USD INR ₹ 84.00
GBP INR ₹ 102.77
CAD INR ₹ 60.61

6 Big Trends In The Cross-Border Payments Industry For 2022

Updated on February 07, 2022 12:00 am
6 big trends in the remittance industry for 2022

The global economy continues to be resilient despite geopolitical turmoil and a prolonged health crisis. A strong global GDP and associated trade growth will keep accelerating the demand for cross-border payments, which is estimated to reach US$ 156 trillion by 2022. 

Cross-border payments are currency transactions between people or businesses that are in different countries. The existing cross-border payments channels are the lifeblood of the globalized economy, facilitating the expansion of global e-commerce, the rise of complex international supply chains, and remittances sent by migrant workers in billions of dollars each year. 

1. Growth Of Digital Remittances And Financial Inclusion 

Remittances are a vital source of foreign income in many developing countries, frequently surpassing foreign direct investment and overseas development assistance. According to World Bank data, total global remittances totaled $702 billion in 2020, despite the economic slowdown due to the pandemic.

More consumers are now connected to the internet and are more comfortable with digital payments than ever before. So the demands for fast, cheap, safe, and convenient digital payments solutions are increasing. Over the last several years, digital remittances have been on the rise, coinciding with the entry of digital-first money transfer organizations (MTOs). 

According to Pew Research Center, mobile phone ownership among adults in emerging economies now stands at 83%, driving financial inclusion by increasing access to banking services and digital payment solutions. 1.7 billion people globally are still unbanked. 

As per the Global Payments' 2021,  mobile wallet usage at the point-of-sale is projected to rise to 30% in 2023 from 22% in 2019 globally, and mobile wallet usage in global e-commerce is expected to grow to 52% in 2023 from 42% in 2019. 

The changing landscape of cross-border payments is driven directly by the rapid change in consumer demands. Consumers are less willing to use banking services due to various disadvantages. 

Alternative payment methods (APMs) for remittances provide faster, cheaper, and more transparent cross-border payment services than traditional banks. The new entrants are putting pressure on traditional money transfer operators such as Western Union, MoneyGram, Ria, etc. Such incumbents may have a large physical network, but with high fees for sender and receivers. 

With rapid digitization and mobile penetration, especially in emerging markets, digital channels will gain traction as a medium for remittance payments. 

Secondly, the shift from cash payments to digital payments is growing, a trend becoming more prevalent in developing economies. For instance, the RBI reported that the use of ATMs in India fell by 47% in April 2020. 

This trend will continue to increase the volume of remittances sent by the migrants to their families in their origin countries and also bring millions of consumers into financial inclusion and accessibility that were previously closed off from the financial markets.

2. Boost In Global Cross-Border Transactions

Cross-border e-commerce payments are the fastest-growing segment of cross-border payments. Juniper Research projects a $35 trillion B2B cross-border payment by 2022, a 30% increase from 2020.

Overall, global cross-border trade is expected to grow 5% (CAGR) between 2018 and 2022, much of which comes from emerging markets, whose growth is estimated at 11% (CAGR). However, barriers to open market opportunities in developed markets are expected to slow the growth to around 2% (CAGR) between 2018 and 2022.



The push for more transparency in payments, coupled with robust trade and international supply chain finance platforms, and improved logistics, will make the international payments industry more competitive. 

Of the total projected total global payment flows, Business-to-Business (B2B) make up the highest proportion, expected to account for US$ 150 trillion in 2022. For high-value B2B transactions (higher than US$50,000), banks are still expected to dominate the space as costs are comparably low and the correspondent banking networks are still efficient and reliable.

Collaborations between aggregators (back-end networks provider) and banks, money transfer operators, or mobile wallet providers enable interoperability within cross-border payments. 

These partnerships are great for low-value B2B transactions and transactions within Consumer-to-Consumer (C2C), Business-to-Consumer (B2C), Consumer-to-Business (C2B) segments. The back-end networks provide faster, cheaper, and more transparent transactions as compared to the correspondent banking network.

Also, platforms like FIS's RealNet will enable real-time payment settlements for corporations, gig workers, and companies.

The new entrants in the cross-border payment industry are mostly focused on low-value transactions, which banks and traditional payment service providers do not cover. Especially, the low-value transactions from, to, and between emerging markets have the highest potential to be disrupted by digital-enabled payments providers due to changing customer behavior, increased trade with emerging markets, and higher financial inclusion. 

