Fable Fintech

Innovate to Improve B2B Cross-Border Payment Experience

19.10.23 07:50 AM By Naushad Contractor

Innovate to Improve B2B Cross-Border Payment Experience

Business process improvement and efficiency has always been driven by the demand for better profits and customer experience. B2B cross-border payment businesses and enterprises which rely on international remittance solutions for their business needs have such demands as well.

 

 Table of contents
  • Innovation and advancement in technology for B2B cross-border payments is an immediate need
  • Improvement in framework and technologies for B2B cross-border payment processing
  • Innovation, interoperability and integration for a better B2B cross-border payments experience
  • Fable Fintech’s innovative B2B cross-border payments solution for SMEs

Cross-border B2B payments are becoming increasingly important as international commerce accelerates. Businesses are increasingly transacting across borders, thanks to the rise of B2B e-commerce and online marketplaces. These cross-border flows across segments — B2C,P2P, C2B and B2B — are expected to total $156 trillion by 2022, with the B2B segment accounting for $150 trillion of that total. However, a number of factors complicate these payments: Payment infrastructure varies by country; the regulatory landscape governing cross-border transactions is geographically fragmented; and providers are plagued by complex internal business processes and operations. All of this makes B2B cross-border payments slow, opaque, costly, and time-consuming.


​​Innovation and advancement in technology for B2B cross-border payments is an immediate need

Growing demand for B2B cross-border payment platforms: The growth in exchange of goods, services, capital and people has significantly increased the demand for payments between countries. However, we see a lot of complexity when navigating the cross-border payment space. Different countries have different payment systems, legal requirements, taxes, service charges and compliance requirements. Currency transfer fees can be rather substantial, ranging from 6.5% to 11%, due to the significant operational costs of the technological infrastructure needed to cover these disparities. In addition, international remittances generally suffered from long processing times, long delays and poor transparency in refunds. B2B customers are also dealing with poorly designed products that don't fit well with regular banking channels.


High cost of B2B international remittances: In cross-border payments, the process of receiving payments to final beneficiaries involves many intermediaries. The sender, the payee's payment service provider, the payment infrastructure and the relevant bank often act as intermediaries. Foreign exchange fees and regulatory fees are added. Cross-border payments are very expensive because of the costs associated with going through each of these intermediaries. If you send large amounts of money regularly, your payments will be expensive. Not only is it time-consuming to process different types of payments, but it can be difficult for businesses, especially small businesses, to absorb this overhead.

Cross-border transaction tracking is complex: Cross-border payments face transparency issues because many intermediaries are involved. When dealing with various intermediaries, SMEs may lack transparency regarding payment costs, efficiency and receipts. As a result, tracking payments and getting a complete picture of the entire process can be very difficult and expensive. The financial performance of a corporation may be significantly impacted by this.

The cross-border remittance industry is slowly moving towards instant payment messages with additional transfer details, but it will take time for companies to adopt the new standard.

International remittance processing is not always secure: Cross-border payments face transparency issues because many intermediaries are involved. When dealing with various intermediaries, SMEs may lack transparency regarding payment costs, efficiency and receipts. As a result, tracking payments and getting a complete picture of the entire process can be very difficult and expensive. The financial performance of a corporation may be significantly impacted by this.

The cross-border remittance industry is slowly moving towards instant payment messages with additional transfer details, but it will take time for companies to adopt the new standard.

Disparate B2B cross-border payment processing platforms: B2B-focused companies also struggle to integrate with the multitude of systems that cater to different businesses and different payment preferences. This complexity makes it very difficult to compare B2B payments. Compliance processes with local AML regulations and preferred vendors can delay transactions, resulting in a business environment full of uncertainty and volatility in unpredictable processes.

So, what steps are being taken to improve the B2B cross-border payment experience?

B2B cross-border payment providers have emerged to address market pain points. The cross-border payment enterprises that are ready to innovate, reduce costs, increase transparency and security are the ones getting banks, MTOs, SMEs and dependent businesses on their side.

​​Improvement in framework and technologies for B2B cross-border payment processing

Intelligent Subscription Management Systems: One area where technology can help is billing. Firms can use technology to save money and streamline the payment process by switching to a subscription payment model. With Intelligent Subscription Management Systems, which enable companies to manage bills from a single point of contact and produce a frictionless B2B bill payment system mostly protected from human error, fintech companies are already upending this market.


Cloud-hosted B2B international remittance systems: Because they allow for more effective, economical, flexible, and scalable B2B payments, cloud-hosted B2B payment systems are growing in popularity in the market. Rapid has created a payments cloud solution in order to modernise invoicing, trade finance, and supply chain finance. To combine digital payments and Treasury management, payments clouds can supplement treasury solutions. Also, there are some solutions that are all hosted in the public cloud, which helps their business customers by accelerating solution deployment, lowering costs, and improving integration. The case for cloud hosting for cross-border transactions has undoubtedly been made with a certain big player's acquisition of Currencycloud, a fully cloud-based B2B cross-border payments platform for embedded finance and FX.

Improvement in the B2B cross-border payments infrastructure: Innovation in payments infrastructure aims to power payments with data insights that enable faster and more transparent payments. R2P is one of these innovations. Unified Payments Interface (UPI), a real-time payment infrastructure created by India, features R2P capabilities for B2B payments. The upcoming ISO 2022 standard for payment communications is another such. By enhancing and standardising the data in B2B payment messages, it speeds up transactions. Fintech firms like Fable Fintech has created a B2B cross-border payments solution to speed up transactions for banks, travel agencies, importers, and exporters. These platforms also make it easier for regulators to adapt and incorporate new features. Fintech start-ups can address security concerns and stop fraud probabilities thanks to security standards like ISO 27001 certification, strong passwords, two-factor authentication, tracking, alerting, blocking, strong encryption, infrastructure security, and data encryption.

