Mastercard has highlighted that many households across the globe are strongly reliant on cross-border payments to survive the economic crisis.
In its new Borderless Payments report, the card giant reflects on a massive survey pool of almost 8,000 consumers across 15 different markets, all signalling that despite global earnings up from before the pandemic, cross-border payments rates have skyrocketed compared to 12 months ago, with the most common reason identified as ‘supporting family’.
Going into the numbers, significantly high levels of cross-border payments received can be witnessed in Colombia and Brazil (84% and 75% respectively compared to a global average of 57%). Both countries were particularly affected by the pandemic.
On the opposite side of the spectrum, the country from where most people send money home is the UAE, where Mastercard reports that 88% of the residence population and 95% of the workforce are formed by migrants.
Stephen Grainger, Executive Vice President, Mastercard Cross Border Services said: “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 given the huge economic challenges countries around the world are facing.
“Cross-border payments provided a lifeline for many during the pandemic and will continue to do so for the months ahead – playing a key role in keeping the economy moving, and allowing families to put food on the table.”