How Businesses Can Benefit From International Payment Solutions
Understanding international payments
Operating beyond the domestic market is essential to success for most businesses in today’s globalised economy. 64% of the world is connected to the internet and utilising the online marketplace to find the best goods and services at the best prices, largely disregarding the country of origin. While traditional retail sales are falling, e-commerce is booming, with this year’s online sales figure estimated at $11 trillion globally.
Managing international payments effectively is therefore an essential requirement of modern-day business operations. This brings you into contact with a wider consumer base and also connects you with the global supply chain and a bigger talent pool.
The challenges of international payments
However, processing cross-border payments is fraught with potential complications. Financial regulations must be adhered to – and differ from country to country – and can change due to economic shifts and geopolitical issues. Constantly changing exchange rates is another challenge to be considered.
Staying on top of all considerations while trying to find the most affordable payment methods can feel impossible, even if expert accountants support you. Minor mistakes might not be costly, but failing to comply with legal guidelines could lead to large fines. That’s why many companies operating globally have come to rely on international payment solutions.
What are international payment solutions?
Ranging from systems such as PayPal to dedicated companies offering personal service, international payment solutions make it easy to organise a business money transfer overseas. They help to streamline the process and identify the best method for cross-currency transactions while reducing the risk of accidental error.
How can they help businesses operating globally?
Financial Benefits
· Transaction fees
Online platforms enable companies to organise separate transfers into bulk payments, reducing the amount of transaction fees for sending money overseas.
· Competitive pricing
Companies use research and software to select the best price for the currency, evaluating many liquidity partners to ensure the most competitive rates in the market for all payments.
· Tax compliance
Cloud-based programs constantly updated with the latest information can automatically calculate the correct tax for international business payments, breaking down the charges so it’s clear what needs to be paid where, and when. This helps to protect against big fines.
Beyond Costs
While the financial benefits are the main advantages of using international payment solutions, there are benefits beyond costs, too.
You and your clients have better visibility of a transaction from beginning to end, understanding where charges have been applied (and why) and reasons for any hold-ups in receiving the funds. This view also contributes to improved cash flow management, so you constantly have a clear grasp of your company’s financial health.
Using trustworthy systems and platforms to navigate global transfers also means enhanced security for your money, reducing the risk of your payments getting lost or you falling for fraud.
