Overcoming Cross-Border Payment Challenges in 2023
Cross-Border Payment Solutions to level up your business
As a startup, are you struggling with cross-border payments in 2023? Are you still suffering from slow transaction speed, lack of transparency, high costs and unpredictable exchange rates? Here is our startup guide to overcoming international payment challenges in 2023.
International payments are crucial in our modern interconnected economy. The global payments market is expected to grow to $870 billion in 2026 (Research and Markets, 2022). Even though we live in a world of multinational businesses, international travel and cross-border collaborations, many startups struggle to find an efficient, low cost and secure international payment system. Startups and small businesses continue to rely on banks to conduct international transactions.
However, innovative and technology driven FinTech companies are slowly changing the landscape of international payments through creating independent networks to enhance the existing banking solutions. FinTech companies can offer an alternative cross-border solution that is quicker, cheaper and safer.
How FinTech can help overcome the challenges in cross-border payments:
Small businesses and startups have limited cash flow and finances. Every international transaction conducted through a major bank will incur bank charges for its services, in addition to other fees such as compliance costs and currency conversion fees. FinTech offers an alternative solution. Our clients are able to instantly make quick international payments with no hidden costs and no need to maintain a minimum account balance. Use real-time exchange rates with no unwelcome surprises.
2. Fast setup
The setup for international bank accounts often takes a few weeks, with multiple document requirements and an in-person visit. FinTech’s advanced money transfer apps are able to speed up the setup process with a hassle-free alternative to securing local bank accounts in each country of operation in less than 48 hours. With our multi-currency global account, our clients can avoid having to manage different accounts for different countries. Everything can be handled online. There is no need to visit a physical branch and no paperwork or phone calls.
3. Improving payment speed
Cross-border payment through banks typically take up to 3 to 5 business days to process. Fintech makes it possible for users to enjoy quick, secure and fast international transfers by accessing a global network of bank partners. These help businesses to better manage their cash flow and make speedy payments to their suppliers, partners and clients.
4. Better transparency
International transactions through major banks lack transparency of information such as arrival of payment, time, costs or fees due to the numerous involvements of intermediaries. Payer and payee aren’t able to track their transaction status online. This also leads to a lack of clarity regarding fees, costs and deductions. Such unpredictability doesn’t suit businesses and startups, as it can massively impact profits. On the other hand, many FinTech companies can provide transparency and are upfront about the pricing, fees and use real-time exchange rates.
5. Fraud Protection
International payments are common targets for digital payment frauds and cyberattacks due to the involvement of many different parties in comparison to local transfers. FinTech companies have security standards like two-factor authentication, data encryption, face identification, secure coding and much more security in place to protect clients against the possibilities of fraud.
6. Personalised Integrations
FinTech companies can improve existing payment systems with their highly advanced technological approaches. Through simple API integration, FinTech companies can provide solutions that are customisable to your business needs. Companies can now upgrade their existing payment system for cross-border payments with tracking functions and better user-friendly experiences.
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.
Fintech technology caters to startups and small businesses, which makes cross-border payments more affordable, efficient and accessible. TranSwap helps businesses "Go Global". Ready to make the switch this year? Sign up today!