Phishing attacks continue to plague businesses, with as much as 94 per cent of companies falling victim to this type of cybercrime in the past year alone, according to the latest Egress ‘Email Threat Landscape 2024’ report.

The Egress report highlights organisations’ evolving cybersecurity challenges, particularly involving phishing attacks, and has sparked concern among industry experts and cybersecurity leaders.

Egress revealed that 96 per cent of companies affected by phishing attacks experienced negative repercussions, up from 86 per cent in the previous year. Repercussions extend beyond financial losses, significantly impacting individuals within organisations. The main phishing attacks identified in the report include malicious URLs, malware or ransomware attachments, and compromised account infiltrations.

The escalating sophistication of cybercriminal tactics poses a significant challenge for organisations and their employees in identifying and combatting these attacks, leading to an increase in successful breaches and their associated damages.

AJ Thompson, chief commercial officer at Northdoor plc, commented on the findings: “We have all learned over the past couple of years that phishing is one of the most effective ways for cybercriminals to gain access to a company’s data and infrastructure. The extent of the attacks is perhaps less well-recognised, which makes Egress’ report all the more shocking.”

Furthermore, 74 per cent of employees involved in attacks faced disciplinary actions, dismissals, or voluntary departures, underscoring the severity of the issue and the heightened vigilance among companies in addressing the phishing threat.

The cost of phishing attacks

The organisational costs stemming from successful phishing attacks are substantial, with financial loss from customer churn accounting for 47 per cent of the overall impact. Additionally, reputational damage, fines, regulatory penalties, lengthy remediation processes, and legal repercussions further compound the aftermath of these attacks, amplifying the burden on affected companies.

Cybersecurity leaders are particularly concerned about the rise in supply chain-related phishing attacks, which bypass traditional perimeter defences and undermine investments in frontline cybersecurity measures.

The report revealed that 51 per cent of respondents fell victim to successful phishing attacks from compromised third-party accounts, emphasising the critical need for organisations to understand their partners’ systems and cybersecurity policies comprehensively.

Egress is now urging cybersecurity leaders to adopt new and robust monitoring measures to mitigate potential threats and identify vulnerabilities. This will ultimately safeguard critical data and reduce the impact on individuals and organisations.

Real estate consultancy, JLL has published a new report revealing that the Data Centre market in Southeastern Europe has massive growth potential over the next two to three years as countries in the region become increasingly attractive to investors.

This rise in popularity has come as a result of the presence of highly efficient communication networks along the Western Europe-Asia axis and affordable costs for land, energy, construction and labour. Furthermore, the JLL report identifies that secondary markets in Europe, including Spain, Poland, and Romania, are projected to grow by an average of around 49 per cent. Meanwhile, the core FLAPD area (Frankfurt, London, Amsterdam, Paris, Dublin) is forecasted to not exceed 16 per cent.

The same report indicates that markets in Southern Europe are expected to grow between 30 – 55 per cent in the year ahead.

The widespread adoption of artificial intelligence (AI) and cognitive power processes is generating unprecedented demand for data centre capacity. This occurs not only in mature markets in the West but also in secondary or emerging markets, including Romania. The report also highlights those investments in the data centre industry in 2023 doubled compared to the previous year, totalling €2.34billion Europe-wide.

”The entire Southern Europe data centre market is booming. Bucharest could potentially triple or even increase its data centre capacity by up to seven or eight times in the next three years, following announcements of new large projects in or around the city by several investors in recent months”, stated Mihai Manole, CEO of Tema Energy and organiser of the DataCenter Forum, the event dedicated to the data centre industry in the region.

Benefits in Bucharest

Bucharest ranks ninth in the EMEA (Europe, Middle East, and Africa) emerging markets. Its data centres total 15 MW of power, according to a 2023 report released by real estate consultancy Knight Frank. However, projects already in development could increase this capacity to at least 50-55 MW in the relatively short term.

