Demand for cross-border payments rises as int’l payments scale

The share of people using int’l real-time payments is rising.

Cross-border payments will become increasingly important in international economies, particularly for payments and remittance purposes, according to a Q2 2024 survey by data and analytics company GlobalData.

Of the over 61,000 people surveyed across 41 countries, almost 2 in 3 (63%) of global consumers surveyed use international real-time payments (RTPs) services to send money to family and friends, 

Over 1 in 2 (51%) use international RTPs to pay for goods and services.

“Real-time payments have become commonplace amongst domestic payment services. Not only are they considered superior to traditional methods because of their speed, but these services are typically available 24/7, reduce transaction costs, and ease liquidity management for businesses,” said Benjamin Hatton, banking and payments analyst, GlobalData.

Hatton expects the volume of cross-border payment to ramp up in the coming years. 

In Europe alone, the total volume of cross-border transactions is expected to increase by 58% between 2023 and 2024, GlobalData said.

However, the volume of retail services that make funds available to the consumer within a specific time remains under the target. Only 42% of retail services can make funds available to the consumer within an hour, versus the target of 75%, according to an October 2023 report by the Financial Stability Board (FSB).

Only 76% of retail services can make funds available within one business day, versus a target of 100%, the FSB said.

Hatton said that digitalisation of consumer payment methods will be key in driving down costs and improving transfer speeds.

“Simplicity and speed of the transfer process are the most important factors for consumers when choosing a cross-border payment provider,” Hatton said. 

“Whilst progress has been tangible, there is clearly scope to improve these measures and further reap the rewards from delivering these services,” he added.