This post was originally published on Fin Extra
What are the challenges and opportunities fintechs are facing in the cross-border payments and remittances space? What are the emerging alternative ways to handle cross-border transactions more efficiently in regard to finality, cost and service? How can fintechs leverage cross-border payments as a key growth strategy beyond their existing markets? How is the US trade policy and its announced tariffs affecting the cross-border payments space as currency volatility and the risk of recession increase?
Cross-border payments are an essential part of the economy as they lie at the heart of trade. It’s a global market, but unfortunately, it’s often inefficient in terms of finality and transparency. The total addressable market of cross-border payments has reached $194 trillion in 2024, and is projected to reach $320 trillion by 2032. However, the sheer volume of cross-border traffic, and the inefficient ways in which it is handled by many, leave ample room for fintechs step in and fill existing market gaps.
While the cross-border payments market has traditionally been dominated by banks, cross-border payments are increasingly influenced by fintechs – especially in the B2P and P2P spaces. Remittances are a key driver of cross-border payment transactions and are set
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