- Companies from different sectors finding solutions to ease cross-border payment frictions
- Demand for international transfers surging as businesses open new branches overseas
- Flywire and Billtrust to solve the problem
As businesses expand overseas, companies looking to do the same have started investing in cross-border payment solutions to prevent the friction from incumbent transfers, a new Global Payments Architecture Report notes.
The surging demand stems from the need to deliver international payments in the receiver’s preferred currency and the more pressing need for these payments to be on time and in the right amount. It also must be noted that 80% of merchants that participated in the survey accept online orders from other businesses, a fact that needs to be addressed in terms of receiving payments from buyers.
Cross-border payments can be challenging, according to the report, and these challenges can impede business flow. For the travel industry, the report found that a whopping $25bn is expected to be lost due to fraud by the year 2020.
For most sectors, the inability to pay an international partner in their own currency is a huge problem as well. This can affect the relationship between businesses and even has the potential to put new partnerships in jeopardy as the waiting time for traditional transfers can be quite long.
Billtrust, a firm that offers cloud-based receivable solutions is working with cross-border payment company Flywire to help businesses accept payments from their partners. Billtrust will be using Flywire’s processing platform to enable clients to track B2B payments. The solution will also make it possible for businesses to pay their partners in the latter’s local currency.
MSTS, a business-to-business payment and credit solution provider, is also currently working on improving global payments through credit-as-a-service (CaaS). The system, according to MSTS, can help businesses increase sales, improve client or customer experience, and decrease accounts receivables risks.
