FEATURE: CROSS-BORDER PAYMENTS currency conversion at competitive rates and transparent fee structures.
For SMEs, the study says, this means less time spent navigating complex banking processes and more control over their finances. The Mastercard study suggests banks can learn from these models, integrating similar capabilities into their own offerings through partnerships with technology providers.
Banks that do so could not only retain their SME clients but also capture new growth. As the Promerica representative explained:“ We recognize the vital need for faster access to funds for SMEs, especially when maintaining strong supplier relationships. That’ s why we are actively engaging with partners to explore solutions that improve transaction speed and support the sustainability of small businesses in the region.”
A holistic approach to SME financial needs
BANKS FOCUS TOO MUCH ON PRODUCTS BUT SMES ONLY CARE ABOUT
DAY-TO-DAY OPERATIONS.
The study says modernization is not optional – it is a competitive necessity.
The path forward
For banks and financial institutions in LAC, the study shows the roadmap to SME cross-border payment modernization has three main pillars:
The study acknowledges speed and cost are crucial – but says they are not the whole story. SMEs also need better access to working capital, fraud protection and streamlined cash flow management.“ Banks focus too much on products but SMEs only care about day-to-day operations,” said Ginger Siegel, North America Small Business Lead at Mastercard.“ They need better access to capital, cash flow management, secure payments, fraud protection and time-saving solutions.”
1. Streamline costs and operations – Reduce reliance on corre spondent banking where possible, automate manual processes and simplify compliance without compromising security
2. Enhance transparency – Provide SMEs with clear, upfront cost breakdowns and real-time payment tracking
3. Invest in partnerships – Collaborate with fintechs and technology providers to bring modern, digitalfirst capabilities to SME clients
That, the study says, requires a mindset shift. Rather than offering a suite of disconnected products, financial institutions must think in terms of integrated solutions that fit naturally into an SME’ s workflow. This could mean embedding payment services directly into eCommerce platforms or ERP systems, offering dynamic FX options or providing instant credit lines tied to cross-border transactions.
Why change now?
The study stresses the urgency as clear. Crossborder trade is no longer a side business for SMEs – it is becoming a core driver of revenue. And as digital adoption accelerates, expectations for payment speed, transparency and affordability are rising fast.
Those expectations are being shaped by consumer experiences. SMEs that can make instant peer-topeer transfers or see real-time payment status in their personal banking apps will naturally demand the same in their business dealings. If their bank cannot provide it, they will look elsewhere.
If executed well, the study says, this transformation could unlock a virtuous cycle: SMEs gain faster, more affordable access to global markets, boosting their competitiveness and profitability; banks strengthen client loyalty and open new revenue streams; and the broader LAC economy benefits from increased trade activity.
Looking ahead
Mastercard plans to continue working with financial institutions to modernize payment infrastructure in the region, building on the findings of the study.
Mastercard says that for SMEs, the shift cannot come soon enough. The current system is holding them back from achieving their full potential in global trade. But with the right infrastructure, they could move from being the silent engine of the LAC economy to a powerful, visible force in the global market.
Mastercard says the message from its research is clear: modernizing cross-border payments is not just about moving money faster. It is about enabling the next generation of Latin American multinationals to thrive. p www. intelligentcio. com INTELLIGENTCIO LATAM 27