Money20/20 Exclusive Video: Convera on Cross-Border Payments

In 2024, financial markets have presented a paradox of sorts. Despite expectations of heightened volatility, the reality has been somewhat subdued. For Steven Dooley, Head of Market Insights at Convera: “Volatility has actually been lower than we might've expected going into the new year.” 

This unexpected calm, however, doesn't imply stability across the board. The US dollar's strength has defied predictions, significantly impacting the expectations of US dollar buyers.

“Even while volatility has been low, unexpected moves can still significantly impact customers and their revenues,” Steven emphasises.

2024/25: More shifts in market dynamics 

As the year progresses, Steven anticipates potential shifts in market dynamics. The looming uncertainty regarding central bank rate cuts and significant political events, such as the US presidential election, could catalyse increased volatility. 

“We could see more volatility as we go to the end of the year," he warns. This underscores the unpredictable nature of financial markets, where even in periods of relative calm, unforeseen events can lead to substantial impacts.

B2B payments lagging behind consumer sector

Beyond the immediate market conditions, Steven highlights a critical evolution in the payment landscape. The business-to-business (B2B) payment sector, he observes, lags behind the consumer space in terms of technological advancements. 

“If you think about what you're able to do as a consumer to transfer payments directly after a restaurant meal, that's not something that's part of the business-to-business cross-border space,” he explains. 

However, this gap presents a significant opportunity. The potential for real-time payments and the integration of digital systems, facilitated by open banking, could revolutionise the B2B payment experience.

Next five years ‘pivotal’ for cross-border payments 

Looking ahead, Steven sees the next five years as pivotal for the cross-border payments industry. Establishing regulations and standards will be crucial for its development. “It's going to be absolutely critical to how that industry develops,” he asserts. 

This period is not just about technological advancement but also about creating a framework that supports sustainable growth and improved customer experiences.

The revenue potential within the B2B payments sector is substantial. Steven points out that this segment is the largest within the retail market, encompassing business-to-business, business-to-consumer and consumer-to-consumer transactions. 

“It's a large market, it's a growing market and that's where the opportunity really is,” he states. 

Convera's forecasts suggest robust growth, with the market expected to expand from US$193bn in 2024 to US$290bn by 2030. This growth trajectory highlights the significant opportunities for businesses to enhance their offerings and capture a larger share of the market.

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