tl;dr
A recent PYMNTS and TerraPay survey reveals that digital wallets are the most popular choice for cross-border transactions, preferred by 40% of consumers globally and 44% in the U.S. They are favored for their speed, ease of use, reliability, and acceptance, with 16% citing faster payments as the ma...
Digital wallets have surged as the preferred platform for cross-border transactions, favored for their speed and ease of use, despite challenges from traditional banks and fintechs.
A recent PYMNTS and TerraPay survey reveals that digital wallets are the most popular choice for cross-border transactions, preferred by 40% of consumers globally and 44% in the U.S.
They are favored for their speed, ease of use, reliability, and acceptance, with 16% citing faster payments as the main reason.
Despite the growth, challenges remain with traditional banks, where less than half support digital wallet transfers due to perceived complexity, high costs, and security concerns.
In the U.S., only 49% of banks allow cross-border payments via digital wallets, while 98% enable bank account transfers.
Similarly, in the U.K., 58% of banks support digital wallet transfers compared to 92% for same-day ACH transfers.
The cross-border payments market is substantial, with consumer-to-consumer payments expected to grow significantly by 2032.
Non-wholesale payments reached $40 trillion in 2024, with B2B payments dominating and consumer-to-consumer payments hitting $2 trillion, expected to grow 58% to $3.1 trillion by 2032.
However, the market still contends with slow, costly, and inaccessible channels, especially in developing nations.
Blockchain networks like Bitcoin (BTC) and Ethereum face scalability issues, limiting mainstream adoption due to low transaction throughput.
Bitcoin SV (BSV), with its Teranode upgrade, promises improved performance to meet increasing demands from payments, artificial intelligence, social media, and more.
This scalability advancement positions BSV as a competitive player in evolving financial technologies.
The report highlights an ongoing battle between traditional finance and fintech innovation in cross-border payments.
While consumers increasingly favor digital wallets for speed and convenience, banks remain cautious, citing complexity, cost, and security as barriers.
As digital wallets continue gaining traction, bridging these gaps will be essential for broader adoption and seamless global transactions.