Global Payment Fragmentation Forces 1 in 3 Remittance Recipients to Skip Essentials
Event summary
- 33% of remittance recipients struggle to pay for food, rent, or utilities due to cross-border payment delays
- 82% of remittance-dependent users face issues like missed bills or stress from payment delays
- 42% of users report stress or anxiety due to lack of transparency in cross-border transactions
- Survey of 6,763 respondents across 10 major markets reveals structural fragmentation in global payment systems
- Thunes and Juniper Research launch Cross-border Payments Interoperability Index to assess payment ease across borders
The big picture
While domestic payment systems have evolved to deliver instant transactions, cross-border networks remain disconnected, creating a 'friction tax' that disproportionately affects vulnerable populations. The structural fragmentation in global payment rails highlights a critical gap in financial inclusion, with real-world consequences for millions of remittance-dependent users. The industry's ability to achieve interoperability will be a key factor in delivering a more inclusive global financial system.
What we're watching
- Interoperability Progress
- The pace at which global payment systems achieve true interoperability will determine financial equity for remittance-dependent populations.
- Regulatory Pressure
- Whether G20 remittance cost goals will accelerate industry efforts to reduce cross-border payment fragmentation.
- Market Response
- How fintech companies will address the 'friction tax' through technological solutions and partnerships.
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