B2B Cross Border Payments Must Become More Efficient, Fast and Transparent
(29 June 2022 – Global) When it comes to innovations in business-to-business (B2B) payments, the marketplace is not for the first time taking its cue from customers, Visa reports.
There are currently US$120 trillion in global B2B payments processed annually, with at least US$10 trillion supporting cross-border trade. In the face of this growth, banks are left to deal with these highly complex transactions that are dependent on correspondent banking relationships, offering limited visibility into the status of payments, costs, and certainty.
New digital technology innovations are entering the marketplace to address this pressing need.
Visa commissioned East & Partners to conduct research in 2019 for the Visa B2B Connect: Voice of the Customer – Banks Markets Report which found 82 percent of banks worldwide viewed gaining improved visibility as one of the most appealing features of emerging payment approaches.
Modernisation of consumer payments has largely been driven by demand for a better customer experience. The acceleration of cross-border commerce makes cross-border B2B payments even more of a focus. Banks are responding to businesses that are keenly interested in leveraging emerging technologies to improve transparency, expand optionality, and lower costs associated with cross-border payments.
Considering the difficult environment banks and businesses alike are experiencing globally, providing tailored payment solutions that are transparent, simple, and efficient is now more important than ever.
“For payments to move freely across borders, data has to do the same. This does not mean things have to be less secure, quite the opposite. For something like fraud, the open and free flow of data is what allows new technologies to emerge to provide greater security and consumer protection” commented Visa SVP and Global Head of Treasury and Working Capital Solutions, Alan Koenigsberg.
“Fraudsters do not respect geographic boundaries. Cyber security benefits from global data and the ability to move at lightning speed, day or night. Payments innovators who wish to bring new products and capabilities to market must navigate vastly different license requirements around the globe, and this takes resources and adds costs to solutions.”