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{ PRactice ManageMent }

pAyments mAnAgement:

A Cross-Border perspeCtiVe

By Vivene Salmon

Small enterprises to large Fortune 100 companies are growing their
businesses and boosting profts by making strategic decisions that
concentrate limited resources on expanding their customer base
globally. Digital payments and the rise of e-commerce are helping
drive this change in both retail and corporate spheres. And accessing
global markets is easier than ever thanks to sophisticated online
technological platforms, marketing tools and forecasting models that
lower the cost of doing cross-border business.

owever, despite signifcant progress, sion and cuts down on fnancial interme-
hurdles still remain for businesses diaries and human resources needed to
hin accessing global markets cost ef- settle transactions. Hyperwallet Systems,
fectively, with minimal business disrup- on the other hand, offers global local bank
tion and risk. Challenges range from deposits and international wire transfers
organizational governance to regulatory through a network of fnancial partners
issues, budgetary concerns, technological worldwide. Its payment network cur-
integration and payment management, to rently reaches over 200 countries, in more
name only a few in a lengthy list. than 170 currencies.
As your company expands beyond In his article, “FinTechs are Surpassing
Canada, cross-border transactions are Banks on Cross-Border Payments,” Tom
inevitable—and frequent. What trends Groenfeldt points out that FinTechs, like
and issues do you need to consider? TransferWise, are launching single plat-
Traditional fnancial institutions are forms that lower the cost of doing business
increasingly challenged by nimble, tech- across borders by providing a way for busi-
nological savvy players, such as Stripe, Hy- nesses to internationally manage money as
perwallet Systems and PayPal, who hold easily as if they were located physically in
the promise of making cross-border pay- each country. He explains, “In most coun-
ments faster (real-time/instant), cheaper, tries it is very hard to get a bank account
transparent (distributed ledger technolo- if you don’t live there. TransferWise’s Bor-
gies and smart contracts), integrated and derless account does a stringent identity
seamless across country borders, without check to meet Know Your Customer (KYC)
the burden of legacy systems, expensive regulations, but it does that just once and
physical infrastructure or other overhead. applies the confrmed identity to accounts
Stripe, for example, enables businesses in multiple countries. […] Businesses can
in 25 countries to accept payments online keep money in 15 different currencies and,
from anywhere in the world, in over 135 in seconds, get local account details (i.e.
different currencies, including Bitcoin. unique account and routing number) for
This saves on the cost of currency conver- the UK, Europe, and the U.S.”

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