One in Three Recipients Struggle to Afford Essentials Due to Payment Fragmentation

Financial Strain on Vulnerable Populations

Recent research has unveiled alarming data regarding how global payment system fragmentation is impacting the financial well-being of vulnerable populations. According to findings from Thunes and Juniper Research, about one in three remittance recipients struggle to afford basic necessities such as food, rent, and utilities. This crisis is driven by what's being referred to as the 'friction tax'—high fees and delays associated with fragmented payment systems globally.

The Crisis of Fragmentation

A significant percentage of individuals who rely on remittances experience difficulties, with 82% reporting issues due to delays or unexpected fees associated with their international transactions. The report, based on a comprehensive survey involving over 6,500 participants across ten major markets, illuminates the severe consequences of payment system fragmentation and the inability of international payment infrastructures to keep pace with domestic advancements in financial technology.

Real-World Impacts

The repercussions of these payment system inefficiencies extend well beyond mere inconveniences. Many users report facing significant financial stress, which translates to tangible human suffering. The survey results detailed a plethora of negative outcomes:

1. Access to Essential Goods: Over one-third of the respondents indicated hardships in affording key items like groceries and rent, ultimately threatening their basic livelihood.

2. Psychological Toll: The instability caused by payment delays has resulted in increased levels of stress and anxiety, affecting 42% of the participants.

3. Lack of Transparency: The financial landscape is rife with unexpected fees; 41% of senders experienced surprise deductions, undermining trust in these financial services. This problem is especially pronounced among younger users aged 18-24, with nearly half experiencing unclear transaction costs.

4. Survival Risks: For vulnerable populations dependent on remittances, the financial strain is palpable. A profound 33% reported difficulty in covering essential expenses, 33% resorted to short-term borrowing, and 23% encountered strained relationships due to payment issues.

Voices from the Ground

As Chloe Mayenobe, Deputy Chief of Thunes, aptly puts it, "These data reveal a harsh reality—the cross-border 'friction tax' is a parasite on the global economy, disproportionately affecting those who can least afford it. While domestic payments are now instantaneous, our global systems remain stubbornly disconnected. Achieving interoperability is essential for financial equity. As we collectively strive toward G20 remittance cost goals, the sector must prioritize solving this stagnation caused by fragmentation."

Nick Maynard, Vice President of Research at Juniper Research, concurs, stating, "This research underscores that payment fragmentation is not only an infrastructure issue; it is a social and economic crisis with real human consequences. Even as national payment networks have advanced to offer speed and convenience, cross-border transactions remain hindered by disconnected systems inducing unwarranted costs and uncertainties. For millions dependent on remittances to meet their daily needs, these inefficiencies act as a hidden 'friction tax.' The progress made in modernizing payments is commendable, yet true cross-border interoperability remains critical for building a more inclusive global financial system."

Moving Forward

To combat this pressing issue, further industry collaboration and innovation are vital. Stakeholders must work together to streamline cross-border payment processes and enhance interoperability. Addressing these challenges will not only alleviate financial stress for numerous individuals but will also contribute to global economic stability.

For a deeper understanding of the study and its implications, you can download the full report: _The Thunes Cross-border Payments Interoperability Index_.

Methodology

The insights presented in this article stem from an online survey conducted by Juniper Research in April 2026. The survey aimed to collect opinions from users and non-users of international money transfer services, yielding 6,763 valid responses across diverse income levels in key markets, including the United States, Brazil, Saudi Arabia, China, India, the Philippines, the United Kingdom, Germany, South Africa, and Nigeria. Additionally, a Cross-border Payments Interoperability Index was formulated to assess the ease of executing cross-border payments, evaluating five key dimensions of markets using indicators from recognized sources like the World Bank's Global Findex 2025 database and remittance cost data from the Bank of World.