By Lee McDarby, Managing Director of U.K. International Payments
Covid-19 is continuing to reshape the global business landscape for companies of all shapes and sizes, driving them to make a multitude of operational decisions and innovations to stay afloat during these uncertain times. For some businesses, this has included reviewing their international supply chains, looking to new markets and expanding their customer base in order to ensure they are well-positioned to thrive in a post-Covid era. Yet in partnering with a technology-led cross-border payments provider, businesses put themselves ahead of the curve in growing their operations on an international scale.
With Covid-19 looking set to stay, and a trade deal with the EU not currently secured, savvy businesses are considering high growth emerging markets such as Brazil and India as well as more established markets with existing and in-negotiation trade deals such as Australia and Canada.
At moneycorp bank we understand the potential of emerging markets, as well as established ones. For example, Brazil is an exemplary market for businesses looking to expand their reach globally, with a fast-growing and curious consumer market. Brazilians are statistically early adopters of new trends, with 59% of the population showing interest in technological developments. Despite foreign trade only representing 29% of its GDP (2019), Brazil is among the world’s 25 largest exporters and importers.
Established markets are also incredibly attractive to businesses looking to expand their consumer base. Trade deals with Canada, Australia, New Zealand are all in the pipeline, each with unique opportunities for businesses to grow and thrive. Canada, for example, has a particularly affluent and sophisticated consumer base with a strong demand for premium speciality and organic food and drink products. They also have extensive public infrastructure projects planned, which may present British businesses the opportunity to enter into a market with a consistent and reliable pipeline of opportunities.
Nonetheless, you should be aware of potential business risks that come with trading in new markets, whether they are established or emerging. One of the most notable being increased currency exposure, which if left unchecked can eat into profit margins. Emerging markets are particularly notorious for volatility, meaning that executing or receiving payments at the wrong time could significantly impact on a company’s expected revenue. To have the best chance at succeeding in expansion, it’s vital to partner with a payment provider that has the tools and expertise in local markets to mitigate against potential risks. Technology is key to empowering businesses to think global. So, what technological features should you look for when considering who to partner with?
Undoubtedly when you are expanding globally it’s likely that you will be receiving payments in a variety of currencies. As such, ensure that you find a payment provider that offers a multi-currency IBAN, which will give your business the ability to receive international payments from across the globe. Most traditional banks or IBAN accounts can either: receive only one currency, convert the incoming currency to your account’s currency instantly on arrival, or provide an account per currency. Whereas a multi-currency IBAN will have the ability to provide a singular receiving account that is able to receive and hold international payments in multiple currencies. At moneycorp bank, our multi-currency IBAN means your business can receive payments from over 70+ countries. Access to this seamless network takes away the daunting logistical prospect for companies making their first foray into international trading.
Just as important as receiving payments is being able to make them with ease. By having access to a frictionless Application Programming Interface (API) solution, the speed at which companies can make payments is dramatically increased, whether the money is going to new suppliers or professional services, businesses can rest assured that they will receive payment quickly and efficiently. Having the right API takes the extra resourcing out of global and bulk payments, such as payrolls. At moneycorp bank our API allows businesses to fully automate their payroll system, as well as domestic and international payments to suppliers and easily monitor exchange rates, ensuring conversions are made at the opportune moment to maximise value.
As your business starts to grow globally, your API needs to empower you to expand by adapting to ensure it remains fit for purpose. Using Machine to Machine efficiency, is an effective way of doing so, enabling a platform to run effortlessly with a company’s internal systems through direct machine communication. We pride ourselves on simultaneously providing a dedicated payment solutions team that can develop the API solution so that it is truly bespoke to a business and its’ needs’
Expanding globally can be daunting, but with the right payment provider, businesses can grow exponentially, with the peace of mind that they have access to the latest in payments technology at every step of the process, along with a team of local experts, equipped with global knowledge.
By focusing on the key technology priorities and choosing a specialist payment provider to help you drive your international expansion, you can take away a lot of the logistical pressures, allowing you to focus on what matters most, building relationships with suppliers and your newly expanding consumer base.