Globalization is increasing with digital transformation processes, and the demand for cross-border payment and international payment solutions that manage asset transfers between countries is also increasing accordingly.
Transferring assets between countries has become a necessity for both businesses and individual investors in the globalizing world. With the increase in alternative digital payment solutions, the pace of globalization is accelerating, and the commitment to cross-border payments is deepening accordingly.
The increase in the number of digital business types, such as e-commerce, has increased the international payment needs of thousands of potential customers from different parts of the world.
Many investors and businesses need to transfer assets and receive payments not only within their own countries but also to different parts of the world through digital payment methods.
Businesses and customers working in the field of e-commerce, individuals working as freelancers for businesses abroad, global education payments, import or export payments, etc., have international payment needs in many different areas and sectors.
When these transactions are made with SWIFT methods in traditional banking, transaction fees are high and the transfer period can be extended. These factors also negatively affect the operational efficiency of businesses.
For this reason, interest in modern payment methods is increasing. Thousands of mobile payment platforms from different parts of the world have increased the number of cross-border solutions.
Thanks to cross-border payments offered by digital payment platforms, individuals or businesses can transfer assets whenever and in whatever amount they want.
The fact that these are managed through reputable and reliable platforms, that there are low transaction fees, and that there are no restrictions are important criteria. The use of new and digital asset classes such as cryptocurrencies is increasing the alternatives of digital payment methods.
What Is a Cross-Border Payment?
Cross-border payments are processes where the sender and receiver transfer assets between accounts in different countries. Usually, when cross-border payments are managed with traditional banking solutions, there are time and amount limitations.
However, thanks to digital payment methods, all kinds of international payments can be managed in seconds today. Digital payment tools offer many solutions for both businesses and individual investors.
It is also possible to make transactions between different currencies thanks to such payments. Due to financial regulations and infrastructure problems in traditional banking ecosystems, cross-border payment processes can be very inadequate compared to digital payment tools.
Today, it is possible for a Finnish company to transfer assets to a raw material producer in Asia thanks to these solutions, and this process is an example of cross-border transactions. With Jeton, you can receive payments from anywhere in the world and transfer assets to anywhere.
How Does Cross-Border Payment Work?
So how exactly does the cross-border payments process, which can be managed even through a mobile phone today, work? Although at first glance this process may seem difficult and complicated due to traditional banking habits, it is actually managed in a few simple steps.
The steps that show how cross-border payments work can be listed as follows:
- Sender account: The financial platform in the country where the user is located initiates the transaction.
- Intermediary platform: If there is no direct financial relationship between the two countries, intermediary financial institutions usually come into play in the second step.
- Receiver financial platform: At this stage, the money reaches the recipient country through official means.
- Currency conversion: The currency in the sending country is converted to the local currency of the recipient country.
In traditional banking solutions, this process is called SWIFT. However, thanks to today’s digital payment methods, it is possible to manage cross-border payments between any two countries digitally within seconds without being stuck with time and amount limitations.
What Are the Advantages of Cross-Border Transactions?
In the globalizing world, limiting financial transactions with country borders can have quite negative effects on business owners and investors.
In the digital world, where every country and every individual is in constant contact with each other through digital tools, payment methods without borders, such as cross-border transactions, are becoming increasingly popular.
So what are the advantages of cross-border payments for users and businesses? The most obvious advantages can be listed as follows:
- Access to commercial transactions and global cash flow on a global scale: It is easier to work with partners or suppliers abroad.
- The opportunity to open up to new markets: Companies can reach potential customers in different countries.
- Being able to offer various payment methods Not only traditional payment methods but also digital payment alternatives can be offered, such as payment with cryptocurrencies.
- Compliance with the principle of financial inclusion: Financial inclusion is achieved by participants from all over the world accessing financial transactions on a global scale.
Businesses in the e-commerce sector, which is a very popular business model today, benefit from all of these advantages. At the same time, access to more services and products are also critical benefits for customers.
If someone or a business is going to make a global money transfer to you, it is enough to have a Jeton account. You can easily sign up and complete your transactions!
What Is an Example of a Cross-Border Payment?
There may be “examples of cross-border payment” scenarios in many different sectors. To give an example, a student in London paying his tuition to a university in the USA with digital payment methods is a cross-border payment transaction.
While the recipient account is in the USA, the sender account is in London. The transfer of assets between these countries, which are included in two different banking ecosystems, is a cross-border payment practice.
Financial platforms where such international payments are possible are called cross-border banking. The traditional banking model, where assets are transferred only with accounts in the country of residence, may be insufficient for today’s conditions.
Traditional banks can also provide asset transfers between two different countries through methods such as SWIFT. However, transaction fees, commissions, and restrictions are often experienced in these processes. This feature does not have negative effects on the operational efficiency of businesses.
What Is the Meaning of International Payments?
International payments cover asset transfers between two different countries. However, it includes not only bank transfers but also credit card payment processes, digital wallets, mobile payment methods, and cryptocurrency payments. In fact, cross-border payments are an example of international payments.
