// INTELLIGENT TECHNOLOGY //
Payment providers compete for SME loyalty
N ine in 10( 91 %) small- and medium-sized businesses( SMBs) trading internationally are set to switch their current crossborder payment provider in the next two years, according to Mastercard’ s new Money in Motion report, compiled by Bain & Company. The findings point to a fast-changing market, as SMEs look for more efficient ways to move money across borders.
The report, based on a survey of SMEs across 11 countries, suggests the market could look very different by 2028, as competition intensifies in a fast-growing sector. The overall B2B cross-border payments market is set to grow by 51 %, from US $ 31.7 trillion in 2024 to US $ 47.8 trillion by 2032. Against that backdrop, smaller specialist providers are projected to become the leading choice for SMEs’ cross-border payment needs. By then, 48 % are expected to choose a FinTech as their main provider, up from 30 % in 2025, while 28 % are expected to select a bank, compared with 42 % in 2025.
The research shows that SME priorities are changing. Trust( 35 %) and speed( 34 %) are now the biggest considerations when selecting a cross-border payment provider, with cost and transparency close behind at 28 % each. Among SMEs that have recently changed providers, two in three( 67 %) say faster transactions and more reliable settlements were the driving force. Once selected, trust remains the strongest anchor for loyalty in an increasingly fluid market.
More than nine in 10( 92 %) SMEs surveyed already use multiple payment providers, showing that many are spreading their business across different partners to meet their crossborder payment needs.
“ SMEs are rethinking what they need from cross-border payments,’ said Pratik Khowala, Global Head of Transfer Solutions, Mastercard.“ They are using more providers, comparing options more closely and becoming more willing to switch. For banks and FinTechs, that creates a clear opportunity to win and keep their business by delivering the speed, trust and transparency SMEs now expect.”
SMEs are also looking beyond the payment itself. The report shows that they want more visibility, control and tools that help them manage risk and reconcile payments more easily. Payment tracking( 43 %) and fraud detection( 42 %) are the two most sought-after value-added services, showing how important the wider payment experience has become.
Khowala continues:“ Banks and FinTechs cannot afford to treat crossborder payments as a back-office service. For SMEs, it is becoming a test of whether a provider understands their business. Those that keep pace can build deeper relationships. Those that do not, risk losing not just payment volumes, but the wider SME relationship.” �
30 Intelligent SME. tech