Streamlining International B2B Payments: Efficient Strategies for Businesses

B2B cross-border payments are becoming more competitive on a worldwide scale. 

According to a 2022 Juniper Research estimate, the worldwide B2B payments environment would rise by 26% between 2022 and 2027. By the conclusion of the projection period, the B2B payments industry is expected to be worth $111 trillion.  

Domestic and cross-border payments both play important roles in this expansion, with the latter swiftly emerging as the new fintech frontier.

To stay up with the fast-changing payments market, your company should explore how to simplify its cross-border and B2B payment procedures. 

Here are the five main measures to make your cross-border payments more efficient and cost-effective:

1. Use a suitable payment solution

The first, and possibly most crucial, step in streamlining your cross-border payment process is to choose and implement the appropriate payment solution. 

In the cross-border payments market, financial service providers like Transferra and fintechs have made it simpler than ever to connect to sophisticated payment systems and services. This helps all types of organizations, particularly small-to-medium-sized firms (SMEs) operating in the B2B arena, who need a payment solution that is both strong and economical. 

When looking for the proper payment solution for your cross-border payment requirements, consider the following features:

• Platform capabilities;
• Transparency;
• Localisation.

2. Increase fraud detection services

Fraud is not a minor issue in the payments sector; in fact, it is one of the most prevalent difficulties. 

According to Juniper Research, fraud losses were more than $41 billion in 2022.

Many firms are aware of the dangers associated with popular kinds of fraud, such as card-not-present fraud and identity theft; nevertheless, this knowledge may occasionally lead to more subtle forms of fraud sliding through the gaps. 

For example, invoice fraud is a common kind of fraud that may go unnoticed for lengthy periods without the correct fraud detection measures in place. 

According to a 2023 PYMNTS analysis, invoice fraud is predicted to cost mid-market organizations $280,000 each year, with over 34,000 occurrences detected each year. 

Preventing this form of fraud is particularly challenging in cross-border payment circumstances because different time zones and regulatory norms might affect the speed with which invoice fraud is identified. 

3. Implementing AI and automated KYC 

Improving cross-border B2B payment speed may be challenging to maintain consistently. 

You may develop longer-lasting and more trusted connections with other firms overseas by speeding up your payment and reconciliation processes. 

SMEs in the B2B industry understand how important it is to get payments on schedule. However, it is equally crucial to transmit timely payments to your overseas suppliers, vendors, and other partners within the agreed-upon timeline. 

This is another significant benefit of collaborating with a banking-as-service provider or fintech: the opportunity to improve the efficiency of your payout and reconciliation procedures across the board, whether you are making payments locally or overseas.

Services that allow for localized and transparent payments may significantly enhance these procedures. 

Localisation ensures that currency changes are swift and cost-effective. Meanwhile, increased openness may help your company maintain better track of payments, enabling you to keep your partners informed about the status of a transaction. 

4. Outsource bank relationship management

One of the most challenging aspects of cross-border payments is the need for correspondent banks in the payment process.

Correspondent banks may be difficult to engage with since they are unwilling to accept overseas customers without conducting long examinations that affect your time to market. You also need the correct domestic banking ties to connect with correspondent banks, which might provide comparable issues in identifying the best banking provider for your organization.

Managing these connections with domestic and correspondent banks might require a significant amount of time and effort on the part of your staff. In comparison, engaging with a financial service provider that provides access to current banking ties may nearly completely remove this headache.

5. Implement embedded payments in your payment process

When striving to simplify your cross-border payment processing system, you must consider both the back-end requirements and the front-end consumer experience.

Embedded payments may dramatically enhance B2B connections with foreign partners and suppliers by speeding up the invoicing and reconciliation procedures. In many circumstances, embedded payments might provide the key to enabling real-time payments. 

While there are still challenges to solve before global real-time payments become a reality, the future seems promising for integrated payments in the B2B sector.