Convera is thrilled to announce the official release of Fintech 2025+, a deep dive into the trends, technology, and transformation driving global commerce today. Developed in partnership with Oxford Economics and The Paypers, this insightful report analyzes the current and future state of the fintech sector, emphasizing the crucial role of cross-border payments in international trade and finance.
As the digital era reshapes global commerce, the demand for innovative, efficient, and secure payment methods is skyrocketing. The fintech landscape is evolving rapidly, with trends like automation and transparency playing a significant role. Established financial institutions are also adapting to these changes, integrating new technologies to stay competitive. Whether you’re a small business owner, a CFO, or a treasurer, Fintech 2025+ is designed to empower your decisions and drive your success in the digital age.
Rapid growth in cross border payments
Fintech 2025+ highlights an expansive cross-border payments landscape, with the wholesale market (high-value transactions between commercial banks) reaching $146 trillion in 2023. The associated revenue pool reached approximately $193 billion, split between transaction fees and FX revenues.
North America leads the market with 28% of total revenue, benefiting from a robust technology infrastructure and supportive legal framework. However, Asia-Pacific is close behind with 26% of global revenues, driven by rapid infrastructure developments and digital adoption. By 2030, the wholesale cross-border payments market is expected to grow 54% to reach a huge $225 trillion.
Fintech services are playing a crucial role in enhancing cross-border payments by providing innovative solutions and improving efficiency. Market leaders in cross-border payments, including major financial institutions, are leveraging these advancements to enhance their services.
Real-time payments set for a boom
Real-time payments (RTP) are experiencing rapid growth globally. Transactions are expected to reach 511.7 billion by 2027, marking a 21.3% annual growth rate. The rise of RTP is being fueled by consumer demand for instant transactions, facilitated by mobile wallets and digital apps.
The fintech space is evolving with the adoption of real-time payments, shaping B2B and B2C transactions, improving security, and facilitating cross-border payments. Banks are being presented with significant opportunities by embracing RTP to meet customer demands and market changes. The RTP boom offers great potential to transform the efficiency of international transactions, with the G20 prioritizing an initiative to see 75% of cross-border payments reach recipients within an hour, by 2027.
Digital assets changing the game
To address the limitations of traditional cross-border payment systems, such as slow delivery times and lack of transparency, the report found that fintech companies and fintech firms are leveraging innovative technologies like blockchain. This private sector innovation has drawn interest from governments and institutions globally, leading to the development of stablecoins and Central Bank Digital Currencies (CBDCs) aimed at enhancing cross-border transactions.
The concept of the “Finternet,” envisioned by the Bank for International Settlements, represents an interconnected financial ecosystem using technologies like tokenization and unified ledgers to enhance financial services, particularly in emerging markets. Despite market volatility, stablecoins have grown by 5.6%, driven by increased understanding and regulatory clarity. Forward-thinking banks are exploring and integrating digital assets into their offerings, with notable examples including JPMorgan Chase’s JPM Coin and Santander’s One Pay FX.
Open banking positioned to transform payments
The financial sector is undergoing a significant transformation with the advent of open banking, which promotes transparency and innovation by making diverse datasets accessible to the public and encourages the development of innovative applications and research across various fields. This evolution indicates a future where data sharing influences multiple sectors, driven by regulatory frameworks, technology, and societal attitudes, and is further enhanced by the integration of digital banking services.
Fintech 2025+ highlights that while Europe still leads with APIs, open banking has gained momentum in the US where institutions such as Citi Bank, US Bank, and Wells Fargo are now making substantial headway. However, regulatory developments in the US and Canada, such as data privacy laws and the Digital Charter Implementation Act, emphasize growing privacy concerns and a unified data market.
Fintech startups are driving innovation in open banking, challenging traditional financial services providers and offering faster, more efficient solutions.
In addition, embedded finance is reshaping customer interactions by integrating financial services into non-financial platforms, to enhance convenience and accessibility. This approach, supported by Banking as a Service (BaaS), is expected to generate significant growth, with embedded finance’s potential reaching USD 7.2 trillion in the next decade.
Fraud continues to become more sophisticated
Fraudulent activities continue to evolve, with the report finding that a significant number of businesses experienced losses of up to 1 million EUR/USD in 2023. The immediacy of RTPs poses additional challenges for accounts payable, as transactions on networks like Zelle and FedNow are processed instantly, leaving little time for fraud checks. With mobile wallets and deepfake technology presenting further risks, combatting all of this requires a multi-layered approach, that includes system-built security measures, customer education, and industry collaboration for real-time fraud detection.
Credit unions are addressing these fraud risks by implementing advanced fintech solutions to enhance their security measures.
Welcome to the world of financial technology and regtech
Emerging regulatory trends in 2024 suggest significant changes for fintechs and companies engaged in cross-border payments within the finance industry. Open banking and data sharing are transforming financial interactions, but this progress has heightened fraud risks. To counteract this, banks are investing in stringent onboarding controls and thorough monitoring of customer interactions.
Venture capitalists are playing a crucial role in driving innovation in regtech, particularly in AI-driven finance activities.
Regtech, or regulation technology, is advancing rapidly to meet the risks of a rapidly evolving technology. The global regtech market is projected to reach over USD 85 billion by 2032, driven by innovations in KYC, AML, and AI-powered solutions for sanctions screening and transaction monitoring. These technologies enhance fraud detection and compliance but also pose challenges, such as the need for explainable AI decisions.
An essential resource for navigating global commerce and trade
Download Fintech 2025+ now and don’t miss this go-to guide for navigating the complexities of global commerce.
As we embark on this journey of technological evolution, it’s crucial to find the right partner to steer your business through this new era of opportunity. Convera provides tech-led payment solutions to help more than 26,000 customers globally grow with confidence — from small businesses to CFOs and treasurers. As a global commercial fintech, Convera powers international business by moving money with ease across a financial network of 140+ currencies, 200 countries and territories, and 70 regulatory licenses worldwide.
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