Top 3 Fintech Alternatives to Streamline B2B Payments Across Borders

Author : money transfer | Published On : 28 Apr 2021

B2B cross-border payments are forecast to reach $35 trillion by 2022, marking a healthy 30% increase over the $27 trillion value in 2020. Goldman Sachs is also more upbeat about the B2B payments market's upward trajectory, predicting that it will cross $200 trillion by 2028.

Growing Businesses and Digital B2B Payments: A Slow Past, a Bright Future


The B2B and B2C payment markets have not implemented digitization at the same rate over the years. In reality, only one-third of total B2B global payments are processed electronically, compared to two-thirds of B2C global payments, according to a study.


This lag has been caused by several factors. One is that B2B payments are often linked to complicated business processes that necessitate manual labor. Automation and ERP tools can help reduce the complexity of these processes. However, such platforms are prohibitively costly for small companies, which is why 80 percent of their invoices are still handled manually and paid by check.


The good news is that investment in FinTech-driven B2B payments is on the rise. This has allowed for disruptive innovation and growth in the market, which will benefit many companies, especially SMEs. 


Payments transactions around territorial boundaries would be boosted as a result of digital adoption. Payments transactions around territorial boundaries would be boosted as a result of digital adoption. They can provide growing companies with greater mobility, flexibility, and protection in unpredictable circumstances, as well as the ability to align with their suppliers and consumers on payment terms and credit, as well as improve insight into their cash flow positions.


Here are three FinTech options for streamlining B2B payments that are both easy and affordable.

#1. Global Receiving and Collections Account

A global collection and receiving virtual account is an easy, low-cost alternative to foreign bank accounts for cross-border businesses. This account can be used to accept payments from overseas customers much like a local currency bank account.


Unlike international bank accounts and interbank transactions, this account does not impose unfavorable exchange rates or extra fees on small and growing businesses. This allows sellers to cut their foreign exchange losses, improve their cash flow, and boost their production. Incoming funds are free, and account owners are only charged a small fee when they withdraw or pay money from the account. 


Furthermore, the account helps customers from all over the world by allowing them to pay the seller in their chosen currency using local payment methods instead of paying costly foreign transfer fees. Overall, a multinational collection and receiving account streamline cross-border payments and helps businesses on both sides of the border to thrive.


Businesses may use the Wallex global collection and receiving account to raise funds in various currencies, including USD, GBP, EUR, and IDR, without incurring any fees. They will be less vulnerable to exchange rate volatility and will save money on various conversion fees. They will increase their cash flow and reduce their working capital needs because there are no minimum balance requirements or bank fees. They can centralize all collections into a Wallex multi-currency easy wallet for easy fund management, and they can also bind their balances to other cross-border tools for foreign payments and FX conversions.

Multi-currency Account No. 2

A multi-currency account, also known as a foreign currency account or a borderless account, makes it easier for companies to send and receive payments from foreign entities. Businesses can send and receive foreign currencies at a much lower cost with this account than they can with daily international bank transfers. Owing to the timing variations between incoming and outgoing (multi)currency flows, it decreases the probability of losses due to exchange rate fluctuations and provides "rate spread." Account-holders may also keep different currencies in their acc

The multi-currency wallet from Wallex is suitable for companies who collect money from abroad daily or want to conserve their funds in foreign currencies. Count and leave them there when the exchange rates aren't favorable, then convert when the rates are. 

 It is designed to simplify FX-based accounts receivables and streamline cash flows. They can easily carry, convert, and pay in 14 different currencies while managing FX risk and saving money on FX transactions over time, particularly when dealing in large volumes. The account, which offers competitive mid-market exchange rates, is a strong, low-cost way to hedge against volatile foreign exchange markets and take advantage of cross-border business opportunities.

Virtual Cards (#3)

Another FinTech advancement that simplifies cross-border payments is virtual credit cards. These cards – basically a 16-digit number – allow one-time transactions at fixed amounts, thanks to rising mobile device use. They are suitable for B2B payments because they provide increased convenience, protection, and speed.SMEs can easily incorporate ePayables with virtual cards into their B2B activities, allowing them to streamline payments, monitor and manage cashflows, and optimize working capital. 


In comparison to conventional business credit cards, virtual cards have more protection against possible fraud. Payments made with these cards are processed and settled immediately. They can also be tracked using Virtual Card Numbers (VCNs). Both of these benefits contribute to the strengthening of business partnerships, which benefits both consumers and suppliers.


Final thoughts

Traditional cross-border payment mechanisms are no longer sufficient to meet the demands of expanding multinational companies. Global collection and receiving accounts, virtual IBANs, and virtual cards are three great FinTech alternatives to these costly, cumbersome, and inefficient methods. Small businesses that embrace these new approaches will be able to benefit from frictionless payments, greater control over their cashflows, and more effectively engage in cross-border trade.

Discover the advantages of a quicker, cheaper, and more convenient cross-border payment system for your B2B operations with Wallex's global collection and receiving account. Visit Wallex for more detail.