Some examples of “difference between cross-border payments and international payments” can be listed as follows:
- While financial institutions such as banks are generally intermediaries in cross-border payments, digital payment methods may be sufficient in international payment processes.
- While fiat currencies such as USD and EURO are mostly used in cross-border payments, cryptocurrencies can also be used in international payments.
Today, many businesses and individual investors are interested in international payment solutions. We should remind you that the fast and flexible cross-border solutions offered by digital payment methods are opportunities that increase operational efficiency for businesses.
In a globalizing world, payment methods such as SWIFT may no longer be sufficient. You can quickly manage any of your international payment needs through Jeton.
How Do International Payments Work?
International payments refer to asset transfers not only within a single country but also between different countries. In this type of payment, banks or financial platforms in the sending country act as intermediaries and perform exchange rate conversion.
Traditional international payment processes consist of the following steps:
- Sending a request to the platform, from which the sending account receives the service.
- The request is sent to the account of the intermediary financial institution that provides cross-border banking services.
- The platform or bank from which the receiving account receives the service performs an exchange rate conversion for the incoming transfer amount. For instance, the conversion of GBP to USD is necessary when sending money from London to the USA.
- In the final stage, the amount reaches the recipient’s bank account.
Cross-border payments usually work with these steps. However, thanks to today’s digital payment tools, all these steps can be completed in a few seconds. For this reason, many digital payment platforms add cross-border transactions to their services.
What Are the Advantages of International Payments?
Businesses that want to access global cash flow and individuals who are looking for business opportunities outside their own country are interested in international payment solutions.
It is known that international payment solutions provide many advantages in the modern world. The most important advantages are as follows:
- Access to global trade: Companies can manage the financial needs of export-import processes with different countries thanks to these solutions.
- Reaching a potential customer base: The validity of different payment methods and the use of international payment tools facilitate access to products and services offered to customers abroad.
- Multi-currency support: The country where the sender is and the country where the receiver is may use different currencies. For this reason, users also need exchange rate conversion solutions.
These advantages are factors that increase efficiency for both individuals and businesses. With Jeton, which offers digital solutions to today’s digital finance needs, it is possible to receive payments from all around the world.
What Are the Payment Methods for International Payments?
Today, there are many different international payment methods offered by both the traditional banking ecosystem and digital financial institutions. The most popular of these can be listed as follows:
- SWIFT
- Credit card payment transactions
- Digital payment platforms such as Jeton
- Transferring assets with cryptocurrency wallets
In the SWIFT method, traditional banks allow transfers between two bank accounts to be made under a specified amount and on limited days and working hours. In credit card transactions, payments can usually be made 24/7, but transaction fees are paid.
However, the elimination of the limitations in these payment methods has become possible with digital payment methods.
Thanks to digital wallets where cryptocurrencies are used or mobile applications where assets can be transferred digitally, long processes such as SWIFT are managed more efficiently and more easily.
Of these solutions, digital ones are preferred by businesses. Because there are lower transaction fees in cross-border transactions offered by digital finance platforms and there are far fewer legal restrictions and regulatory sanctions. This flexibility is essential for businesses’ ongoing cross-border payment needs.
What Is the Difference Between Cross-Border Payments and International Payments?
Although cross-border payments are examples of international payments, there are some differences between these two methods. The most important differences in the scope of difference between cross-border payments and international payments can be listed as follows:
- While banks or financial platforms are used for cross-border payment processes, digital payment platforms may be sufficient for international payment processes.
- While cross-border payments are more corporate, even digital wallets can be used for international ones.
- International payments are more comprehensive and valid for all types of asset classes.
However, with the development of digital banking solutions, the differences between these two payment methods are gradually decreasing. With Jeton, you can transfer assets to different parts of the world in minutes.
Which One Should You Choose?
You need to determine which one is most suitable for you among cross-border payments or other international payment methods. Depending on your financial needs, payment frequency, payment amount, the sector your business operates in, and your individual financial goals, which one you should choose may vary.
If you are running a business, it may make more sense to deal with cross-border banking solutions. However, it is generally more logical to prefer digital payment platforms for individual transactions. Because in such transactions, transaction fees and commissions are low, while there are almost no restrictions.
All these problems can be managed in the most flexible way with cryptocurrencies. If businesses frequently make payments between different countries, traditional banking solutions can be really costly.
For this reason, businesses that play an active role in such export or import processes experience a great deal of operational efficiency when they manage their financial processes through digital banking solutions.
If you are interested in individual transfers rather than business, it is recommended that you choose a reliable platform that offers the lowest transaction fee for you.
For example, a software developer living in France working as a freelancer for a technology company in the USA and receiving salary payments can be given as an example of a cross-border payment.
Sending money across borders shouldn’t be complicated. Jeton is a good choice for maximum speed and security in global money transfers.
With Jeton, you can make fast, secure, and low-cost international payments—anytime, anywhere. Open your Jeton account today and experience seamless cross-border transfers in just a few taps.
Download the Jeton App now on Google Play or the App Store and take global payments into your hands!
