Cross-border payments are a complex affair. Inefficiencies can lead to expensive fees, slow payments, waste of time and resources, and higher risk from fraud. A first-class global payments platform can help businesses tackle these issues, and save tons of time and money. In this article, we tell you about the benefits of using a global payments platform. So, if you are a business that deals with cross-border payments, read on.
What are cross-border payments?
Cross-border payments are international payments that are made across countries and regions. For example, between the EU and North America or Asia. Everyone use cross-border payments in one form or the other. Whether it be a consumer paying for goods bought from an international seller, or sending money to their family who are in another country. Or, a business paying its suppliers or employees in other regions/ countries, most often in another currency.
These payments involve a complex set of processes and are routed via multiple financial institutions (and third-parties) before the funds reach a bank account. Hence, efficiency is paramount to ensure smooth cross-border payment flow.
A global payments platform streamlines your entire global payable process. It leads to faster and more efficient payments, reduced costs, and higher security.
What are the benefits of a global payment platform?
1. Faster, timely, and more efficient payments
- A global payments platform supports mobile payments. This means you can make international payments anytime, from anywhere using your smartphone or mobile device. No matter where you are, you can pay an invoice.
- Such a platform supports multiple payment methods. This means you can pay your invoices using digital wallets, cards, or even BNPL, not just bank transfers or paper cheques. You get the option to pay your suppliers based on a payment method of their choice. Thus, you do not have to wait for long periods for payments to clear. This leads to timely payments and happy suppliers and affiliates.
- A global payments platform automates most of your accounts payable (AP) processes. This makes your invoicing process faster, reduces human error, and streamlines the end-to-end AP workflow. The automation software ensures each invoice is verified and routed correctly, thus reducing error and making it easier to track an invoice. Because of the higher data accuracy, invoices are processed faster and reconciliation becomes much easier.
- Such a platform automates much of the AP tasks and frees up valuable resources and time, which can be allocated to other critical tasks. Faster invoice processing also lets you take advantage of early-payment discounts and save money.
2. Higher control over international transactions
- A global payments platform uses automation to intelligently schedule every payment for you. This ensures invoices are processed on time automatically. This leaves you free to focus on other tasks, rather than worrying about hundreds or thousands of invoices. Such platforms also perform intelligent payment routing to improve payment acceptance rates and minimize declines.
- Richer payment data gives you more control over your cross-border payments. This means you can schedule a payment, which payment method to be used, tracking payments, and reconciling payments against invoices. Lesser error, better insights.
3. Saves money and time, lesser resources needed
- A global payables platform saves you money on cross-border payments. How? Well, on one side they reduce your transaction fees. On the other, they automate most of the AP processes and reduce manual tasks. This helps you to allocate AP resources to other critical tasks.
- Such a platform supports multiple payment methods, which helps you save on processing fees. For example, you could make a cross-border payment using a digital wallet, which is cheaper than using a credit card (which charges high interchange fee).
- A global payments platform also comes with a self-service portal for buyers and suppliers. When onboarding a payee, they fill up all their precise payment data, and can update or change them whenever they want using the self-service portal. This ensures all payment data is up to date and payments don’t get lost.
4. Stronger security with advanced tools and risk reporting
5. Higher compliance with global payment laws
How can Novalnet help?
We can help you start accepting and making cross-border payments easily. If you are a business owner in Europe, then we have the right strategies and tools for you to widen your global reach and conduct business across borders. Novalnet is a global PSP, trusted by Europe’s leading brands to handle their payments. Our state-of-the-art technologies and methods help you accept payments globally. From our instant payment plug-ins to our AI-based risk management tools, we have the resources to get your payments up and running in no time, and with zero hassle.
Reach out to us today to know more.
Jose Augustine is the Chief Business Development Officer at Novalnet with extensive experience in European payment industry and a knowledge powerhouse.