Mastercard survey sees SMEs shifting to fintech payments

Mastercard has published research showing that 91% of small and medium-sized businesses that trade internationally plan to switch cross-border payment providers within two years, pointing to a sharp shift in competition for SME payment flows.

The study, produced with Bain & Company, surveyed more than 1,000 decision-makers across 11 markets. It found that smaller specialist providers are likely to gain ground at the expense of banks. By 2028, 48% of SMEs are expected to choose a fintech as their main cross-border payment provider, up from 30% in 2025, while 28% are expected to choose a bank, down from 42%.

The figures underline how quickly the market is changing as smaller businesses expand overseas and reassess how they move money between countries. The broader B2B cross-border payments market is forecast to grow 51%, from USD $31.7 trillion in 2024 to USD $47.8 trillion by 2032.

SMEs are placing greater weight on service quality than on price alone when deciding whether to stay with a provider or switch. Trust was cited by 35% of respondents as the most important factor in choosing a provider, followed by speed at 34%, while cost and transparency both stood at 28%.

Recent switching behaviour reflects that change in priorities. Among SMEs that had changed provider recently, 67% said faster transactions and more reliable settlements were the main reasons for moving.

Even so, the market is not becoming a winner-takes-all contest. More than nine in 10 SMEs surveyed already use multiple payment providers, suggesting many businesses split activity across several firms to meet different needs in different markets.

Changing priorities

The research also found that businesses are looking beyond the transfer itself and paying more attention to tools that help them monitor and manage transactions. Payment tracking was the most sought-after additional service, cited by 43% of respondents, followed closely by fraud detection at 42%.

That points to a broader expectation that providers should offer more visibility and control alongside settlement. The findings suggest SMEs increasingly see cross-border payments as part of day-to-day operating infrastructure rather than as a back-office process handled with limited scrutiny.

"SMEs are rethinking what they need from cross-border payments," said Pratik Khowala, Global Head of Transfer Solutions at Mastercard. "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."

Khowala said these services are also becoming more strategic for providers seeking deeper client relationships.

"Banks and fintechs cannot afford to treat cross-border payments as a back-office service. For SMEs, it is becoming a test of whether a provider understands their business. Those that keep pace can build deeper relationships. Those that do not risk losing not just payment volumes, but the wider SME relationship."

Regional differences

The survey also highlighted notable differences between markets. In Indonesia and India, SMEs were among the most likely to spread business across several providers, with 34% and 29% respectively using at least four providers, compared with an average of 19% across the markets surveyed.

In the UK, transparency stood out as a major factor in loyalty, with 45% saying clear pricing would make them more likely to choose or remain with a provider, compared with a global average of 38%. In the US, 44% said real-time updates on payment status would increase loyalty or encourage them to use more services from the same provider, compared with 32% globally.

Brazilian SMEs appeared the most active in seeking additional tools tied to cross-border payments. Six in 10 said they were exploring further services, above the global average of 48%.

Joe Lischwe, a financial services partner at Bain & Company, said the findings reflected a shift in how businesses assess providers as they expand internationally.

"As SMEs expand internationally, they are building more relationships with customers, suppliers and partners across borders, and that is changing what they need from payment providers," Lischwe said. "Trust remains the anchor, but the fundamentals of the payment experience, such as reliability, transparency and efficiency, increasingly need to simply work. The winners will be those that combine that trusted foundation with greater visibility, control and flexibility as their customers' needs evolve."

McLaren link

Alongside the research, Mastercard highlighted its relationship with the McLaren Formula 1 team to illustrate the operational demands of moving money quickly across borders. The racing team works with suppliers in more than 20 host cities over the course of a season, making international payments a routine part of its operations.

McLaren uses Airwallex for its cross-border payment needs, while Airwallex connects to Mastercard Move, Mastercard's network for domestic and international transfers. Mastercard said the system supports transfers across more than 200 countries and territories in more than 150 currencies, with connections to bank accounts, digital wallets, cards and cash endpoints.

It also pointed to a payment from the US to the Philippines that took just under one second, comparing that with McLaren's fastest pit stop time of 1.8 seconds, set in 2023.

Laura Bowden, Chief Financial Officer at McLaren Racing, linked on-track speed with the need for dependable financial operations behind the scenes.

"Every fraction of a second matters to us on track, and that same discipline extends to how we run the business behind the scenes," Bowden said. "We work with partners and suppliers across the world, so payments need to move quickly, reliably and with as little friction as possible. For businesses expanding internationally, having the right infrastructure in place can make the difference between ambition and execution."