Last year, several major players announced their intentions and commenced projects to build large data centres in Bucharest, primarily due to its easy access to communication lines, electricity network, and qualified staff.

Southern Europe Data Center markets are booming

Not only is Bucharest rising in the interest of investors, but the entire Southeastern region of Europe is also boosted by its efficient and reliable connectivity.

Within this evolving landscape, Athens stands out as a promising market, drawing the attention of major players. The Greek capital already possesses the greatest IT capacity in the region, totalling 101 MW. However, the growth potential is enormous, as Microsoft plans to construct three data centres in the greater Athens area to provide cloud computing services in Greece, with a total budget of approximately 976 million euros.

Additionally, the French company DATA4, Digital Realty, and Sparkle, the international ‘arm’ of Telecom Italia, announced plans for new data centres. Greek company Lancom, having invested over 20 million euros to date, has initiated a new investment in Crete for the creation of another data centre, potentially serving as a gateway to the Balkans.

A similar situation is observed in Sofia, where in 2023 Equinix invested more than $12million in the expansion of an existing data centre, doubling the site’s capacity to 700 racks. Moreover, the entire data centre market in Bulgaria is projected to grow by 6.96 per cent from 2024 to 2028, reaching a market volume of $201.70million by 2028.

Similarly, Zagreb will experience consistent growth in the next couple of years. Digital Realty has already announced the expansion of its existing data centre in Zagreb, ZAG1, with an additional 1,600 m2 of ICT and technical space. Furthermore, Digital Realty plans to invest in building a second data centre in Zagreb, also at a hyperscale level, for the future.

Looking to the near future

Most international analysts believe that the dramatic reduction in available data centre space and power in the highly developed data centre countries (UK, France, Netherlands, Germany, Ireland, etc.) will lead more and more investors to turn to secondary markets: Eastern Europe and Scandinavia.

Thus, over the next two years, the main investments will be directed to places where the cost of land, energy and human resources is lower. They will also be where there are efficient communication nodes, sufficient (and green) electricity, and the technical capabilities to build and operate large data centres.

A new study by CybSafe, the human risk management platform, has found that 23 per cent of US and UK consumers have said that a bank’s approach to cybersecurity is a factor when they consider opening an account.

The CybSafe study has revealed the prominence of cybersecurity in consumer decision-making in an increasingly digital landscape. The study also found that while cybersecurity isn’t a factor in selecting their bank, 36 per cent said they were aware of a major data breach, which may influence their selection.

Customers expect banks to provide them with resources to stay safe online

When asked about banks’ responsibilities regarding cyber issues, four in five respondents stated they expected banks to train staff on cyber risks and the prevention of data breaches. However, the expectations didn’t end there, with 84 per cent of respondents stating that banks are responsible for providing customers with the resources to stay safe online and avoid scams.

With Forrester predicting that 90 per cent of data breaches will include the human element in 2024, organisations are increasingly adapting their cybersecurity posture to match the enormity of the challenge in tackling human risk.

Similarly, banks are already adapting to consumer demands, moving away from compliance-driven approaches like ‘security awareness and training’ and towards more risk-driven approaches to cybersecurity. This is perhaps unsurprising, given only 28 per cent of customers stated that a bank has a responsibility to comply with legal requirements only. This emphasises the clear expectation from customers that banks move beyond compliance to curtail risk.

The importance and use of cyber training for customers

A vast majority (85 per cent) of customers felt it was important that their bank offers training about staying safe online and avoiding scams to those who want it, with 42 per cent of respondents stating that such measures are ‘very important’.

When asked if they would use cybersecurity training if their bank offered it, almost half (47 per cent) stated they would. One in five respondents stated they wouldn’t, and a further third said they weren’t sure.

Reacting to the research, Jason Nurse, director of science and research at CybSafe, said: “For customers, it’s no longer sufficient for banks to view cybersecurity through the narrow lens of compliance. The findings of our latest study underscore a pivotal shift in customer expectations, reflecting a growing demand for proactive, human-centric risk management strategies.

