A Broken System
Global cross-border payments are vital but face significant challenges.
Global cross-border payments are the engine enabling cross-border trade and investment, and has been instrumental in the emergence of today’s global economy. The total value of these payments is estimated a little over US $156 Trillion in 2022. Growth has been strong over the past few decades driven by increasing economic activity, e-commerce penetration, migration flows, globalization of supply chains, and smartphone penetration. These growth drivers are structural in nature, and therefore expected to continue.
In spite of the importance, growth and market size of the cross-border payments industry, it is often characterized as slow, costly and opaque. This is increasingly frustrating to consumers, business and enterprises which desire cross-border payment services as efficient and safe as comparable domestic services. CPP’s are constantly under pressure to improve their customer proposition in order to grow or retain market share.