.
  • Security as the top priority: Across all regions, 63% of consumers rank security as their number one concern, ahead of trust (51%), reliability (49%), and fees (49%).
  • Increased frequency: Consumers are engaging in cross-border transactions more often. 30% make weekly cross-border ecommerce purchases, 45% send or receive remittances monthly, and 66% travel abroad annually.

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