Fintechs to Overtake Banks in SME Cross-Border Payments by 2028: Mastercard Report

A massive shift in the B2B cross-border payments landscape is imminent, with 91% of small and medium-sized businesses (SMEs) planning to switch providers within two years. As the market scales toward $47.8 trillion by 2032, fintechs are poised to overtake traditional banks as the primary choice for international money movement, driven by demands for speed and transparency.

What was announced

Mastercard’s Money in Motion report, developed in collaboration with Bain & Company, reveals a sector in the midst of a rapid transition. The global B2B cross-border payments market is projected to grow by 51%, rising from $31.7 trillion in 2024 to $47.8 trillion by 2032. This growth is accompanied by a significant migration of SME customers away from traditional financial institutions. By 2028, 48% of SMEs are expected to use a fintech as their primary cross-border payment provider, a sharp increase from the 30% recorded in 2025. Conversely, bank dominance is set to wane, with their share of the SME market predicted to fall from 42% to 28% over the same period.

The research, which surveyed SMEs across 11 countries, highlights that 92% of these businesses already utilize multiple providers to manage their international trade requirements. Selection criteria have shifted significantly; trust (35%) and speed (34%) are now the top considerations for businesses, followed closely by cost and transparency at 28% each. Among those who have recently changed providers, 67% cited the need for faster transactions and more reliable settlements as the primary motivator. Beyond the transaction itself, 43% of SMEs are seeking payment tracking and 42% want integrated fraud detection services.

To demonstrate the technical capabilities required for this high-speed environment, Mastercard highlighted its collaboration with the McLaren Mastercard Formula 1® Team. The racing organization uses Airwallex, which connects to Mastercard Move, to manage global supplier payments across more than 20 cities per season. Mastercard Move facilitates transfers across more than 200 countries and 150 currencies, recently demonstrating a US-to-Philippines payment in under one second.

"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 vast network that connects consumers, financial institutions, and merchants across more than 210 countries and territories. The firm has increasingly focused on non-card payment rails, such as its Mastercard Move portfolio, to capture the expanding B2B and cross-border transfer markets. Pratik Khowala serves as Executive Vice President, Global Head of Transfer Solutions at the company.

Bain & Company is a global management consultancy that advises many of the world's leading financial institutions and fintech firms. Joe Lischwe is a Partner in the Financial Services practice at the firm, which frequently collaborates with industry giants to produce market intelligence on digital transformation and payment trends.

McLaren Racing, the corporate entity behind the McLaren Formula 1 team, operates in a high-stakes environment requiring complex international logistics. Led by Chief Financial Officer Laura Bowden, the organization manages a global supply chain involving hundreds of partners. Its reliance on fintech solutions like Airwallex underscores the growing trend of enterprise-level organizations moving away from traditional banking rails for specialized cross-border needs to ensure efficiency and reliability in their global operations.

What FF News has reported before

Mastercard’s push into high-speed, transparent settlement has been a recurring theme in recent coverage. FF News recently reported on how SoFi Bank Scales Stablecoin Settlement to $25B via Mastercard Network, demonstrating the network's capacity for large-scale digital asset movement. The broader trend of automating business workflows is also gaining momentum, as seen when Corpay Expands AI Agent Suite to Automate Corporate Spend and Accounting Workflows. Additionally, the demand for real-time capabilities in the lending space was highlighted when LoanPro Launches AI Servicing Agents and Real-Time Card Disbursements for Lenders. These developments align with the SME demand for speed and visibility identified in the latest Mastercard research.

What this means

The projected 14% drop in bank market share for SME cross-border payments represents a significant threat to traditional commercial banking revenue. For years, banks relied on customer inertia and the "trust anchor" to maintain these relationships, but this data suggests that trust is now being redefined by performance metrics like speed and real-time tracking. Fintechs are no longer just niche alternatives; they are becoming the primary infrastructure for global trade. The industry is moving toward a "multi-provider" reality where loyalty is transient. Banks that fail to integrate value-added services like fraud detection and real-time visibility into their core offering risk being relegated to back-end settlement providers while fintechs capture the customer relationship.