Unprecedented demand and the constraints of traditional banking systems have disrupted the cross-border money movement landscape. Organizations are looking to optimize or reinvent current processes to create more operational efficiencies globally. Key drivers in the push towards owning more of the money flow include:
- Macroeconomic pressures. Rising inflation and interest rates, supply chain volatility, and geopolitical tensions are pushing organizations to find new ways of optimizing cash flow and creating revenue.
- International expansion. With international expansion comes access to new customer bases and revenue. According to Visa, 87 percent of merchants believe that their biggest growth opportunity comes from expanding online sales into new markets.
- Regulation, security, and compliance fears. The complexity of regulatory and compliance make it difficult for enterprises to understand and apply requirements when offering new financial services, and growing cybersecurity threats can multiply with new payments channels.
- Limited options. Organizations wanting to adopt payments services are limited in options and expertise. Cross-border payments in particular are underserved by today’s technology offerings.
Barrier or myth?
Enterprises that understand the perceived barriers are more myths than blockers will find opportunities to navigate global change by owning a greater share of the payments process. With 69 percent of businesses agreeing that sending digital cross-border payments improves cash flow (Mastercard), real-time and instant payments are more important than ever to implement within existing workflows.
Total cross-border payments for B2B transactions
The ability to transfer funds across borders in seconds, rather than days, allows businesses to cover their obligations faster, improves the predictability of settlements, and facilitates a better customer experience than traditional banking. Configurable approaches to payments have sparked a new wave of technology solutions, led by embedded finance and banking-as-a-service (BaaS). Embedded finance and BaaS allow the integration of cross-border payments solutions into existing enterprise resource planning (ERP) and other backend systems.
Create a B2B Venmo
Embedded banking functions, like international fund transfers, currency exchange, and real-time transaction tracking allow enterprises to own and control their international money transfers. An embedded finance platform, like the Alviere HIVE, is designed to integrate directly into existing technology stacks, operational workflows, and customer-facing applications, saving both time and effort.
All parties involved in a global money transaction can be part of a closed-loop B2B Payments Ecosystem to improve liquidity management across the value chain. As domestic and cross-border payments flow between international endpoints, all monetary flows are automated, managed, and recorded through a single digital ledger.
“Cross-border payments are inherently more complex than domestic payments and are often slower, less transparent and more expensive due to the lack of an end-to-end system or rule set, and the need to transact in different currencies and time zones, and comply with different regulatory requirements.” (U.S. Federal Reserve)
The momentum behind global money transfers is steering businesses toward adopting embedded finance platforms like the Alviere HIVE. A natural response to the challenges and complexities of international transactions, these platforms integrate financial services into a business's core operations and applications, helping enterprises shed the constraints of legacy banking and slow transaction times to take control over cross-border payment processes. To learn more about challenges, trends, and opportunities in international money movement, read Rethinking global money transfers: Why enterprises adopt their own cross-border payments solutions.