A growing number of U.S. businesses are prioritizing faster and more efficient payment processes, according to a recent article in PYMNTS.com. The article cites a recent study, “The Real-Time Payments Innovation Playbook,” a collaborative effort of PYMNTS and Mastercard, which found that as many as 35 percent of U.S. businesses surveyed plan to reduce reliance on paper checks in the next few years.
The study goes on to say, “In addition, those firms that embrace real-time payments (RTP) may be setting the stage for other transformative initiatives over the next few years — as 60 percent of companies interested in RTP also intend to pursue B2B payment innovations. Among the findings, as much as 33 percent of companies plan to adopt real-time payments.”
For businesses sending funds to international recipients, a highly effective, yet simple, first step toward achieving a goal of faster and more efficient payments is to add Local Bank Transfers.
Here are four steps you can take to determine whether adding Local Bank Transfers is right for your business.
- Understand the requirement you have.
First, get your arms around your requirement for international payments. For example, if you’re a company providing payroll services to crew members in the maritime shipping industry, you might be able to quantify that you have 40,000 crew members from the Philippines, 50,000 from India, and 20,000 from Indonesia, all of whom need to be paid. That’s your requirement.
- Understand the expectations of your international recipients in order to gauge demand.
Make sure you have a solid understanding of the cultural preferences for getting paid in the countries where your recipients live. Some assume that everyone wants to get paid via e-wallet, but is that true? Other times, from a U.S.-based point of view, we assume that everyone would prefer a deposit into a bank account – but that may not be the case in regions like the northern part of India, where a lack of bank branches may mean that recipients prefer to have their funds sent to be picked up in cash.
And, what about currency? Often, recipients prefer to be paid in their local currency, but if the recipient lives in a country where the currency tends to be volatile, they might prefer to be paid in U.S. dollars.
- Make sure Local Bank Transfers fit well in your array of payouts offerings.
Let’s say your company offers two e-wallet payment options, and you’re considering adding Transpay. That makes sense, as Local Bank Transfers fill a gap in your offerings. Next, you’ll want to understand the cost of each of your payments options, in order to ensure that Local Bank Transfers present an attractive option that serves your recipients well. When Local Bank Transfer exchange rates are competitive and enable you to mark them up, you can create a new revenue stream while still offering your recipients attractive rates, making them a win-win situation.
- Prominently position and market your new Local Bank Transfer option.
Finally, once you’ve gone ahead with the decision to add of Local Bank Transfers, you’ll want to make sure your recipients understand the benefits. Place the Local Bank Transfer option at the top of your checkout page to draw attention to it and provide a short explanation of the benefits of having funds delivered in a local currency to a bank account in a cost-effective and timely manner. Soon, your recipients will be enjoying the benefits and adopting your new payout offering.
To see how quickly members of the United Nations Credit Union adopted the Local Bank Transfer option, check out our case study.