36% of Small Businesses Turn to FinTechs for Cross-Border Payments

§ 01 Executive Snapshot

• What: A growing number of small-to-medium-sized businesses (SMBs) are turning to FinTechs for cross-border payment solutions.
• Who: The report by PYMNTS Intelligence highlights trends among internationally active SMBs in the United States.
• Why it matters: This shift indicates a significant evolution in how SMBs approach payment solutions, combining traditional banks with innovative FinTech services.

§ 02 Key Developments

• 36% of internationally active SMBs expect to use FinTechs for cross-border transactions in 2026, up from 30% in 2025.
• 91% of SMBs using FinTech payment providers rated their experience as good, indicating high satisfaction levels.
• 69% of SMBs expect to use traditional banks for cross-border payments this year, compared to 64% in 2025.

§ 03 Strategic Context

• The traditional dominance of banks in cross-border payments is being challenged as more SMBs explore diverse payment options to enhance their global trade capabilities.
• As international commerce becomes more common, SMBs are increasingly adopting a hybrid approach to payment solutions that leverages both traditional and digital providers.

§ 04 Strategic Implications

• Immediate consequence: The rising adoption of FinTechs suggests a shift in competitive dynamics among payment providers, potentially leading to innovations in service delivery.
• Long-term implication: As SMBs adopt diverse payment strategies, we may see a more fragmented yet efficient payments ecosystem that enhances their competitiveness in global markets.

§ 05 Risks & Constraints

• Potential risk: Regulatory challenges for FinTechs in cross-border transactions could impact their growth and adoption rates.
• Potential risk: Traditional banks may face pressure to innovate or improve their services in response to the increasing popularity of FinTech solutions.

§ 06 Watchlist / Forward Signals

• Forward signal: Monitor adoption rates of accounting platforms with payment capabilities as they are projected to grow from 26% to 29%.
• Forward signal: The anticipated increase in stablecoin and cryptocurrency platform adoption from 11% to 17% may signal a broader acceptance of these payment methods among SMBs.