“Border payments are the big forgotten of globalization”

eSend money to a foreign country, buy goods on e-commerce platforms From a neighboring country, pay an invoice to a supplier that does not use the euro: Cross-border payments are multiplying with the deepening of globalization and will grow even more, as their volume is estimated to reach 250 trillion dollars. by 2027.

However, for many, these transactions remain too expensive and too slow, if not simply out of reach. Thus, according to the World Bank, the average cost of transferring money for a foreign worker from his host country to his country of origin is about 6% of the total cost of exchange per $200. 15% for certain vulnerable regions!

However, these remittances (or remissions) is often regular and low enough in amount that the charge quickly becomes excessive. In addition, anyone who has ever used the services of companies such as Western Union or MoneyGram knows that the details of the commission are often opaque and that this type of transaction takes much longer than the so-called. Domestic transactions (within the same country). .

A boon for innovative players

In fact, the financial system is still largely based on national bases, and banks are making less and less efforts to secure accounts in these countries. In conditions of low banking of the population, investments are not very profitable.

First of all, the resurgence of international terrorism means that financial players insist that their channels are not used to finance said terrorism or money laundering: so many legal restrictions that prevent them from investing. The result: Access to payment methods through traditional channels is still difficult, and money exchange can become a crossroads.

Cross-border payments have been largely forgotten by globalization. Godsend for innovative players like Wise or M-Pesa in Kenya. They are benefiting from the wave of digitization that preceded their arrival: mobile and more Electronic wallet It provides an opportunity to quickly carry out operations without opening a bank account. It is also an advantage in terms of regulating the holes in the racket, the existing legislation tries to adapt to these new models, which are therefore less restricted than the traditional players.