Why domestic P2P isn't enough: The next frontier in banking is cross-border payments

Peer-to-peer (P2P) transfers have quickly become one of the most popular features in digital banking. A recent survey found that 71% of consumers¹ want their banks to offer built-in P2P payment options. Today, about half of all U.S. banks partner with embedded domestic P2P platforms to deliver these seamless services. Account holders now expect to send and receive money instantly and effortlessly from their financial institution’s mobile app or online banking platform.

Domestic P2P transfers are now table stakes. Every bank and credit union must offer them to stay relevant. But the next phase of growth isn’t local, it’s global. Cross-border P2P is the new frontier for financial institutions (FIs) that want to capture remittance flows, build trust, and compete with third-party remitters.

This is where PayMitto comes in. By embedding cross-border P2P functionality directly into an FI’s digital banking platform, PayMitto gives institutions the ability to meet account holder expectations from wherever they are, all while enhancing loyalty, growing deposits, and creating new opportunities for financial engagement.

As PayMitto's VP of Product, Chelsea Burns, states, “The shift isn’t just about sending money internationally. It’s about delivering that experience inside the products people already use and trust. Embedding is what turns cross-border into a competitive advantage.”

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Domestic P2P transfers: the new baseline

Domestic P2P transfers are transfers between individuals within the same country and currency. They are powered by national payment rails such as ACH, RTP, and FedNow² in the U.S.

For account holders, the experience is fast, easy, and often free. Whether it’s splitting a dinner bill or sending money to a family member, domestic P2P has become part of everyday life.
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For FIs, domestic payments are primarily an engagement tool. They keep account holders active within the institution’s digital ecosystem, driving higher app usage and stronger loyalty. In fact, one study found that after a year of using a domestic P2P service within their banking app, account holders made an average of five more debit transactions per month³ than before. Even so, P2P payment services rarely generate direct revenue. They’ve become a baseline expectation⁴, something account holders will notice if it isn’t there, but not a reason to choose an FI in the first place.

Cross-Border P2P transfers: a strategic opportunity

Cross-border peer-to-peer (P2P) transfers are inherently more complex than domestic payments. They involve multiple currencies, diverse compliance requirements across jurisdictions, and often depend on correspondent FIs and networks such as SWIFT.

Without the right infrastructure, these payments can be slow, costly, and opaque, with unclear fees and uncertain delivery times. That’s opened the door for third-party remittance providers and money transfer operators, who have set new benchmarks for speed, transparency, and affordability.

At the same time, regulatory scrutiny⁵ and ongoing integrity concerns show that consumer trust in these third parties isn’t guaranteed. Weaknesses can emerge around transparency, disclosures, refundability, and error resolution.

Banks and credit unions, by contrast, continue to hold a strong position of trust⁶. Account holders already rely on their FI to safeguard their money. By integrating cross-border P2P transfers directly into their digital platforms, FIs can enable account holders to send money internationally with the same simplicity and confidence as domestic transfers, without redirecting them to a third-party app.

PayMitto: powering embedded cross-border P2P

PayMitto helps banks and credit unions bridge the gap between domestic and international transfers without adding technical complexity. It’s a fully integrated, front-end–ready solution that connects with existing digital banking platforms, so FIs can launch quickly and deliver a modern, compliant, and branded cross-border experience without heavy development or infrastructure build-out.

For banks and credit unions, PayMitto delivers:

• Seamless integration: Launch cross-border payments directly within your existing digital banking environment. No new infrastructure or complex development required.
• Global reach: Access 195+ countries and 165 currencies, covering key remittance corridors worldwide.
• Accelerated growth: Drive account primacy and deeper engagement by keeping cross-border transactions inside your ecosystem, under your brand. Grow deposits, loyalty, and lifetime value.
• Regulatory confidence: Operate with built-in KYC, AML, sanctions screening, and other compliance safeguards, fully managed through The Bancorp Bank, N.A.

For account holders, PayMitto offers:

• Convenience: Embedded directly into your banking platform—no third-party logins, redirects, or separate apps required.Available 24/7.
• Speed: Transfers move fast. Cash pickup and bank deposits are available in near real-time.‍
• Pricing transparency: Account holders see clear, upfront transfer fees and foreign exchange (FX) rates before they send—no surprises or hidden markups.[TS7] ‍
• Payout flexibility: Multiple payout modalities available, including bank deposits, cash pickup, mobile wallet, and other locally supported methods.‍
• Trust and security: Backed by your institution’s brand and protected by U.S. banking standards.

In short, PayMitto gives FIs a cross-border experience that competes with third-party remitters, while strengthening account holder trust and loyalty.

Domestic vs. Cross-Border P2P at a glance

Domestic P2P provides a simple, reliable way to move money within a single country using one local currency. It’s typically instant, low- or no-fee, and relies on straightforward local rails — a foundational capability for any FI.

Cross-border P2P powered by PayMitto extends that same convenience globally. Supporting multiple currencies with built-in FX handling, PayMitto enables near-instant transfers across 200+ countries and corridors. APIs streamline operations and compliance, so the added complexity doesn’t fall on your team.
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Domestic P2P keeps account holders engaged. Cross-border P2P turns that engagement into a reason to stay — and a reason to consolidate more of their financial life inside your institution.

Domestic P2P transfers are essential, but they’re no longer differentiators. Every FI offers them, and account holders expect them to be instant and free. Cross-border P2P transfers are the opportunity for FIs to stand out — capturing remittance flows and delivering the global money movement experience account holders increasingly demand.

For FIs, the message is clear; domestic P2P keeps you in the game. Cross-border P2P with PayMitto helps you win it.
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Opinions, advice, services, or other information or content expressed or contributed hereby customers, users, or others, are those of the respective author(s) or contributor(s) and do not necessarily state or reflect those of The BancorpBank, N.A. (“Bank”).  Bank is not responsible for the accuracy of any content provided by author(s) or contributor(s).

PayMitto is a technology provider and not a bank or other regulated financial institution. All regulated international transfer services are provided by The Bancorp Bank N.A. Terms and conditions apply.

Sources:

1. Coinlaw: https://coinlaw.io/peer-to-peer-payment-app-statistics/‍
2. Volt.io: https://www.volt.io/content-hub/fednow-vs-ach-us-payment-rails/ ‍
3. Early Warning: https://www.earlywarning.com/sites/default/files/2022-12/Curinos%20Report%20Zelle%28R%29%20Usage%20Drives%20Customer%20Engagement.pdf‍
4. JD Power: https://www.jdpower.com/business/resources/customers-want-security-ease-use-their-p2p-transfer-brands‍
5. American Banker: https://www.americanbanker.com/news/cfpb-orders-wise-to-pay-2-5m-for-illegal-remittance-practice‍
6. PYMNTS: https://www.pymnts.com/credit-unions/2025/credit-unions-build-member-trust-through-digital-empathy/