Thunes Identifies Crucial Gaps in Cross-Border Payment Systems Affecting Global Financial Speed

In a recent report published by Thunes and Juniper Research, a staggering number of over a billion people are found to be waiting several days for their international funds to be processed. This issue persists despite 50% of these recipients marking speed as their primary concern when it comes to receiving money. The findings suggest that while there has been a marked improvement in local payment systems, cross-border payments are still mired in delays and inefficiencies.

The Interoperability Index and Its Findings

The newly introduced Thunes Cross-Border Payments Interoperability Index benchmarks 50 countries to expose the glaring gaps in interoperability—the capability of different financial systems to communicate effectively across borders. The report found that although domestic payment networks are making strides in efficiency, they fail to provide the same level of service on an international scale.

For instance, Europe stands at the forefront, with 16 out of the top 20 countries represented, thanks to the SEPA network that facilitates euro transfers almost instantaneously. Yet, this remarkable achievement does not extend beyond the Eurozone borders, creating a regional bubble that leaves non-Euro countries in the dark.

Conversely, in the Americas, the U.S. ranks 21st despite its numerous cross-border companies, owing to the complexity and adaptation issues within its banking networks. In Brazil, while PIX has gained extensive domestic traction, 42% of international recipients still meet with significant delays due to rigid currency restrictions.

The Asia-Pacific region presents a mixed picture; Singapore, claiming the second rank, showcases efficient bilateral connections. However, larger economies like India and China, which have inward-focused systems, lead to considerable wait times for many recipients hoping to receive international funds.

The Evolution of Mobile Wallets

The survey also indicates a significant transition towards mobile wallets as the go-to channel for international money transfers—with 48% of participants globally utilizing them for cross-border transactions. Notably, in countries like India, South Africa, and the Philippines, mobile wallets serve as a stepping stone towards formal financial services, highlighting their critical role in enhancing financial inclusion. Yet, the entrenched reliance on traditional banks for settlement still signifies a need for improved integration among diverse financial infrastructures.

Stablecoins: Overcoming Trust Issues

Although only 11% of global respondents typically leverage cryptocurrency platforms for international transfers, there’s noticeable potential in specific markets. For instance, in Nigeria, 40% utilize these platforms, revealing an opening for the growing acceptance of digital assets. However, concerns about security scams and a preference for existing payment systems highlight significant hurdles that need addressing to foster greater confidence in digital money.

Thunes' Chief Marketing Officer, Mathieu Limousi, emphasizes the contradiction in the global finance landscape, where domestic payment systems have evolved to deliver instant transactions whilst cross-border payments are stuck in a slow lane. To bridge this divide, Limousi argues for enhanced interconnectivity among the existing infrastructures rather than the development of unnecessary new ones.

Nick Maynard, VP of Research at Juniper Research, further articulates the issue, stating that the global cross-border payment scenario showcases a structural crisis, underscoring the need for more cohesive interactions across localized financial systems.

Moving Forward

As Thunes and Juniper Research unveil their findings, it becomes increasingly clear that bridging the interoperability gap is essential for not only enhancing transaction speeds but also for achieving global financial inclusion. This call to action serves as a reminder of the immense task ahead: fostering collaboration amongst local payment systems and creating a universally accessible financial ecosystem that transcends borders.

For further insights, the full report,