Cross-Border Payments and the Impact of Tariffs: An Opportunity for Fintechs

Fintechs are bringing diverse options to the world of cross-border payments, which were once solely marked by opaque and costly movement through correspondent banking channels. Now, with President-elect Donald J. Trump about to begin a new term, his stated desire to impose tariffs on key U.S. trading partners threatens to upend those relationships and create new complications that corporations doing international business will have to navigate. Financial institutions must be there to respond to the needs of their corporate customers looking for ways to reduce their expenses from exposure to affected countries and fintechs will be capitalizing on this opportunity. 

This Javelin Strategy & Research impact note looks at the state of play in cross-border payments, the opportunities being seized by fintechs and legacy players, and the implications the Trump tariffs, if enacted, could have on international trade.