What is the difference between retail and wholesale cross-border payments?

 

Retail cross-border payments and wholesale cross-border payments refer to two different types of payment transactions that occur between parties in different countries.

Retail cross-border payments typically involve smaller transactions that are made by individuals or small businesses. Examples of retail cross-border payments include online purchases from international merchants, international money transfers made by individuals to friends or family in another country, and foreign currency transactions made by travelers. Retail payments are usually initiated by individuals or small businesses, and the fees associated with these transactions are often higher than those for wholesale payments.

Wholesale cross-border payments, on the other hand, are large transactions made by banks, financial institutions, and large corporations. These transactions typically involve large sums of money and are used to facilitate trade between countries or to settle financial transactions between large institutions. Wholesale payments are usually initiated by financial institutions or large corporations, and the fees associated with these transactions are often lower than those for retail payments.

In summary, the main difference between retail and wholesale cross-border payments is the size of the transaction and the parties involved. Retail payments are smaller transactions made by individuals or small businesses, while wholesale payments are larger transactions made by financial institutions and large corporations. The fees associated with these transactions also differ, with wholesale payments usually having lower fees than retail payments.