3. Global Expansion Of Small And Midsize Enterprises (SMEs)

For businesses to grow globally, cross-border payments have become increasingly important. . Cross-border e-commerce is now the fastest-growing sub-segment in the cross-border payments industry. 

Juniper Research estimates that business-to-business cross-border payments will reach $35 trillion by 2022 and as of 2021, 83% of global businesses of all sizes found it easy to send or receive cross-border payments. Thanks to the emergence of new technologies that streamline that enable faster and easier cross-border transaction processes to meet the needs of the digital world.

Payment solutions like SWIFT's gpi (stands for Global Payments Innovation) and Mastercard's B2B Hub provide the necessary flexibility and SME-appropriate payment options. Other solutions such as Visa Direct, a real-time push platform that expanded with Visa Direct Payouts, simplified cross-border transactions for small businesses.

In 2020, 43% of small and midsize businesses handled international business compared to 34% in 2019, according to Visa.

As the open market trade unlocks several opportunities and benefits for small and midsize businesses, their needs for cross-border payments will increase. 

4. More Investment Appetite For FinTech Companies

FinTech, the short form of financial technology, integrates technology in the financial services industry to improve financial products and services delivery to consumers. The adoption of FinTech companies and products has grown significantly worldwide. 

The volume of investment into the FinTech companies has dramatically increased between 2010 and 2019, reaching 215.4 billion U.S. dollars. Global FinTech investment was $105 billion in 2020-the third-highest year on record, despite a significant drop from $165 billion in 2019.

FinTech investments have hit $91.5 billion in 2021. The Americas were the region attracting the most investments in the global FinTech sector, accounting for nearly 80 percent of the total. 

The number of companies operating under the category FinTech has also grown in EMEA (Europe, the Middle East, and Africa) and APAC (Asia Pacific). 

According to a 2019 survey by Ernst & Young, the most widely adopted FinTech category among consumers was money transfer and payment services. 75% of consumers worldwide adopted some form of money transfer and/or payment service. 



Many companies in the payments sector went public last year. For instance, Remitly, the Seattle-based money transfer start-up went public in September while Wise (formerly TransferWise), the London-based money transfer provider got listed in the London Stock Exchange in July.  

Remitly sold 7 million shares, raising $300 million through its IPO on the Nasdaq under the ticker RELY. The company is now valued at $6.9 billion.

Wise was valued at $11 billion under direct listing, becoming London's biggest tech company by market capitalization.

With increasing digitization and customer adoption rate, FinTech investment is likely to continue in 2022.

5. Central Bank Digital Currencies For Cross-Border Payments

Central Bank Digital Currency (CBDC) is the virtual form of fiat currency. It is issued and regulated by a country's central bank. In short, CBDC is a legal tender issued by a bank in a digital format.

In 2019, China became the first major country to launch a large-scale pilot of digital currency, known as e-CNY (or digital renminbi). As of October 2021, 83 countries have been exploring and announcing the idea of a central-backed digital currency of their own to improve cross-border trade.

CBDC hasn't been formally used to date, but many countries are running pilot programs to determine its viability and usability in their economy, including India, the highest remittance-receiving country. While the digital currency plans for India seems to be on hold, the government recently announced that income from all digital assets will be taxed 30%, which is being dubbed the "Crypto tax".

In 2022, we expect to see more countries launching their own CBDCs. We can expect exponential growth in digital currency payments as the technology matures and regulatory requirements are in place.

CBDCs will not only make payments faster and more cost-effective, but with the right technology, it will also increase interoperability between payment platforms and various financial institutions.

Essentially, the idea of CBDC comes from cryptocurrencies which are digital or virtual currencies secured by cryptography, which makes them difficult to counterfeit. They are based on blockchain technology, a decentralized, distributed digital ledger that records transactions across a peer-to-peer network. 

Cryptocurrencies' use is increasingly gaining popularity in the payments world as it enables direct transfers without any intermediaries, bringing speed, efficiency, and cost benefits. 

In 2021, the crypto industry boomed, with Bitcoin prices going up from $29,000 at the beginning of the year to $68,000 in October, up 130%. US cryptocurrency exchange Coinbase had a successful IPO on the Nasdaq last year, boosting the credibility of crypto trading and traders.

