The intricate web of international transactions, coupled with exorbitant fees and constantly updating regulatory requirements, poses a significant threat to operational efficiency and profitability.
Sam Coyne, CMO Europe at Currenxie, has spent a decade in Asia in B2B technology companies in a variety of sectors, and has held regional and global roles.
Here, he provides insights on cost-effective cross-border payment strategies for businesses.
Accelerating and reducing the cost of cross-border payments is a critical concern for any business operating in the international arena. The complexities of international transactions, with their associated fees and regulatory hurdles, can significantly impact your company’s efficiency and bottom line.
Fortunately, there are strategies you can employ to streamline and economise your cross-border payment processes, ensuring they remain competitive and agile in the global marketplace.
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Embrace fintech solutions
Many fintech companies offer specialised platforms that bypass traditional banking systems, which are often laden with high fees and slow processing times. Offering a faster and more cost-effective solution, fintech solutions deliver secure, direct, and efficient cross-border payments. These platforms not only reduce transaction costs but also minimise the time it takes to settle payments, enabling businesses to operate more fluidly across borders.
It may sound simple, but by combining multiple transactions into a single payment can reduce per-transaction fees and simplify the payment process. This is particularly effective for companies that make regular payments to the same recipients, such as suppliers or subsidiaries in the same country.
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Maintain local currency accounts
Holding accounts in the currencies of key markets can help avoid conversion fees and losses. This strategy allows businesses to pay and receive money in the local currency, reducing the need for multiple conversions and enhancing the efficiency in managing international cash flows.
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Adopt multi-currency platforms
Platforms that support transactions in multiple currencies without the need for conversion to a base currency can offer significant savings. These systems allow for businesses to manage funds in various currencies more effectively, reducing exchange losses and conversion fees.
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Implement hedging strategies
Protect against currency volatility by implementing proper controls for currency risk management. For example, hedging instruments like forward contracts, futures and options can help lock in exchange rates for future transactions, providing predictability in costs and protecting against adverse movement in currency values.
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Diversify currency holdings
Maintaining balances in multiple currencies can also allow companies to use funds more efficiently for cross-border payments, reducing the need for constant currency conversion and the associated fees.
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Centralise payment operations
By centralising payment operations, you can gain better control over your international transactions, allowing for more efficient management of funds and reduction in administrative overhead.
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Stay informed on regulatory changes
The regulatory landscape for cross-border payments is constantly evolving. Staying informed about changes in regulations across different countries can help your business avoid delays, fines, and additional costs. Understanding these regulations can also assist in more effective compliance management, ensuring smoother transactional operations.
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Simplify your global payment operations
By strategically adopting these methods, you can significantly enhance efficiency and reduce the costs associated with cross-border payments. The key lies in embracing advanced solutions with companies like Currenxie, a leading fintech company that makes global payments simple for businesses, providing everything needed to collect, exchange, and send money worldwide.
Today, thousands of businesses trust us to collect and transfer billions of dollars worldwide every year, all while boosting their profits and saving time. Enterprises and and financial providers can also access Currenxie’s payment network via our Platform APIs to collect, exchange, and payout around the world at scale.
For businesses seeking a simple all-in-one solution, our Global Account offers an effortless web and mobile app that gives you access to worldwide virtual accounts, foreign exchange, and bank transfers.
Lastly, while most payment companies sit on top of white-labelled software and rented access to payment rails, Currenxie’s unique and proprietary financial platform delivers the ability for businesses to quickly, efficiently and cost-effectively manage global, multi-currency payments.
One account, global reach: Offering a unified platform and network, you can send and manage cross-border payments from a single, multi-currency platform. Available in all major markets and currencies, Currenxie’s vast network means you have an account everywhere.
Competitive real-time FX: Leveraging Currenxie’s leading FX solutions, you can cut the cost of doing business overseas with transparent pricing and wholesale foreign exchange. With real-time spot-trades at mid-market rates, you’ll always have the price-competitive edge.
Fast and simple transfers: Cross-border payments don’t have to be complicated. Simplify your stack to send and receive payments quickly – where and when you need. Accept and hold all major currencies, including USD, EUR, GBP, JPY, AUD, HKD, SGD and more.
Learn more and apply for an account today at currenxie.com.
