The Circle Payments Network (CPN) will connect financial institutions and enable real-time settlement of cross-border payments using USDC, EURC and other regulated stablecoins, the company said in a Monday press release.

CPN will enable connectivity to domestic real-time payment systems worldwide and is expected to power use cases like supplier payments, remittances, payroll, capital markets settlement, internal treasury operations and on-chain financial applications, according to the release.

“Since our founding, Circle’s vision has been to making moving money as simple and efficient as sending an email,” Circle Co-founder, Chairman and CEO Jeremy Allaire said in the release. “CPN is a significant step in making that vision a reality for businesses worldwide.”

PYMNTS reported earlier this month that Circle is following through on its delayed plans to go public, with a formal IPO by June.

“Circle said in a January 2024 press release that it confidentially filed paperwork for an IPO with the Securities and Exchange Commission (SEC). The company said that the number of shares to be offered and their price range had yet to be determined, and that the IPO was expected to happen once the SEC conducted a review,” PYMNTS wrote.

The IPO delay likely was caused by choppy markets. According to a Monday report by CCN, Circle’s SEC filing in January disclosed that its net income last year was $155.7 million, down from $267.5 million in profit the previous year.

Industry observers’ opinions about stablecoins — digital currency assets designed to hold a 1:1 value ratio to fiat currency — vary, especially when it comes to compliance and regulation by governments around the world. For example, a PYMNTS report noted that none of the proposed bills on Capitol Hill related to stablecoin oversight have passed.

According to an April 7 PYMNTS report, thanks to stablecoins, banks are paying closer attention to blockchain technology.

“Hundreds of billions of dollars move across blockchains while being stored in traditional financial institutions like banks or United States treasuries,” PYMNTS wrote.

In other Circle news, the stablecoin issuer announced a refund protocol that could bridge one of the biggest obstacles to stablecoin usage: reversible payments.

For all PYMNTS digital transformation coverage, subscribe to the daily Digital Transformation Newsletter.

The post Circle to Launch Stablecoin-Powered Cross-Border Payments Network in May appeared first on PYMNTS.com.

This edition of Global Money Movement explores why this adoption gap exists — and what it will take to close it. The report digs deep into the evolving landscape of cross-border payments in the U.S. One particularly unexpected insight: Digital wallet usage is not just a trend for younger or wealthier U.S. consumers. Unlike in other countries, the technology is gaining traction across all income levels and age groups.

Meanwhile, SMBs face a paradox. They recognize the speed and convenience digital wallets offer. However, a lack of confidence in the infrastructure and standards surrounding international financial transactions deters many. The hesitancy has real consequences. In a world moving toward seamless, instant cross-border commerce, not embracing digital wallets could put these businesses at a disadvantage.

“Global Money Movement: U.S. Edition,” a PYMNTS Intelligence and TerraPay collaboration, delves into the landscape of digital wallets for cross-border payments in the U.S. It draws from a survey of 6,465 U.S. consumers and 143 U.S. SMBs.

Inside the data brief:

• Discover what’s driving U.S. consumers of all ages and income levels to embrace digital wallets for sending money across borders.
• Analyze the key barriers holding U.S. SMBs back from adopting digital wallets — and how these businesses compare to other global markets.
• Explore the biggest reasons non-users are considering these wallets in the next year, from transaction speed to security.
• Delve into the disconnect between digital wallet familiarity and actual use among merchants.

The data shows a country where consumers are leading the charge toward more agile and inclusive digital payments — and where businesses risk being left behind unless they adapt. With digital wallets already normalized across much of the U.S. consumer landscape, the next wave of innovation will come from resolving the frictions that keep merchants on the sidelines. This report offers a roadmap for getting there.

About “Global Money Movement: U.S. Edition”

“Global Money Movement: U.S. Edition” is based on a survey of 6,465 consumers in the U.S., including 537 who made cross-border payments within the previous 12 months, that was conducted from Sept. 6, 2024, to Oct. 23, 2024. It also draws on a survey conducted between Sept. 4, 2024, and Oct. 14, 2024, of 143 business owners and leaders at SMBs in the U.S. that make cross-border payments. These businesses generated annual revenues of up to $10 million in 2023. The report examines the current landscape for digital wallets in cross-border payments in the U.S.

