From crypto payment acceptance to anti-money laundering software, we break down the tech companies making cross-border payments faster and less costly.
Cross-border payments are still considered to be slow, particularly by users that have come to expect on-demand services.
A few key issues make them move much more slowly (and at a higher cost) than domestic payments: payment rails differ from country to country, complying with varying regulations is challenging, and not all banks have global relationships, introducing more intermediaries that slow down the process. (Not to mention that even time zone differences can delay a bank accepting a payment.)
Yet, consumers and businesses are transferring more money globally than ever. Cross-border payment flows, which are set to hit $190T in 2023, will near $290T by 2030, according to FXC Intelligence.
Fintech companies are developing solutions that can help alleviate the challenges commonly associated with cross-border payments. The solutions include new payments infrastructure that exists outside of existing payments rails as well as tools that help traditional banks connect more directly with partners in other countries.
In the market map below, we identify 100+ tech vendors enabling cross-border payments across 9 categories. (Note that because of similarities in the technology underlying KYC, KYB, and AML software, many companies offer all 3 solutions, creating overlapping markets.)
Note: This market map includes private startups that have a Mosaic score of at least 400 and have received funding in the last 5 years. This market map is not exhaustive of the space.
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