By Christian Spaltenstein, Managing Director, AFEX Americas
Banking and financial operations have evolved immensely in the past few years. Innovation in banking technology has set new standards for businesses, with multiple players actively participating in the journey to make financial services transparent, accessible and secure. In a globalized economy, where borders dissolve and even a micro-business can build an international footprint, a global payments offering is the magical key for any business to thrive. With competition from digital-first challengers, businesses are now realizing the importance of enhancing their product offerings to flourish in today’s internet based marketplace.
The pandemic has certainly played a massive role in forcing businesses to re-think strategies and optimize their operating model to suit the needs of the present economy. Ensuring business continuity is top-of-mind for many businesses who are struggling to remain afloat.
Expanding your revenue stream, especially during these challenging times, can be tough but profitable. A primary area of focus for many businesses today is to have an efficient and reliable supply chain. That could mean exploring unfamiliar markets and sourcing new service providers. Some businesses are also adapting their product lines to accommodate new needs in the market.
As other businesses effect digital transformations and find new ways of working, hacking is on the rise. Customers today want everything over the web; ensuring your systems are secure and efficient is even more important during these challenging times.
Businesses that are unable to cope with these increasing demands suffer the challenge of surviving and remaining relevant.
Companies that have been able to implement API solutions have observed proven success in achieving a multitude of business objectives. Automating financial operations with advanced technology solutions can help you not just differentiate your business, but also capture market share in today’s economy. It can add operational efficiency and help enhance your organization’s productivity—and as a result, revenues.
A trusted API solutions partner for global payments with an efficient banking and payments infrastructure can open your business to opportunities to grow internationally. It can also help your business to adapt to changing customer needs and offer services that can help you stay at the top of your game. Here are a few ways such solutions can help your business thrive and go global:
1. Currency risk management –
Uncertainty due to ongoing market volatility can have adverse effects on your business’ profits. The ability to create forward contracts enables businesses to lock in a favorable rate and ensure financing certainty for their future currency needs.
2. Entrance into new markets –
Introducing a business into new markets, or sourcing new services, comes with a host of challenges, the biggest being currency and payments. API solutions can support a business’ expansion plan today, tomorrow and in the future, with seamless scalability ready when it’s needed.
3. New revenue streams –
A global payments API solution can help your business operate more efficiently. It offers a competitive edge, which can transform FX from a cost to a strategic advantage. As a business grows, so should its revenue.
4. Product growth and competitive advantage –
An efficient FX and payments system can help businesses to steal an advantage in the market. Many business functions depend on either incoming or outgoing payments, and integration of these basic features into a business’ product can represent exponential growth in new users and wallet share.
5. Data is gold –
In today’s changing environment, protecting yourself and your customers’ data is a necessity. A secure and stable infrastructure to keep data safe helps you avoid financial and reputational damage— adding to your peace of mind—and increases customers’ trust.
A global payments partner can certainly help expand your revenue stream and strengthen your value proposition. However, it is critical to analyze your core competencies. Taking a look at your own cost structure and restructuring your delivery channels to best suit the needs of your end customer is essential. Using tools like AI can help you draw better conclusions about customer behavior, guiding you to choose the right enhancements. The objective for any expansion should be to improve the business ecosystem you operate in.
Your global payments partner should also be able to understand your target market and your business goals to better help you navigate risks and mitigate market volatility.
In evaluating a partner, key considerations include:
- Product knowledge and demand: Choose a partner with experience with companies like yours and the ability to adapt their solutions to your needs.
- Regulatory set-up: Make sure your partner is licensed and fully compliant across the world, and has robust cybersecurity protocols in place.
- Infrastructure: A well-developed, stable global payments infrastructure and robust payment rails saves you the time and resource you’d need to build your own.
- Cultural understanding for expansion: Communication and business practices vary across the world. A partner with a sizeable global footprint can help you navigate efficiently in new markets.
Times of crisis often produce innovation in processes and practices. The digital transformation of financial services has been extensively accelerated by COVID-19. Companies are seeking new ways to keep costs down while they weigh opportunities to expand internationally. Adapting to survive and ensure business continuity, especially during the ongoing pandemic is critical for businesses.
In times of uncertainty it’s important to keep both feet on the ground and ensure your operations are smooth and your data secure. Automating your global payments process is an important step in digital transformation. Adding efficiency and reducing errors can boost your profitability and can help you scale for the future.
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