When SMEs look to trade abroad, they can often find themselves facing management challenges when it comes to organising and ensuring all their accounts in different regions are accurate and working as they should. Looking to alleviate this issue in the UK, WorldFirst, a one-stop digital payment and financial services platform for global businesses, has launched a new e-commerce growth solution.

Called the World Account, the new solution by the payments platform specifically focused on SMEs in international trade brings down the costs associated with making an international transfer for UK firms. Typically these costs which span compliance, FX and payment operations account for two to three per cent of the value of a transfer.

However, with the World Account this is reduced to less than 0.75 per cent, according to WorldFirst industry analysis. This helps SMEs boost their margins to sustain long-term business growth.

Untapped opportunity in cross-border e-commerce

Global trade is expected to grow by 3.3 per cent this year and retail e-commerce sales are expected to grow 8.8 per cent over the same period.

However, in the UK, the Office for National Statistics’ most recent Annual Business Survey of Exporters and Importers revealed that just over one in every 10 UK businesses (11.4 per cent) are involved in exporting. This is a number that had only risen by 0.7 per cent in the preceding three years. When polled by a UK bank, 80 per cent of businesses agreed that exporting is critical to their business’ future.

Bruce Ding, general manager of WorldFirst International Business, notes: “Against this backdrop, there’s an excellent opportunity for many more UK SMEs to tap into the opportunities of international trade. Despite the complexities involved in cross-border e-commerce, with the support of external partners like us, we’re seeing SMEs are increasingly optimistic about the opportunities presented by exporting overseas.”

In 2022, the total cross-border e-commerce market in Europe, including the United Kingdom, amounted to a turnover of €265billion (excluding travel). Of this total, €167billion, or 63 per cent, was generated by marketplaces. However, European countries are falling behind compared to those across South America and Asia, where multiple markets have seen significant growth in e-commerce sales, according to eMarketer.

Younger generations drive cross-border e-commerce

WorldFirst finds that more than 50 per cent of sellers using its cross-border e-commerce solution are Gen Z or Millennials. This suggests these generations of business leaders are more aware of global e-commerce opportunities.

Ding adds: “Consumers are increasingly buying directly through SMEs’ websites, online marketplaces and social media platforms. This means people are purchasing from businesses located across the globe without even realising they’re doing so. Younger business owners have spotted this opportunity to run their independent e-commerce stores or set up fronts on global e-marketplaces.”

However, challenges, ranging from the complexity in international payment and foreign exchange, payment fraud, and hidden service charges, still put away aspiring business owners, threat survival of start-ups and undermine durability of existing businesses.

To help solve these challenges, UK SMEs can streamline international operations by partnering with external vendors. UK business owners can open a World Account within minutes to be able to trade like a local around the world. The account supports payment collection with 14 local or cross-border accounts and pay-out in more than 40 currencies to over 130 countries and regions. WorldFirst’s extensive partnerships with key e-commerce platforms facilitate seamless cross-border transactions.

WorldFirst has a strong track record in driving growth in e-commerce for SMEs. WorldFirst is the top payment service firm by transaction volume for China-based e-commerce businesses which sell on international e-marketplaces, such as Amazon and Lazada. In January 2024, new customer acquisition by WorldFirst in South-east Asia increased 16 times and the overall transaction volume of its customers in the region grew by 90 per cent on year.

High payment company valuations and funding rounds were driven by investors bidding up deal prices without paying significant attention to profitability. However, now there is a far greater focus on earlier profitability over hyper-growth; leading to questions on whether this trend will last. 

The findings come from a new report released by the Payments Innovation Jury, a not-for-profit initiative analysing insight of leaders from the payments industry. The 2024 global report ‘Market meltdown – impacts on infrastructure, regulation and innovation‘, reveals global payment leaders’ views on how tumultuous macroeconomic changes over the past two years have affected their sector.

Research undertaken in collaboration with the World Bank and backed by Interswitch, FIME and HPS, features 136 jurors from across the globe, all of whom are in senior roles at national payments companies, banks, fintechs, payments policy bodies, central banks and investors.

