20 Cross-border
Consumer Preferences and Key Insights from Visa Report
Consumer Preferences and Key Insights from Visa Report
A recent Visa report on cross-border payments has revealed that most consumers use multiple platforms for international transactions. Security remains a top priority for consumers when making payments, and companies are encouraged to be transparent about transaction costs and processing times to improve customer trust.
Are your looking for Letter of Credit? or Deferred Letter of Credit ? Here, we can support !
Visa Report Highlights
The newly released Visa report sheds light on consumer preferences in the cross-border payments industry, which is experiencing rapid growth. The findings highlight a young and diverse customer base that places high importance on security when making payment decisions. Despite the availability of many cross-border payment providers, the majority of consumers still rely on different methods and platforms, depending on the specific nature of the transaction.
Are your looking for Letter of Credit? or Deferred Letter of Credit ? Here, we can support !
This presents a significant opportunity for payment providers to target an expanding market and establish themselves as a trusted platform for cross-border payments.
The Expanding Cross-Border Payments Industry
The Visa report surveyed 6,500 people who made cross-border payments within the past year. By 2027, cross-border payments are expected to reach $250 trillion, an increase of $100 trillion from 2017. With 771 million people using cross-border payments annually, this sector has become a critical component of the global economy.
Cross-border payments facilitate numerous activities, such as international travel, remittance transfers, online commerce, and foreign investments. A large portion of respondents, over half, travel abroad multiple times each year, and 45% send or receive monthly remittances, highlighting the need for reliable payment providers.
Despite the scale of cross-border payments, many transactions involve small sums but are crucial for the recipients. About a third of respondents made weekly cross-border payments, with younger generations like Gen Z (84%) and Millennials (83%) leading the way in cross-border payment usage.
Consumer Preferences and the Search for Trusted Providers
While cross-border payments are widespread, there is a surprising lack of established providers. The Visa survey showed that 66% of consumers expressed a desire for a single, reliable payment provider. However, only 16% of respondents had found a trusted method they could consistently rely on.
Currently, consumers rely on different payment methods for different types of transactions: credit or debit cards are most commonly used for e-commerce and travel payments, while bank transfers dominate remittances. Some consumers feel overwhelmed by the variety of options available, particularly those primarily using cross-border payments for remittances.
Are your looking for Letter of Credit? or Deferred Letter of Credit ? Here, we can support !
However, customers appear to be consolidating their preferences. A significant 66% of respondents stated that they would stick with a payment method if they found one that worked for them. Convenience and trust seem to outweigh the desire for variety, with nearly half of the respondents preferring to keep all their money in one account and use a single provider for all their cross-border transactions.
Are your looking for Letter of Credit? or Deferred Letter of Credit ? Here, we can support !
Security Is a Top Priority for Consumers
Above convenience, affordability, and reliability, security is the foremost concern for consumers when choosing a cross-border payment method. Security was ranked as the top factor by 61% of respondents across all age groups and regions surveyed.
This emphasis on security likely stems from the prevalence of fraud, scams, delays, and other negative experiences reported by 21% of customers. Younger users, in particular, have voiced concerns about the safety of their cross-border payments, further underscoring the importance of secure payment systems.
The Final View:
Visa’s report highlights the growing demand for secure and convenient cross-border payment solutions. With consumers prioritizing security over other factors and seeking reliable, transparent providers, the cross-border payments industry presents a lucrative opportunity for payment companies. By addressing consumer concerns and offering transparency in transaction costs and times, companies can position themselves as trusted players in the rapidly expanding global market.
Are your looking for Letter of Credit? or Deferred Letter of Credit ? Here, we can support !