The post New Data: US Businesses Face Cross-Border Payments Paradox Amid Digital Wallet Surge appeared first on PYMNTS.com.

A forthcoming report from PYMNTS Intelligence in collaboration with TerraPay, a global payments platform, shows that more than 6 in 10 U.S. consumers who made cross-border payments within the past year used digital wallets for those transactions. The payment method is no longer considered an emerging, high-tech trend, but a mainstream option for different generations and income levels.

Digital Wallets

A digital wallet is an application on your phone, tablet, smart watch or computer that allows you make payments from that digital device. It stores your digitized credit or debit card information, other payment cards, tickets (such those for sporting events) and airline boarding passes. Common examples include Apple Pay, Google Wallet or PayPal.

The report publishing on April 21, the “Global Money Movement: U.S. Edition,” highlights how digital wallets are at the forefront of an evolution in the way money traverses borders.

Interestingly, the U.S. market shows unique demographic trends compared to other countries surveyed by PYMNTS Intelligence, including Saudi Arabia, Singapore and the United Kingdom.

Globally, younger generations often lead in digital payment adoption. But in the U.S., millennials (born between 1981 and 1996) and Generation X (born between 1965 and 1980) show the strongest adoption rates, with 68% and 70% respectively using digital wallets for cross-border payments.

Notably, both baby boomers (born in 1964 or earlier) and Generation Z (born in 1997 or later) exhibit identical adoption rates of 48%. These data points underscore both the entrenched role of digital wallets in the U.S. payments ecosystem and an opportunity for payment providers to expand their reach with both younger and older consumers.

Income Not a Driver of Adoption

Surprisingly, income plays a minor role in driving U.S. consumers to use the wallets. While higher-income individuals (those making over $100,000 annually) use the payment method more frequently (66%) than lower-income consumers (54%), the difference is relatively small. The implication: Digital wallets are not just a convenience for the affluent but a widely used tool across all financial brackets.

Knowing about a thing can lead to using that thing. More than 6 in 10, or 64%, of U.S. consumers report being very or extremely familiar with using digital wallets for cross-border payments. That level is comparable to their familiarity with traditional payment methods like debit cards (70%), credit cards (69%) and bank account transfers (63%).

But the story is much different with U.S. smaller businesses. Less than half of them use digital wallets for international transactions, indicating untapped potential in this sector.

Interestingly, a business’s size has little impact on its adoption rates, with smaller businesses (revenues up to $500,000) slightly more likely (52%) to use digital wallet compared to larger businesses (revenues between $2.5 million and $10 million) at 46%. Likewise, adoption rates are comparable between brick-and-mortar businesses (49%) and online-only merchants (42%).

Why are businesses slow to adopt the tech? One-third of U.S. merchants that don’t use digital wallets cite the payment method’s lack of status as the industry’s payment standard as a key reason. They’re also worried about the security of their financial data and money (31%) and the inability of senders or receivers to use the wallets (27%).

The actionable item: As familiarity fuels adoption with consumers, providers have an opportunity to expand their reach with both consumers and businesses by further “socializing” the payment method.

That’s where playing up the payment method’s benefits comes in. Fifty-four percent of U.S. consumers not using digital wallets cite faster transaction speed as a primary reason they would consider doing so within the next year. More than 1 in 3 believe digital wallets offer a more secure payment method. Likewise, 40% of U.S. merchants not using digital wallets indicate that faster funds transfer would encourage them to adopt.

In short, the U.S. presents a dichotomy in the adoption of digital wallets for cross-border payments. Addressing the existing barriers through clearer industry standards and enhanced security measures will be crucial in unlocking the full potential of digital wallets for U.S. businesses in the global marketplace.

Key Takeaways:

• U.S. consumers have widely adopted digital wallets for cross-border payments (63%), making them a mainstream payment method across generations and income levels.

