Fueled by rising global e-commerce, the cross-border payments market presents opportunities for both incumbents and newcomers.
In an increasingly connected global economy, payments play a key role in enabling commerce between consumers and merchants, who transact across borders and global supply chains.
As a result, the cross-border payments market is growing fast. According to CB Insights’ Market Sizing data, the cross-border payments market is valued at nearly $21T with a 90% compound annual growth rate (CAGR). Fueling this growth is the rise of global e-commerce, which is expected to grow to about $16T by 2025.
However, cross-border payments infrastructure is often outdated, leading to higher costs and slower transaction times. This presents both challenges and moats to incumbents, while also presenting opportunities for newcomers to disrupt legacy value chains.