Wild Card in Global Money Movement: Digital wallets
There is no debate. When it comes to cross-border payments, no other payment method has earned as much preference as digital wallets. 42% of consumers already prefer it and nearly half of consumers who do not currently use digital wallets expect to use them going forward.
Now, it’s time for banks to decide whether they want to view fintechs and wallet providers as competitors or collaborators.
Where There Are Challenges,
There Are Opportunities
Consumers and businesses are increasingly leveraging digital wallets for their speed and convenience, across cross-border payment types.
For cross-border payments, interoperability is key. Despite widespread adoption, complexities surrounding how digital wallets can send to other wallets or accounts (think regulations and availability issues) are holding back wallets back from enabling frictionless cross-border money movement.
This is where banks can step in: Taking the lead on addressing interoperability issues while also tapping into additional revenue streams and expanding their reach by leveraging wallets.
Actionable Insights: For Wallet Providers and Banks
Collaboration between wallet providers, fintechs, regulatory bodies and tech providers to create shared standards & solutions to improve wallet interoperability.
Focus on enhancing wallets’ capabilities to engage businesses and consumers alike with tailored solutions that encourage adoption for various payment needs.
Developing user-friendly systems for both consumers and businesses. A streamlined setup process translates into long-term strategic and competitive benefits.
The Growth Potential
FIs have the opportunity to grow by collaborating with FinTechs on cross-border payments. Partnerships will not only drive innovation in this ever-evolving landscape but also play an integral role in boosting financial inclusion.
This report by TerraPay and PYMNTS INTELLIGENCE explores the growing relevance of digital wallets in cross-border money movement while highlighting actionable insights for banks and wallet providers.