What are the different types of cross border payments?
The size of the international payments market is growing at a rate of 5% a year, with a transaction breakdown below:
Business-to-Business (B2B) transactions make up the largest share by far, expected to account for US$150t.
Consumer-to-Business (C2B) transactions, such as cross border eCommerce and offline tourism spend, are forecast to reach US$2.8t.
Business-to-Consumer (B2C) transactions, which include wage salaries or interest payments, are expected to amount to US$1.6t in 2022.
Consumer-to-Consumer (C2C), or remittance payments, contribute the least – expected to reach US$0.8t in 2022.
International transfers can be categorized into two key sections:
Wholesale cross border payments
Wholesale payments are cross border transactions, typically between financial institutions, either to support their customers’ activities, or their own cross border activities (such as borrowing and lending, foreign exchange, and the trading of equity and debt, derivatives, commodities and securities).
Governments and larger non-financial companies also use wholesale cross border payments for larger transactions generated by the import and export of goods and services or trading in financial markets.
Retail cross border payments
These are typically between individuals and businesses. The key types are person-to-person, person-to-business and business-to-business. They include remittances, most notably money that migrants send back to their home countries.
Whatever your needs are, Agathis is your specialist partner is cross border payments. Contact us today and together we’ll come up with the best and most cost-effective plan for your business!