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Cross-border payments:
Why today’s market offers an unprecedented opportunity

 

For European fintechs, cross-border payments represent one of the biggest growth opportunities today. With global flows projected to reach $250 trillion by 2027,¹ it pays to pay attention to that potential. 

The demand for fast, secure cross-border transactions has never been higher. Whether it’s a marketplace in Germany selling to customers worldwide, a gig worker in Italy needing instant payouts or individuals in Spain and France sending money back home to their families abroad, customers now expect real-time reliability no matter where they are in the world.  

Meeting those expectations is no longer optional. It’s essential to stay competitive. 

In a single year, 771 million people across the globe made cross-border payments, with 45% of respondents reported sending or receiving remittances monthly, 30% make e-commerce purchases weekly and 52% traveling abroad annually.¹ 

Even with the high consumer need and activity, however, inefficiencies still exist within cross-border payments. 

The (many) pain points with traditional cross-border payments  

Legacy cross-border payment systems frustrate customers and providers alike. Moving money reliably often means navigating a maze of opaque, fragmented financial institutions, platforms and third-party integrations. And even then, failures are common. 

The issues and frustrations are almost all-encompassing: 

• Fragmented infrastructure: Businesses must support multiple providers and payment methods, driving up complexity and cost. 

• Slow, unreliable timing: Payments are often delayed or incomplete without explanation, creating uncertainty for customers. 

• High and unpredictable costs and fees: Opaque, fluctuating fee structures keep both senders and receivers in the dark. The average global remittance cost remains high at 6.24%.² 

• Operational and compliance burdens: Managing multiple networks, keeping up with local rules and meeting regulatory requirements adds significant overhead and risk. 

• Customer unease and fraud fears: While 90% of customers expect robust security, 67% say fear of fraud has stopped them from making a cross-border payment.³ 

All of these issues result in unhappy customers, lost revenue and missed opportunities for growth. 

Unreliable, costly payouts have real-life impact

Many people and businesses around the world rely on cross-border payouts for essential expenses. The failings of traditional cross-border money movement cause hardship in daily life, from families who depend on remittances to pay rent to small business owners who rely on payouts from marketplaces to run their business. 

With cross-border transactions now embedded in daily life for so many people, it’s a crucial time for fintechs to find and offer a secure, seamless solution. Surprisingly, 84% of consumers do not have a preferred cross-border payment method,¹ even though they say they’re looking for one.  

Right now, there’s a rare chance to stand out from the crowded market.  

How do you stand out to capture market share? 

Fintechs who deliver on customer expectations for security, speed, transparency and reliability can capture a significant share of cross-border spend. Any solution needs to be easy to implement, quick to scale and simple to run. 

Combining the global reach, advanced security and reliability of Visa Direct with Nuvei’s powerful technology enables a new generation of cross-border payment experiences. Consumers gain reliability, comfort and the flexibility of  payments to the endpoint that works for them (card or account), while fintechs significantly simplify operations and build loyalty. 

For fintechs and payment leaders in Europe, now is the time to rethink what’s possible. Seize the opportunity to become the remitter of choice or risk being left behind. In our next article, we’ll explore how the Visa Direct and Nuvei partnership delivers simple, scalable access to global payouts with a single integration.