New survey findings show that even as UK and Europe based businesses seize the value of collaborating across borders, they still grapple with payment challenges. The findings, which are driven by the results of a Payments Dive survey of 150 senior-level payments executives from companies with equivalent annual revenues of at least £5 million, are detailed in a new research report titled Streamlining Cross-Border Payments to Adapt for Global Growth.
Payoneer — the financial technology company empowering the world’s small businesses to transact, do business and grow globally — commissioned the survey to uncover the payments challenges facing companies using vendors, contractors, or freelancers from across different countries.
The survey findings show that even though 94% of payments executives report that they plan to either increase (66%) or maintain (28%) their usage of foreign-based resources, 73% report it is challenging for their company to pay current vendors, suppliers, contractors, and freelancers from outside the country in which they are headquartered.
In addition, 81% of payments executives agree that regulatory requirements prevent their businesses from making new vendor, contractor, or freelancer relationships that would require cross-border payments. And 66% agree that the potential for high foreign transactions (FX) costs diminishes their companies’ interest in making new vendor, contractor, or freelancer relationships that would require cross-border payments.
Current approaches to cross-border payments also slow down the pace of business. A full 63% of payments executives report taking 2-5 business days to pay international vendors, contractors, or freelancers; 17% report taking more than 5 days.
“Speed of payment is really crucial to businesses’ cash flow and access to funds, but many are still in a position where it would be quicker to fly cash in an airplane than to make an international payment,” says Aaron Rossi, Senior Director of Key Account Sales and Partnerships at Payoneer.
“As the barriers to working with international talent continue to lower thanks to technology innovation and globalization, businesses that have the flexibility to meet the diverse needs of the global landscape — including making same-day and next-day payments — will be better equipped to take advantage of the cost-saving and competitive-advantage benefits of working with international talent,” adds Rossi.
As the Streamlining Cross-Border Payments report details, businesses can also gain greater control over the FX costs and regulatory challenges of cross-border payments with the help of a technology-first, regulated payments solution. To access the full report, click here.
Research results are based on a Payments Dive online survey of 150 senior-level executives with corporate businesses with equivalent annual revenues of at least £5 million and headquartered in either the UK or continental Europe.
Payoneer is the financial technology company empowering the world’s small businesses to transact, do business and grow globally. Payoneer was founded in 2005 with the belief that talent is equally distributed, but opportunity is not. It is our mission to enable anyone anywhere to participate and succeed in the global digital economy. Since our founding, we have built a global financial platform that has already made it easier for millions of SMBs, particularly in emerging markets, to pay and get paid, manage their funds, and grow their business.