Cross-border payments have always been a complex and time-consuming process, but fintech companies are beginning to change that. By harnessing the power of the internet and modern mobile technologies, fintech companies are able to provide fast, efficient, and cost-effective cross-border payment solutions for both businesses and individuals. For businesses, fintech companies offer a variety of b2b payment solutions that can save time and money. For individuals, fintech companies offer p2p payment solutions that make it easy to send money to friends and family abroad.
This posting in Fintech Futures is another in an ongoing trend for cross-border payments developments, this one penned by a senior at Mastercard. The piece references a downloadable report on cross-border payments. Those interested can review the report, which is about consumer (P2P) and small business (C2B, B2B) developments in the space. We typically cover B2B types of use cases for larger market corporates, but one could make the argument that these are all somewhat interrelated use cases using similar rails with differences in data requirements.
‘During the pandemic, cross-border payment services have provided a lifeline to many and allowed others – including small business owners – to seek out new opportunities. With travel restricted, more people have been sending money overseas electronically, while many businesses moved online, sourced international suppliers, and embraced new ways of reaching customers around the globe…
Whether a small business owner being paid by a customer on a different continent, or a migrant worker sending money to family in their home country, more and more people are making and receiving cross-border payments. And as they do, people have understandably come to expect them to be as quick, easy and reliable as domestic transactions.’
The author goes on to summarize high-level findings from the indicated survey and discuss the various complexities that exist in the legacy x-border models. These complexities are getting chipped away for P2P scenarios with fintech advancement in user interface and transparent data. We are inching towards the same in B2B scenarios, driven by various factors but mostly market pressures to do things faster and easier, highlighted by e-commerce growth and the pandemic’s digitization paradigm shift. Those interested should have a quick look and review the relatively brief study.
‘A priority for the payments industry should be to reduce the complexity of sending and receiving payments across borders and give people reassurance that their transactions will be processed quickly and reliably in all markets. This is why our focus has been on expanding our cross-border services to more than 100 markets, covering over 90% of the world’s population, while providing transparency on upfront costs and greater predictability for fund delivery…
Cutting out complexity and risk from cross-border payments is key to boosting global trade and facilitating economic recovery…
By working with banks, non-banking financial institutions and digital platforms, we can provide a single connection to reach the entire world. We want to break down barriers to cross-border payments so people can focus on what really matters – supporting their loved ones and growing their businesses.’
Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group