B2B Cross-Border Payments
B2B Cross-Border Payments
Cross-border commerce is a multi-trillion-dollar opportunity that is ready for disruption. While the possibility of selling and buying across borders has clearly gained prominence, organisations of all sizes (SMEs, MSMEs & large-scale) and industries face a slew of obstacles when attempting to enter international markets.
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Cross-border payments market size
It is generally agreed upon that the cross-border payments market is growing in size and importance. The increasing globalization of the economy and the continued growth of e-commerce are driving demand for cross-border payment solutions. Additionally, the proliferation of digital payment technologies is making it easier and more convenient for businesses and individuals to make cross-border payments.
Cross-border payments trends
According to a report by the World Bank, the volume of cross-border payments reached $26 trillion in 2018, and is expected to continue growing in the coming years. EY, the global accounting and consulting firm says, total global cross-border payment flows will reach USD 156 trillion this year, with B2B transactions accounting for USD 150 trillion. Cross-border business payments accounted for approximately 10% of total payments revenues for consumer and business segments worldwide - USD 1.9 trillion in 2020. However, the size of the market varies by region. Cross-border payment revenues were highest in EMEA (16%) and APAC (8%). According to McKinsey, a consulting firm, North America accounted for 6% and Latin America accounted for 5%. It is important to note that these estimates may vary due to the complexity and diversity of the cross-border payment industry.
Why are cross-border payments important
International trade: Cross-border payments facilitate international trade by allowing businesses to make and receive payments from customers and suppliers in other countries. This helps businesses expand their reach and tap into new markets.
Challenges faced by businesses in international markets
Businesses may face a variety of challenges when trying to secure a foothold in new markets. Here are a few examples:
Why businesses need a cross-border payment solution
Global expansion: If a business is looking to expand into international markets, it will need a way to receive payments from customers in different countries. Cross border payment solutions provide a secure and convenient way for businesses to receive payments from customers in other countries. Large enterprises are forecasted to grow at a CAGR of 8.8% till 2030 and SMEs (SMBs) will continue to be the fastest growing segment based on business size. This estimation relies on the forecasts of B2B cross-border payments market which is expected to see massive growth in the coming years.
How cross-border payment solutions help scale business
Cross-border payment solutions can help businesses scale by providing a convenient and cost-effective way to make and receive payments from customers and suppliers in other countries. This can help businesses expand into new markets and increase their revenue. Here are a few specific ways that cross-border payment solutions can help businesses scale:
Cross-border payment solutions in the market
International remittance systems are financial systems or networks that facilitate the transfer of money from one country to another. These systems are often used by individuals or businesses to send money to family or friends in other countries, or to make payments to international partners or vendors.
Choosing a cross-border payment solution for your business
There are a few key factors to consider when choosing a cross-border payment solution:
Choosing a cross-border payment solution for your business
Using the services of a cross-border payments solution provider like Fable Fintech can help a company transition its cross-border payments operations quickly and futureproof its international remittance processes. Fable Fintech (Based in India, with global offices) provides white-label remittance solutions world-wide for many large-scale banks and offers B2B, B2C cross-border payment solutions for a variety of industries and sectors. An international payments SaaS for banks and businesses, Fable Fintech products include open banking APIs and Fx rate systems. Get in touch with a cross-border payment solutions team now!
To acquire the platform, book a demo with the Fable Fintech cross-border platform experts;