Global B2B transactions are increasing tremendously. Businesses in dire need of fast, transparent, seamless, and fully compliant cross-border payouts are searching for different methods to pay their freelancers, affiliates, and vendors.
According to the latest analysis by Juniper Research, published on March 26, “One of the main areas of complaint from those using traditional B2B transfer services is the associated costs.” We elaborate on Juniper’s crucial issues below:
- Security – The failure to receive payments is a big concern for payees. For example, freelancers and gig workers can often receive their compensation weeks after they do work. Also, if your business’ payout provider uses intermediaries or “middlemen,” the actual exchange of money can often be unclear and risky when the money is moving.
- Consistency & Compliance – The consequences of regulatory violations and fraud losses can be steep. Failure to comply with money laundering and terrorist financing regulations and the inability to monitor suspicious activity can result in fines and regulatory penalties that may hinder your ability to do business. Businesses are often looking for a payout provider that can constantly meet money transfer requirements between emerging markets.
- Speed of Transactions – Currently, most B2B money transfers can often be sluggish when dealing with several mediators. Payouts can take days to post and this can result in bigger risks for the parties involved – If you are not involved in the steps being taken to transfer the money, you can’t be sure if your clients are getting paid in a timely manner.
- Cost Reduction – Fees are often hidden and transparency can be lacking. According to our Assessment Guide, “Many payouts services are vague on their foreign exchange (FX) rates and fees. Some services may even charge extra fees to your recipients for receiving or withdrawing their funds.”
- Simplification of Processes – Transparency is key to payout success. However, the process is often unclear and non-transparent fees seem to pop up when undergoing the process of sending money to your clients.
Ask the following questions to help you select a payouts service that delivers efficient and cost-effective global payouts, provided by our Assessment Guide:
|Does the Service:||Why it Matters:|
|Cover all the countries that you make payouts to?||It is often more efficient to work with a single global payouts service that covers all, or nearly all the countries that you send payouts to.|
|Make payouts to all major national banks in their payout network?||The ability to send payouts to major banks in the recipient country helps ensure that all, or nearly all your recipients can be paid via direct deposit.|
Make direct-to-bank payouts to the recipient's bank account?
|Many recipients prefer getting paid via direct deposit because it involves less effort and lower costs for them.|
Pay recipients in local currency or USD?
|This gives your recipients the option to receive funds in their preferred currency.|
|Have direct partnerships with these bank payout partners?||Direct bank partnerships eliminates the extra costs and complexities of using payout intermediaries.|
|Offer alternative cash disbursement options in emerging markets?||Services with additional cash disbursement options can help grow your market share in emerging markets by offering even more convenient payment options for your recipients.|
As you see, there are many factors to consider when choosing your cross-border payout specialist and the decision is crucial. As Juniper Research states, whilst traditional banks facilitate the majority of international B2B money transfers, there is also a number of payment service providers which specifically look to assist the processing of B2B transactions. These include fintech providers like Transpay, that provide direct-to-bank payouts.
Direct-to-bank is the solution that provides our clients with a seamless, transparent, secure, and compliant way to send payouts as well as reduced risks, costs, and unwanted surprises. Unlike other payout providers, who use intermediaries or "middlemen," Transpay has spent 30+ years building direct relationships with local banks in multiple jurisdictions, including those in hard-to-reach markets. Beyond our robust technology, it's the strength of these direct relationships that makes implementing mass cross-border payouts easier and more cost-effective than wires and other alternative payment methods.
Expand your business, along with the payout industry, and choose Transpay for your direct-to-bank payouts.