Large enterprises today are facing significant macroeconomic uncertainty across the world, according to an update from Paysend.
Alexander Budyakov, Enterprise Business Executive, Paysend, notes that the fallout of the COVID-19 pandemic continues “to disrupt markets and supply chains whilst inflationary pressures and fluctuating currency markets are complicating cross-border trade.”
As a result, the need “for clear, consistent, and effective financial services systems has never been more imperative in enabling larger businesses to operate effectively in today’s globalized world,” Alexander added. He also mentioned that the ability “to make payments quickly, affordably, and easily is the foundation on which these businesses depend.”
Despite this, traditional business financial services “continue to provide barriers to large enterprises looking to trade and expand globally,” Alexander noted while noting that scaling financial services effectively “alongside business growth, having the financial ability to enter new markets and the speed and cost of making payments continue to provide significant challenges for larger businesses.”
With global cashless payment volumes set “to increase by more than 80% to 2025 and triple by 2030, businesses need more from their financial services providers to continue in their growth stories.”
Alexander pointed out that the key challenges “can be broken down into four areas: Scaling with business growth; Unlocking new markets; Speed of payments; and Consolidation and customization,”
He further noted that as larger businesses “grow and look to expand internationally, the financial services through which they operate must do the same.”
Regular cross-border payments “to cards, accounts, and wallets in diverse global markets represent a heavy administrative burden, usually requiring more than one traditional financial services provider.” Alexander pointed out that these providers typically “have limited communication or cohesion between them in their efforts.”
He added:
“Navigating different currencies, markets and geographic borders also creates significant paperwork, leading to long lead times, payment delays and hidden charges. This slows businesses down, forcing them to focus both manpower and cost in ensuring that money continues to flow in a timely manner. These scaling issues represent yet another growing pain for ambitious larger businesses.”
He continued:
“Linked to this, unlocking new markets for business expansion is only possible through effective, streamlined financial services systems. In a recent PwC payments survey, 42% of respondents felt strongly that there would be an acceleration of cross-border, cross-currency instant and B2B payments in the next five years.”
This anticipated payments growth is “being driven by businesses going global to grow their addressable markets.” Historically, traditional financial services “have limited this ability for businesses due to significant barriers to entry in terms of financial resources, currency and regulatory considerations.” Alexander further noted that this often “causes delays to business decision-making decision making and investment, meaning larger businesses miss out on new market opportunities.”
He also mentioned:
“To operate efficiently, larger businesses must also be able to transact quickly, efficiently, and affordably with a number of different stakeholders. A recent survey showed that 97% of respondents believe there will be a shift towards more real-time payments in the near future. Part of this shift is being driven by new business expectations on their payments systems.”
Traditionally, business financial services “have been categorized by elongated settlement times, inconsistencies in process and expensive fees including hidden charges.”
Managing transactions “across suppliers, employees, customers, and other stakeholders who all require different payment needs and timelines is a major task.”
Minor delays or hiccups can “have a significant knock-on impact for larger businesses, potentially causing financial or reputational harm.”
He added:
“The rise of digitally enabled instant payment solutions is positively disrupting this experience for businesses, providing greater clarity, consistency and security.”
At Paysend, their mission is “to make financial services an enabler to successful business growth.”
They firmly believe “that business payments should be simple, instant and low-cost.”
That’s why they “developed Paysend Enterprise to enable businesses to send cross-border payments to cards, accounts, and wallets around the world through our smart API integrations.”
This payouts solution “allows businesses to make instant payments of up to $100,000 for just $1 per payment, at market-leading FX rates and with no hidden fees.”
This enables businesses “to effectively send funds to 168 countries and currencies, seven days a week, 365 days per year, powered by our Open Payment Network API.”