Top-performing stocks for cross-border payments in the year 2024
In the dynamic world of cross-border payments, tracking competitors' foreign exchange (FX) pricing is a strategic process that helps businesses optimize their own pricing, attract clients, and identify market trends. Here are effective approaches and best practices for monitoring competitors' FX rates and fee structures.
## Key Methods for Tracking Competitor FX Pricing
### 1. Public Transparency and Website Research
Begin by reviewing competitor websites for transparency features such as real-time rate calculators, upfront pricing tools, and clear fee disclosures. Providers like Trolley emphasize “no hidden fees” and transparent pricing. Examine the fine print for details on currency conversion markups, intermediary fees, and any hidden charges.
### 2. Marketplace and User Experience Testing
Create dummy accounts or trial versions to access live FX rates and transaction fees. This can reveal real-world pricing and customer experience. Utilize third-party FX rate comparison platforms and payment aggregators that display competitive rates across multiple providers.
### 3. Industry Reports and Third-Party Data
Subscribe to market intelligence services for insights into cross-border payment pricing trends and competitor benchmarking. Monitor regulatory filings and public disclosures of publicly listed companies in this sector for average FX spreads and fees.
### 4. Customer Feedback and Reviews
Analyze user reviews on platforms like Trustpilot or Reddit to gather qualitative insights into competitor pricing practices. Participate in forums, webinars, and conferences to gather anecdotal evidence and best practices from peers.
## Best Practices for Effective Benchmarking
- Track volumes and fees over time to identify trends and pricing strategies. - Focus on the total cost of transaction, not just headline FX rates. - Leverage technology to collect and compare competitor pricing data efficiently.
## Example: What to Look For
| Provider | FX Markup/Pricing | Additional Fees | Speed | Transparency | |-------------|-------------------|-----------------|----------|--------------| | Trolley | 2% above wholesale| Modular plans | Fast | High | | PayPal | 3–4% conversion | Transaction fees| Fast | Medium | | Bank Wire | 3–5% conversion | Intermediary fees| Slow | Low |
## Industry Developments
Recent developments in the cross-border payments industry show a landscape of contrasts, with some companies outperforming market expectations while others face significant challenges. For instance, Payoneer's share price has increased significantly, while Western Union's shares have hit a 52-week low following its Q3 results.
In the second half of 2024, two cross-border payments companies, Intermex and Equals Group, were announced for potential acquisitions. As the year comes to a close, it is important to keep an eye on key industry trends and developments for 2025.
Visa and Mastercard, two dominant players in the cross-border payments industry, have continued to grow, with market caps of $607.49bn and $477.24bn respectively (as of 19 December). Wise and Remitly, main money transfer players, experienced modest full-year growth in their share prices.
Many smaller cross-border payments companies (with market caps under $1bn) have had a challenging year in the stock market. However, it is essential to remember that the industry is constantly evolving, and opportunities for growth and innovation abound.
In the realm of cross-border payments, companies can also focus on the stock-market performance of their competitors to gauge their financial health and potential growth prospects. By keeping track of company's stock-market valuations and investing trends, businesses can better understand the competitive landscape and make informed decisions.
Furthermore, understanding competitor's investing strategies, such as their financial plans and investment direction, can help in identifying potential investment opportunities or threats in the stock-market. Regularly reviewing investor reports, finance news, and market analyses can provide valuable insights into competitor's investment decisions and market trends.
