Cross-border payments from people in South Africa helped recipients survive financially, with 59% who made such payments to family and friends in the past year saying they would not have survived financially without such support compared to 40% worldwide. Data from Mastercard’s Borderless Payments Report 2022 shows an increase in the number of people using cross-border payments to support friends and family since last year, with 85% in South Africa saying that they still use cross-border payments to send money internationally by post. pandemic compared to the global average of 71%. Mastercard surveyed nearly 8,000 consumers in 15 different markets…
Cross-border payments from people in South Africa helped recipients survive financially, with 59% who made such payments to family and friends in the past year saying they would not have survived financially without such support compared to 40% worldwide.
Data from Mastercard’s Borderless Payments Report 2022 shows an increase in the number of people using cross-border payments to support friends and family since last year, with 85% in South Africa saying that they still use cross-border payments to send money internationally by post. pandemic compared to the global average of 71%.
Mastercard surveyed nearly 8,000 consumers in 15 different markets and found that despite evidence of economic recovery, with incomes rising globally compared to pre-pandemic incomes and the opening up of international travel , people in all countries are sending and receiving cross-border payments more frequently than 12 months ago.
The key factor is cited as “supportive family” and more than half (54%) of consumers globally who made online cross-border payments relied on these payments more than ever due to the coronavirus pandemic. In South Africa, 68% indicated that they send money to support their family.
READ ALSO: Online shopping to exceed R50 billion by 2022
Why does the family continue to be supported?
Mastercard says that with many countries experiencing economic crises now, these payments will continue to provide a lifeline to people with families abroad, with almost six in ten people (59%) worldwide and one in six (61 %) in South Africa saying they send money. abroad to support family and friends.
Globally, more than four in ten (42%) people are making or receiving more cross-border payments than 12 months ago compared to 51% in South Africa, while 25% are making or receiving fewer cross-border payments, higher than the overall figure of 19. %.
Why do so many people still trust these payments? More than two years later, the economic effects of the pandemic and other recent global events, such as the war in Ukraine, mean that people are still struggling to make ends meet.
According to the report, almost half (45%) of global respondents who make online cross-border payments say their family members abroad are still experiencing financial difficulties and need their financial support. Although more than half (54%) say they trust online cross-border payments more than ever. The data suggests the trend is here to stay, with 71% saying that even though they can now travel home, they will continue to send money online because it’s so easy to do.
ALSO READ: Global payments revenue to grow in 2023, but cautiously
An easy way to send money
It’s an easy way to send money abroad because it’s fast, transparent and secure. Mastercard says that keeping the transaction as well as personal and financial information secure is the most important consideration when making a cross-border payment, with more than four in ten (41%) people considering it most important, with a a figure that reaches 46% in South Africa.
Almost nine in ten (88%) people worldwide and 91% in South Africa who make online cross-border payments trust the security of online cross-border payments, as the cross-border payment network plays a role every time most central to the global economy.
“A well-functioning cross-border payment ecosystem has long been a crucial element of the global economy, and remittances have become even more vital for families to get by because of the enormous economic challenges they face countries around the world,” Stephen Grainger, executive vice president. says the president of Mastercard Cross Border Services.
“Cross-border payments provided a lifeline for many during the pandemic and will continue to do so in the coming months, while playing a key role in keeping the economy moving and enabling families to put food on the table.”
Mastercard facilitated the increase in the volume and value of international payments between individuals and small businesses during the pandemic with its cross-border services that enable banks, non-bank financial institutions and digital players to support multiple payment use cases and reach 90% of the world’s population in more than 100 people. markets, improving the predictability and certainty of international transfers.
Grainger says Mastercard’s services are a key driver for advancing the company’s multi-rail proposition, offering the option to pay globally to cards, bank accounts, digital wallets and cash agents through a single, secure connection .