Payment Orchestration Platform (POPs) for B2B cross-border payments: Businesses experience higher pressure when selling overseas because they must meet buyers' payment preferences and comply with local regulations, in addition to dealing with the usual challenges of existing cross-border payments practises such as correspondent banking and manual processing. A market for Payments Orchestration Platforms (POP) has formed, with POP service providers combining all elements of a business' payment processes into a single technology layer, to address these difficulties in a world where cross-border commerce is on the rise. Technologically, POP is a solution that enables merchants to create their global payment setup from a single access point, allowing them to select from the best payment partners around the world. This simplifies the process of integration with multiple PSPs by allowing merchants to add or switch payment partners with a single click and localise their checkout with preferred payment methods in different regions.

POPs have emerged as a solution for declined cross-border payment transactions with the re-try feature. Rejected transactions are repeated over a specified time frame until they are finally fulfilled, resulting in higher conversion rates and higher customer satisfaction.

Also, by removing the requirement to create a new application programming interface (API) each time a merchant wants to connect to a local payment provider or gateway for a specific market, POPs increase the efficiency of cross-border payments.

Innovation, interoperability and integration for a better B2B cross-border payments experience

APIs to improve automation & interoperability for remittance: In order to enhance integration and interoperability with various systems and businesses, vendors are using APIs and modular solutions more frequently. Companies like Visa and Mastercard want to get ahead in this space and use APIs to connect with numerous businesses. This enables them to make the most of their network routing capabilities, which they intend to make available to current MTOs.


The Asia-Pacific region used to have a disconnected cross-border payments network. The payment companies their used virtual accounts and APIs to allow B2B organizations to transact and get hold of their payments almost as instantly as a local payment. Fable Fintech’s API Hub allows corporate customers to access all their financial information on their own ERP systems.

Configurable cross-border payments: Criteria for configurable payments can include beneficiary, operations, payment amount and location. By doing this, the difficulty of B2B cross-border payments and the requirement for manual involvement can be reduced. Several fintech firms are working on solutions to facilitate configurable payments, but their acceptance will depend on the development of a strong regulatory and risk architecture that is applicable everywhere. To know more about the power of Fable Fintech's payments platform, read the platform model.

Configurable virtual accounts: The Asia-Pacific region's payments sector is extremely fragmented as a result of the region's booming e-commerce and gig industries. In these new business models, small and micro firms frequently favour using digital wallets like non-banking payment rails, which complicates things for their larger competitors. By enabling interoperability, virtual accounts can lessen complexity. In order to manage both banking and non-banking payment methods, A cloud-based ERP provider in the APAC region has created specialised virtual account systems for merchants who commonly utilise non-banking rail for B2B payments.


Fable Fintech’s innovative B2B cross-border payments solution for SMEs

Why Fable Fintech: Fable Fintech's B2B cross-border payments solution offers a future ready integrated journey to both the sender and receiver for international remittances. It aims to bridge the most prominent gaps in the market along with provisions of trade financing options via third party integrations.


With a global network of banking partners for fast and secure international remittances, no hidden costs and use of real time exchange rates, Fable Fintech has the obvious solution for B2B cross-border payment that every SME needs.

The market for B2B cross-border payments is the one that medium and small-medium sized enterprises are least well-served in. Fable Fintech wants to close the biggest holes in the industry with it's remittance product while also offering choices for trade finance through third-party integrations. The tourism and hospitality industries are the target audience for this module.

A cross-border payments solution for tour operators and the hospitality industry: Once an Entity (Tour Operator/Destination Management Companies) registers with the Fable Fintech platform, it has the ability to create invoices, pay invoices, and upload passenger lists all from a single platform. The Entity also has the ability to send or request invoice payments from Entities that are not already enrolled with this platform. The system is created in a way that makes onboarding the Entity on the platform relatively simple. Some of the features it provides are;

Self On-Boarding of Entity & Identity/KYC Validation:
  • Entity can Resister themselves using, the self-registration option.

Invoice Payment and reconciliation system:
  • Entity can raise an Invoice by themselves.
  • Entity can also upload the invoice copy and Push an Invoice for payment.

Passenger List upload Feature:
  • Instead of having two portals in which the entity had to Book a Transaction and upload the passenger list separately, in this Fable Fintech platform both the feature has been integrated.
  • The product can Perform Structural & Business Validation of the passenger list.

Margins, Limits & Charges Maintenance:
  • Platform is capable to handle Margins, Limits, and Charges (Nostro, Vostro, Tax, etc.).

SWIFT Automation:
  • Transactions sent via SWIFT can be processed automatically as other STP transactions without manual intervention.

Analytics:
  • Audit, Business & Regulatory reporting along with a dashboard for the bank users


Conclusion

The cross-border payments system is currently being transformed by a number of banks with established customer bases and fintech businesses with flexible offerings and go-to-market strategies. For SMEs, this is a golden opportunity to capture the global market-share. If you are a Tour Operator, a Destination Management Company or if you run an Imports & Exports business and are looking for more information on the ideal digital solution for your company’s revenue growth, contact the fintech experts today.


To acquire the platform, book a demo with the Fable Fintech cross-border platform experts;

BOOK A DEMO!

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