Emerging markets and simplifying cross-border trade Many businesses are looking to trade with customers in new, fastgrowing and emerging markets to become less dependent on domestic markets that have either met full potential growth, are stagnant or are in decline. As such, cross-border transactions are growing fast, with global transactions increasing from $29 trillion in 2019 to $39 trillion in 2022. Underpinning this surge were factors like global trade improvements, cross-border B2C payments, growth in online businesses and borderless e-commerce. As an outcome, and to compete in the global marketplace, businesses around the world are turning to their banks and fintech partners for faster, securer and more transparent payment solutions. Online payments allow merchants and consumers to conduct crossborder trade in goods inwhich they have a comparative advantage. At the click of a button, people can purchase products and services from across the world. In 2021, 2.14 billion people – almost a third of the world’s population – bought goods and services online. Another survey found that in the European Union (EU), 74% of internet users had shopped online. Transactions in a global digital marketplace across countries depend on sellers and purchasers using compatible payment systems. In many parts of the world, this is tricky. Europe, for example, has differences in payment preferences across member states and is partly the Finance Monthly. Bus i ne s s & Economy 21
RkJQdWJsaXNoZXIy Mjk3Mzkz