Fragmented global payment systems are driving financial exclusion, affecting the most vulnerable population.
This is the findings of a report by Thunes in conjunction with Juniper Research, highlighting that the world’s most vulnerable people are being hit with a ‘friction tax’ of high fees and delays.
According to the study, given the real-world consequences of global fragmentation, delays translate directly into financial stress, instability and missed opportunities.
The research, which polled more than 6,500 people across ten major markets, also revealed that 33% remittance recipients struggle to pay for food, rent, or utilities because essential international funds being sent to them are trapped in fragmented systems.
Further, findings of the report points to a structural fragmentation deadlock at the heart of the global economy: while domestic payment systems have become instant, the networks connecting them across borders have failed to keep pace.
The report highlights that for those depending on international payments, the impact goes far beyond inconvenience.
- Impact on Access to Essentials: 82% of recipients experienced at least one issue such as missed food, rent or utility bills, stress or having to turn down work due to delays, fees, or uncertainty around remittances.
- Mental Health Impact: 42% of users reported experiencing stress or anxiety due to the lack of transparency and speed in their cross-border transactions.
- The Transparency Deficit: 41% of senders are still hit by ‘surprise’ final amounts, a lack of clarity that hits younger users (18–24) hardest, with 49% reporting a total lack of upfront cost clarity.
- Risk to Survival: Among vulnerable users who are dependent on remittances, 33% struggled to pay for essentials, 33% borrowed money short term to cover expenses, and 23% experienced strained relationships due to payment issues.
