Across the globe, merchants are facing a number of challenges when it comes to making payments across borders.
To expand into new territories and maximise profits, merchants need reliable, fast, cost-effective and secure cross border transfers. This means having access to local bank accounts, however, this service can't always be provided by their bank.
As banks continue to scale back on correspondent banking relationships due to shrinking profit margins and the cost of increased regulation, merchants often end up with a disjointed and expensive cross border payment service.
But it doesn't have to be that way. Unfortunately, many merchants are unaware that there are alternatives.
Our research revealed that 40% of merchants were having to establish banking relationships in each country that they trade in
In recent years, the ability to make and receive international payments has become intrinsic to a large proportion of merchants, with many more to follow as they expand to serve more markets around the world.
In order to facilitate this growth, merchants need reliable, fast, secure and cost-effective cross border transfers as well as access to local bank accounts.
The speed at which transactions are settled was a huge concern for merchants, with 47% stating this was a top issue
Delays can cause a merchant to falter, and on top of the existing concerns regarding sending and accepting cross border payments, this can stop plans for international expansion in their tracks.
Merchants must be able to send and receive secure, fast, cost-effective cross border payments, in order to reach their full international trading potential.
Nearly 50% of respondents stated that they were concerned about the cost of transaction fees
To help merchants enter new territories, payment providers need to remove barriers such as poor FX rates, high cross border transfer fees, and slow settlement timescales.
Despite these concerns, 87% of merchants still use a bank to facilitate cross border payments
A major stumbling block for SMEs trading internationally is access to cost-effective cross border payments – there is still a gap between what banks provide and what SMEs need, with a lack of global account infrastructure for smaller enterprises.
To make international expansion possible, viable and even profitable, merchants need the right payment solution
introducing the Banking Circle
The Banking Circle removes barriers to international trade and provides cross border payments as if they were local, allowing merchants to reach their potential in all the markets within which they want to trade.
Membership is open to card acquirers, PSPs, APMs, FX Payment Providers and Merchant Membership is open to merchants who join via their payment solution providers.
Download the white paper at Banking Circle to find out more.
