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Industry Landscape
The cross-border payments industry is experiencing rapid digital transformation, driven by increasing globalization and e-commerce. Fintechs are disrupting traditional banking with faster, cheaper, and more transparent solutions. Regulations are evolving to support innovation while ensuring compliance and security. Competition is intense, fostering continuous advancements in technology and service offerings.
Total Assets Under Management (AUM)
International Money Transfer Volume in United States
~Approximately 186.7 billion USD (World Bank, 2023 for US outward remittances)
(3.5% (2023, World Bank) CAGR)
- Remittances drive significant volume.
- Business payments contribute substantially.
- E-commerce transactions are a growing segment.
Total Addressable Market
Over 150 trillion
Market Growth Stage
Pace of Market Growth
Emerging Technologies
Central Bank Digital Currencies (CBDCs)
CBDCs are digital forms of a country's fiat currency, issued and backed by the central bank, which could significantly streamline cross-border transactions.
Artificial Intelligence (AI) & Machine Learning (ML)
AI/ML is being used for enhanced fraud detection, personalized customer experiences, and optimizing payment routing and compliance processes.
Distributed Ledger Technology (DLT) / Blockchain
DLT, including blockchain, offers the potential for faster, more secure, and transparent cross-border payments by decentralizing transaction verification.
Impactful Policy Frameworks
FinCEN's National AML/CFT Priorities (2021)
FinCEN published the first-ever government-wide AML/CFT Priorities in 2021, directing financial institutions to focus efforts on combating corruption, cybercrime, terrorism financing, and other illicit financial activities.
This policy increases the compliance burden on Wise to enhance its anti-money laundering and counter-financing of terrorism protocols, affecting operational costs and potentially requiring more robust identity verification processes for customers.
CFPB Circular 2022-06 on Remittance Transfers (2022)
The Consumer Financial Protection Bureau (CFPB) issued Circular 2022-06 clarifying that certain digital payment applications may be subject to the remittance transfer rule under the Electronic Fund Transfer Act.
This clarification extends compliance requirements, such as disclosure obligations and error resolution procedures, to a broader range of digital payment providers like Wise, potentially increasing regulatory scrutiny and consumer protection responsibilities.
Federal Reserve's FedNow Service Launch (2023)
The Federal Reserve launched the FedNow Service in July 2023, providing a new instant payment infrastructure that allows financial institutions to offer real-time payments 24/7/365.
While primarily domestic, FedNow's instant payment capabilities could set a new standard for speed in the US financial ecosystem, potentially pushing Wise to integrate with or leverage similar real-time rails for the domestic legs of its cross-border transfers, enhancing speed for US customers.
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