Mastercard’s 2023 borderless payments report highlights the increasing demand for cross-border payments driven by a growing number of people considering working abroad. However, the report also reveals challenges such as late or failed payments, fraud risk, and difficulties in supporting in-country payments for both consumers and small businesses.
1 November 2023 – Mastercard’s 2023 borderless payments report sheds light on the challenges and opportunities associated with cross-border payments, driven by the increasing number of individuals considering living and working abroad. The report reveals that late or failed payments, fraud risk, and difficulties in supporting in-country payments are primary concerns for consumers and businesses engaging in cross-border transactions.
As the global job market fuels demand for overseas work, half of those who made cross-border payments in the past year are contemplating living and working abroad. This trend is particularly pronounced in countries like India, South Africa, Colombia, and the Philippines. The rise in overseas work has led to an uptick in cross-border transactions, with a significant percentage of respondents expecting to make more and higher-value payments in the coming year. Key factors influencing their choice of cross-border payment method include the level of fees, speed of delivery, and simplicity of the process.
The report underscores the vital role of cross-border payments for small businesses, with 61% of respondents indicating they now source more suppliers internationally compared to a year ago. Two-thirds of these businesses also anticipate further international sourcing in the near future.
Despite the growth in international remittance options, the report highlights challenges faced by individuals and businesses, with a substantial portion having experienced late or failed payments. A concerning issue is the potential for fraud when sending money domestically and internationally, with people more likely to be victims of domestic payment fraud. However, obtaining money back after experiencing fraud remains problematic for both domestic and cross-border cases.
Alan Marquard, Executive Vice President of Transfer Solutions at Mastercard, emphasized the need for safer, simpler, and more transparent cross-border payments. Mastercard’s technology and innovative solutions enable secure and rapid money transfers globally, offering a wide range of remittance-related products for bank accounts, digital wallets, cards, and cash across numerous countries and currencies.