One of the notable trends in the crypto industry last year has been the adoption of cryptocurrencies as a means of payment and institutional investors offering crypto services to their clients. However, several regulatory and scalability challenges still need to be addressed before it is adopted at scale. 

Cryptocurrency has the potential to disrupt and simplify the existing payment system. Some experts think the development of CBCD will be a "major catalyst" to the eventual adoption of crypto payments into the domestic and cross-border money transfer market.


6. Incumbents And Big Banks Are Fighting Back

Though pressured by the emergence of several FinTech startups and blockchain-based remittance services with the potential to disrupt the cross-border payments space, incumbent players like Western Union and MoneyGram seem to be up for the challenge. The company has been heavily investing in bringing its digital operations on a par with the new entrants.

The payment giant's investment in its digital expansion has been a decade-long journey. According to the company's report, in 2020, its overall digital money transfer revenues went up to more than $850 million, from over $600 million in 2019, a 38% increase.

Transactions via its digital channels were 29% and made up 20% of revenue from its C2C business, up from 16% and 14%, respectively, in 2019. The company's online transactions site saw a nearly 30% gain in annual active customers to 8.6 million in 2020.

Western Union has been in the cross-border payments space for more than 150 years. It is a globally trusted brand. 

Still today, it claims to hold the largest cross-border, digital, peer-to-peer payments network in terms of scale, revenue, and channels. The idea of everyday innovations that improve the existing products and services has helped the company stay on top of the game.

What mainly started as disruption in the payments space has expanded to banking services. The narrative is that FinTech startups use new financial technology to disrupt incumbent banks. In doing so, they are highlighting traditional banking institutions' weaknesses in digital user experiences and operational efficiency.  

FinTech startups mainly focus on unbundling banking services, offering one type of product/service, and zero in on doing it very well. 62% of the startups pursue the retail banking segment, and only 11% concentrate on extensive corporate banking services as per one McKinsey analysis. The most popular area for technology disruption is the payments sector. 

However, it is hard to imagine banks facing their own Kodak moment anytime soon. Banks remain reliable, widely used, and profitable. Banks still dominate the space for large business transactions. 

Additionally, the back-end of a FinTech startup still uses the legacy banking infrastructure, which is the payment rails of the industry such as clearing (NSCC), payment (ACH), and messaging (SWIFT) systems. To disrupt the banking industry, FinTech startups will have to develop a new technologically-led back-end of finance. 

For the time being, the innovation is primarily focused on the front-end side, mainly customer-facing facets of the financial services industry, such as providing better branding, better customer services, and cheaper prices. Suppose the tech-led front-end innovation continues with a rented process-led back-end designed years ago. In that case, the result will be sustained margin compression and high operational risks for the startups.

In conclusion, the accelerated growth of the cross-border payment industry is being driven by multiple factors. The big trends in the cross-border payment industry are propelled by the emergence of new payments technologies, an increase in cashless transactions in developing economies, increased access to digital payment tools to the underbanked population, and growth of small and medium-sized businesses. 

Challenger banks, also known as neobanks are growing at a rapid rate, but big banks are fighting back. Over the last few years, many incumbent financial institutions have invested in different FinTech startups, set up their FinTech R&D projects to create proprietary solutions, digitized existing infrastructure, partnered with FinTech, and developed an increasing interest in mergers and acquisitions.

Although there are no widespread developments to disrupt the legacy back-end processes, the potential application of new technologies such as blockchain technology and CBDC are massive. At this rate of innovation and competition, the remittance industry might be able to meet the SDG (Sustainable Development Goals) target to bring down the cost of sending money internationally to less than 3% of the transaction cost.

Rate article:
Money Transfer FAQ's
Related News
Father son reunion
How To Find A Travel Insurance Policy That Covers Covid-19?

