A Local Bank Transfer is a payment structure that makes it possible to send funds internationally from a business’ bank account directly into a recipient’s bank account, in the local currency of the recipient, without using the traditional bank networks. As your business expands, Local Bank Transfers are the payments structure that can take you anywhere you need to go. Here are 10 reasons why Local Bank Transfers just keep on growing in popularity:
- Global recipients have been emphatic in saying they want a Local Bank Transfer option.
According to the 2018 Tipalti global publisher and affiliate survey, the most preferred payment method of international publishers surveyed was “e-check/global ACH” (another term for Local Bank Transfers). What’s more, 41.9 percent of international publishers surveyed said they wished more networks offered e-check/global ACH.
- Savvy networks and marketplaces are prioritizing the recipient experience.
The key to being recipient friendly is to pay recipients on their own terms. Thanks to the convenience, speed, transparency and cost efficiency of Local Bank Transfers, many recipients are asking for ad and affiliate networks and marketplaces to add them to their payout options.
- An increasing number of freelancers, affiliates and publishers are based in emerging markets.
Today, four of the five top countries where freelancers are based are emerging markets – India, Bangladesh, Pakistan and the Philippines. To effectively pay recipients in those markets, you’ll want to find a Local Bank Transfer specialist whose network reaches the vast majority of bank accounts in the world.
- There’s a pressing need for simple pricing.
Hidden fees such as debit card conversion fees, ATM withdrawal fees, balance check fees and more plague many recipients and make it hard for them to effectively do business. On the other hand, Local Bank Transfers offer simple, competitive pricing with no hidden fees. In most cases, the only fee you as the sender will pay is a transaction fee; the only fee your recipient pays is an exchange rate markup.
- Recipients deserve to know where their payment is every step of the way.
By selecting a Local Bank Transfer specialist with a fully owned bank network, you can rest assured that you and your recipients know where the funds are every step of the way.
- Recipients appreciate the option to be paid in their local currency.
Many recipients prefer the simplicity of receiving funds in their local currency. Local Bank Transfers are delivered in the recipient’s local currency.
- Getting paid promptly helps keep my recipients satisfied and productive.
According to the 2018 Tipalti global publisher and affiliate survey, 94 percent of respondents indicated that being paid on time is important to ensuring loyalty. Local Bank Transfers are delivered in a timeframe ranging from instant to within 24 hours.
- I have my paycheck sent via direct deposit to my bank account, and I assume my recipients would also want the same option.
Would you prefer to have your paycheck sent into an e-wallet, or into your bank account? For many of us, the answer is clear. We want our pay sent to the place where we keep our funds, which is the bank. The most cost-effective and efficient way to send a direct deposit to an international bank account is via Local Bank Transfer.
- Finding highly compliant payouts methods is a priority for my company.
By their nature, Local Bank Transfers excel at removing friction in the process of regulatory compliance. Local Bank Transfers terminate at a bank -- a regulated entity -- which provides advantages over payout options that terminate in other ways, such as into an e-wallet or a prepaid card.
- Any payout method that reduces friction in my recipients’ experience is a winner.
Many recipients prefer to have funds credited directly to their local bank account over other payout options. For example, recipients must wait for a debit card to be sent through international mail, which not only takes weeks but could also get lost in transit. In addition, funds sent to an e-wallet might get frozen due to concerns about who the ultimate beneficiary is.
Want to learn more about the advantages of Local Bank Transfers compared with other options? Check out our guide to cross-border payout options.