A new Mastercard report shows how small and medium-sized enterprises (SMEs) are ready to expand beyond their borders, but face disproportionate costs, delays, and lack of visibility of international payments. The research uncovers a need for structural redesign to boost SMEs’ inclusion and global competitiveness.

What we’re announcing:

• Mastercard is announcing a new report titled “Small businesses, big opportunity: Unlocking SME potential in Latin America’s cross-border space”, developed in collaboration with Payments and Commerce Market Intelligence (PCMI) and K2.
• The study unveils why the current international payment system, designed for large corporations, does not meet the needs of small and medium-sized enterprises (SMEs).
• 3 out of 5 SMEs in the region already work with international suppliers, and in markets like Mexico and Brazil, 75% plan to expand their global partnerships.
• Nevertheless, they face high fees, uncompetitive conversions, and delays: in Brazil, 80% of payments take more than 4 days, and 1 in 5 take more than 10 days.
• Sending just $250 can involve average fees of 23.3%, reaching up to 30% depending on the destination country.

Why it matters:

• SMEs represent 98% of the business fabric and 60% of employment in the region.
• These inefficiencies in payments may cause supply chain disruptions or loss of key opportunities.
• Banks still hold 75% of these flows but must adapt to avoid losing ground to new technological solutions.

What Mastercard is doing:

• Mastercard Move, Mastercard’s portfolio of money movement capabilities, offers a solve for the key barriers that limit SMEs’ cross-border growth.
• Mastercard Move aims to transform the international payment experience for SMEs with tangible benefits:
  • More cost-efficient payments, by reducing intermediaries and hidden fees.
  • Total transparency, with real-time traceability of costs and delivery times.
  • Faster settlements, even same-day or real-time in more than 150 markets.

What they’re saying:

• “Small and medium-sized businesses are the silent engine of Latin America. They innovate, generate employment, and keep our economies alive. To reach their true potential, they need more than resilience: they need a financial infrastructure that accompanies them on their global journey,” said Walter Pimenta, Executive Vice President, Commercial and New Payment Flows at Mastercard for Latin America and the Caribbean.
• “We are reimagining how international payments should work for SMEs: simply, securely, and adapted to their realities. With Mastercard Move, we help banks lead this transformation, providing them with tools to offer comprehensive solutions that impact where it matters most: liquidity, agility, and trust. Today’s SMEs are tomorrow’s multinationals. And together, we can build the infrastructure they deserve,” he added.

What’s Next:

• Mastercard will continue working with financial institutions to modernize the payment infrastructure in Latin America.
• The full report, “Small businesses, big opportunity: Unlocking SME potential in Latin America’s cross-border space,” is available for download here.

Scope and methodology of the research

Mastercard partnered with PCMI (a payments industry market intelligence firm) and K2, (a business development consulting firm), to shed light on the evolving landscape of cross-border payments for SMEs in Latin America, highlighting both challenges and opportunities for financial institutions. This research was conducted between January and March 2025 and had three main components:

• Cost & Service Assessment: A study by K2 tracking 70 transactions across eight origination and eight destination countries, evaluating costs, exchange rates, fees, and processing times to uncover hidden inefficiencies and disparities in service quality.
• Stakeholder Interviews: 36 in-depth interviews with key industry players: 18 SMEs, 14 financial institutions, and 4 Mastercard representatives. The interviews focused on pain points, operational costs, and potential solutions.
• Data Review: Analysis of publicly available data on SMEs’ challenges in cross-border payments, including cost structures, inefficiencies, and competitive dynamics.

About Mastercard

Mastercard powers economies and empowers people in 200+ countries and territories worldwide. Together with our customers, we’re building a resilient economy where everyone can prosper. We support a wide range of digital payments choices, making transactions secure, simple, smart and accessible. Our technology and innovation, partnerships and networks combine to deliver a unique set of products and services that help people, businesses and governments realize their greatest potential.

www.mastercard.com

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