Nine in 10 (91%) small and medium-sized businesses (SMEs) trading internationally are set to switch their current cross-border payment provider in the next two years, according to Mastercard’s new Money in Motion report, compiled by Bain & Company.
The report suggests the market could look very different by 2028, as competition intensifies in a fast-growing sector.
“SMEs are rethinking what they need from cross-border payments. They are using more providers, comparing options more closely and becoming more willing to switch. For banks and FinTechs, that creates a clear opportunity to win and keep their business by delivering the speed, trust and transparency SMEs now expect,” says Pratik Khowala, global head of transfer solutions, Mastercard.
Key takeaways:
· The overall B2B cross-border payments market is set to grow by 51%, from $31.7 trillion in 2024 to $47.8 trillion by 2032. Against that backdrop, smaller specialist providers are projected to become the leading choice for SMEs’ cross-border payment needs. By then, 48% are expected to choose a FinTech as their main provider, up from 30% in 2025, while 28% are expected to select a bank, compared with 42% in 2025.
· Trust (35%) and speed (34%) are now the biggest considerations when selecting a cross-border payment provider, with cost and transparency close behind at 28% each. Among SMEs that have recently changed providers, two in three (67%) say faster transactions and more reliable settlements were the driving force. Once selected, trust remains the strongest anchor for loyalty in an increasingly fluid market.
· More than nine in 10 (92%) SMEs surveyed already use multiple payment providers, showing that many are spreading their business across different partners to meet their cross-border payment needs.
· Payment tracking (43%) and fraud detection (42%) are the two most sought-after value-added services, showing how important the wider payment experience has become.
· In the United States, 44% say real-time updates on payment status would increase their loyalty to a provider or make them more likely to use more of its services, compared with 32% globally.
