MasterCard FX and Visa FX rate of decrease lessens

In the heart of the summer season, the EU is witnessing a significant rise in cross-border transactions, driven by a combination of factors. The increasing real wages and employment, new government spending on infrastructure and defense, and the stabilization of economic outlooks in the Eurozone due to agreements like the new EU–US trade deal, despite higher tariffs, are all contributing to this upward trend.

However, recovery outside the EU remains sluggish, hampered by trade tariffs, geopolitical uncertainty, bureaucratic obstacles, cultural barriers, and slower adaptation to new global tax and regulatory frameworks compared to more agile jurisdictions like Dubai.

The summer holiday period and the easing of lockdowns have boosted travel within the EU, but travel outside the EU continues to lag behind. This trend is reflected in the data, which shows personal travel as the bigger driver of revenues, with a faster expected recovery compared to business travel.

The growth of ecommerce continues to be robust, with card not present transactions performing exceptionally well. Ecommerce growth remains strong, over 20% up year on year.

Yet, yields within the EU remain lower than outside the EU, a factor that is holding back revenue growth according to the provided data. A potential return to more lockdowns through the winter is a concern that looms large, casting a shadow over the recovery.

In related news, Daniel Webber, in an update on LinkedIn, has shared his insights on this evolving landscape. As the economy continues to navigate these challenges, the focus remains on fostering resilience and adaptability to ensure a sustainable recovery.