Companies generating over $1 billion in revenue from cross-border payments.
A new report has shed light on the thriving cross-border payments industry, focusing on companies that have recently surpassed or are projected to surpass $1 billion in annual revenue. These companies are driving the growth of the industry, and the report delves into the key factors and trends that have contributed to their success.
Customer Acquisition and Retention
The report highlights customer acquisition and retention as key drivers for the growth of these $1 billion cross-border payments companies. The ability to attract and retain customers is crucial in a competitive market, and these companies have found ways to stand out.
Financial Performance and Growth Rates
The report also provides insights into the financial performance of these companies, comparing their profitability and growth rates. Western Union, for instance, delivered $4.4 billion in 2023, while PayPal reported $29.8 billion in 2022. MoneyGram and Fiserv also reported significant revenues in 2022.
Growth of Digital Cross-Border Remittances
Digital cross-border remittances are projected to grow from $295 billion in 2021 to $428 billion by 2025, creating a sizable opportunity for companies reaching $1 billion+ revenues to capture growing transaction volumes.
Adoption of Stablecoins
2025 is identified as a pivotal year for stablecoins in cross-border payments. Stablecoins offer benefits like lower fees and faster settlement, and major players like BVNK and Conduit have annualized transaction volumes in the $10–15 billion range. Circle, a leading stablecoin issuer, reported over $65 billion USDC in circulation and significant interest from financial institutions for their cross-border payments network.
Expansion to Small and Mid-Sized Businesses
Companies like Remitly are evolving beyond consumer remittances to target small and mid-sized businesses (SMBs) and freelancers by offering peer-to-peer payment tools tailored to international vendor and employee payments. This segment sends transactions roughly twice the size of typical consumer payments and is growing rapidly.
Blockchain Infrastructure Innovation
Firms are investing in blockchain networks designed for enterprises to deliver low costs, stable fees, and faster performance. Circle’s launch of the Arc blockchain network exemplifies this strategic move to address the demands of large financial firms and enhance efficiency in cross-border payments.
Integration of Cryptocurrency and Digital Wallets
Larger payment companies like PayPal are simplifying cross-border commerce by integrating cryptocurrencies and digital wallets with their platforms, aiming to reduce costs and expand merchant adoption globally.
Comparing Newly Founded Challengers and Established Incumbents
The report also provides a comparison of the growth rates of newly founded challengers and established incumbents in the cross-border payments industry. Recently founded challengers are noted for passing the $1 billion revenue threshold more quickly than established incumbents.
Macroeconomic Trends and Employee Numbers
The growth of these companies is influenced by macroeconomic trends, and the report offers analysis on the employee numbers of $1 billion cross-border payments companies, highlighting differences in workforce sizes among companies.
In conclusion, the report offers a comprehensive analysis of the financial performance and growth trends of $1 billion cross-border payments companies. It provides valuable insights into industry trends, case studies for peers, and the impact of factors like the pandemic and inflation on companies' bottom lines. By examining these companies, we can gain a better understanding of the future direction of the cross-border payments industry.
[1] Source: Statista [2] Source: The Block [3] Source: Circle [4] Source: Remitly [5] Source: PayPal Investor Relations
- To remain competitive in the growing cross-border payments industry, companies are focusing on financial performance, with some like Western Union, PayPal, MoneyGram, and Fiserv generating billions in revenue annually.
- The report also indicates that investing in blockchain networks, adopting stablecoins, and integrating cryptocurrency and digital wallets are key strategies for businesses seeking to drive growth and capture larger transaction volumes in the future.
