International Payments: The Hidden Costs

Individuals and SMEs at the forefront

For individuals, these discrepancies add up quickly. Expats, students, or families who regularly transfer money abroad are particularly affected. However, it's the exporting small and medium-sized enterprises (SMEs) that bear the heaviest burden.

According to Wise, French small businesses spend an average of €19,000 per year on international banking fees, with more than half related to unfavorable exchange rates. These costs directly impact their competitiveness, especially against more agile competitors using lower-cost multi-currency solutions. The report also notes that most business leaders underestimate the true amount of these fees: 7 out of 10 believe they pay less than 1%, while the observed average exceeds 2.5%.

Transparency still uneven across Europe

The study also highlights the European Union's regulatory lag in terms of international payment transparency. While the SEPA regulation ensures equivalent fees for euro transfers within the zone, it does not cover transactions in other currencies.

In 2025, the European Commission reignited an effort to mandate a unified display of exchange rates and applied margins across all member states. However, progress has been slow, as banks cite technical complexities and market volatility.

Transparency remains uneven in Europe

Beyond the battle for transparency, the issue is economic. In the context of digital globalization and dematerialized trade, cross-border flows are skyrocketing: more than $150 trillion in international payments are made worldwide each year.

Behind this colossal volume, the issue of hidden fees is no longer just a mere irritant; it becomes a lever of competitiveness for companies and a matter of trust for consumers.

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