One of the major topics at this year’s Money 20/20 event revolves around payment challenges, especially when it comes to small and medium-sized businesses (SMBs) doing cross-border business.
As one Money 20/20 session highlights, “Cross-border trade is a large and growing opportunity for savvy SMBs but there are significant challenges” that will need to be overcome for them to achieve success in a global marketplace. That’s why industry leaders at the show are talking about new ways to address several cross-border business challenges in the global marketplace, including access to new markets, cost-effective payments, and efficient invoicing workflows.
As an international payment specialist attending this year’s Money 20/20, World First USA, Inc. (World First) would like to be part of the solution in helping small businesses overcome these major cross-border challenges.
SMB Challenge #1: Getting access to new global markets
The dilemma: Expanding into foreign markets is becoming more popular for good reason. Consider this: out of the world’s 10 largest e-commerce markets in 2015, around 75% of all e-commerce sales were made in non-US countries according to a report by Remarkety. Still, many small businesses are having trouble doing business in more countries for many reasons.
Solution: Global marketplaces like Amazon, Rakuten, and Yahoo Shopping make it easier than ever to sell goods in foreign markets (in fact, Amazon markets reach up to 180 countries). For those that don’t want to handle the packing and shipping overseas, there are logistics services such as Fulfillment by Amazon or a plethora of third-party logistics providers (3PLs) that can do it for them.
SMB Challenge #2: Finding more cost-effective international payment methods
The dilemma: A 2014 Payvision survey found that almost 80% of global merchants agree that selling their products or services overseas is profitable for them. That said, many feel that setting up foreign bank accounts in several countries can be costly and time consuming with mountains of paperwork involved. And when it comes time to making an international transfer, the fees and currency exchange charges only adds to the expense.
Solution: New international payment technologies have made cross-border payments more cost-effective and faster than ever before. For example, our technology lets ecommerce sellers receive their overseas marketplace earnings into in-country receiving accounts. And from there they can repatriate their funds whenever they want. This way ecommerce businesses can focus on expanding into new markets without having to spend precious time and money opening multiple foreign bank accounts.
Global retailers and businesses can also potentially save tens of thousands of dollars in conversion charges and fees by working with an international payment company instead of a bank. Because international payments companies typically have lower cost structures than a bank, they can offer more competitive exchange rates and charge less in fees. World First, for example, offers online sellers and businesses great exchange rates and doesn’t charge transfer fees in many cases, which helps make international payments much more cost-effective.
This year’s Money 20/20 attendees are proving that technology is helping to solve many of the problems that SMBs face when it comes to making financial transactions quickly, safely, and cost-effectively.
World First is also using technology to make international money transfers more accessible than ever before. In particular, we’re helping small entrepreneurs and online sellers expand into foreign markets that would have been difficult to access in the past.
Are you a Money 20/20 attendee this year? We are too! Come talk to us at our charging station near the entrance of the exhibition hall to learn how we can add an international payments capability to your service offerings. Simply put, partnering with us could be a great way for you to add another revenue stream to your business while enriching your customer relationships at the same time.