In our hyperconnected world, businesses are increasingly relying on global digital “labor.” That labor might be freelancers, sellers, suppliers or other business partners. Today, the world’s largest platform businesses are heavily reliant on international digital partners for their platform “supply.” That’s because the vast majority of that labor comes the Asia-Pacific and Europe-Middle East-Africa regions, according to the Oxford Internet Institute Online Labour Index. In the world’s largest ad network, Google AdSense, some 84 percent of publishers are based outside of the U.S. It’s a similar story on the largest freelancer marketplace, Upwork, where the vast majority – 91 percent – of freelancers are based outside the U.S. Even Amazon, the world’s largest e-commerce marketplace, has 71 percent of its sellers based outside of the U.S.
Given these trends, it’s no surprise that the volume of cross-border payments continues to grow annually. According to the 2019 McKinsey Global Payments Map Report, there were $8 trillion in cross-border payments to digital platform partners in 2018. That number is anticipated to grow 10 percent a year through 2023. Still, cross-border payment methods have not evolved to meet the needs of businesses and their partners. High costs that typically range from 3-10 percent of gross volume, limited reach of payment options to smaller countries and poor quality due to lack of payment statuses and other delivery issues are common pain points. In fact, 68 percent of payment recipients say they are dissatisfied by their current payment options, according to the Tipalti Global Publisher and Affiliate Payment Satisfaction Survey for Adtech (2018).
The way to alleviate cross-border payments pain points is to offer a wide range of payment options to your partners – in the same way that you offer a number of payment acceptance options. With 63 percent of recipients saying that direct bank transfers are a payment method they wish platforms offered, it’s more important than ever to add a direct bank transfer option to your offerings.
As the leading cross-border payments service which allows you to pay your recipients the way they want to get paid – directly to their local bank accounts, in their local currency, quickly, easily and securely, Transpay can help you improve satisfaction among your recipients.
To get specific information on how Transpay can help you achieve your payments goals, contact us to learn more.