The partnership aims to expand market opportunities for importers and exporters, benefiting approximately 400,000 merchants, the companies said in a Friday (Nov. 24) press release.
It will do so by addressing the challenges faced by small- to medium-sized businesses (SMBs) in foreign trade, such as difficulties in opening accounts with traditional banks, high exchange losses and remittance costs, and long remittance time, according to the release.
XTransfer offers a “local account” service, which provides compliant and cost-effective solutions for global trade payments and fund collections, the release said. The service allows clients to collect funds from the same countries in the local currency of their buyers before transferring them back into their own local currency.
By integrating TransferMate’s global payments infrastructure, XTransfer enhances its clients’ options for payments and fund collections to local accounts, per the release.
Initially, this capability will cover the United States, Mexico, Malaysia, Canada, Singapore and New Zealand, benefiting importers and exporters of machinery, apparel, electronics, household durables and other goods, the release said. The partnership also allows TransferMate to reach a larger client base, particularly in China, where XTransfer has the largest number of clients in the field.
The partnership will not disrupt the user experience for XTransfer clients, as all activity will continue to take place within the existing XTransfer web portal, according to the release.
The collaboration signifies XTransfer’s commitment to empowering SMBs with the tools they need to expand globally, Violas Xiao, local CEO of Singapore for XTransfer, said in the release.
The partnership will help XTransfer’s merchant users grow their businesses, make international trading easier and create efficiencies in their financial processes, Vijay Rao, head of APAC for TransferMate, added in the release.
This enables the company to bypass the infrastructure that banks need to move money worldwide, cutting out a lot of the usual hurdles that impede the smooth flow of payment transactions, Clune said.
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