The transformation of international money transfers is happening through various endpoints. The more ways there are to send and receive payments, the greater the choice of storage locations, leading to more automated international transactions.
As we reported this week, FinTech Brightwell is using the Visa Direct platform to enable instant payouts to bank accounts and wallets on a global scale. Expanded collaboration between the companies will allow instant deposits to cards and utilize Brightwell’s services for transferring money between bank accounts.
The previously announced partnership between Visa and CIBC aims to facilitate a more convenient way for the bank’s customers to send international transfers by sending money to digital wallets in the Philippines, China, Bangladesh, Kenya, and other key remittance locations.
There are significant benefits to having well-developed networks and scalability. According to estimates from the World Bank last month, the value of remittances to low- and middle-income countries in Africa, Latin America, and other regions reached $669 billion last year, representing a growth of 3.8%. Many residents in these countries lack access to bank accounts, but the increasing popularity of mobile devices and internet access allows more people to access financial services, such as digital wallets on smartphones.
The demand for new payment methods is also evident in the United States. According to PYMNTS Intelligence and Nuvei research, nearly half of American consumers attempted to use a new payment method in the past year, with 16% opting to switch from their previous method. Among these “new” cases of using alternative methods, digital wallets were preferred in 30% of cases.
Payment networks like Visa and Mastercard have a unique position to enable better fund flows in international money transfers. Their networks are already scaled, with billions of endpoints and acceptance points.
Additionally, many FinTech companies and other service providers are using technology to improve international payments. One example is the partnership between Tranglo and LuLu Money announced last year. The collaboration combines Tranglo’s international payments with LuLu Financial Holdings’ network, enabling financial institutions and businesses to make global payments through Tranglo Connect.
PYMNTS Intelligence research has also shown that Account-to-Account (A2A) payments are gaining popularity in B2B transactions, utilizing standard ACH transactions, instant ACH transfers, Real-Time Payments (RTP®) networks, and bank transfers.
Research from PYMNTS has revealed that only 23% of small businesses believe that current international payment solutions are “very or completely satisfying.” Nevertheless, data shows that nearly 40% of SMEs that reported an increase in international payments between 2020 and 2021 predict further growth in these payments, as more companies operate beyond their home countries and collaborate with global supply chains.
FAQ:
- What are the benefits of the transformation of international money transfers?
- How does the Visa Direct platform work for global payouts to bank accounts and wallets?
- How does the partnership between Visa and CIBC work for sending international transfers?
- What are the new payment methods available in the United States?
- What are the benefits of using payment networks like Visa and Mastercard in international money transfers?
- What are the popular methods of international payments in B2B transactions?
The transformation of international money transfers leads to a greater choice of storage locations and more automated transactions. For more information, refer to the article on Brightwell’s website.
The Visa Direct platform enables global payouts to bank accounts and wallets. For more information, visit Visa’s website.
The partnership between Visa and CIBC facilitates the sending of international transfers by sending money to digital wallets in various countries. For more information, visit Visa Canada’s website.
There is growing demand for new payment methods in the United States, such as digital wallets. For more information, refer to the Nuvei article.
Payment networks like Visa and Mastercard have scalable infrastructure and a large number of acceptance points, making fund flows in international money transfers easier. For more information, visit the Visa Polska website.
In B2B transactions, Account-to-Account (A2A) payments are gaining popularity, using standard ACH transactions, instant ACH transfers, Real-Time Payments (RTP®) networks, and bank transfers. For more information, refer to PYMNTS Intelligence research.
Definitions:
- International payments:
- Remittances:
- FinTech:
The transfer of money in different currencies across borders for the purpose of making payments. Often, this refers to individuals who work or live in one country and send money to their families or loved ones in another country.
Money transfers sent by migrants or foreign workers to their country of origin to support their families.
A combination of the words “financial” and “technology.” It is an industry where technology is used to deliver innovative financial services, such as mobile payments, digital wallets, and online loans.
Related links:
– [Brightwell](https://www.brightwell.com/)
– [Visa](https://www.visa.com/pl)
– [Visa Canada](https://www.visa.ca/)
– [Nuvei](https://www.nuvei.com/en-ca/)
– [PYMNTS Intelligence](https://www.pymnts.com/)
The source of the article is from the blog yanoticias.es