Interview Synopsis

B2B cross-border payments – Q2 2021 update

  • Public Equity
  • TMT
  • Global

“The growth of cross-border commerce has increased significantly over the past five years and that trend has only accelerated in the pandemic environment,” a senior executive from The Fintech Strategy Group told Third Bridge Forum in a recent Interview. The discussion also covered the main use cases, an assessment of key players and China’s market.

On the topic of the key trends facing the sector, the specialist gave two main themes. The first is that “it’s a healthy, robust space seeing significant growth and the pandemic has only provided additional tailwinds to that”, and as a result, secondly, there is more competition. “That’s created, I think, a really interesting environment for all concerned, and that has had a number of impacts both on pricing ability but also ubiquity of these firms.”

There are four overarching segments for B2B cross-border payments, noted the senior executive: “marketplaces, the global collection accounts, the invoice payments, and then more niche around education and healthcare payments.” 

We also heard that “many companies have woken up to the opportunity and that’s created a much more competitive environment”. However, one of the longest standing is Payoneer, which “in terms of volume, accounts, growth, [the company], I think, is certainly still a leader.”

China is emerging as a “source of opportunity”, and with it new players are emerging – among these the specialist highlighted Pingpong Payments as one of the leaders. A downside emerging, though, is the “margin pressure as competition heats up, and particularly in China as these more narrowly, regionally focused players gain traction.”

Another topic on the agenda was Mastercard’s acquisition of Transfast and Visa’s of Earthport, which both happened in 2019, and if they could use these positions to achieve dominance in the B2B and B2C markets.

To access all the human insights from Third Bridge Forum’s B2B cross-border payments – Q2 2021 update Interview click here to view the full transcript.

The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.

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