Cross-border banking terrain takes a turn with UniCredit and Wise Platform's collaboration alliance
UniCredit Partners with Wise Platform to Revolutionize Retail Cross-Border Payments
UniCredit, a leading bank for payments and cash management in Europe, is transforming the cross-border payments landscape for retail and low-value transactions. This strategic shift is complemented by the addition of Swift GPI last year, which allows tracking of international payments in progress [1][2].
The cornerstone of this strategy is the partnership with Wise Platform, a fintech company with 15.6 million customers worldwide [6][7]. By integrating Wise Platform's payment infrastructure, UniCredit gains access to Wise's extensive network of local payment systems in various countries, including the UK, Switzerland, Hong Kong, Singapore, and India [1][3].
This collaboration enables faster, more transparent, and less costly international transfers compared to traditional correspondent banking network methods. UniCredit becomes the first major Italian bank to offer such a service to retail customers, starting with Italy, with plans to expand to other countries [1][3][5].
Wise Platform contributes to this partnership by providing technology that bypasses traditional correspondent banking delays and fees, making the cross-border payment process more agile and user-friendly. This aligns with UniCredit’s goal to provide an end-to-end, borderless payment experience that meets retail customers' expectations for simplicity and transparency [3][5].
The non-wholesale market's cross-border payments Total Addressable Market (TAM) is estimated to be worth $40tn in 2024 [4]. Wise Platform sees this partnership as a significant opportunity to tap into this vast market, anticipating that such collaborations will constitute a major growth area for its platform [1].
UniCredit's Payments Solutions division helps clients manage cross-border payments and end-to-end services, with its existing UC PayFX service enabling automated conversion in over 120 currencies. The partnership between UniCredit and Wise Platform has resulted in the launch of a new international payments service for UniCredit's retail customers [5].
This service allows Italian UniCredit customers to send and receive payments from selected countries, with more currencies to come. With this strategic move, UniCredit positions itself as a leader in both corporate and consumer international payment services across Europe [1][3].
[1] UniCredit Press Release: UniCredit Partners with Wise Platform to Launch New International Payments Service for Retail Customers [2] Swift GPI: UniCredit Enhances Cross-Border Payments Services for Retail Clients, SMEs, and Corporates [3] Wise Platform Press Release: Wise Partners with UniCredit to Revolutionize Retail Cross-Border Payments [4] MarketandMarkets Report: Cross-Border Payments Market Worth $40tn by 2024 [5] UniCredit Payments Solutions: Managing Cross-Border Payments and End-to-End Services for Clients [6] Wise Platform Annual Report: 15.6 Million Customers [7] Wise Platform Press Release: Wise Aims to Account for Half of Its Cross-Border Volumes with UniCredit Partnership
- Through the strategic partnership with Wise Platform, UniCredit can leverage the fintech company's technology, enhancing their business by bypassing traditional delays and fees in cross-border payments.
- By integrating Wise Platform's payment infrastructure, UniCredit's retail customers now have access to a more efficient, cost-effective, and technology-driven cross-border payment system, with plans to expand this service beyond Italy.