“Customers recognise the critical role that banks play not only in safeguarding their financial assets but also in empowering them to navigate the complexities of the digital age with confidence.

“It’s becoming increasingly clear that the future of cybersecurity lies in our ability to equip both employees and customers with the knowledge and tools necessary to defend against sophisticated cyber attacks. This is not just a matter of regulatory compliance—it’s a fundamental component of building trust and ensuring the resilience of our financial institutions in the face of emerging threats.”

Globally, B2B travel transaction volumes are projected to reach $1.7trillion by 2027 with the APAC region in the lead as the fastest-growing market expected to reach $480billion in the same year. However, research from payments processor, Thredd has revealed that 60 per cent of online travel agencies are struggling to find qualified payments partners to help them capitalise on potential growth. 

The opportunity is ripe for payments players who can solve common payments challenges. However, OTAs need help from their payments partners. According to the Thredd report, there are five main ways that payment innovation can be improved to help the travel sector:

• Improving customer experience
• Reducing costs
• Improving cashflow
• Reducing risk
• Greater transparency

Thredd interviewed several clients as part of the report including leading cross border and travel payments businesses, Nium and Caxton.

Spencer Hanlon, global head of travel payments at Nium, stated: “In this age of innovation, travel payment processes remain stuck in the past. Online travel agents and intermediaries demand flexible, secure, and cost-effective ways to pay and get paid.”

Modern solutions 

The report highlights how many businesses are introducing modern solutions such as virtual cards to reduce fraud and other issues highlighted in the report including traceability and speed.

Alana Parsons, chief operating officer at Caxton, commented: “A good payment solution should not only facilitate transactions but also contribute to process efficiency, enhance the customer experience, and help manage costs effectively. Look for a partner with thorough knowledge of the travel industry and the ability to customise solutions to your specific requirements.”

The report also showcases how partnerships can benefit OTAs. Thredd notes that key criteria for selecting a travel payments partner involves looking at a firm’s experience. Looking at past, present and longstanding clients is a must to understand how a partner functions.

Furthermore, a partner should bring other names to the table. The report reveals that a partner should combine efforts with others in order to create a better offering, as it is increasingly unfeasible for one provider to do everything.

Identifying how a partner designates requirements, roles and responsibilities is also key in understanding if they will be a good fit for an OTA. This is in addition to risk and fraud management, vision and a post-launch strategy.

Capitalising on a growing customer base

When further considering opportunities to serve the travel sector the payments industry is increasingly looking at the corporate expenses experience, with the market expected to grow at a CAGR of 11.5 per cent through 2028. For payments businesses who can deliver more efficient and transparent processes there is a growing customer base as more personnel return to travel and businesses in emerging markets expand.

Jim McCarthy, CEO of Thredd said: “One important impact of the technological advances in the travel industry is the emergence of new players – many of which we are proud to support – that are helping travel providers streamline the myriad systems, players, standards and options at play within the payments ecosystem, particularly with the growth of country-specific financial regulation.”

Dubai’s Virtual Asset Regulatory Authority (VARA) has granted Deribit FZE, the Dubai-based arm of the Deribit group, a conditional virtual asset service provider (VASP) licence for VA exchange services.

The licence, which covers both spot and derivatives trading, remains non-operational until Deribit meets all remaining conditions and select localisation requirements defined by VARA.

Deribit has also revealed it is relocating its global headquarters to Dubai and appoints Luuk Strijers, who joined the firm in 2019 as chief commercial officer, as CEO alongside two non-executive directors (NEDs) – Dennis Dijkstra, former CEO of Flow Traders, and industry veteran Willem Meijer.

