The Small Business Cross-Border Payments Opportunity

Cross-border payments are not just the domain of multinational corporations. Small businesses routinely buy inventory overseas, pay international contractors and service vendors, sell through global marketplaces, and serve customers around the world. Yet for many, cross-border payments—both outgoing and incoming—are expensive and difficult to understand and manage. The good news is that modern payments infrastructure—including stablecoin-enabled settlement, new connectivity between real-time payments networks, and payment orchestration platforms—are lowering the cost and complexity. Banks and credit unions of all sizes will increasingly be able to offer cheaper cross border payments to smaller businesses. That represents a challenge and an opportunity. 

This Javelin Strategy & Research report examines how U.S. small businesses use cross-border payments today, what they value most when choosing a provider, and where banks and fintechs are winning, or losing, the relationship. Drawing on Javelin data, it explores outbound and inbound payment behaviors, competitive dynamics, and the capabilities businesses actually want, while providing guidance to FIs evaluating their cross-border capabilities.

Key questions discussed in this report: 

• How many U.S. small businesses are sending and receiving cross-border payments today?
• How does cross-border payments activity change as businesses grow?
• Where are banks winning, and where are fintechs such as Wise and Airwallex gaining ground?
• How might stablecoin-enabled infrastructure change the economics and the experience of cross-border payments?
• What cross-border payments capabilities should banks and credit unions prioritize to retain business banking relationships? 

Companies Mentioned: 

Airwallex, Amazon, BILL, MoneyGram, Payoneer, PayPal, Revolut, SWIFT, Tipalti, Western Union, Wise