As economies adjust to an increasingly digital world, and as global money movement becomes more prevalent, there is a pressing need for flexible, easy-to-use solutions for sending and receiving money across borders.
While the pandemic accelerated the move to digital solutions, the complexities inherent in global money movement continue to present challenges for businesses and individuals that can ultimately impact both bottom lines and the global economy.
For businesses, cross-border payments have long frustrated treasury cash managers of small and large corporations alike. Pain points include multiple-day lags for payments to process, lack of visibility, and costly fees.
For consumers, while digital transformation is removing physical barriers to making and receiving payments and simplifying how people send money internationally, some international transfers can take days to complete, and costs remain stubbornly high.
Despite these challenges, the desire and expectation for a better way is tangible. Businesses are increasingly operating across borders, and B2B e-commerce and online marketplaces are driving more cross-border transactions. Similar trends are increasing the frequency with which consumers interact across borders – driving their need to send money.
Modernising the cross-border payment process
Visa research has found that cross-border money movement represents a $10 trillion opportunity for the payments industry (the “Innovating Cross-Border Payments” study by Pymnts/Visa in December 2020) – but significant challenges remain.
For example, nearly 70% of surveyed businesses in 20 countries reported systematic issues with poor visibility and inefficiency (the research was conducted by East & Partners on behalf of Visa in June 2019).
On the consumer side, while digital transformation has simplified many types of payments, cross-border remittances have remained largely unchanged. A modern cross-border payment system needs to ensure access for all, especially those in traditionally underserved communities. International transfers can take days – a reality that can bring undue costs and complications for those awaiting payment.
Visa solutions are built to help cut through the complexity and inefficiencies. Visa Direct, which facilitates payments in more than 180 geographies and 160 currencies, offers simple digital payments making it possible for businesses and consumers to send money directly to a given bank account, digital wallet (currently under development) or card – including over three billion cards and over two billion accounts.
Visa B2B Connect can eliminate the need for high-value cross-border payments to be sent through multiple banks – it instead facilitates transactions directly from the bank of origin to the beneficiary bank, increasing the speed and predictability of the payment.
Visa B2B Connect is available in over 100 countries and territories. Visa and TD Securities recently announced an innovative collaboration as TD Securities becomes the first Canadian financial institution to join Visa B2B Connect. Since the launch of Visa B2B Connect in 2019, Visa has been focused on enhancing the network and growing its global reach, adding new banking partners.
Driving the digital economy forward with cross-border payments
Cross-border digital payments have become critical for businesses and individuals but sending money internationally still has complications. Visa is committed to tackling those challenges head on, delivering solutions and technology that help make cross-border payments simple and build an accessible global digital economy for everyone.
