Recent research published by the Bank for International Settlements (BIS) indicates a shift in the landscape of international money transfers. According to the report, dedicated fintech providers—such as Wise and Remitly—are successfully undercutting traditional retail banks in the cost of cross-border payments.
While traditional banking institutions have historically relied on conventional wire transfers for international transactions, the study highlights that fintech entities have introduced models that significantly reduce the financial burden on users. This development marks a shift in how cross-border value is transferred, favoring specialized digital platforms over legacy banking infrastructure.
The research also evaluated the role of stablecoins within this sector. Despite the potential for digital assets to facilitate faster and cheaper transfers, the BIS findings suggest that stablecoins currently struggle with significant friction. This implies that while the technology shows promise, it has yet to achieve the seamless operational efficiency required to consistently outperform established fintech payment solutions.
The findings underscore the ongoing challenges within the global payments market, where speed and affordability remain primary areas for innovation and improvement for both financial institutions and emerging digital finance providers.
Source: Finextra
Original article: https://www.finextra.com/newsarticle/48630/fintechs-top-banks-and-stablecoins-for-cheap-cross-border-payment—bis-research?utm_medium=rssfinextra&utm_source=finextrafeed
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