The Ant And The Dove Partnership: To Maximise Efficiency And Revenue In Cross-Border Payments

Once upon a time, in a far-off land, there lived an ant and a dove. The ant was a hardworking business owner who sold goods to other ants in her colony. The dove, on the other hand, was a messenger who flew across borders to deliver letters and parcels to other colonies.

Table of contents

Frictions in cross-border payments
Strategies to improve the cross-border payment journey
How Fable Fintech helps you navigate the cross-border payments landscape

The ant had always struggled with cross-border payments. The process was complex and challenging, with obstacles such as currency conversions, foreign transaction fees, and varying regulations. These challenges made it difficult for the ant to maximise efficiency and revenue when it came to cross-border payments.

One day, the ant met the dove and shared her struggles with her. The dove listened attentively and shared that she had heard of a revolution in global payment solutions that was upon them. Companies like Fable Fintech were harnessing new technologies to revolutionise and enhance cross-border payments.

The ant was intrigued and asked the dove to tell her more. Dove firstly told her about the various bottlenecks and frictions in cross-border payments.

Frictions in cross-border payments

Funding Costs: The need for strategic funding allocation, often involving multiple currencies, and efficient access to international currency markets, is crucial for success.

Long transaction chains: The exorbitant expenses incurred in creating direct connections to facilitate the seamless transmission of cross-border payments in multiple currencies.

Legacy technology problem: The reliance on batch processing, the absence of vital real-time monitoring, and the inadequate data processing capacity are detrimental to our operations.

Limited operating hours: Inordinate delays plague cross-border payments, particularly in corridors with vast time zone disparities, wreaking havoc on global commerce.

Complex processing or compliance checks: Navigating the intricate landscape of compliance mandates, including Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) and data protection regulations, can prove to be a daunting task for organisations.

Fragmented and truncated data formats: The lacklustre speed of straight-through processing and automated reconciliation is causing significant delays and inefficiencies in our payment system.

Weak competition: Intermediaries face formidable obstacles that impede their ability to enter the market.

The dove also explained how businesses that streamline and optimise their cross-border payments could see significant benefits in terms of efficiency, customer experience, and revenue.

The ant thought about this and realised that she needed to take action. The dove helped the ant come up with some strategies to improve the cross-border payment journey. They discussed minimising fee, optimisation of the fund flow and capturing growth in emerging markets.

Strategies to improve the cross-border payment journey

Minimising Fee: The first step to unlocking the full potential of cross-border payments is to minimise fees. One way to do this is by negotiating lower fees with payment processing companies. This can be done by shopping around for the best deal or leveraging the volume of payments business processes to negotiate more favourable terms.

Additionally, businesses can utilise digital solutions that provide more cost-competitive alternatives to traditional options. For example, digital wallets and peer-to-peer payment platforms can offer lower fees than traditional bank transfers.

Optimisation of the fund flow: Another key strategy for unlocking the potential of cross-border payments is to ensure your fund flow is optimised. This can be done by automating reconciliation processes wherever possible to ensure accuracy and minimise manual effort.

This can include using software to automate the matching of payments, or implementing a cloud-based accounting system that can automatically reconcile transactions in real-time. Additionally, businesses should implement risk management tools such as fraud prevention software or insurance policies to protect against potential losses.

Capturing growth in emerging markets: To truly unlock the full potential of cross-border payments, businesses must also prioritise growth and expansion opportunities in emerging markets. This can be done by leveraging local knowledge to gain a foothold in new markets where regulations are changing rapidly.

Additionally, businesses should invest in technology tailored for different currencies and languages, making it easier for customers overseas to make payments.

The ant took the dove's advice and decided to integrate Fable Fintech. The ant's business saw significant growth and expansion. She was able to offer a seamless and efficient cross-border payment process, which made her more attractive to customers, leading to increased customer loyalty and business opportunity. The ant was grateful to the dove for her help and they became good friends.

To learn more about how Fable Fintech helps you provide your customers with a seamless cross-border payment experience read, Non-Alignment Movement in International Payments

How Fable Fintech helps you navigate the cross-border payments landscape

The goal is to improve the user experience for both merchants and shoppers. Collaborating with a trusted partner for cross-currency solutions can greatly benefit e-commerce companies as they expand globally and meet customer demands.

Modern payment technologies help merchants stay competitive by speeding up cross-border payments and eliminating FX fluctuations. This makes the processing time- and cost-efficient, and more transparent.

With real-time payment rails and APIs, businesses can make instant payments, manage currency exposure, and lock in FX rates for better pricing. This allows merchants to efficiently manage funds and cater to their international clients.

By investing time and resources into optimising their payment process, businesses can unlock greater efficiency, better customer experiences, and increased revenues. The key is to stay up to date with the latest technologies and regulations to make sure that your business is always one step ahead of the competition. Get in touch with a Fable Fintech cross-border payment solutions team now!

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

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The Ant And The Dove Partnership: To Maximise Efficiency And Revenue In Cross-Border Payments

The Ant And The Dove Partnership: To Maximise Efficiency And Revenue In Cross-Border Payments

The Ant And The Dove Partnership: To Maximise Efficiency And Revenue In Cross-Border Payments

Frictions in cross-border payments

Strategies to improve the cross-border payment journey

How Fable Fintech helps you navigate the cross-border payments landscape

Solutions

Platform

Company