As small business owners and SME managers, cross-border payments have always been a challenge. Traditional payment methods have been the norm for many years, but with the development of fintech, there are now many new ways to transfer money internationally. Here are the pros and cons of traditional vs. fintech cross-border payment solutions.
Pros of Traditional Cross-Border Payment Solutions:
1. Widely Accepted: Traditional payment methods such as wire transfers and bank transfers are widely accepted across the world. This makes it easier for individuals and businesses to conduct cross-border transactions. Customers can easily visit a location branch to conduct any banking related services.
2. Established Infrastructure: Traditional payment methods boast an established infrastructure that has been refined and strengthened over the years, making it a reliable and secure system that has garnered substantial investment and capital.
3. Large Transaction Limits: Traditional payment methods are ideal for large transactions as they usually have larger transaction limits.
Cons of Traditional Cross-Border Payment Solutions:
1. Slow Transactions: Traditional payment methods can take several days or even weeks to process cross-border payments, which can cause delays in business operations.
2. High Transaction Fees: Traditional payment methods usually come with high transaction fees, which can add up to significant costs for businesses. This is something SMEs and startups need to watch out for.
3. Currency Exchange Rates: Traditional payment methods usually involve currency exchange rates that can be unfavorable for businesses, which can cut into revenue.
The rise of fintech has greatly assisted numerous small businesses and startups in conducting secure, fast, and hassle-free international transactions.
Benefits of fintech cross-border payment solutions:
1. Low or no Transaction Fees: Fintech cross-border payment solutions often come with low or no transaction fees, making them more affordable for small businesses and startups.
2. Fast and Secure Transactions: Fintech cross-border payment solutions offer faster transaction times, often processing transactions within hours or even minutes.
3. Competitive Currency Exchange Rates: Fintech cross-border payment solutions often offer more favorable currency exchange rates, which can help businesses save on transaction costs.
TranSwap offers a cross-border payment platform that provides businesses with fast, secure and affordable payment solutions. We make going global easy with our multi-currency global account. You get all the benefits of a digital business account but with added benefits that are built for a global scale. TranSwap’s multi-currency global bank account allows you to protect your profit and expand strategically.
- 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.
- Enjoy quick, secure and fast international transfers by accessing our global network of bank partners.
- Everything can be handled online.
Say goodbye to the hassle of traditional banking and hello to the future of international payments with TranSwap.