Following the invention of the internet, we have created new paths for our financial world. It was a natural result of the revolution and nothing has been the same since then. Until the Web, our species had never been so borderless. Although you are sitting on your couch, it is easy peasy to gaze at the archives of Cambridge or to connect a live-cam in Tokyo with two clicks. Mind Blowing! This globalisation shows up in various aspects in our daily routine. One of the most effective of them is cross border payments.
Just twenty years ago, do you remember how we used to handle cross border money transfers? Business owners got used to having accountants with procuration proxies. Since all transfers required individual applications on banks, you could only operate them through your personnel. This is not only a time consuming process, but also full of human errors and the dangers of fraudulent attempts. Instead of focusing on expanding and improving your company, you had to endeavor with those. Thankfully, the financial world stands totally on spot now.
No matter whether you are trading raw material procurement with Russia or placing customized embroidery patterns in your e-commerce site, actually whatever you are selling, importing and exporting, you must utilize cross-border payments. They ease our daily business routine in many ways. Ok! We all agree on that! But what are the cross border payment tips to use them more efficiently?
1- Shape a Currency Strategy!
Surely, one of the struggling parts of operating internationally is foreign currencies. Due to having high volatility in today’s world, it is extra important to decide on a particular currency policy. You have two options here.
For B2C Transactions: To be honest, if you place one fiat currency in your checkout page, get ready to face cart abandonments up to 30% by your international customers. Thus, it is always more user-friendly to serve in customers’ local currencies.
For B2B Transactions: It is always better to use your local currency not to be affected by foreign exchange rate fluctuations. However, every business is done mutually. Your supplier is running a business, too. Therefore, it is better to have consensus on the most convenient B2B cross border payments solutions mutually.
2- Focus on Your Target Market’s Payment Habits!
Every country has different habits when the subject is payments. For instance, AliPay and WeChat Pay are the most used payment methods in China whereas PayPal is the common one in Canada and USA. If you are transacting business with a particular country, it is more logical to integrate that payment method. In the case that you are dealing with various global customers, popular international methods such as Jeton, Visa, MasterCard, Neteller or PayPal.
3-Reduce the Fees and Costs!
Another challenging barrier in cross border payments for small and medium businesses is high charges under the names of transaction fees, transfer fees and SWIFT fees. Being carried by banks for a long time, many people are biased about international payments being expensive and time-consuming. But this is not the case anymore. Since e-wallets like Jeton create cross border payments with lower costs and fees, banks are losing their importance in the field day by day. Moreover, non-bank platforms also have licenses to perform cross border money transfers just like a traditional bank, but with no heavy transaction fees.
4-Cooperate with a Prestigious Partner!
Always form a trusted relationship with your inner circle. No matter your customers or your suppliers, trust is the pillar of a healthy business connection. Avoid risky actions, delays in shipping or missing the due dates for payments.
When the subject comes to reliability, Jeton serves as one of the most trustworthy cross border payment solutions. Besides providing multi currency accounts for both B2B and B2C connections, you can also benefit from our convenient and client-oriented financial management services which are highly recommended by more than half million Jeton users worldwide.
