FEATURE: CROSS-BORDER PAYMENTS
A new Mastercard study reveals that small and medium-sized enterprises in Latin America face high costs, delays and hidden fees when sending international payments. The report calls for faster, more transparent and costefficient solutions to unlock SME growth across the region.
The promise and problem of SME cross-border trade
SMEs are the backbone of the LAC economy, accounting for 98 % of businesses and 60 % of employment. They are also increasingly outward-looking: three out of five SMEs already work with international suppliers and in Mexico and Brazil, three-quarters plan to expand their global partnerships, the study says.
This is not simply a sign of ambition. In today’ s volatile global trade environment – where geopolitical tensions, tariffs and shifting regulations are rewriting the rules – diversifying suppliers and expanding into new markets can be the difference between resilience and decline.
Small and medium-sized enterprises( SMEs) in Latin America and the Caribbean( LAC) are ready to step onto the global stage. They have the ambition, the business relationships and the digital momentum. Yet, when it comes to cross-border payments, a study shows they are running into the same brick wall: high costs, unpredictable delays and a lack of transparency that makes international trade riskier than it needs to be.
A new Mastercard report, Small businesses, big opportunity: Unlocking SME potential in Latin America’ s cross-border space, developed with Payments and Commerce Market Intelligence( PCMI) and K2, puts hard numbers behind these frustrations and points to how modernizing payment infrastructure could fuel a wave of SME-driven growth across the region.
Mastercard partnered with PCMI( a payments industry market intelligence firm) and K2,( a business development consulting firm), to shed light on the evolving landscape of cross-border payments for SMEs in LAC to conduct research between January and March 2025
The study says the opportunity is enormous. In 2024, global B2B cross-border transactions hit US $ 32 trillion, with projections pointing to US $ 45 trillion by 2030. LAC’ s share is growing rapidly: transaction volumes are expected to double from US $ 0.7 trillion in 2024 to US $ 1.4 trillion by 2030.
SMEs are driving much of this expansion, with their 12 % annual growth rate in cross-border activity outpacing the global average of 6 %, thanks to the rise of eCommerce and digital trade tools.
Yet the infrastructure they must rely on to move money internationally is not built for them, the study says.
SME Snapshot: The LAC Opportunity
• SMEs as economic backbone: 98 % of businesses and 60 % of employment in LAC
• Current GDP contribution: 20 %– 35 % in LAC( vs 40 %+ in other emerging markets)
• Cross-border growth rate: 12 % annually( double the global average)
• Projected transaction growth: US $ 0.7 trillion in 2024 to US $ 1.4 trillion by 2030
Mastercard report outlines path to modernizing cross-border payments for SMEs in Latin America
24 INTELLIGENTCIO LATAM www. intelligentcio. com