Going into 2024, we learned many lessons from COVID. While borders have reopened and life has gone back to practically how it was before, the desire to reconnect with loved ones and explore new destinations grows stronger. However, amidst the excitement of travel, it's crucial not to overlook the importance of securing adequate travel insurance, especially in the context of COVID-19. In this comprehensive guide, we'll explore the significance of travel insurance, highlight key considerations for finding policies that cover COVID-19, and provide actionable tips for selecting the right coverage to suit your needs.   The Importance of Travel Insurance in the Post-COVID-19 EraDespite the easing of travel restrictions and the gradual return to normalcy, the lessons learned during the COVID-19 pandemic have highlighted the necessity of travel insurance. While the threat of the virus may be diminishing, unexpected medical emergencies, trip cancellations, and disruptions remain a strong possibility. Travel insurance serves as a safety net, offering financial protection and peace of mind for travelers facing unforeseen circumstances, including those related to COVID-19.Understanding COVID-19 Coverage OptionsIn response to the pandemic, many travel insurance providers have adapted their policies to include coverage for COVID-19-related risks.There are two types of travel insurance you can opt for when looking for travel insurance, both covering different situations: travel medical insurance and trip insurance.  Travel Insurance: Provides comprehensive coverage for a range of travel-related emergencies, including medical expenses such as for hospitalization or medication for new injuries or illnesses that occur during one’s travels. It also typically includes benefits such as emergency medical evacuation and lost luggage reimbursement.In response to the pandemic, many travel insurance providers have modified their policies to address COVID-19-related risks. That is why some travel medical policies now include coverage of medical treatment expenses incurred due to COVID-19 during travel (if COVID was contracted during travel). Trip Insurance: Focuses specifically on protecting the financial investment made in a single trip. It typically covers expenses such as trip cancellations, interruptions, or delays, offering reimbursement for non-refundable expenses in case of unforeseen events.Similar to travel medical insurance policies, in response to the pandemic, many trip insurance providers have modified their policies to address COVID-19-related risks.  That is why some trip insurance policies now include coverage for cancellations or interruptions due to contracting COVID-19 prior to travel.Additionally, some policies offer "Cancel For Any Reason" (CFAR) coverage, providing flexibility for travelers to cancel their trip for any reason, albeit with eligibility requirements and time-sensitive limitations.There is no one-size-fits-all when it comes to Travel Insurance: some people travel regularly for work, some work for months and years to save up for a single trip, and some may have to travel urgently for a family emergency.Traditionally most travel insurance policies and plans cover expenses on account of medical emergencies, trip cancellation, interruption or delays, medical evacuation, and lost, damaged, or stolen luggage. However, given the current times, you must look for specific policies covering COVID19.Finding the Best Travel Insurance for COVID-19When selecting a travel insurance policy that covers COVID-19, here are some key features to look for in your travel insurance plan:Comprehensive Coverage: Look for policies that offer comprehensive coverage for COVID-19-related expenses, including medical treatment, quarantine accommodation, and trip interruption or cancellation due to the virus.COVID-19 Testing Coverage: Verify whether the policy includes coverage for COVID-19 testing required for travel purposes. Some insurers may cover the cost of testing as part of their COVID-19-related benefits.Quarantine Expenses: Ensure that the policy provides coverage for quarantine-related expenses, such as accommodation and meals, in the event that you're required to quarantine while traveling due to COVID-19 exposure.Trip Cancellation/Interruption: Opt for policies that offer robust coverage for trip cancellation or interruption caused by COVID-19-related issues, such as illness or travel advisories.Emergency Medical Coverage: Verify that the policy provides adequate coverage for emergency medical expenses related to COVID-19, including hospitalization, doctor visits, and medication.Pre-Existing Conditions: If you have pre-existing medical conditions, most comprehensive coverage plans will not include pre-existing medical conditions, but there are still some that do. Read up on whether or not the policy covers COVID-19 treatment for these conditions, as some insurers may have specific exclusions.Finding the Right Travel Insurance PolicyNavigating the plethora of travel insurance options can be overwhelming, but utilizing online travel insurance marketplaces simplifies the process. Platforms like VisitorsCoverage empower travelers to compare different policies, generate quotes, and access award-winning customer service representatives for assistance. By leveraging these resources, travelers can confidently select a policy tailored to their needs and providing comprehensive coverage for COVID-19-related risks.As travel has resumed in full swing, it is easy to feel like you don’t need to worry about COVID-19 anymore, but it is always good to prioritize your safety and financial protection. COVID-19 may have reshaped the travel landscape, but with the right travel insurance policy, travelers can navigate uncertainties with confidence. Whether embarking on a leisurely vacation, business trip, or family visit, investing in travel insurance offers peace of mind and ensures preparedness for any travel-related emergencies, pandemic or otherwise. Safe travels!

