Banks Are The Missing Link in Cross-Border Digital Wallet Adoption, Study Finds

Cross-border payments often utilize digital wallets, but banks are not meeting the demand and are not using wallets to their full potential.

The world of cross-border transactions is rapidly changing and growing. Digital wallets are emerging as consumers’ preferred method, outpacing traditional bank transfers and money services.

This shift isn’t just about convenience. In fact, it reflects a fundamental change in how people send and receive money across borders. While consumers are rapidly adopting digital wallets, challenges remain in the areas of interoperability, regulatory compliance and a need for increased support from banks. Our latest report explores these dynamics and details the opportunities and obstacles shaping the future of the global money movement.

This report offers a comprehensive view of the cross-border payments landscape. Speed and trust are the biggest factors influencing consumers’ digital wallet preferences. On the other hand, businesses primarily focus on the efficiency and speed they offer for paying suppliers. However, financial institutions (FIs) have been slow to integrate digital wallets fully into their cross-border payment systems. Collaboration between FIs and FinTechs could unlock further growth and innovation in this space.

Inside “Global Money Movement: How Digital Wallets Are Transforming Cross-Border Payments,” you’ll discover:

  • Why many consumers prefer digital wallets for cross-border payments, and how this preference varies across different countries.
  • How consumers are leveraging digital wallets to send smaller-value, more frequent remittances, making cross-border payments a routine part of life
  • The interoperability limitations in hindering smooth cross-border transactions, particularly for those sending money to multiple countries
  • How FIs approach digital wallet integration and how they view FinTech companies as either competition or collaboration partners

Download the report: Global Money Movement: How Digital Wallets Are Transforming Cross-Border Payments

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    For “Global Money Movement: How Digital Wallets Are Transforming Cross-Border Payments,” a PYMNTS Intelligence and TerraPay collaboration, we surveyed 2,601 consumers, 398 small business leaders and 80 FI employees across four countries – the U.S., U.K., Singapore, and Saudi Arabia – to determine how digital wallets are changing the landscape of cross-border payments.

    This report includes essential, actionable insights businesses and FIs need to know to become leaders in this space, which offers vast opportunities for growth and innovation. Ultimately, improving the interoperability of digital wallets, streamlining the user experience and addressing the needs of both consumers and businesses will be key to unlocking the full potential of digital wallets in global money movement.

    About the Report

    This report examines how consumers, businesses and FIs see digital wallets’ role in cross-border payments. The report is based on three surveys. The consumer survey included 2,601 respondents who made cross-border payments in the previous 12 months. Our sample included 537 consumers in the United States, 752 in the United Kingdom, 776 in Singapore and 536 in Saudi Arabia.

    This survey was conducted from Sept. 6, 2024, to Oct. 23, 2024. The small business survey included 398 owners and business leaders of firms that make cross-border payments that generated annual revenues of up to $10 million in 2023: 143 in the U.S., 103 in the U.K., 89 in Singapore and 63 in Saudi Arabia. The small business survey was conducted between Sept. 4, 2024, and Oct. 14, 2024. Finally, it draws insights from a survey of 80 individuals who work at FIs with an asset size greater than $1 billion across the same four countries. The bank employee survey was conducted from Sept. 12, 2024, to Oct. 1, 2024.