Cross-border payments are payments or transactions between a payer and a transaction recipient from one country to another. The payment varies between individuals, banking institutions, or companies of large or small scale. For traders or merchants operating internationally, it’s imperative to ensure that the countries they are trading with can accept payments from other countries.
As digital buyers are increasing in counts day by day, cross-border payment companies will keep getting strong. A Forrester study reports that by 2022 cross-border fintech companies will expand their influence in at least 29 countries globally. Countries like Germany and the UK with higher digitization and facilities will continue to increase payments revenue.
Types of cross-border payments
There are various types of cross-border payments, such as credit card payments, bank transfers, etc. The advantages of cross-border payments are plenty; however, the significant benefit of such payment is that customers can do cashless transactions all over their world using their credit/debit cards, wire transfer, etc. Let’s talk about the types of cross-border payments for the fintech industry.
Credit card payments
Credit cards are the most common and reliable cashless payment method. It plays a vital role in cross-border payments. Upon its arrival in the market, credit cards helped consumers transact without hassles across the globe. Although cross-border payments need to go through various processes such as currency conversion, it’s easy on the customer. The customer only has to enter their card details and pay; the rest is the banks’ or the financial institutions’ problem.
eWallet has just launched a few years earlier. An eWallet or digital wallet is electronic software that allows consumers to store and pay for products online. These eWallets are available in apps as well, so users can safely store their payment cards into it to pay for services. Some eWallets are now open to the idea of allowing users to operate in multiple currencies and place orders anywhere in the world. Although wallet to wallet transactions aren’t counted as cross-border payments, they still play a considerable part in the transaction. Apple Pay, Google Pay, Paypal, Skrill, and Neteller are some of the business’s few big names.
Bank transfers are still going strong as a payment method and probably the most trusted one for placing cross-border payments. Larger banks will have a limited amount of money in stock, so the cash isn’t available in a massive amount. Hence, when a customer is looking for ways of transferring money from one country to another, they have to rely on their foreign banking partners to facilitate the transaction.
Payment Solutions For Multinational Fintech Companies
Now that we have learned the cross-border transaction’s definition, it’s time to look at the top payment solutions for Fintech global. These payment solutions help consumers establish person-to-person payments, business transactions, thanks to the Fintech ecosystem’s progressive approach. Now, making payments in the same area or across the country is easier than it was ever. Let’s take a look at some of the top payment processors that help companies worldwide.
PayPal is a payment platform that everyone knows about. It’s a platform for personal and business transactions, payment processing, transferring, credit services, and international wire transferring. PayPal has built a firm ground for itself with more than 200 markets globally. What makes this payment solution a hit is that it’s also used for governmental payments and transactions, such as donations, fundraising, education funding, etc.
Stripe is also a famous platform that provides financial and software services to fintech companies, crowdfunding, on-demand marketplaces, etc. Stripe supports significant to small companies and businesses by providing tools and software for online businesses. Stripe is also a cloud-based platform that allows companies to pay bills, accept payments or set up a marketplace entirely. It is used by giant online companies as well.
Circle’s features don’t only facilitate payments and cash transactions but also support crypto trading and investments. Circle is a crypto investment and trading platform available in 29 countries and allows companies or individuals to exchange currencies like USD, Euros, and British Pounds. Circle Pay, a feature of Circle, has been added to make cash transactions easily.
Ripple is a payment solution that utilizes blockchain to process and secure their payment network called Ripple Net. Ripple helps customers to access the network of 200 banks globally. Customers and companies can make cross-border payments instantly using Ripple and RippleNet. Ripple is a stable and secured blockchain network that allows encrypting payments and tracks every money transfer done in order to minimize confusion and thefts.
ZED lets fintech companies efficiently process payments for their customers from the U.S, Canada, the UK, and many other countries using wide ranges of payment systems. From larger cross-border transactions to regular transactions and payments such as supplier payments, remittance, salary, vendor payments, etc., ZED extends its helping hand to every company. They support direct deposits, wire transfers, Visa or Mastercard top-ups, digital wallet deposits, etc., in more than 200 countries.
If you are looking for platforms that support Fintech companies for cross-border payments and transactions, these are some great solutions you should check out. These platforms will provide you a smooth payment experience within your area or internationally.