How To Streamline B2B Cross-border Payment Process for SMEs
How To Streamline B2B Cross-border Payment Process for SMEs
Cross-border payments are expanding at an incredible rate. To enable flawless transactions between businesses in different countries, divided by currency, a localised payment experience is essential. To strengthen their payment architecture and streamline their cross-border payment solutions, SMEs must learn to navigate payments with new innovations.
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The below mentioned cross-border payment solutions on a strategic and business processes level, can assist you tweak your company's cross-border remittance process and thrive in today's economy.
Traditional |
Exclusively Bank led |
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Advances driving change |
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Present day |
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B2B cross-border payments industry is changing for the better |
Focus on your clients' preferred regional payment platforms
Different countries prefer to send and receive global payments via different platforms. Consider this when accepting and making global transactions to ensure smooth trade and as part of your international trade strategy. Many businesses now provide local payment methods for international transactions, but many SMEs are unaware of this option or do not understand how it can help them overcome the obstacles of cross-border payments. For example, a company that only accepts one type of payment method for domestic and international transactions may experience transaction delays or failures if the recipient does not accept the provided payment method. Furthermore, SMEs that offer their customers local payment options are better positioned than their competitors to meet the needs of cross-border customers. This is because customers prefer to use service providers, they are familiar with.
Have a well-defined approach to currency dealings
When you trade internationally, you will be transacting in a lot of foreign currencies, which may involve currency conversion costs. When buyers view the product/service, they want to see the prices in the local currency. Let's say you list prices in limited currencies or in a single currency, such as US dollars. In this case, it is very likely that they will not continue to buy, especially if you are a B2C seller. This makes it ideal for listing in the local currency of the region you're selling in or allowing buyers to choose their preferred currency.
Maintain cross-border payments compliance
If you conduct business in multiple parts of the globe, you must be familiar with the rules and regulations of each country, including payment processing laws, tax laws, and data privacy laws.
Reduce the cost of cross-border transactions
A major barrier to international trade is the high transaction costs associated with each transaction, which are particularly burdensome for SMEs. Costly and time-consuming payments involve the banks that handle most international transactions. Then there are the required intermediaries of the transaction process that eat into the value-chain. Tailor-made cross-border payment solutions, like those offered by Fable Fintech are on the rise thanks to advancement in all forms of remittance technologies.
Understand SWIFT, CHIPS and know the alternatives
CHIPS and SWIFT are two payment codes used around the world.
Choose a cross-border payments platform based on requirements & configurability
Understanding the value on offer is an important part of selecting the best cross-border payment platform for a small and medium enterprises. B2B cross-border payment platforms may include the following features;
Invoicing | Marketing |
Invoicing and payment processes are integrated with counterparties to eliminate the need for reconciliation | Assistance in promoting the company to target market within the system and processing payments in volume |
Accounting | Loyalty and Rewards |
Accounting, reconciliation, and reporting applications that help businesses record payment activity in their accounting systems | Reward points, airline miles, offers, coupons, promotions, merchant funded rewards (MFR), and other items delivered to the payer |
Desired B2B cross-border payment platform features for SMEs |
Conclusion
A number of banks with established customer bases and fintech businesses with flexible offerings and go-to-market strategies are currently transforming the cross-border payments system. This is a golden opportunity for SMEs to capture global market share. Contact the fintech experts today if you are a Tour Operator, Destination Management Company, or Imports & Exports business looking for more information on the best cross-border payment solutions for your company's revenue growth. 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;