Unlocking the future: Banking on consumer cross-border habits

New research from Visa¹  has revealed a significant opportunity for cross-border payment providers to become consumers’ trusted choice.

The report, which surveyed 6,500 global consumers, reveals that cross-border payment market is experiencing explosive growth, fuelled by a surge in international travel, ecommerce, and remittances. Consumers are spending more regularly cross-border than ever before, and these payments are predicted to reach $250 trillion by 2027².

Consumer spending habits, trends and behaviours were studied, as well as what methods they’re using to make their transactions, with some interesting results thrown up. For example, 77% said they use multiple methods, and most consumers haven’t found a way that works for them yet. 66% are actively seeking that ‘go-to’ provider and desire more information, more choice and more simplicity.

Fundamentally, they want cross-border payments to be as easy and routine as paying a friend and they need it to be secure, speedy and reliable.

Consumers in Europe and worldwide are embracing cross-border payments

Consumers are spending more on cross-border transactions than ever before, but what’s really interesting is the frequency. 30% make weekly cross border ecommerce purchases, 45% send or receive remittances monthly and 66% travel abroad annually.

But consumers don’t yet have a ‘favourite way to pay’. Consumers are using an average of four out of seven different methods, with only 16% using a default payment method. Generally, most consumers settle into routines to make processes easier and quicker, but we found that for cross border payments this hasn’t yet happened. Although, 66% of consumers want to form habits and 71% want more guidance and education to better understand the best option. It seems no single provider offers what consumers need for cross-border payments, despite almost 80% using a traditional bank.

Time to step up and meet the demand of younger generations

One thing consumers are clear on is that they want a cross-border payment provider that is secure and trustworthy. 90% expect stringent fraud and security measures to be in place, with 75% of Gen Z having halted cross-border payments due to security concerns, highlighting the need for providers to build up trust with younger generations.

There’s a huge opportunity here for banks and fintechs. Consumers currently have no loyalty and are using multiple providers to get what they need. What they want is more choice, clearer information, and a solution they can trust to be secure and reliable.

Now’s the time for banks and fintechs to step up. Create industry leading cross-border payment solutions that customers will want to use again and again and become the provider they turn to out of habit.

Learn more about Visa’s cross-border solutions and access the full report here.