A simple guide to secure and low-cost cross-border payments

How does TranSwap simplify cross-border payments?

Nowadays, most SMEs and startups make multiple monthly transactions every month, especially cross-border payments to international vendors to take advantage of the low costs, specialized knowledge and different global materials and labour markets. However, one of the biggest challenges SMEs faces is finding a secure, low cost and efficient cross-border payment system. This is because major banks tailor their services towards larger companies and multinational corporations.

Sending money internationally is not cheap, especially when making lots of small, frequent transfers and foreign transactions. It adds up over time and impacts revenue. Fintech technology has been able to transform the payment market and introduce international transfers with much lower fees compared to major commercial banks.

What are cross-border payments?

Cross-border payments refers to payments done across national borders involving individuals, suppliers, vendors, companies, banks or settlement institutions. Cross-border payments can be conducted in different ways e.g. credit card payments, electronic wallets, mobile payments or bank transfers. B2B will remain the largest segment within cross-border payments worldwide (Statista, 2022). According to the Bank of England, the value of international payments could be over 250 trillion by 2027 (Marketing Skaleet, 2022).

SMEs, startups and micro-businesses play an important role in the global supply chain but they have less access and bargaining power to financing cross-border payments. Commonly, banks charge as much as 3 to 5% for international transfer fees. On top of this, they also charge a significant markup on foreign exchange fees (FX). This can be quite costly overtime.

Here are common problems of cross-border payments:

  • High international transfer costs
  • FX fees
  • Limited access for SMEs, startups, freelancers, and micro-businesses
  • Lack of complete transparency
  • Low speed as it can take up to 7 to 10 days to process international payments.
  • Complicated process
  • Limited operating hours
  • The need to visit an in-person branch
  • Lack of multiple currency service

With digital transformation and innovation, there are more and more Fintech companies offering efficient, cost-effective and secure cross-border payments. Here is how TranSwap tackles these challenges.

How does TranSwap simplify cross-border payments?

As small business owners and startups, every little fee adds up and can massively impact the business. For a different option, consider TranSwap. TranSwap’s multi-currency global bank account allows you to protect your profit and expand strategically.

  • A hassle-free alternative to securing local bank accounts in each country of operation.
  • Pay to over 100+ countries.
  • Hold up to 34 currencies.
  • Smoothly manage cash flow and bolster your competitive advantage in the local markets by paying and receiving money in the local currency.
  • Instantly make international payments with no hidden costs and no need to maintain a minimum account balance.
  • Use real-time exchange rates with no unwelcome surprises.
  • Enjoy quick, secure and fast international transfers by accessing our global network of bank partners.
  • Everything can be handled online. There is no need to visit a physical branch and no paperwork or phone calls.

Moreover, TranSwap offers Fintech-as-a-Service, which allows companies to create a custom fintech platform with our white-label solution or integrate your existing platform with our single API. Through our API platforms, TranSwap is able to help companies simplify cross-border payments and seamlessly collect and pay suppliers, vendors and partners. TranSwap can help you save:

  • Consultancy fees when obtaining necessary legal and regulatory licenses.
  • Cost of tech efforts to build payment infrastructure.
  • Time and cost of establishing payment and settlement networks.

Ready to get started? TranSwap’s multi-currency global account is free to register and it only takes a few minutes to set up. Sign up today!