The company will collaborate closely with VARA to finalise steps for the official launch of the exchange in Dubai. Once operational, Deribit will cater to institutional and qualified investors, providing access to its advanced technology. Additionally, it will maintain services for retail clients through its broker affiliate in Panama, affiliated with Deribit FZE in Dubai, until further updates

Driving innovation

Strijers described his new role as ‘a huge honour’. He also added: VARA’s progressive regulatory framework opens up vast opportunities in the digital asset realm. Our strong position in the crypto options market reflects the trust our clients have in us. I’m thrilled to work with our loyal clientele and drive Deribit’s innovation, as we continue to lead in the evolving crypto marketplace.”

John Jansen, co-founder of Deribit, also added: “Today marks a monumental chapter in Deribit’s story. Securing the conditional VASP licence from VARA is not just a regulatory milestone; it’s a sign of our unwavering commitment to providing a secure, transparent, and innovative platform for our users.

“The appointment of a new CEO and two seasoned NEDs signifies a fusion of fresh insights and extensive experience, fortifying our strategy for long-term growth. As we anchor our operations in Dubai, we’re not only extending our reach but also reaffirming our resolve to remain the platform of choice for trading.

“This is a giant stride towards realising our ambitious vision, and it invigorates our journey in steering the crypto industry to new horizons.”

When it comes to fraud, older generations are less likely to commit it and fall victim to it according to Sift, the AI-powered fraud platform. 

In its latest findings, Q1 2024 Digital Trust & Safety Index, Sift has uncovered that 33 per cent of Gen Z survey respondents either have, or know someone who has participated in payment fraud. This is compared to only 10 per cent of Baby Boomers. Additionally, 34 per cent of Gen Z consumers have seen offers to participate in online fraud, compared to only nine per cent of Baby Boomers.

“These generational divides are blurring the line between bad actor and consumer,” said Kevin Lee, VP of trust and safety at Sift. “Younger generations are composed of digital natives who are both facing troubling levels of economic anxiety and tend to be more trusting of digital spaces – often at the expense of their online security.

“They’re also exposed more often to offers to participate in fraud schemes. These converging factors mean merchants and payment processors have to think differently about the full spectrum of risk and how to stay ahead of it.”

Fraud Industry Benchmarking Resource

In addition to surveying consumers, the Q1 Digital Trust & Safety Index relies on data from the Fraud Industry Benchmarking Resource (FIBR), an online tool powered by Sift. It allows anyone to access key fraud metrics across industries, geographies, and time. The report explores payment fraud increases across key verticals, payment attack rates for top card issuers, and shifts in consumer buying behaviour due to trends in payment fraud.

For example, findings indicate that fraudsters are turning their focus to high-velocity transactions in the hopes of staying undetected. Across the Sift Global Data Network in 2023, specific industries experienced major spikes in attempted payment fraud: iGaming saw a 93 per cent increase, ticketing saw a 68 per cent increase, food ordering and delivery saw a 53 per cent increase, and retail saw a 46 per cent increase.

Industry reports indicate that globally, merchant losses due to payment fraud reached $38billion in 2023. They are expected to soar to a cumulative total of $362billion by 2028.

Evolving consumer attitudes

The start of 2024 brought increased economic pressure to both consumers and businesses, driven by persistent inflation and high-interest rates. This economic anxiety has led to a shift towards value-seeking behaviour. Shoppers are now preferring to purchase cheaper goods and services and “dupes” over premium brands. The macroeconomic backdrop is expected to remain unpredictable, with global events creating turbulence and increasing the likelihood of scams—many of which could be upleveled by generative AI.

Findings from Sift’s survey of 1,052 adults (aged 18+) across the United States in February 2024 highlight the impact of digital risk on economic uncertainty. It reveals that the increased threat of AI-powered fraud is already influencing consumers’ online shopping behaviour.

In fact, 30 per cent of those surveyed shop online less frequently due to the cybersecurity threats posed by artificial intelligence. Furthermore, 76 per cent would stop using or shopping on a site where they had been a victim of payment fraud. With 43 per cent of consumers saying they have been a victim of payment fraud at least once in the past 18 months, there’s potential for a meaningful impact to businesses’ revenue if the industry fails to get ahead of payment fraud attacks.

