It’s been a tough few years for small and medium-sized enterprises (SMEs) in Europe. Since the COVID-19 pandemic and the subsequent disruption it caused, many small business owners in Europe (and around the world) have started looking at newer markets to drive growth. This has led many of them to grow their international customer base and supplier networks. And cross-border payments have helped keep millions of these small businesses to do just that, and in turn, flourish.
More small businesses in Europe are opting for cross-border payments
According to the Mastercard’s Borderless Payments Report, seven out of ten (68%) small businesses are doing more business online. This is a significant trend in Europe, with 53% of SMEs in France and Germany, and 49% in the UK now selling online, and seeing a surge of sales. Globally, 58% of small businesses (53% in France and 42% in Germany) are now making or receiving more cross-border payments than before the pandemic.
More than half of small businesses in France, and about a third in the UK and Germany, are expanding their supplier networks across borders, thus building more resilience. More SMEs now feel confident about sending money cross-border securely. On a global scale, more small businesses (over 67%) are open to cross-border payments, but wish they would be faster.
So, why should a small business consider cross-border payments?
1. Broader reach, access to newer markets
Selling cross-border is a great way to widen your reach, step into newer markets, and tap into customer segments that you earlier hadn’t. This means you get to explore new growth avenues and build a new set of loyal customers, leading to higher sales and wider brand footprint. Cross-border payments platforms help you accept and make payments across the world easily and securely. Hence, they are essential to any growing business looking to expand outward from home shores.
2. Widen your supplier network, protect your business
The pandemic clearly showed the world the vulnerabilities of supply chains and how they can severely disrupt business. Hence, be smart. Diversify your supplier network and explore relationships outside of your country or economic zone. For example, if you wish to work with an amazing supplier or freelancer who is based in another country and accepts payments only in their local currency. In such a case, without cross-border payments, you can successfully tap into this relationship.
But with a cross-border payments platform, you can onboard such suppliers, partners, or affiliates easily. Invoices can be processed quickly, and payment reconciliation is automatic, making payments across borders easy-peasy.
3. Expand your brand footprint, build loyal customers
Cross-border payments give you the ability to reach newer customers and become known as a brand. It helps you to sell your goods and services to customers who otherwise may not know your brand or your offerings. This way you can reach out to a wider number of customers, be known, and build up a loyal following. Cross-border payments give you the option to accept payments from overseas customers in their currencies (and payment methods).
This helps you build up a solid brand experience through seamless and secure payments, and provide a rich user and buying experience. This translates to happy shoppers who will be loyal to your brand, and also recommend you to other buyers.
Learn more: How to Accept Cross-border Payments
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.