This posting in Finextra is another example of cross-border fintech gains as this sector of the payments industry continues to transform through both startup innovation and new approaches by traditional players. VertoFX is a 2017 startup based in San Francisco that offers a B2B currency exchange marketplace and a cross-border payment solution. The company was recently granted an Electronic Money Institution license from the U.K.’s Financial Conduct Authority, broadening access to U.K. and EEA businesses.
Here’s more from the Finextra article:
‘The EMI license will further boost its growth by allowing VertoFX to on-board UK or EEA businesses, whilst integrating with local banks to provide better financial infrastructure and payment services. Additionally, when both the sender and recipient are VertoFX clients – regardless of where they are located – payments are executed instantly via wallet-to-wallet transfer, offering even greater transaction speed and value to businesses.’
As is the case with B2B payments and financial process automation, one of the key targets, especially for startups, is the underserved SME/SMB market. The rate of growth for cross-border in this business sector ($5M-$1B turnover) is faster than the large corporate and MNC sectors in general, so these types of innovations appeal to such firms as more simple, fast and less expensive than traditional payment methods.
‘Research revealed that SMEs in the U.K. are spending nearly £4B in hidden fees to their banks for cross-border payments across the Eurozone alone, growing even more when you include trade with the rest of the world – which is around 50% of imports and exports by UK SMEs…. “Acquiring our e-money license is a key element of our vision to create a more inclusive financial ecosystem for global businesses. VertoFX has invested the last three years in connecting hundreds of people and organisations to a global system that enables fast, safe and reliable financial transactions. However, this is only the beginning, we are excited to pursue our ambitious goals of creating a fairer and more inclusive financial ecosystem – especially for underserved and overcharged market segments!” said Ola Oyetayo, Co-Founder and CEO, at VertoFX.’
Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group
