Global Digital Cross Border Transactions Are Exploding, a Researcher Reports

With digital domestic money transfers expected to exceed 300 billion transactions globally in 2026, up from a projected 207 billion transactions in 2022, a nearly 50% increase, new players are expected to push the envelope by introducing alternative forms of digital cross-border transfers, such as cryptocurrency and central digital bank currencies, according to Juniper Research.

One factor driving the growth of global digital money transfers is the emergence of so-called super apps that provide multiple services including payment and financial transaction processing, and in effect serve as a self-contained, online commerce and communication platform.

Thanks to the rise of super apps, such as WeChat Pay in China and Venmo in the United States, China, the U.S., and India are expected to account for about 74% global digital domestic money-transfer transactions in 2026, the report says.

One advantage of super apps is that consumers view their versatility as a value-added benefit, which in turn offers money-transfer operators a point of differentiation in what has become a highly competitive market.

“The super app approach, where a marketplace of different services is offered in-app, [is] key to creating money transfer apps that offer greater value for users,” the report says.

The report recommends vendors onboard other financial-service providers and e-commerce merchants, to boost the unique user value their apps represent. The report recommends money-transfer operators identify the most popular social platforms in each country and aim to create partnerships that enable social payments.

The report also notes that several money-transfer operators are embracing alternative forms of payments, such as cryptocurrency, stablecoins, and central digital bank currencies as part of their push into digital cross-border payments. Ripple Labs’ RippleNet, for example, is utilizing blockchain technology to enable digital cross-border payments. Now in 50 countries, RippleNet has partnered with several money-transfer operators and banks to enable faster cross-border payments, including Canadian Imperial Bank of Commerce. In addition, RippleNet has partnered with Bhutan’s Central Bank to pilot a central bank digital currency for the country. Collaborations with money-transfer operators Azimo B.V. and Currencies Direct are using Ripple’s xCurrent product for instant settlement of cross-border payments for customers in India.

When it comes to the use of cryptocurrency to facilitate digital cross-border transfers, cryptocurrency-exchange platform Coinbase Global Inc. has partnered with money-transfer operator Remitly Inc. to enable Remitly customers in Mexico to cash out digital currencies. Not be outdone by fintech upstarts, Western Union Co. has partnered with Philippines-based blockchain provider Coins.ph since 2019 to allow users to receive cross-border payments directly in their Coins.ph wallets.

“The use of digital currencies provides a means by which token-based payments can be transferred instantly on a P2P basis regardless of value and without third-party intermediaries in the settlement process,” the report says. “In fact, the BoE (Bank of England)’s latest report on cryptocurrencies in March 2022 acknowledged the potential benefits of cryptocurrencies in cross-border payments by allowing direct P2P transactions and reducing the need for central intermediaries. Therefore, despite having instant settlement capabilities, blockchain allows a stop gap in case errors occur, unlike instant payments’ irrevocability.”