Overall, the Jury judged start-up businesses (55 per cent), as the most negatively impacted by plummeting valuations and investment rounds, followed by scale-ups (38 per cent) and enterprise-scale businesses (seven per cent).

Businesses developing AI and climate fintech tools and technologies also look the most likely to benefit from the diversion of investment from payments businesses.

The report also suggests that, while credit and debit cards will remain important in developed markets, their growth is becoming increasingly more difficult to achieve than before. In emerging markets in which they were unable to replicate this success, cards could struggle to improve their position – due to fierce competition with account-to-account payments and mobile money.

Planning to ‘weather the storm’

Banks, rather than fintechs or mobile network providers, will ultimately be the major players in mobile wallets globally.

The talent acquisition activities of payment enterprises in developed markets are a significant challenge for those in emerging markets, with almost 60 per cent of Jury members in emerging markets saying that they are losing an unacceptable number of staff with consequential risks to innovation programmes and sometimes even ongoing operations.

Asia Pacific retained its crown as the region with the most payment innovations, while the Middle East and Africa emerged as a clear second favourite despite Africa’s macro-economic challenges, relatively low levels of investment funding and a talent drain.

John Chaplin, founder and chairman of the Payments Innovation Jury, commented: “Looking back on the last two years of market turmoil, it feels like this unique insight from industry leaders has never been more needed. Our Jurors’ deep understanding of the causes and effects of macroeconomic changes and their impact on the long-term direction of the payments industry helps all of us understand how we can best move forward and continue to weather the storm.

“I am immensely grateful to each of the 136 members of the Jury for thinking through such complex issues and sharing their views, as well as to the World Bank, Interswitch, FIME and HPS. Their participation and support makes the publication of these insights possible, and this report is very much their report.”

Bitcoin (BTC) rose above $38,000 on Nov. 24, but the bulls could not build upon this strength. This suggests hesitation to buy at higher levels. Bitcoin is on track to form a Doji candlestick pattern on the weekly chart for the second consecutive week. This signals indecision among the bulls and the bears about the next directional move.

With Bitcoin maintaining near its 18-month high, BitMEX co-founder Arthur Hayes retained his bullish stance. In a X (formerly Twitter) post, Hayes said that the United States dollar liquidity was increasing, which is likely to push Bitcoin higher.

Another bullish projection came from PlanB, creator of the stock-to-flow family of BTC price models, who said in a post on X that Bitcoin may not stay at the current levels for long. PlanB expects Bitcoin to maintain an average price of at least $100,000 between 2024 and 2028.

Analysts have turned increasingly bullish in the past few days, but traders should exercise caution because every uptrend is bound to have corrections.

Could Bitcoin soar above $38,000 or start a corrective phase? Let’s look at the charts of the top 5 cryptocurrencies that may outperform in the near term.

Bitcoin price analysis

Bitcoin’s march higher has hit a wall near $37,980 but the bulls are not hurrying to close their positions. This shows that traders expect the uptrend to progress further.

The immediate support on the downside is the 20-day exponential moving average ($36,546). If the price snaps back from this support, it will signal that every minor dip is being purchased. That will increase the possibility of a break above $37,980.

If that happens, the BTC/USDT pair could rally to $40,000. This level may pose a strong hurdle to the bulls, but if buyers flip the $38,000 level into support on the downside, the rally could stretch to $48,000.

Conversely, if the price plummets below the 20-day EMA, it will indicate that traders are booking profits. The pair may then dump to $34,800.

The bulls are trying to maintain the price above the moving averages but are finding it difficult to overcome the obstacle at $37,980. The relative strength index (RSI) is just above the midpoint, indicating that the bullish momentum is weakening.

If the price slips below the 50-simple moving average, the pair may plunge to the uptrend line. The bulls are expected to defend this level with vigor. On the upside, a break and close above $38,500 will indicate that bulls are in the driver’s seat.

Uniswap price analysis

Uniswap (UNI) fell below the 20-day EMA ($5.44) on Nov. 21, but the lower levels attracted aggressive buying by the bulls. That started a sharp rally on Nov. 22, which pushed the price to $6.60 on Nov. 24.