• Smaller businesses’ adoption of digital wallets for cross-border transactions (48%) lags behind consumer adoption. Concerns about the lack of industry standard status, security and interoperability are key barriers.

• The desire for faster transaction speeds is a primary motivator for both consumers (54%) and businesses (40%) to consider using digital wallets for cross-border payments, highlighting an opportunity for growth in the industry.

Read more:

PayPal Launches X-Border Payment Collaboration With TerraPay

42% of Consumers Prefer Digital Wallets for Cross-Border Payments

Agentic AI Emerges as Fix for Cross-Border Payment Frictions

The post This Is How Americans Send Billions of Dollars Abroad Every Year appeared first on PYMNTS.com.

Cracking the code for sending payments between countries, whether for individuals or businesses, has taken up much of the focus of innovation across payments for at least the past few decades. As the payments ecosystem continues to evolve, digital wallets are increasingly emerging as a pivotal focal point in transforming cross-border transactions.

Data from the March 2025 “Global Money Movement: Singapore Edition,” a PYMNTS Intelligence and TerraPay collaboration, reveals that with the total value of Singapore’s international trade in services reaching nearly $750 billion in 2024, the city-state’s businesses and consumers alike are increasingly recognizing the advantages of digital wallets.

Still, the report finds there is a significant gap in familiarity between consumers (56%) and merchants (84%). Businesses are more aware of digital wallets, but consumer awareness remains limited, particularly compared to other countries.

This discrepancy suggests that while businesses are often equipped with the resources to adopt new payment technologies, consumers may lag due to limited knowledge.

The drivers behind digital wallet adoption are complex and shaped by a myriad of economic, demographic and technological factors. Yet by understanding and embracing critical areas for growth, digital wallet providers could play a pivotal role in bridging the knowledge and usage gap.

Read more: Digital Wallets Poised to Become the SMS of Global Money Movement

The Drivers of Digital Wallet Adoption in Singapore

The primary factor propelling digital wallet adoption in Singapore is speed. According to PYMNTS Intelligence, both consumers and businesses consider transaction speed the most significant motivator for adopting digital wallets. For consumers, nearly half (45%) cite speed as the main reason they would consider using digital wallets for cross-border payments within the next 12 months. Among businesses, the percentage is even higher, with 64% viewing speed as a decisive factor.

This preference for speed is not without precedent. As global trade accelerates, companies are under increased pressure to minimize payment delays and improve cash flow. Digital wallets, which provide almost instantaneous transactions, are well-suited to address these needs.

Closely tied to speed is the issue of accessibility. Digital wallets offer a user-friendly alternative to more traditional methods such as wire transfers or debit cards, which can be cumbersome and prone to delays.

More than one-third (36%) of consumers who expressed interest in adopting digital wallets mentioned the widespread acceptance of these tools as a major appeal. Unlike traditional banking systems, which often involve complex procedures for cross-border payments, digital wallets provide a streamlined experience that appeals to a digitally savvy population.

For businesses, broad acceptance of digital wallets across various markets is critical. According to the PYMNTS Intelligence data, half of the businesses not currently using digital wallets indicated they would consider adoption within the next year if these tools achieved greater acceptance across consumer and business markets.

The Role of Technological Awareness and Education

Increasing consumer awareness is also crucial to furthering adoption. As more merchants begin to offer digital wallet payments, consumer familiarity is expected to rise. Furthermore, targeted educational initiatives by financial institutions and digital wallet providers could play a pivotal role in bridging this knowledge gap.

The demographic breakdown of digital wallet usage in Singapore shows a pronounced skew toward younger generations. Generation Z and millennials are the most frequent users, with 44% and 46% respectively making cross-border payments using digital wallets. In contrast, only 30% of Generation X and just 15% of baby boomers utilize these tools.

Ultimately, the future of digital wallet adoption in Singapore will depend on how effectively stakeholders can address these underlying drivers. With the right strategies, digital wallets could become a staple of Singapore’s payments landscape, providing greater efficiency and inclusivity in an increasingly digital economy.

