Mastercard Report: 91% of SMEs to Switch Cross-Border Payment Providers as Fintechs Gain Edge

A massive shift in the B2B landscape is underway as 91% of internationally trading SMEs plan to switch cross-border payment providers within the next two years. With the global market projected to reach $47.8 trillion by 2032, fintechs are poised to overtake traditional banks as the primary choice for small business global transfers.

What was announced

The "Money in Motion" report, compiled by Bain & Company for Mastercard, highlights a rapidly evolving sector where SME loyalty is increasingly fluid. Based on a survey of small and medium-sized enterprises across 11 countries, the findings suggest that the B2B cross-border payments market will grow by 51% from its 2024 valuation of $31.7 trillion. This growth is accompanied by a significant migration in provider preference; by 2028, 48% of SMEs are expected to name a fintech as their primary provider, up from 30% in 2025. Conversely, bank preference is expected to drop from 42% to 28% in the same period.

The drivers behind this migration are rooted in performance and reliability. Among SMEs that have already switched providers, 67% cited the need for faster transactions and more reliable settlements. Currently, 92% of surveyed businesses use multiple payment providers to manage their international requirements. While cost and transparency remain important factors for 28% of respondents, trust (35%) and speed (34%) have emerged as the leading considerations for selecting a partner. Beyond the transaction itself, SMEs are seeking integrated value-added services, with 43% prioritizing payment tracking and 42% looking for enhanced fraud detection. To demonstrate these requirements in a high-stakes environment, Mastercard highlighted its work with McLaren Racing, where the team utilizes Airwallex—which connects to the Mastercard Move network—to facilitate global payouts for its international operations.

"SMEs are rethinking what they need from cross-border payments. They are using more providers, comparing options more closely and becoming more willing to switch. For banks and fintechs, that creates a clear opportunity to win and keep their business by delivering the speed, trust and transparency SMEs now expect,"

Pratik Khowala, Executive Vice President, Global Head of Transfer Solutions, Mastercard.

The companies involved

Mastercard is a global technology company in the payments industry, operating a massive proprietary network that connects consumers, financial institutions, merchants, and governments in more than 210 countries and territories. The company has increasingly focused on its "Mastercard Move" portfolio to capture the growing cross-border and B2B payment segments. Bain & Company, which collaborated on the report, is a leading global management consultancy that frequently provides strategic analysis for the financial services sector. Its Financial Services practice, where Partner Joe Lischwe operates, focuses on the intersection of traditional banking and emerging digital assets.

McLaren Racing, led by Chief Financial Officer Laura Bowden, represents the commercial and competitive arm of the McLaren brand in Formula 1. The team, which features driver Lando Norris, operates as a complex international business requiring rapid, frictionless financial infrastructure to support its global racing schedule. The involvement of McLaren underscores the practical application of cross-border technology like Mastercard Move in industries where "pit stop" efficiency is required in back-office operations as much as on the track.

What FF News has reported before

Mastercard has been consistently active in expanding its ecosystem through strategic partnerships and product launches. FF News recently covered how Alchemy and Mastercard Launch AgentCard to facilitate AI-driven commerce, as well as the debut of Citi and Mastercard's smart subscription management in the UAE. The broader SME and mid-market payment sector has also seen significant movement, with FMPay combining API-led payments with human risk expertise and 3S Money launching virtual debit cards to help UK businesses manage international spending. These developments reflect a wider industry trend toward providing SMEs with the same level of sophisticated financial tooling once reserved for large enterprises.

What this means

The data signals a "great unbundling" of the SME banking relationship. For decades, traditional banks held a captive audience in the SME sector due to the complexity of international transfers. However, the projected 14% drop in bank preference by 2028 suggests that incumbency is no longer a defense against specialized fintech agility. The fact that nearly all SMEs now use multiple providers indicates that the "primary bank" model is dying in favor of a "best-of-breed" stack. This puts immense pressure on traditional institutions to upgrade their cross-border infrastructure or risk losing the entire SME relationship, as payments often serve as the gateway to more lucrative lending and treasury services.