As borderless payments become more and more common and easier to access, businesses are using this technology to reach ever more customers globally. Whether you’re a fintech expert or you know nothing about blockchain, borderless payment technology will present opportunities for your business and so it is worth understanding some of the basics.
What is a borderless payment?
A borderless payment solution is one that allows businesses to pay and receive payments from all over the world. There are currently a number of barriers to international payments, from currency calculations to border checks to volumes of paperwork and several innovative technologies have been developed to combat this.
Global economic factors ranging from the pandemic to the growth of eCommerce have further driven the demand for borderless payments as businesses seek to adapt to changing consumer demand.
Helping entrepreneurs go global
In the past, it’s been difficult for smaller businesses and start-ups to facilitate international payments, with some firms having to set up bank accounts in person in multiple jurisdictions and pay fees for international transactions.
Now, using borderless payments, entrepreneurs can make the process of receiving payments and paying out to suppliers in different countries easier than ever. Specifically designed to allow businesses to facilitate transactions quickly and efficiently, a number of fintech products have been built such as multi-currency wallets, 3D-secure transactions and mobile FX.
More and more businesses are also now trading in cryptocurrencies to eliminate border fees and to make sure international transactions can go ahead smoothly.
Opportunities for innovation
There is a huge boom in borderless payments and the banking industry has been slow to catch up, leaving plenty of room for tech entrepreneurs to create unique solutions. Tech companies around the world are trying to tackle the challenge of secure, borderless payments and entrepreneurs who can capitalise on this are doing incredibly well.
Better solutions for businesses
Faced with fierce competition in the fintech sector, businesses are trying to undercut each other with lower transaction fees, no monthly fees and scalable payment options. For entrepreneurs, there are plenty of opportunities to be had if you’re looking to upgrade your payment processes. Thanks to digital innovations in finance, it’s also much simpler to make transactions abroad and pay with a credit card, which is beneficial for entrepreneurs who need to travel.
Keeping up with expectations
As an entrepreneur, you’ll know just how much is expected from potential new clients or business partners and having a borderless payment solution can be a huge selling point for international clients.
It’s not just B2B companies that need to use borderless payment solutions either. Customers now expect to be able to purchase goods from around the world with security and confidence, so using a trusted payment facilitator can be essential. In a recent survey by Paysafe nearly half of respondents stated that they use a digital wallet for online transactions and one in ten said they were making cryptocurrency transfers.
Fast, frictionless payments are becoming the norm and most consumers expect to be able to pay from anywhere. For entrepreneurs willing to embrace this trend, the growth of borderless payments presents a world of opportunity.