By 2020, some 940 million cross-border shoppers are expected to spend $1 trillion on eCommerce, or online payment, transactions.
For marketplaces, this growth in cross-border trade means processing, accepting and making mass payments in multiple currencies, which comes with a host of complications, ranging from currency conversion to making high-cost wire transfers.
To solve these problems, payment service providers are increasingly collaborating and rolling out new solutions (P2P, ACH, ePayments, etc.) that bring speed into transacting and settling in multiple currencies, according to the June edition of the X-Border Payments Optimization Tracker™. Will they succeed?
The June edition of the PYMNTS.com X-Border Payments Optimization Tracker™ looks at the latest news and trends shaping cross-border, global payments and ranks the industry players in the space.
Around the X-Border World
Transpay is ramping up its support for B2B and B2P transactions with the addition of new funding currencies to its roster. The company has extended its support for 11 settlement currencies to eliminate the need for converting funds prior to settlement, which in turn makes payments faster and more cost-effective.
And Transpay isn’t alone. First Data is also expanding its support for multi-currency settlements with the launch of its Global PFAC solution. The solution will give payment facilitators access to a single integration interface that can enable their merchants to seamlessly authorize transactions in more than 150 currencies and make settlements in 17 currencies worldwide.
Meanwhile, SWIFT announced the launch of its new cross-border payments tracker, which allows international payments to be followed in real time. The tracker has been designed to improve liquidity with cash forecasts and limit exposure to forex risks associated with same-day processing of funds in a beneficiary’s time zone.
X-Border Marketplaces and the Search for Better Payout Solutions
For marketplaces expanding operations abroad, making cross-border payments to vendors and sellers is often a problem that gets exponentially bigger with each new market into which they set foot.
For the June Tracker’s feature story, PYMNTS interviewed Tomas Likar, VP of strategy and business development for Hyperwallet, a San Francisco-based company that offers payout solutions to FIs and marketplaces.
The biggest piece to building the perfect payout process is developing relationships with banking partners in different markets, Likar said.
“You have to have a partner who relies [on] what you will be doing through them is completely compliant and legal,” he said. “That part takes the longest time.”
And, on the seller’s side of the equation, expectations are continuing to change with the growth in popularity of P2P payment apps.
“Sellers are now used to apps like Venmo and PayPal for their consumer needs, [and] the same expectations are now transferring to the business side where everyone wants to get paid next business day and not [pay] more than a dollar or two for the service,” he said.
Find the full story inside this month’s Tracker.
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About the Tracker
The PYMNTS X-Border Payments Optimization Tracker™ is the framework for evaluating players in the cross-border payments landscape, and the quarterly index tests the readiness of the companies to serve a global audience.