The post Singapore Businesses Embrace Digital Wallets, Consumers Still Catching Up appeared first on PYMNTS.com.

With this integration, MoneyGram customers can use any U.S.-issued Mastercard card to send funds to 38 eligible receiving markets and receive money through nearly 10 billion additional endpoints around the world, the companies said in a Wednesday (April 2) press release emailed to PYMNTS.

MoneyGram and Mastercard plan to increase the number of receiving markets and add more cross-border payment capabilities for MoneyGram customers throughout the year, according to the release.

“Our expanding global network, present in nearly every country, is one of our most valuable assets,” MoneyGram CEO Anthony Soohoo said in the release. “Through strategic alliances like this, we continue to grow our network, advancing MoneyGram’s mission to make cross-border payments seamless, affordable and secure for everyone.”

This combination will provide MoneyGram customers with access to near real-time funding from any U.S.-issued Mastercard; the ability to send funds across borders to bank accounts, mobile wallets, Mastercard cards and cash pickup endpoints; the security of the two companies’ networks; low transaction fees; and greater access to payouts, per the release.

“Unlocking more efficient and secure ways to send and receive money is critical for fueling entry into the digital economy,” Chiro Aikat, co-president, United States at Mastercard, said in the release. “By integrating Mastercard Move into MoneyGram’s extensive network, we’re building in speed and added peace of mind into every transaction so that critical funds can get into hands when and where it’s needed.”

Mastercard reported during a January earnings call that Mastercard Move transactions leaped 40% year over year in the fourth quarter.

The company said March 17 that it began offering its money transfer solutions through Jack Henry’s Rapid Transfers service, allowing for near real-time money movement via Mastercard Move.

Alan Marquard, head of transfer solutions at Mastercard, told PYMNTS in an interview posted in March 2024 that in building out Mastercard Move, “We want it to be a comprehensive money transfer offering,” that can be tied to things like payroll cross borders, gaming payments and B2B transactions.

The post MoneyGram Implements Mastercard Move to Facilitate Digital Money Movement appeared first on PYMNTS.com.

This data brief delves into this complex dynamic, highlighting the surprising finding that merchant readiness outpaces consumer familiarity. It also explores the intricate problems and potential solutions surrounding digital wallet adoption in the region.

The data suggests that while speed is a major driver of digital wallet adoption in Singapore, security concerns linger, potentially hindering broader consumer uptake. Delve in to learn more about how these factors interplay and what they mean for the future of digital payments in Singapore.

Moreover, a generational divide has emerged in digital wallet usage, with younger consumers in Singapore leading the charge in embracing this technology for cross-border payments.

In “Global Money Movement: Singapore Edition,” a PYMNTS Intelligence and TerraPay collaboration, we surveyed consumers and merchants about digital wallet usage for international transactions to understand the current landscape and future potential of this payment method in Singapore.

Inside “Global Money Movement: Singapore Edition,” you will:

• Analyze the factors driving digital wallet adoption for cross-border payments among Singaporean consumers and small- to mid-sized businesses (SMBs).
• Discover the key differences in digital wallet usage between various consumer and merchant demographic groups.
• Explore the opportunities and challenges that digital wallets present for cross-border transactions.
• Delve into the roadblocks holding digital wallets back from broader adoption among consumers and SMBs.

Singapore’s path to reaching widespread digital wallet usage for cross-border payments — and benefiting from the seamlessness and efficiency the technology offers — will need to close the consumer awareness gap and alleviate security concerns. By addressing these issues, the country can unlock the full potential of this transformative technology.

About the Data Brief

“Global Money Movement: Singapore Edition,” a PYMNTS Intelligence and TerraPay collaboration, is based on a survey of 2,757 consumers in Singapore, including 777 who made cross-border payments in the previous 12 months, conducted from Sept. 6, 2024, to Oct. 23, 2024. It also draws on a survey conducted between Sept. 4, 2024, and Oct. 14, 2024, of 89 business owners and leaders at SMBs in Singapore that make cross-border payments. Those firms generated annual revenues of up to $10 million in 2023.

