As the world becomes a truly international economy, both companies and individual workers are increasingly looking to move money to different companies. When doing so they have many options, each with their pros and cons, Peter Shore said.
Mr. Shore is the US general manager for Transpay, a global payments service providing businesses with a scalable, secure, and fully compliant cross-border mass payout solution, making it easy to send funds directly to the local bank accounts of vendors, business partners, freelancers and others in more than 200 countries.
Given the number of different payment methods and the different laws in each country, it takes work to provide options that are both convenient and fully compliant, Mr. Shore said. Transfer payments, bank wires, cash disbursement, prepaid, e-wallets, cheques, money transfers…what option is best in any situation?
“The goal of payouts from a company perspective is to make it quick and cost effective for both the company and recipient to send money anywhere they need to,” Mr. Shore said.
And don’t try to shoehorn all customers into accepting your favorite method because in today’s climate it is all about choice, he added. So break down each method, which solves the same issue in its own way, he advised.
SWIFT wire transfers are one of the oldest methods, with high volume processed across a widely recognized global network. The messaging is strong and it’s a known entity with familiar procedures.
But it has its warts. Transfer times can be much slower than more modern methods, and the cost higher as every intermediary along the way takes a cut. The initiating bank also loses brand visibility.
Then there is the influence of in-country clearing houses with policies and procedures that can make processing times and total fees a guessing game.
Peter Shore, GM at Transpay