Fintechs Set to Overtake Banks as Primary Cross-Border Payment Provider for SMEs by 2028, Mastercard-Bain Report Finds
Fintechs Set to Overtake Banks as Primary Cross-Border Payment Provider for SMEs by 2028, Mastercard-Bain Report Finds #
Nine in ten small and medium-sized businesses that trade internationally plan to switch their primary cross-border payment provider within the next two years, according to new research from Mastercard compiled in partnership with Bain & Company, with fintechs set to be the main beneficiaries.
The “Money in Motion” report, based on a survey of more than 1,000 payment decision-makers across 11 markets, tracks a broad shift in where SMEs place their cross-border payment business. Banks currently serve as the primary provider for around 42% of businesses. The report projects that share will fall to 28% by 2028, while the proportion of SMEs naming a fintech as their main provider is forecast to nearly double, rising from 30% to 48%.
More than nine in ten SMEs surveyed (92%) already use multiple cross-border payment providers at the same time, splitting their business across platforms depending on corridor, transaction size, or service type. The competition is less about winning exclusive customers than securing the primary relationship: the provider that handles the largest share of transactions and serves as the first port of call.
SME priorities have shifted in ways that favor newer providers. Trust and speed now rank as the leading selection criteria, ahead of cost. Respondents also placed significant weight on transparency, particularly around foreign exchange rates and settlement visibility. SMEs cited a desire to know the exact FX rate applied, the final amount received, and what happens when something goes wrong, areas where specialist fintechs have historically invested more than incumbent banks.
The overall B2B cross-border payments market is projected to expand 51%, from $31.7 trillion in 2024 to $47.8 trillion by 2032, according to the report.
Pratik Khowala, Global Head of Transfer Solutions at Mastercard, said SMEs are “using more providers, comparing options more closely and becoming more willing to switch,” and described cross-border payments as increasingly strategic rather than transactional. Providers that can bundle payments with FX management, cash-flow visibility, reconciliation, and other value-added tools will be best placed to earn long-term loyalty, the report argues.
The findings were released ahead of Sibos 2026, where cross-border payments and the competitive dynamics between banks and fintechs are among the event’s central themes.
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