Time of india Group Invests $10 Million in Abound Super-App for NRI Remittance Services

Abound, a comprehensive super-app tailored for Non-Resident Indians (NRIs), has successfully secured $10 million in funding from the Times of India Group. This investment aims to bolster the app's remittance services, providing a more streamlined and cost-effective solution for expats.Nishkaam Mehta, the CEO of Abound, expressed in a press release on Monday that the primary objective of the app is to alleviate the complexities and high costs associated with traditional financial services for expats. He further emphasized that this borderless super-app is designed to cater to the distinct financial needs of Indian expats across various regions, enabling them to transcend geographical limitations and live their lives to the fullest.According to World Bank estimates from the previous year, remittances witnessed a 5% growth in 2022, reaching a staggering $626 billion. These transfers serve as a crucial financial lifeline for individuals sending money back home to their loved ones. Furthermore, with approximately 1.4 billion adults still without bank accounts, the need for innovative money transfer solutions is more pressing than ever.Abound, a venture of the Times of India Group and previously known as Times Club, is specifically crafted for Indian expatriates residing in the U.S. The app allows users to transfer funds to India without the hassle of long wait times or transfer fees. In addition to this, membership on the platform comes with a host of benefits including cash-linked and loyalty rewards, curated content, and access to both online and offline commerce. As more NRIs seek innovative financial management solutions, Abound positions itself as the ultimate all-in-one platform with features such as:Daily Shopping Rewards: Recognizing the significance of everyday spending for Indian expats, Abound offers a plethora of daily shopping rewards and cashback offers, enabling users to maximize their purchases.Exclusive Offers Across Categories: Abound provides its users with exclusive deals and offers across a wide range of categories, from groceries and entertainment to shopping and travel, thereby enhancing their lifestyle experiences.To commemorate the launch of its remittance feature, Abound is introducing a limited-time promotion for early adopters, offering an exchange rate of $1=₹83 for money transfers to India.Join the NRI community in ushering in a new era of financial management with Abound. The app is readily available for download on both Android and iOS devices, ensuring easy access and a seamless user experience.

online money transfer mobile application
Taptap Send and CompareRemit Form Strategic Partnership

New York, 27/05/2023 – Taptap Send, the innovative mobile money transfer application, is proud to announce its partnership with leading remittance solution provider With a focus on empowering immigrants, Taptap Send simplifies the process of sending money back home to India, Pakistan, Philippines, Bangladesh, Sri Lanka, and Nepal.Sending money across borders has long been a complex and expensive endeavor for immigrants supporting their families and loved ones. Taptap Send was developed to address these challenges, providing a user-friendly mobile application that streamlines and optimizes the money transfer process, all through the convenience of a smartphone.Taptap Send offers a range of features designed to enhance the experience for immigrants sending funds back home:Competitive Rates and No Transfer Fees: Taptap Send leverages technology to streamline operations, resulting in more affordable transfers compared to traditional methods.Mobile Accessibility: The Taptap Send mobile application ensures users can initiate money transfers anytime, anywhere.Transparent Pricing: Users are provided with upfront information on exchange rates, allowing them to make informed decisions and have a clear understanding of the total cost of the transfer.Taptap Send aims to break down the barriers faced by immigrants when sending money back home, enabling them to provide vital support to their families and communities with ease and efficiency.Through its partnership with, Taptap Send further expands its reach and impact, offering immigrants a comprehensive range of remittance solutions tailored to their specific needs and requirements.To learn more about Taptap Send and explore the various money transfer options available for sending funds to India, Pakistan, Philippines, Bangladesh, Sri Lanka, and Nepal, please visit the Taptap Send website.About Taptap Send:Taptap Send is a mobile money transfer service that simplifies and enhances the process of sending funds internationally. Designed with immigrants in mind, Taptap Send offers a user-friendly mobile application that empowers users to initiate money transfers conveniently and affordably, providing vital support to their families and loved ones across borders.Media Contact:Name: Anthony JacobTitle: Head of Growth, South AsiaEmail: [email protected]

Download the CompareRemit App
Download the CompareRemit App
Personalize your CompareRemit experience with your preferred corridor and receive target exchange rate notifications, seamless transitions to partner apps, and real-time comparisons of top remittance providers at your fingertips.
Personalize your CompareRemit experience with your preferred corridor and receive target exchange rate notifications, seamless transitions to partner apps, and real-time comparisons of top remittance providers at your fingertips.

Get Listed or Advertise

Download Our Free App

Try our faster, enhanced mobile app for a better experience

CompareRemit App