“As consumer spending habits evolve and fraud becomes supercharged by AI, businesses need to fight fire with fire, and leverage AI to their own advantage. It’s a necessary piece in the growing challenge of delivering consumer experiences that are seamless and secure,” concluded Lee.

Investment in digital transformation and new payment solutions is set to power business growth and will enable international expansion, according to the latest report from Conferma, a UK-based payments provider.

The Conferma findings, presented in the ‘Growth Ignition Index‘ report, come from a survey of over 400 financial decision-makers from the UK, USA, Canada, Singapore, Australia, Brazil and UAE, looking to understand more about what businesses think will ignite growth and what stands in their way.

Beyond the need to increase customer demand (46 per cent), businesses say improving cash flow (36 per cent) and investing in digital transformation (34 per cent) are most needed to secure business growth in the next five years.

International expansion emerged as a priority for 45 per cent of businesses, with exactly half having invested significantly into capabilities such as new tech, hires and partnerships to unlock these new opportunities.

Jason Lalor, CEO of Conferma, discussed the report: “Our findings show that businesses are very clear about how they need to grow, but in many cases face significant barriers based on both internal and external factors.

“We know that those who invest in technology, and focus on digital transformation, do so with a clear purpose and not just to keep up. The investment in payment capabilities, in particular, is a reflection of the fact that growth is reliant on an expanding ecosystem of transactions and that payments – wherever they happen – must be made as simple and efficient as possible.”

Investing in new technology was the leading business priority overall (59 per cent), with a large number of firms committing ‘significant’ investment in payment capabilities (57 per cent). Eighty-eight per cent also said they were either actively using or were considering using virtual cards to meet strategic objectives.

Turning to virtual cards

Fifty-four per cent of respondents revealed that instant payments that deliver funds at the point of transfer would improve efficiency and therefore accelerate growth, while 43 per cent explained that integrating new payment solutions with their existing systems would deliver gains. Exactly a third said that both automated repeat purchases and zero-admin touchless payments would provide greater efficiency.

Those turning to virtual cards did so to support growth objectives they had separately outlined. For those already utilising virtual cards, 46 per cent cited improved security and reduced fraud risk as the primary benefit, emphasising the important role virtual cards play in fortifying payment processes.

Another significant benefit cited by 22 per cent of virtual card users was simpler cross-border payments for their organisation – supporting intentions to trade overseas.

Lalor added: “Virtual cards can offer a compelling solution to the challenges limiting international growth by offering enhanced security, streamlined onboarding and supplier processes, and seamless cross-border transactions. We’ve found that those who use virtual cards are more likely to have undertaken wider business transformation processes, highlighting how virtual cards are increasingly viewed as a means of reaching strategic business objectives.”

Sixty-seven per cent of current users deploy virtual cards when paying for services, demonstrating their versatility beyond simple payments such as supplies or low-level repeat orders. Purchasing technology or equipment (57 per cent) and paying for software (51 per cent) also showcase the breadth of their B2B applications.

Around 32 per cent of UK adults are pressured to spend more than they can afford with millennials, men and high earners most likely to fall into debt; according to new research from Nerdwallet, the personal finance firm. 

Nerdwallet revealed that millennials are the most likely age group to find themselves in debt, with 44 per cent using credit cards, overdrafts or personal loans at least sometimes to pay for their lifestyle. Meanwhile, 64 per cent of men are more willing to take on debt to pay for their lifestyle, compared with 47 per cent of women.

The report, which comes from NerdWallet UK, a platform that provides financial guidance to consumers and small and mid-sized businesses, highlights that many Brits are struggling to fund their lifestyle without resorting to debt.

Overall, around 30 per cent of the 2,000 UK adults surveyed are using credit cards at least some of the time. People are also turning to interest-heavy loans or overdrafts to help bridge the gap.

