Take-rate compression has accelerated across B2B cross-border payment fintechs, while EBITDA margins have been more defensible. Providers that have offset this pressure have capitalized on structural advantages. These advantages range from owning licenses that reduce intermediary costs to deeper integration into customer workflows that enables cross-selling beyond FX. Consolidation through M&A continues at pace, stablecoin adoption hinges on last-mile connectivity and licenses.
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Key Highlights:
- Based on recent market performance, growth halved across B2B cross-border payout cohorts; Fintechs that offer enterprise payouts have demonstrated better margin performance.
- Winning B2B x-border Payout fintechs are improving their take rates through expansion into new products, improving attach rates: on the back of better cross-sell next to FX.
- M&A has been a growth lever in the cross border payments arena, with successful firms unlocking new value creation levers through acquisition of capabilities, licenses and geo reach.
- Stablecoins fit to the B2B x-border payments is real across emerging market corridors; however, adoption will depend on last-mile connectivity and licensing; M&A likely to pick-up.
Please do not hesitate to contact Anupam Majumdar at Anupam@FlagshipAP.com or Pranav Kapoor at Pranav@FlagshipAP.com with comments or questions.