SMEs Shift From Banks to Fintechs for Cross-Border Payments

What happened

Most small and medium-sized businesses (SMEs) that trade internationally expect to change their cross-border payment provider within the next two years, according to a Mastercard report covered by Finextra. The expected shift is away from traditional banks and towards fintech providers.

The finding concerns intent rather than completed switches. It indicates where internationally active SMEs are likely to direct their payment business over the coming two years.

Why it matters

For banks, the story is less about one lost account than about the experience gap that makes switching worthwhile. International payments have long been a friction point for businesses, with cross-border transfers commonly associated with slow settlement, unclear fees and limited visibility of where funds are. Fintech providers often compete on transparency, speed and straightforward digital onboarding. When a business's benchmark for payments is set by a fintech app, a traditional bank journey can feel slower and harder to follow by comparison.

For leaders in digital transformation, this points to payments infrastructure becoming a customer-experience differentiator rather than a purely back-office function. Operators serving SMEs, including those in the MENA region, may find it useful to examine how their international payment journeys compare on speed, clarity and ease of use.

The Renascence take

Switching intent is a lagging signal. It reflects frustrations that customers have already experienced, so the more useful question is which moment of friction tipped them towards a new provider.

Banks that treat cross-border payments as a product feature rather than an end-to-end experience will keep losing the businesses that depend on them most. Customers will often tolerate a known fee to avoid an unpredictable delay, until a competitor removes that delay. Operators should map each international payment journey step by step and measure where customers pause, chase updates or call for help. Fixing those moments will do more to retain SMEs than launching another payments feature.

--- **Meta title (≤60 chars):** SMEs Move From Banks to Fintechs for Cross-Border Payments **Meta description (≤155 chars):** Most internationally trading SMEs expect to switch cross-border payment providers within two years, a Mastercard report finds. Here is what it means for CX. **Rewritten title (≤70 chars):** SMEs Shift From Banks to Fintechs for Cross-Border Payments **Target keywords:** cross-border payments, SME payments, fintech vs banks, international payments, B2B payments, payment provider switching, Mastercard report