Cross-border payment opportunity

We all are becoming global. Elon Musk probably wants us to make us inter-planetary but let’s hang in here at the earth for a bit. Companies are increasingly looking to seamlessly integrate financial services into their customer journey. A big technological revolution is gaining momentum in the payment space and more and more non-financial companies are realizing the potential revenue benefit which brings to them. The tread that we keep hearing in the payment space is embedded banking. 

Building a global business that caters to financial services to its end users is still very complex and can be an expensive journey. We experience the infrastructure provider will have great leverage in this ecosystem since the companies want to go to market fast, acquire/delight users, take control of the end-to-end customer journey, and generate new revenue vertical.  Embedding payments with this new paradigm on how consumers and businesses interact with financial institutions have become necessary when executives think about growth. 

There are a few ways a company can start offering these cross-border payment product vertices. The easiest and fastest way for a company to start offering cross-border embedded payment verticals is by partnering with a legacy bank. To keep in mind, the company roadmap needs to fit the roadmap of the bank, otherwise, there will be huge products or technical debt that the company has to inherit. Or, companies can partner with the infrastructure player who is already connected with the various Financial institutions (FI)  that can support multiple use cases in an innovative way. If there is not a right partnership in place, the massive cross-border revenue opportunity can be missed. 

Global cross-border payments are expected to grow by $39.9T by 2026. All major participants in the market are exploring a new Payment as a service ( PaaS) and Remittance as a Service ( white label) business model by leveraging their in-house payment platform. Global PaaS is expected to reach $25.5B by 2026 and $7.1B in 2020, expanding at a CAGRs of 23.9%.[1]   

Growing companies want to provide payment capabilities and add product features to delight their customer.  While the customer acquires users, they also want to continue to add more sticky product vertices so users can stick around and have a long Life Time Value (LTV). Visa Inc,  sees an ‘ enormous opportunity to displace cash, with its debit cash volume growing with the pandemic in cross-border commerce. [2] 

Every company and a major participant in cross-border payments is looking for a new PaaS and white labeling business model by leveraging an in-house payment platform. Machnet wants to be on the frontier in solving this massive problem by bringing PaaS to every business house in the world.  There is a massive untapped opportunity in the cross-border payment ecosystem whereby Machnet wants to be in the frontier by providing a true white-labeled solution via its hyper-flexible all-in-one API for any type of customer who wants to reimagine and build for its cross-border business. Our typical use cases fit for MTOs outside/ inside the US, Fintech inside/outside the US who wants to get into cross-border payments and wants global payment orchestration. 

If you’re looking to launch an embedded cross-border banking feature and would like to understand how Machnet can help you tap into the cross-border payment opportunities, contact us to learn more and play with our sandbox and demo site to start off with. 

If you are sold, then book time with our sales for the next step in your cross-border payment journey. 

If you are super interested in the building with us, we are also hiring !

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[1] reasearchandmarket.com

[2] Visa Q4 21 earning call