Is your business ready for the cross-border payment revolution?

In today’s interconnected business landscape, the role of cross-border payments is becoming a fundamental driver of economic growth and expansion for companies around the world.

In fact, it's predicted that the value of cross-border payments worldwide will triple by 2027, escalating to a whopping $3.37 trillion. 

Thus to bolster their operational capabilities, and gain a competitive edge in the global market, companies must prioritise integrating effective cross-border payment solutions into their businesses.

By streamlining global transactions, companies can harvest new customer bases across developed and emerging markets, thereby breaking down traditional barriers that have historically hindered growth.

Using the right cross-border payment tools may significantly accelerate revenue and growth by not only enabling transactions, but also by serving as an integral part of business expansion and customer acquisition. 

Shifts in market dynamics

Covid-19 brought on a major shift in cross-border payments, revealing critical insights into market needs. Notably, the business-to-business payments sector has outperformed consumer transactions, signalling a broader trend wherein businesses prioritise efficiency and cost-effectiveness. This transition underscores the necessity for organisations to adopt scalable payment solutions that can accommodate evolving customer and market demands.

Research from 2022 highlighted that, globally, nearly 30% of banks and fintech companies recognised cross-border efficiency as a significant pain point in their operations. As these financial institutions modernise their systems and processes, they can create new revenue streams, while also enhancing transaction management.

How to integrate cross-border payments into your business

Integrating cross-border payments into a business can, however, present its own challenges.

Navigating issues such as currency volatility can create financial unpredictability, while complying with different regulations across countries can become complicated. In addition, delays in clearing funds can affect cash flow and operational efficiency.

To overcome these hurdles, businesses must adopt a proactive approach, leveraging innovative solutions that deliver both cost efficiency and streamlined processing.

Cross-border payment platforms such as Verto provide solutions dedicated to the specific needs of emerging market businesses. These tools facilitate participation in international trade, enabling companies to transact with established corporations seamlessly.

Apart from facilitating transactions, a platform like Verto can empower businesses to execute cross-border operations with agility, thereby driving economic advancement.

The benefits of effective cross-border payments

Effective cross-border payment solutions can unlock a host of benefits for your business. These include:

1. Efficient payment processes: Streamline cross-border transactions by reducing intermediaries, leading to faster payments and greater transparency.
2. Cost-effective solutions: Minimise expenses with competitive exchange rates and lower transaction fees, thereby optimising financial resources.
3. Market access and growth: Open doors to new markets and customers to facilitate business expansion through diverse payment avenues.
4. Improved business relationships: Ensure reliable and timely payments, strengthening trust and preventing lost opportunities.
5. Variety of payment options: Multiple payment methods allow businesses to select the most suitable options for their needs and the needs of their customers.

The impact on emerging economies and underserved communities

The benefits of cross-border payments go beyond profit. Small-to-medium enterprises (SMEs) who make micropayments often contend with challenges related to cost, speed, transparency and accessibility. 

A cross-border payments solution, particularly one using mobile technology, can offer reliable and cost-effective alternatives for sending money across borders, thereby supporting stability and growth for smaller businesses.

Importance of agility in finance

The future of cross-border payments, driven by advancements in technology and the rise of innovative business models, looks promising.

However, for businesses to capitalise on these emerging opportunities, they must remain agile and innovative to meet the growing demands for transparency and efficiency from consumers and stakeholders.

Emerging technologies will most likely revolutionise the cross-border payments industry, unlocking a wealth of opportunities for organisations of all sizes.

It's essential for businesses not only to adapt to these new technologies and opportunities, but lead the way in redefining how international transactions are conducted. By prioritising efficiency, cost-effectiveness and accessibility, organisations can position themselves to thrive in the ever-changing global marketplace.

• About the author: Cornelius Coetzee is country director for Verto SA. 

This article was sponsored by Verto.