The post Singapore’s Small Businesses Know the Score With Digital Wallets for Cross-Border Payments appeared first on PYMNTS.com.

“When businesses want to move enterprise-grade money across borders — typically north of $500,000 — they run into three major pain points: limited liquidity for large transactions, long settlement times, and complex integrations,” Tanner Taddeo, CEO and co-founder of Stable Sea, told Karen Webster.

Stable Sea, which just emerged from stealth with the announcement of a $3.5 million capital raise, set out to help corporate treasurers more reliably use stablecoins for cross-border money movement by providing a fiat off-ramp and a user-friendly data dashboard for managing those flows. Stable Sea’s platform serves as an important service layer within the stablecoin technology stack, orchestrating data flows rather than moving money directly.

Taddeo and his team previously worked at Block, where they gained firsthand experience in building financial platforms quickly and efficiently. Leveraging these insights, the Stable Sea team successfully launched their stablecoin orchestration platform in just 100 days — a rapid timeline by any industry standard.

“We saw at Block crystal clear that this was a big pain point for companies building in stablecoin,” Taddeo said. “It’s a big opportunity, and we want to seize it.”

Block and Tackle

Stablecoins have long been touted as revolutionary for cross-border payments because they can bypass traditional correspondent banking networks — systems that are notoriously slow, expensive, and involve multiple intermediaries. Yet despite their promise, stablecoins have struggled to deliver seamless usability for corporate treasurers due to fragmented ecosystems and manual processes.

“If I move money from my JPMorgan account in the U.S. to Lloyds Bank in England, a SWIFT message gets sent instantly — but the actual transaction takes days because multiple private ledgers need to be updated,” Taddeo said. “With stablecoins, both the payment instruction and ledger updates happen in real time.”

However, even today’s stablecoin off-ramping processes remain surprisingly manual. Corporate treasurers often find themselves negotiating transactions via messaging apps like Telegram or Slack — hardly ideal for multimillion-dollar payments.

“Even today, if you’re built on a private blockchain and want to move $5 million from the U.S. to Mexico, most of that process isn’t automated,” Taddeo said. “Corporate treasurers still call humans, negotiate rates, get a screenshot as confirmation, and send it for approval and reconciliation.”

Treasury Connection

Stable Sea aims to eliminate these inefficiencies by aggregating liquidity sources and compliance tools into a single orchestration platform. Rather than directly moving funds itself, Stable Sea moves data — connecting corporate treasurers with liquidity providers and compliance systems through centralized dashboards and APIs.

He described the stablecoin ecosystem as a layered pyramid: at its base sits the U.S. dollar backing stablecoins; above that are foreign exchange providers enabling digital asset trades; then API infrastructure companies facilitating connectivity; finally topped by service layers like Stable Sea that power remittances, payrolls and payments.

The way Taddeo described it, Stable Sea fits into the service layer of the stablecoin stack. So if a Fortune 500 treasurer wants to off-ramp stablecoins into local fiat, they get need compliance, liquidity, visibility and control.

“What Stable Sea does is take advantage of the great work done by infrastructure players below us,” Taddeo said. “We provide a platform for corporate treasurers to easily off-ramp their stablecoins into any currency worldwide.”

Automation is central to Stable Sea’s value proposition. Unlike traditional foreign exchange processes — which can be cumbersome and slow — modern stablecoin off-ramps enable businesses to programmatically convert digital assets into local fiat through APIs and smart contracts.

“The blockchain enables seamless money movement,” Taddeo said. “But initiating and reconciling transactions is still highly manual.”

By orchestrating data flows rather than directly handling funds transfers themselves, Stable Sea can integrate seamlessly with FinTech partners, digital wallets and local payment processors — particularly valuable in emerging markets where banking infrastructure may be limited or unreliable.

Cross-Border Use Cases

Core use cases identified by Stable Sea include treasury money movement across geographies; supplier payments in emerging markets such as Argentina or Mexico; and cross-border payroll management for global enterprises.