The up-move is facing selling near the overhead resistance of $6.70. The UNI/USDT pair has pulled back to the 38.2% Fibonacci retracement level of $5.92, and the next stop could be the 50% retracement level of $5.71.

A strong bounce off this zone will suggest that traders view the dips as a buying opportunity. That may enhance the prospects of a breakout above $6.70. Such a move will complete a double bottom pattern, which has a target objective of $9.60. The bullish momentum is likely to weaken below the 61.8% Fibonacci retracement level of $5.50.

The bulls tried to protect the 20-EMA, but the bears had other plans. They pulled the price below the 20-EMA, starting a deeper correction. If the price sustains below the 20-EMA, the pair may tumble to the 50-SMA.

If the price turns up from the current level or bounces off the 50-SMA, it will suggest that lower levels are being bought. The bulls will then again try to propel the price to the overhead resistance of $6.70. If this resistance is surmounted, the pair may skyrocket to $7.80.

Immutable price analysis

Immutable (IMX) has been sustaining above the breakout level of $1.30 for the past several days, suggesting that bulls have the edge.

The price may pull back to the zone between $1.30 and the 20-day EMA ($1.20). This zone is likely to witness a tough battle between the bulls and the bears, but If the buyers prevail, the IMX/USDT pair could climb to $1.86.

Instead, if sellers tug the price below the support zone, it may trigger stops of short-term traders. That could accelerate selling and result in a sharper correction to the psychological level of $1.

The 20-EMA on the 4-hour chart has flattened out, and the RSI is just below the midpoint, indicating a possible consolidation in the near term. The first support on the downside is $1.30. If buyers maintain the price above this level, it will suggest that the $1.30 is acting as a new floor.

On the upside, a break above $1.50 will signal the resumption of the up-move. The pair may travel to $1.59 and then to $1.63. Contrary to this assumption, a fall below $1.20 could tilt the short-term advantage in favor of the bears.

Related: XRP price bull flag hints at 20% rally by New Year’s

VeChain price analysis

Buyers propelled VeChain (VET) above the overhead resistance of $0.023 on Nov. 26 but are struggling to sustain the higher levels as seen from the long wick on the candlestick.

Sellers will try to trap the aggressive bulls and pull the price to the 20-day EMA ($0.021). If the price rebounds off this level, it will suggest a positive sentiment. The bulls will then again attempt to overcome the obstacle at $0.023. If they can pull it off, the VET/USDT pair could rise to $0.027 and thereafter try to reach the pattern target of $0.031.

On the contrary, if bears sink the price below the 20-day EMA, it will indicate that the pair may remain stuck inside a large range between $0.014 and $0.023 for a while longer.

The pair has slipped back below the breakout level of $0.023, indicating that the bears have not given up and are selling at higher levels. The pair could next reach the 20-EMA, which is an important level to watch out for.

If the price rebounds off the 20-EMA, the bulls will make another attempt to drive the price above $0.023 and start the next leg of the rally to $0.027. On the other hand, a break below the 20-EMA may start a deeper correction to $0.020.

Algorand price analysis

Algorand (ALGO) reached the overhead resistance of $0.14 on Nov. 25, where the bears are expected to mount a strong defense.

If the bulls do not give up much ground from the current level, it will suggest that traders are holding on to their positions, expecting a move higher. That increases the likelihood of a rally above the $0.14-$0.15 resistance zone. If that happens, the ALGO/USDT pair will complete a cup-and-handle pattern. This reversal setup has a pattern target of $0.20.

If bears want to prevent the up-move, they will have to drag the price below the critical support at $0.12. If this level gives way, the pair may tumble to $0.11 and then to $0.09.

The 4-hour chart shows that the pair is oscillating inside the $0.12 to $0.15 range for some time. In a range, traders usually buy near the support and sell close to the resistance. It is difficult to predict the direction of the breakout with certainty; hence, traders may consider waiting for the breakout before taking large bets.

If the price breaks above $0.15, the pair is likely to start the next leg of the up-move. The pair may first rise to $0.18 and then to $0.20. This positive view will be invalidated if the price turns down and falls below $0.12.