By some accounts, the value of cross-border B2B payments could reach $3.68 trillion by 2025. With so much potential revenue at stake, there’s little wonder why merchants around the globe want to take their operations to the international stage.
Before businesses can spread their global wings and reach new markets, though, they must first overcome their fears of engaging in global trade. Many merchants understand cross-border trade ventures come with risks, especially when dealing with partners in other countries that use different currencies and languages and conduct business using their own preferred financial systems. In other words, there are many potential complications that could come into play, making merchants apprehensive about international expansion. In fact, a recent report found 75 percent of surveyed merchants had walked away from a cross-border business opportunity due to fear of non-payment from a global trading partner.
But, if current trends are any indication, merchants who are wavering about taking their business global may soon have nothing to fear except fear of missing out. Several companies and players from payments and regulatory backgrounds are sensing merchant concerns with cross-border trade, and they are stepping up their efforts to ensure payments are received and delivered in a timely and smooth process.
Introducing the PYMNTS X-Border Receivables Report, powered by Flywire, a bimonthly report which dives into the shifting trends in global trade, showcasing the various developments that companies are launching to ensure payments between partners across borders are delivered with as little friction as possible.
News from around the cross-border receivables space
The X-Border Receivables Report explores how cross-border trade is impacting a wide array of industries and markets, as well as the customers and workers that operate within them.
Freelancers in Canada, for example, now have what essentially amounts to a virtual passport enabling them to work in markets outside the country — all without leaving home or their home coffee shop. A new product released by FinTech firm TranferWise allows Canadian freelancers and businesses to operate in the U.S., U.K. and European markets. The company’s new Borderless product enables Canadian freelancers and merchants to conduct transactions using local market accounts and trade in 27 currencies.
Other companies are rolling out products and services aimed at helping international students. International payment solutions provider Flywire recently partnered with Swedish automaker Volvo to help students lease vehicles while studying abroad in the U.S., without the requirement of a U.S. credit history. Flywire’s new service arrives as the market for international education is experiencing significant growth. According to the company’s research, education-related spending in Asian, European, African and the Middle Eastern countries increased by 250 percent last year.
While some people travel to study, others travel for medically-related purposes. To that end, some companies are launching new efforts to better serve travelers who need specialized healthcare treatments. One such effort comes from Virtus Vita, a provider of travel and dialysis solutions offering services to renal patients. The company, which operates in 43 countries and helps patients connect with more than 400 global clinics, recently launched a new platform to simplify the process of booking medical facilities for medically-motivated travelers.
For a roundup of the latest notable news and trends in the cross-border receivables space, check out the report.
Data Dive: Medical travel
The September report also features a deep Data Dive focused on medical travel, a global market projected to be worth billions of dollars and poised for significant growth. By some estimates, the market could be worth $57.2 billion by 2022 as the population ages and seeks specialized care. The inaugural report’s Data Dive examines the rise of medically-related travel, highlighting the most popular global destinations for medical travel and the potential savings that may be incurred as a result of cross-border treatments.
Each new edition of the X-Borders Receivables Report will include a Data Dive filled with statistics that shed light on the changing nature of international trade.
X-Border tools to save the rhino
Beyond new opportunities for patients to prolong their own lives, other international trade models are focused on improving the lives of endangered wildlife. A cross-border clothing venture from Massachusetts, for instance, is working to keep rhinos in Africa safe from poachers by selling internationally-made clothing and using the revenue to support anti-poaching efforts. For the September X-Border Receivables Report’s Feature Story, PYMNTS spoke with Chris Welles, founder of fair-trade clothing company American Rhino. The company partners with suppliers and manufacturers in Kenya, and works with Kenyan-based charities to help preserve the endangered African rhino population. Welles discussed his company’s origins, the challenge of processing international orders and his vision for expanding the American Rhino brand to promote wildlife preservation.
To read the Feature Story, the Data Dive and the rest of the inaugural report, download the Tracker below.
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TO DOWNLOAD THE SEPTEMBER EDITION OF THE PYMNTS.COM X-BORDER RECEIVABLES REPORT, POWERED BY FLYWIRE, CLICK THE BUTTON BELOW.
The PYMNTS.com X-Border Receivables Report, powered by Flywire, highlights the most significant developments in cross-border commerce, demonstrating how various businesses and organizations — including marketplaces, educational institutions, healthcare facilities and importers/exporters, among others — are getting paid by suppliers and wholesalers across borders. The report spotlights recent challenges across various use cases in the cross-border receivables space, and explains how these developments are being addressed.