“Our focus is bringing it to life for humans and businesses,” Taddeo said. “Right now there are a lot of developer-focused tools out there — but we’re creating applications that make stablecoin transactions simple for nontechnical users.”

Looking ahead, Taddeo believes addressing inefficiencies in stablecoin usage is crucial for broader adoption among enterprises.

“Stablecoin adoption will only grow if inefficiencies in usage are solved,” he said. “We’re focused on working closely with partners and customers to address pain points and unlock more transaction volume.”

Ultimately, Stable Sea sees itself as bridging the gap between blockchain’s inherent efficiency and real-world accessibility — transforming what has historically been technical plumbing into practical financial infrastructure.

“We believe in the technology,” Taddeo concluded. “If we can help money move more efficiently worldwide — then we’ve done our job.”

The post Exclusive: Stable Sea Breaks Stealth Mode, Aims to Streamline Corporate Stablecoin Transactions appeared first on PYMNTS.com.

The relationship with Citi will enable Papaya Global to expand to new geographic regions, Payments Dive reported Monday (March 10), citing its interview with Papaya Global CEO Eynat Guez.

With the addition of Citi as a sponsor, Papaya Global will keep enhancing its cross-border payments capabilities that currently encompasses 160 countries and 130 currencies, and serves clients in the U.S., Europe, Latin America and Asia, according to the report.

“Multinational organizations simply cannot rely on error-prone manual inputs, capricious data security, changing FX rates, and erratic land dates when paying employees and contractors,” the company said in the report.

Papaya Global did not immediately reply to PYMNTS’ request for comment.

The company said Wednesday (March 5) that it formed a partnership with verification and compliance solutions provider Sumsub, in which Sumsub will offer Papaya artificial intelligence (AI)-powered fraud prevention and verification solutions.

“When you enable global workforce payments, as we do at Papaya, thorough compliance and security is a top priority,” Amit Levi, senior vice president of product at Papaya Global, said at the time in a press release. “Anything less than that simply isn’t acceptable when serving enterprise clients. With Sumsub, we can take our compliance engine to the next level and deliver at scale, supporting our clients and their employees.”

Papaya Global teamed up with cross-border payment platform dLocal in April to enable global firms to pay employees worldwide in local currencies in a timely fashion.

The partnership launched in Latin America, including Chile, Colombia and Mexico; in Asia, including Indonesia and Vietnam; and in Africa, with plans to expand to additional territories.

“The partnership with dLocal is exciting, because it speaks to the core of our mission at Papaya,” Ori Shilo, vice president of business development and partnerships at Papaya Global, said at the time in a press release. “Together, we are reshaping the global payments landscape, ensuring a premium payment experience without borders or compromises, and providing our customers with a strong base for scale and growth.”

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Younger generations are driving the shift to digital wallets, with familiarity linked to adoption. While speed and widespread adoption encourage many consumers to use the payment method, significant barriers remain.

For “Global Money Movement: U.K. Edition,” PYMNTS Intelligence and TerraPay collaboration, we surveyed 4,559 consumers and 103 business leaders in the U.K. to examine the current digital wallet landscape for cross-border payments.

In this data brief on U.K. digital wallet use:

• Explore the current level of familiarity with digital wallets among U.K. consumers and businesses compared to traditional payment methods.
• Discover why younger generations lead the adoption of these wallets for cross-border payments while older generations remain hesitant.
• Dig into the key reasons why U.K. consumers and businesses are likely to start using digital wallets, with a focus on speed and widespread acceptance.
• Uncover the most significant barriers preventing U.K. consumers and businesses from adopting these wallets, including lack of awareness and security concerns.
• Learn about strategies financial institutions and payment providers can implement to bridge the awareness gap and promote using digital wallets for cross-border transactions.

“Global Money Movement: U.K. Edition” reveals that while merchants are comfortable with digital wallets, consumer knowledge is uneven, impacting the competition with better-known payment methods. By addressing the barriers and prioritizing consumer education, these wallets can redefine cross-border transactions, making them more efficient and inclusive for businesses and consumers in the U.K.

