NEW YORK—Digital wallets have become the preferred choice for consumers worldwide as cross-border transactions change, PYMNTS reported.
A PYMNTS Intelligence report, “Global Money Movement: How Digital Wallets Are Transforming Cross-Border Payments,” in collaboration with TerraPay, surveyed 2,601 consumers, 398 small business leaders and 80 financial institution (FI) employees in four countries to explore the trend of digital wallets and related challenges and opportunities in the global payment system.
“From the U.S. to Saudi Arabia, people are leveraging digital wallets due to their fast and efficient way to send and receive money internationally. This shift in payment preferences speaks to the demand for convenience and simplicity, the report notes, especially when compared to traditional methods like bank transfers or money transfer services,” PYMNTS said.
Among the countries surveyed — Saudi Arabia, Singapore, the U.K. and the U.S. — digital wallets emerged as the leading option for cross-border payments. On average, the report shows 42% of consumers across these countries preferred digital wallets for their international transactions.
The U.S. stands out with 44% of consumers choosing digital wallets over other payment methods, the report notes, far ahead of other options like bank accounts and money transfer services. Consumers are more likely to send money to family or friends, a common type of cross-border payment. Nearly 75% of U.S. consumers who made cross-border payments in the past year sent money to their loved ones.
“These transactions are often remittances, underscoring how important digital wallets have become in the process of sending small, frequent payments across borders,” PYMNTS said.