Mastercard: 91% of internationally active SMEs plan to switch cross-border payment providers
Fintechs are set to gain a bigger share of the cross-border payments market as small and medium-sized businesses increasingly prioritize speed, trust and transparency when moving money internationally, according to new research from Mastercard and Bain & Company.
As many as 91% of small and medium-sized enterprises (SMEs) trading internationally plan to switch their current cross-border payment provider within the next two years, highlighting intensifying competition between banks and fintech companies for a rapidly growing segment of global payments.
The findings come from Mastercard’s new “Money in Motion” report, conducted with Bain & Company and based on research involving more than 1,000 decision-makers across 11 markets: Brazil, Canada, China, Germany, India, Indonesia, Mexico, South Africa, Türkiye, the UK and the US.
The study points to a significant shift in how SMEs choose financial service providers as their international operations expand and their expectations around payment speed, reliability and visibility increase.
Fintechs could overtake banks by 2028
One of the most significant shifts identified by the research is the growing preference for specialist fintech providers.
By 2028, 48% of SMEs are expected to choose a fintech company as their main cross-border payment provider, up sharply from 30% in 2025.
Banks, meanwhile, could see their share fall to 28% from 42% over the same period.
The shift comes as the global business-to-business cross-border payments market continues to expand. Mastercard expects the market to grow by 51%, from $31.7 trillion in 2024 to $47.8 trillion by 2032.
Competition is already becoming more fluid, with 92% of SMEs surveyed currently using more than one payment provider rather than relying on a single institution for their international payment needs.
Trust and speed reshape SME priorities
Trust emerged as the leading factor when SMEs select a cross-border payment provider, cited by 35% of respondents, closely followed by speed at 34%.
Cost and transparency were each cited by 28%.
Among businesses that had recently switched providers, 67% pointed to faster transactions and more reliable settlement as key reasons behind their decision.
Pratik Khowala, Global Head of Transfer Solutions at Mastercard, said SMEs are increasingly comparing providers and becoming more willing to switch as their expectations around cross-border payments evolve.
For banks and fintechs, he said, this creates an opportunity to win and retain SME customers by delivering the speed, trust and transparency businesses increasingly expect.
SMEs want more than moving money
The research also indicates that SMEs are looking beyond the basic transfer of funds.
Payment tracking was the most sought-after value-added service, cited by 43% of respondents, while 42% highlighted fraud detection.
The findings suggest that visibility and control over transactions are becoming increasingly important as SMEs build relationships with customers, suppliers and business partners across multiple markets.
Joe Lischwe, Financial Services Partner at Bain & Company, said the expansion of SMEs internationally is changing what businesses expect from payment providers, with reliability, transparency and efficiency increasingly becoming fundamental elements of the payment experience.
A $47.8 trillion opportunity
The findings highlight a wider battle developing across the global payments industry.
As the B2B cross-border payments market approaches a projected $47.8 trillion by 2032, banks face growing competition from fintech companies and specialist providers capable of offering faster and more flexible digital payment experiences.
For fintechs, the opportunity extends beyond processing individual transactions. Cross-border payments can increasingly become an entry point into broader financial relationships with SMEs, including services related to liquidity, risk management and international business operations.
For banks, the challenge will be retaining the trust they have traditionally held among business customers while matching the speed, transparency and digital experience increasingly offered by newer competitors.