About the Data Brief

“Global Money Movement: U.K. Edition” is based on a survey of 4,559 consumers in the U.K., including 752 who made cross-border payments in the previous 12 months, conducted from Sept. 6, 2024, to Oct. 23, 2024. It also draws on a survey of 103 owners and business leaders of firms in the U.K. that make cross-border payments that generated annual revenues of up to $10 million in 2023, conducted from Sept. 4, 2024, to Oct. 14, 2024. The report examines the digital wallet landscape for cross-border payments in the United Kingdom.

The post UK Consumers Lag as Small Businesses Embrace Digital Wallets for Cross-Border Payments appeared first on PYMNTS.com.

According to a PYMNTS Intelligence report, “Global Money Movement: How Digital Wallets Are Transforming Cross-Border Payments,” in collaboration with TerraPay, 62% of banks are actively exploring partnerships with FinTech firms to elevate their cross-border payment solutions. This integration signals a trend in the banking industry where collaboration with FinTech firms is becoming a key strategy for driving innovation.

The report surveyed 2,601 consumers, 398 small business leaders and 80 financial institution (FI) employees in four countries (U.S., U.K., Saudi Arabia and Singapore) to explore the trend of digital wallets and related challenges and opportunities in the global payment system.

FinTechs Drive Innovation

Digital wallets have become a popular alternative to traditional banking methods for cross-border payments, according to the report. They simplify sending and receiving funds, particularly for remittances. In the U.S., nearly 73% of consumers send cross-border payments to family or friends, drawn to the speed and low-cost digital wallets offer over slow, expensive bank transfers. The same trend is seen in the U.K., where 63.4% of cross-border payments go to family or friends, further highlighting the demand for fast, reliable payment solutions.

FinTech companies have capitalized on this demand by offering seamless, efficient solutions. These firms provide digital wallet products that allow individuals to transfer money directly between wallets, bypassing intermediaries. By focusing on speed and ease of use, FinTechs are meeting the demand for cross-border payment solutions that traditional banks have been slower to adopt.

While consumer remittances are a driver of cross-border payments, businesses also account for a large share of these transactions. According to the report, U.K. businesses are 73% more likely to send cross-border payments to suppliers than to customers.

The U.S. presents a slightly different picture, where businesses are 20% more likely to receive cross-border payments from consumers than from suppliers. These differences highlight the diverse needs of businesses across regions, but they also point to the potential for FinTech solutions to streamline operations by offering tailored cross-border payment solutions.

For businesses, digital wallets can provide a more efficient and cost-effective way of handling payments to suppliers, settling bills or paying taxes. Traditional methods of international payments often involve multiple intermediaries and can incur high transaction fees. By partnering with FinTechs, banks can offer businesses faster, less expensive, and more secure ways to process payments, improving cash flow management and reducing operational costs.

Overcoming Barriers

Despite the advantages of digital wallets, challenges remain in improving cross-border payments. Regulatory limitations and limited availability of wallet services in some regions hinder progress. About 26% of digital wallet users report difficulties due to strict regulations or restricted access, indicating the need for better collaboration between FinTechs, banks, and regulators.

While the U.S. and U.K. are adopting digital wallets, other regions face hurdles in using these technologies. Banks and FinTech companies are working together to address these challenges, ensuring digital wallets are widely accessible and comply with local regulations and consumer protections.

Partnerships between banks and FinTechs will strengthen as digital wallets and FinTech solutions gain traction. With 62% of banks exploring FinTech collaborations, there’s a movement toward viewing FinTechs as partners, not competitors, in changing the banking industry.

In cross-border payments, this collaboration will drive faster, more efficient, and secure solutions. As digital wallets become widely adopted and demand for real-time transactions grows, U.S. and U.K. banks and FinTechs can improve global money movement, making cross-border payments easier for consumers and businesses.

The post Two-Thirds of Banks Team With FinTechs on Cross-Border Payments appeared first on PYMNTS.com.