// FEATURE // transparent fee structures. For SMEs, this means less time spent navigating complex banking processes and more control over their finances.

The Mastercard study suggests banks can learn from these models, integrating similar capabilities into their own offerings through partnerships with technology providers. Banks that do so could not only retain their SME clients but also capture new growth. As a Promerica representative explained:“ We recognise the vital need for faster access to funds for SMEs, especially when maintaining strong supplier relationships. That’ s why we are actively engaging with partners to explore solutions that improve transaction speed and support the sustainability of small businesses in the region.”

A holistic approach to SME financial needs

Speed and cost are crucial, but they are not the whole story. SMEs also need better access to working capital, fraud protection and streamlined cash flow management.“ Banks focus too much on products but SMEs only care about day-to-day operations,” said Ginger Siegel, North America Small Business Lead at Mastercard.“ They need better access to capital, cash flow management, secure payments, fraud protection and timesaving solutions.”

That requires a mindset shift. Rather than offering a suite of disconnected products, financial institutions must think in terms of integrated solutions that fit naturally into an SME’ s workflow. This could mean embedding payment services directly into e-Commerce platforms or ERP systems, offering dynamic FX options or providing instant credit lines tied to cross-border transactions.

Why change now?

Cross-border trade is no longer a side business for SMEs – it is becoming a core driver of revenue. As digital adoption accelerates, expectations for payment speed, transparency and affordability are rising fast. Those expectations are shaped by consumer experiences: SMEs that can make instant peerto-peer transfers or see real-time payment status in personal banking apps will demand the same in business dealings. If their bank cannot provide it, they will look elsewhere.

Modernisation is not optional – it is a competitive necessity.

The path forward

The study shows the roadmap to SME crossborder payment modernisation has three main pillars:

1. Streamline costs and operations – Reduce reliance on correspondent banking where possible, automate manual processes and simplify compliance without compromising security.

2. Enhance transparency – Provide SMEs with clear, upfront cost breakdowns and real-time payment tracking.

3. Invest in partnerships – Collaborate with FinTechs and technology providers to bring modern, digital-first capabilities to SME clients.

If executed well, this transformation could unlock a virtuous cycle: SMEs gain faster, more affordable access to global markets, boosting competitiveness and profitability; banks strengthen client loyalty and open new revenue streams; and the broader LAC economy benefits from increased trade activity.

Looking ahead

Mastercard plans to continue working with financial institutions to modernise payment infrastructure in the region, building on the findings of the study. For SMEs, the shift cannot come soon enough. The current system is holding them back from achieving their full potential in global trade. But with the right infrastructure, they could move from being the silent engine of the LAC economy to a powerful, visible force in the global market.

Mastercard says the message from its research is clear: modernising cross-border payments is not just about moving money faster. It is about enabling the next generation of Latin American multinationals to thrive. �

TODAY’ S SMES ARE TOMORROW’ S MULTINATIONALS. AND TOGETHER WE CAN BUILD THE INFRASTRUCTURE THEY DESERVE.

Intelligent SME. tech

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