Cross-border payments can be rough seas for any company. Data suggests SMEs in particular are struggling to grow internationally because they fear the consequences of a lack of expertise and knowledge in going global, but corporates of any size expose themselves to new risk when entering new markets.
According to the Tipalti, cross-border B2B payments are riddled with errors, and as the volume of international business payments increases, so does the error rate.
Yep. $500 billion is walking out of the doors of banks who just can’t deliver the B2B payments services that their clients want. And, guess where they’re walking to? FinTechs that can. It doesn’t have to be that way, says FI.SPAN CEO and Founder Lisa Shields, who told Karen Webster how APIs, platforms and collaboration can help keep more of that $500 billion from walking away.
The study, conducted by Capital One and the NAPCP found that payment professionals acknowledge the benefits of new technologies, including greater security, analytics, reduced costs and even new revenue streams.
Open or closed — that is the question as banks evaluate their options for developing new API solutions. U.S. Bank’s Chief Innovation Officer Dominic Venturo discusses the innovations that have emerged when banks open their platforms to developers at bank-sponsored hackathons and learn to “eat their own dog food.”
It’s not like APIs just crashed the interface party. So why are banks acting like they’re the hottest trend? Citi’s Global Head of Channel Services, Mayank Mishra, says its global world and innovators and their APIs are the only way to keep up.
Last year, payments technology company Ixaris announced it would spin off some of its operations to form a separate unit dedicated to B2B payments. Now, the company is exploring the B2B payments space even further.
Xero, the online accounting software company, announced a partnership with Capital One Financial Corporation to simplify direct bank feeds, credit card data and the bank reconciliation process.
This industry is on the cusp of some major innovation, too, as FinTechs roll out services that banks can offer to their own customer clients via APIs. But issues abound. How can banks stay competitive while still cooperating with FinTechs?