The study reveals that millennials are least likely to understand their debt levels, leading to them feeling ‘worried’, ‘scared’, ‘hopeless’ and ‘confused’. Adults aged between 25 and 44 appear the most likely to fund their lifestyle using credit cards, overdrafts or personal loans. Almost 10 per cent of those aged 25 to 44 said they fund their lifestyle using debt ‘very often’, compared with an average of four per cent across all age groups.

Living in London makes it three times more likely that someone will take out a personal loan to pay for their lifestyle with a staggering 39 per cent of Londoners admitting to doing so said they’ve done this, compared with the national average of 13 per cent.

Higher incomes don’t equate to fewer debt worries

Higher interest rates and inflation have put financial pressure on many households, and bringing home a bigger salary does not necessarily protect consumers from the cost-of-living crisis.

The Nerdwallet survey also found that those in higher income brackets use more debt than those in lower income brackets. Those earning above the median UK salary of £34,963 may be more likely to use debt to fund their lifestyle, with around 23 per cent of those earning £40,000 per year or more saying they find themselves in debt ‘sometimes’, ‘somewhat often’ or ‘very often’.

A quarter of those earning £60,000 or more say they fund their lifestyle using credit cards ‘very often’ or ‘somewhat’ often. This is compared to 21 per cent of those earning between £40,000 and £60,000 and only 13 per cent of those earning between £20,000 and £40,000.

Amy Knight, spokesperson at NerdWallet UK, commented: “There seems to be a worrying trend when it comes to consumers feeling pressured to overspend and live beyond their means. Debt worries are universal, which is why everyone, no matter their background or level of income, should take steps to build their financial fitness.

“There is a perception that budgeting can be difficult, but it’s an important project for all of us to undertake, in order to manage our outgoings and avoid expensive debt. This is especially true during times when economic factors outside our control are putting many households under greater financial pressure.

“Getting to grips with their spending behaviours and setting limits can help individuals and families to weather the ongoing cost of living and successfully reach their financial goals, no matter what those might be.”

UK spending priorities

Broadband internet emerged as the most important essential outgoing to UK adults, becoming ‘very important’ or ‘somewhat important’ to 86 per cent of UK adults surveyed.

For 52 per cent of those surveyed, essential outgoings like rent or mortgage payments are at least ‘somewhat important’, with fuel coming in at 46 per cent.  This suggests that, with a rise in hybrid and home working, broadband is now a non-negotiable essential.

After essential costs, self-care is an important spending category for many UK adults. Thirty per cent of Brits consider wellness activities, such as gym memberships, somewhat or very important. Even more UK adults prioritise spending on hair and beauty appointments, with 43 per cent citing these as very or somewhat important to them.

Spending on non-essential treats is a lower priority to UK adults, but remains important to many of those surveyed, with 21 per cent prioritising takeaways, 28 per cent meals out and 27 per cent alcohol.

Loqbox, the financial wellbeing firm, has revealed that budget-conscious UK holiday-goers are opting to dip into their savings to fund summer travel plans; and are going as far as reducing credit borrowing to ensure they can get away for a break this year. 

While the cost-of-living crisis continues to impact UK household budgets, the willingness to prioritise travel is significant, according to the recent Loqbox survey findings. It also discovered a renewed interest in building up personal savings buffers to reach lifestyle goals.

Conducted in conjunction with UK polling platform, OnePulse, Loqbox surveyed a range of UK inhabitants on their travel plans and how to afford them. When asked how they are planning to pay for any summer travel plans this year:

• 41 per cent of respondents said they are using existing savings
• 35 per cent are making dedicated savings each month
• 13 per cent said that they would use a credit card
• seven per cent are turning to travel rewards points
• six per cent intend to borrow from friends and family
• five per cent are considering other forms of borrowing

While a smaller portion of respondents opt for credit to fund their holidays, with even fewer resorting to loans or borrowing from acquaintances, the use of travel rewards points indicates ongoing participation in travel loyalty programmes as a cost-effective way to afford holiday plans.

