Cross-border payments have become increasingly more popular across corporations and individuals across the world. They provide an easy way for businesses to pay suppliers, customers and partners located in different countries faster and cheaper than ever before. There is a huge variety of use cases: business to business (B2B) transactions, business to consumer (B2C) commerce, consumer to business (C2B) applications, and person-to-person (P2P) transfers. Companies utilizing cross-border payment systems benefit from faster transactions while not being subjected to certain laws governing international transactions, such as currency exchange rate fluctuations. The special features that come with cross-border payments make them incredibly attractive in today’s global market environment.
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Data for today’s episode is provided by Javelin Strategy & Research’s Report: Cross-Border B2B Payments: Continuous Improvement Underway
Top Cross-Border Payment Shares by Use Case
- 2% of the payments were person-to-person (P2P)
- 4% of the payments were consumer-to-business (C2B)
- 8% of the payments were business-to-consumer (B2C)
- 86% of the payments were business-to-business (B2B)
About Report
No other global payments innovation effort has garnered as much recent attention as cross-border payments, where improved user experiences have been a focal point for the financial services industry. While the early concern was around greater access and lower costs for these payments in person-to-person scenarios, the efforts naturally progressed into all aspects of the cross-border industry—the impacted use cases in the cross-border run across remittance, retail, disbursements, and wholesale scenarios.
This Javelin Strategy & Research report estimates the size of the cross-border commercial payments market across these defined individual use cases, reviews the traditional settlement methods, and discusses how innovation continues to improve the business-to-business (B2B) payments experience. Readers will understand the latest developments in how networks, processors, banks, fintechs, and central banks collaborate to substantially improve the delivery, with an emphasis on the B2B market segment, which is by far the most significant portion of these international value exchanges.
