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What Financial Institutions can do to Improve Cross-Border Payments

Banks may need to focus on making international payments easier.

In an increasingly globalized economy, where many businesses either maintain operations in multiple countries or deal with vendors and suppliers located overseas, having the ability to make and process cross-border payments is becoming vital to revenues.

A study commissioned by payment provider Earthport found that the current options for sending and accepting international payments are seriously lacking, especially for transactions valued at less than $10,000.

The researchers found that more than half - 54 percent - of respondents would like a way to connect automated clearinghouse and electronic fund transfers worldwide. Those surveyed also said that some of the challenges they faced included not having transparency in foreign exchange fees, keeping tabs on payment progress and waiting for long periods for funds to clear.

Earthport's executive director, Hand Uberoi, said the research was "timely because globalization and slow growth at home are driving companies of all sizes to conduct business in other parts of the world." He said there is a wide variety of products and services coming out now, but that "cross-border payments are arguably the largest unsatisfied opportunity in the payments industry today.”

One business that is working to meet this demand is Signature Bank, which recently said it would start facilitating international wire transfers through the American Express FX International Payments Platform. 

Comments

Ernie Humphrey CTP
Title: CEO & COO
Company: Treasury Careers
LinkedIn Profile
(CEO & COO, Treasury Careers) |

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