Gregor Mowat, co-founder and co-CEO of Loqbox and member of the responsible business network Business in the Community cost-of-living taskforce, added: “People across the UK are grappling with the ongoing cost-of-living challenges, but the importance they place on saving for their holiday travel plans is a strong signal of how they’re willing to financially adapt to achieve their lifestyle goals.

“With high-interest rates increasing the cost of borrowing, it’s heartening to see that more people are exploring the use of savings tools and more affordable credit alternatives. As more individuals are turning to Loqbox for financial guidance, we’re proof that improving access to financial education is making positive impacts across society.”

The importance of financial education and personal budgeting tools

Given that most respondents are self-funding their summer travel rather than relying on credit and borrowing, Loqbox cites the associated costs of borrowing as another strong indicator that people are leaning more towards self-management and individual financial planning over-reliance on credit.

Tom Eyre, co-founder and co-CEO of Loqbox, commented: “Our survey findings reinforce a shift we’ve seen in consumer behaviour over the past couple of years. Although the appetite for summer holidays remains strong, people in the UK are increasingly recognising the importance of saving to afford major expenses like travel. Having financial buffers in place means people are less reliant on costly forms of credit and other types of borrowing.

“Some of our respondents have indicated they’ve made significant cutbacks, like reducing overall spending and eliminating some expenses altogether to afford their travel plans.

“Lifestyle changes such as cutting back on social activities and discretionary spending like TV packages and clothing purchases were mentioned frequently. Overall, the survey underlines our view that with access to the right financial education and personal budgeting tools, people are empowered to make more informed and responsible purchasing decisions and boost their financial well-being.”

However, a significant 23 per cent of respondents revealed they have no travel plans for 2024, with economic factors playing a big part in this.

A small number of individuals said they do not actively plan for travel financially, indicating a more spontaneous approach to holiday decisions based on current affordability, and are likely to arrange travel plans when they have an influx of cash from events or workplace bonuses.

Pix has taken the Brazilian financial market by storm. Since its launch in 2010, it has enabled billions of transactions and transferred more than a trillion Brazilian reals every month. However, Pix still has tremendous amounts of potential – delving into why, FXC Intelligence, the data and intelligence firm, published a new report on the popular payment method.

Pix’s current user base primarily consists of consumers who are making the majority of transactions on the platform. According to FXC Intelligence data, inbound consumer remittances into Brazil grew by 21 per cent in 2022. This suggests that cross-border consumer payments could be a huge potential market for the instant payments system.

However, Pix is not currently able to enable instant cross-border transfers through its infrastructure. Various fintechs, such as PagBrasil, have filled the gap by enabling Pix payments to merchants based in other countries through their own infrastructure. Sending money to recipients in Brazil via Pix is possible from other countries but requires the assistance of specialised payment providers, such as Wise, Paysend and Remitly.

The Banco Central do Brasil is considering agreements to connect Pix with similar instant payment platforms in other countries, including expressing an interest in Nexus – a project being spearheaded by the Bank for International Settlements to develop a platform that will enable instant payment platforms around the world to connect with each other.

Joe Baker, senior copywriter and author of the report, said: “Taking Pix cross-border seems to be a natural progression for the platform. It could help align with Brazil’s ambitions to reduce the power of the US dollar over its economy; streamline payments for Brazilian travellers and tourists in other countries; and grow B2B payments in and out of the country, as well as being highly beneficial for people sending and receiving remittances.

“FXC Intelligence will be monitoring the progression of Pix cross-border initiatives closely, although with other domestic projects more immediately in the pipeline, this is unlikely to happen any time soon.”

• Francis Bignell

  Francis is a journalist and our lead LatAm correspondent, with a BA in Classical Civilization, he has a specialist interest in North and South America.