2022 predictions for cross-border payments
With 2022 ahead of us, it’s time to make our predictions for the year, and despite the ongoing impact of Covid, we’re expecting a strong twelve months ahead. Here’s our key predictions for 2022.
2022 predictions: Cryptocurrency’s cross-border payments growth continues
The use of cryptocurrencies and digital currencies in cross-border payments may at times be overhyped, but in 2022 it is by no means going away. Expect players already involved in the space – such as MoneyGram, Mastercard and PayPal – to expand their offerings, while others such as Stripe are likely to introduce new products this year.
Growth in travel-led cross-border payments
While many of us thought 2021 would be the year travel returned, we’re now likely to see a far more pronounced upswing this year, particularly as global Covid management seems to be moving away from lockdowns, despite the ongoing spread of Omicron. This will naturally see a bounce back for long-established players in the space, although we may also see new products from companies vying for super-app status.
Remittances look beyond digital in 2022
The trend in remittances is increasingly towards digital, and that certainly isn’t going to change in 2022. However, as we’ve stated many times before, the end of cash will happen on a generational timescale and is still some way away, making more nuanced, omnichannel approaches key to succeeding in many markets. While many companies are likely to increase their digital share this year, there’s also likely to be approaches that look beyond digital to broader product offerings.
More consolidation in B2B payments
2022 has barely begun and we’ve already had our first acquisition in B2B payments, in the form of OFX’s purchase of Firma. But it’s very unlikely to be the last. While 2021 saw many companies moving increasingly into B2B to find greater profitability away from the crowded consumer market, many are now likely to build their presence further with M&As, resulting in greater market consolidation. B2B cross-border payments, however, remains an incredibly fragmented market.
Diversification in ecommerce
The last few years have been unprecedented for ecommerce, with many players seeing volume jumps in a single year that previously would have been achieved over several. But while the industry remains strong, this next year is going to contain less easy wins, particularly as reopenings continue and the industry has to match the impressive growth of the last two years. As a result, companies are likely to attempt more innovative approaches to growth, with diversified products and entries into new markets and industries.
