It has never been so crucial to get money transfers right. With the world now experiencing increased migration and the displacement of populations, changes in working practices, together with economic forces, the demand for transfers like digital cross-border payments will only continue growing.
Money transfer solutions are one of the most important empowerment tools ushering people, businesses, and governments into this evolving environment.
Moreover, people want greater choice in an increasingly digital payments landscape, thanks to the prevalence of smartphones and digital wallets. According to Mastercard’s 2022 Borderless Payments report, 73% of consumers are now sending money using an app.
Whether it is a government sending aid to its citizens, or a migrant worker sharing their pay with family overseas, people’s responses to the changing state of the world are often powered by this technology.
Understanding the needs of customers and end-users is crucial to ensuring that money transfer solutions keep pace with these ever-evolving aspirations. It’s something that Mastercard is committed to as a leading innovator in payments technology, to help shape the future of payments.
To ensure we are addressing the right needs, earlier in 2023, Mastercard conducted a series of one-on-one interviews with representatives from financial services companies, digital brands, and their customers. This in-depth research sought insights into the requirements of payment leaders and customers, their preferences for money transfer solutions, and their current use of tools when transferring money domestically and internationally.
The report – Designing the next generation of money transfer solutions – explores the key findings, covering reach and user experience, transparency and pricing, and security and trust. One conclusion of the report states that payment leaders and their customers are not concerning themselves with the mechanics behind disbursements or remittances – they simply want a safe and seamless way to move money from one place to another, regardless of purpose or geography.
When Mastercard spoke with financial service providers, including traditional banks and digital players, about their priorities for implementing modern money transfer solutions, expanding global reach and providing a seamless user experience were the crucial aspects they mentioned.
We also found that consumers have a growing preference for digital wallets when sending and receiving money internationally, and generally do not differentiate between card and bank account channels – they value the flexibility to pay however they want.
As a result, reach to card channels is becoming an integral part of a modern money transfer solution. Aside from digital wallets, other digital payment channels of priority include mobile money wallets and prepaid cards, some of which are location dependent.
Most consumers still face challenges across different use cases, so payment leaders immensely benefit from solving these. According to our report, 30% of consumers are frustrated by restrictions in destination countries that limit their ability to send cross-border payments.
Another challenge focuses on choice, which continues to be a key priority for users. Our research found that around one in three consumers believe that options for recipients receiving funds via cross-border payment platforms are currently too limited, whilst 37% of consumers said they would like to receive disbursements via instant payment services.
When we asked payment leaders what they valued in a global money transfer solution, they told us they prioritised a unified solution that offers payments to any method (such as cards, accounts, and digital wallets), as well as real-time payment capabilities.
To summarise, seamless optionality combined with expansive reach is what will win the future of money transfer solutions. Payments stakeholders are also looking for more transparency in fees and timing, and for stronger, more visible security measures, in line with key regulatory requirements across different geographies.
Quick, secure, seamless money transfers can help unlock economic empowerment for consumers, businesses, and governments.
Mastercard offers access to 95% of the world’s banked population, and 7.5 billion endpoints, including bank accounts, cards, and digital wallets. Moreover, 95% of disbursements to cards are made in near real-time, allowing people to access money whenever they need it.
By harnessing these learnings from payment leaders and their end customers, we can now further the development of a modern money transfer solution that solves critical pain points and delivers value for all involved.
Rasika joined Mastercard in 2016 and has been instrumental in establishing Mastercard's cross-border payments offering, which, combined with Mastercard’s other money transfer solutions, enable financial institutions to send payments to over 180 markets, covering 95% of the world’s population. In her current role, Rasika is responsible for defining the strategic direction for the company’s Remittance and Disbursements business. Rasika has over 15 years of payments industry experience, having worked for companies including Western Union and Travelex.
Mastercard is a global technology company in the payments industry. Its mission is to connect and power an inclusive, digital economy that benefits everyone, everywhere, by making transactions safe, simple, smart, and accessible. Using secure data and networks, partnerships and passion, its innovations and solutions help individuals, financial institutions, governments, and businesses realise their potential. With connections across more than 210 countries and territories, Mastercard is building a sustainable world that unlocks priceless possibilities for all.
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