Cross-border payments are financial operations conducted between participants located in different countries. Moreover, international transactions can be carried out not only by legal entities but also by individuals. This is a very important aspect for e-commerce since it allows companies to establish international partnerships and sell their goods abroad, receiving timely payment without burdening consumers with excessive transfer fees.
The relevance of convenient cross-border payments for modern businesses
The e-commerce market has significantly expanded and developed since the pandemic, making it no longer strange or unusual for businesses worldwide to enter global markets. Now, alongside globally recognized marketplaces, there are local companies ready to deliver goods to consumers in other countries. This gives local businesses the opportunity to attract more new customers, gain recognition, and earn more.
However, to effectively develop internationally, it is important to optimize the system for accepting cross-border payments and make it as convenient as possible for both businesses and customers. This is exactly what the Fondy system offers you.
Challenges faced by businesses in optimizing cross-border payments
Accepting cross-border payments opens up numerous opportunities for companies, including the ability to scale, promote their brand, and increase revenue. However, sometimes, businesses encounter not only benefits but also specific challenges and problems, such as:
- The complexity of conducting transactions. Companies conducting business abroad and accepting or making cross-border payments need to understand exchange rates, taxes, fees, and bank accounts in different currencies. If a customer pays for a purchase with a card, exchange fees should also be taken into account.
- Additional costs arising from transaction fees and currency conversion losses.
- Delays in international transfers, as instead of instant transactions, it often takes five or more banking days to complete.
- Limits and regional restrictions. For example, making payments within the EU is relatively easy, while payments between other countries may be subject to certain limits and restrictions imposed by payment gateways and regional legislation.
However, when you integrate the Fondy payment service into your business operations, you eliminate these issues and significantly minimize risks.
Advantages of cross-border payments
International payments allow businesses to expand their connection with customers around the world and receive payments in different currencies. At the same time, consumers from any country can make purchases in their favorite stores and have access to a wide range of goods and services that may not be available in their regions. Various payment methods can be used for payment, including credit cards, e-wallets, bank transfers, and more. To ensure the smooth functioning of this system, all you need is a convenient, reliable, and secure payment gateway, which the Fondy platform can provide.
Strengthen your international presence without unnecessary risks and build your business on the most favorable terms!