Breaking down the boundaries: Time for a rethink on international low-value payments

Abstract

Movements in populations and business changes have transformed low-value international payments from niche to segment. Traditional cross-border payments schemes are an increasingly poor fit, and the segment is poorly served. Banks are struggling to respond quickly enough to a fast-growth market, for a range of economic and architectural reasons. Is an alternative approach possible that secures the banking industry’s position in the profitable elements of the value chain? And is there an opportunity to grow market share, and to retain the liquidity, customer and brand of their global payments services?