The Evolution and the Future of Cross-Border Payments in 2022 & Beyond
With a CAGR of about 5.3% expected for the cross-border payments market, it is important to be ready for new trends that will have a big effect on the success and future of the international money transfer business. Take a look!
After the direct foreign investment, remittances are now the second most popular way for low- and middle-income countries to get money from outside the country. Over the years, migration patterns and how remittances work in different parts of the world have changed in big ways. There could be several reasons for this, but the main ones are modernization due to globalisation, the massive rise of digital transformation, and the need to unify the payment process through regulations and compliance measures to make cross-border transactions easier, make sure they are quick and cheap, and create a unified, well-regulated process that will be the foundation for transactions in the future.
While different countries are improving their technology and making a name for themselves in the FinTech industry, there seems to be a lot of competition for the cross-border payments domain. This is good for the industry, which is growing quickly. Players in remittance, crypto providers, networks, eCommerce giants, and mobile wallets are all involved, and they all offer services that are strong and work well.
Given this outlook, we look beyond the incremental evolution in the next few years in the cross-border payment industry, exploring the technology advancements demanded by ever-changing customer behaviour and regulatory needs that enable new partnerships and business models to stay competitive. Read on!