B2B Cross-Border Payment Part 11 - When Instant Settlement Payment Gateway Connects with Multicurrency Accounts for Business

B2B cross-border payment remains one of the major pain points for businesses as they still have to wait a considerable amount of time for the payment process to be completed and for both banks to authenticate the transaction, in addition to strict regulations imposed by the governments of various countries.

However, in a previous blog post on FinFan related to B2B cross-border payment, we discussed a real case where the European B2B cross-border payment process was simplified, taking only 10 seconds to complete the entire transaction.

Alongside this, FinFan also holds great hope that the B2B cross-border payment process will be shortened to just 8 seconds in the near future by applying new technologies to the process.

Accordingly, businesses can fully utilize a combination of instant settlement payment gateways alongside multicurrency accounts to further shorten the transaction time.

Let’s explore with FinFan the integration of these two advanced technology products—settlement payment gateway and multicurrency accounts—in shortening the cross-border payment process for Vietnamese businesses in the future.

Revisiting Instant Settlement Payment Gateways

As mentioned in previous articles on instant settlement payment gateways, this technology product can support the payment processes of both individuals and businesses instantly through intermediary payment methods such as QR codes, e-wallets, and even by incorporating cryptocurrencies in transactions.

Read more:

. Use Cases of Instant Settlement Payment Gateway in Vietnam

Revisiting Multicurrency Accounts

Similar to previous articles discussing the benefits that a multicurrency account brings to cross-border payments for businesses, FinFan has also introduced the concept of this new fintech product.

With this type of account, businesses will not spend excessive time and fees on currency conversion between countries, as the account itself is configured with conversion codes that match the current exchange rates of the two currencies being exchanged, and it supports an unlimited range of currencies (including cryptocurrencies).

For example, an e-commerce business that operates in Europe, the US, and Asia may need to handle transactions in euros, US dollars, and yen.

A multicurrency account would allow them to hold these currencies and convert them at the most favorable time, avoiding the need to convert immediately at potentially less favorable rates.

Read more:

. 4 Benefits of a Multi-Currency Account for Your Business and How to Choose the Right Provider

The Synergy Between Instant Settlement Gateways and Multicurrency Accounts

The true power of these technologies emerges when they are combined. By connecting instant settlement gateways with multicurrency accounts, businesses can revolutionize their payment processes, particularly for cross-border transactions.

How the Integration Works:

Instant settlement gateways can be integrated with multicurrency accounts to allow for “Faster – Safer – More Cost-Effective” payments across borders.

When a transaction is initiated, the funds are transferred instantly via the payment gateway and credited to the appropriate multicurrency account.

This eliminates the need for manual currency conversions, as the account is already set up to handle various currencies in real-time.

Key Benefits of Connecting Instant Settlement Gateways with Multicurrency Accounts:

Faster Transactions:

The integration reduces the time needed to complete cross-border payments from days to seconds. This is crucial for businesses dealing with international clients and suppliers.

Reduced Currency Conversion Costs:

By holding and transacting in multiple currencies, businesses can avoid the fees and delays associated with converting funds.

Enhanced Financial Management:

The ability to manage multiple currencies from a single account simplifies accounting and treasury operations.

Real-time Access to Funds:

Businesses can immediately access their funds in the currency of their choice, improving cash flow and operational efficiency.

Safer Cross-Border Payment Process:

With the simultaneous integration of instant settlement gateways and multicurrency accounts, businesses no longer have to go through numerous intermediary steps involving other auxiliary companies related to currency conversion, which enhances the security of transaction information.

Use Cases in Global Business

This combination of instant settlement gateways and multicurrency accounts is particularly beneficial for businesses engaged in international trade. Here are a few scenarios where this integration proves invaluable:

E-commerce

Online retailers often have customers from various countries, meaning they must manage payments in different currencies.

With this integration, an e-commerce company can receive instant payments in the local currencies of their customers without worrying about conversion fees or delays.

Freelance Platforms

Freelancers working for clients worldwide can benefit from instant payments through this integration.

Whether they are paid in euros, dollars, or any other currency, freelancers can receive payments instantly and in the currency of their choice, improving their financial independence.

Supply Chain Management

For businesses importing or exporting goods, paying suppliers in their local currency instantly can reduce delays in the supply chain.

This ensures smoother operations, especially when dealing with international suppliers in different time zones.

Challenges and Considerations

While the integration of instant settlement gateways with multicurrency accounts offers tremendous benefits, businesses should be aware of some potential challenges:

Regulatory Compliance:

Cross-country transactions may be subject to strict regulations and compliance requirements depending on the countries involved. It’s essential to understand these before implementing such solutions.

Security Concerns:

With instant payments, there’s always a risk of fraud or cyberattacks. Ensuring robust security measures are in place is critical to protecting sensitive financial data.

Costs:

Although these technologies reduce some costs, there may still be fees associated with maintaining multicurrency accounts or using certain payment gateways.

The Future of Cross-Border Payments

As businesses continue to expand globally, the demand for faster, more efficient payment solutions will only grow. Instant settlement gateways and multicurrency accounts represent the future of cross-border payments. By adopting these technologies, companies can not only streamline their financial processes but also gain a competitive edge in the global market.

Fintech innovations are likely to drive further advancements in this space, with even shorter processing times and enhanced security measures. The possibility of integrating more advanced technologies, such as blockchain or AI-driven fraud detection, could make cross-border payments even more seamless in the future.

Conclusion Regarding the Connection between Instant Settlement Payments and Multicurrency Accounts

The integration of instant settlement payment gateways with multicurrency accounts is a significant advancement in the world of global business payments.

By leveraging these technologies, businesses can reduce transaction times, lower costs, and improve their financial management, making them more competitive in the international marketplace.

As fintech continues to evolve, the future of cross-border payments looks brighter and more efficient than ever.

This article was curated and authored by FinFan's market research and development team, alongside our marketing department.

About FinFan

FinFan is a cross-border embedded financial services company that focuses on mass disbursement, fund collection, card processing, IBAN, and digital APMs solutions, which can provide valuable input and integration on and for the same.

FinFan is already integrated with almost the world's well-known MTOs, PSPs, switch, and core fintech platforms such as Money Gram, Thunes, Qiwi, Remitly, World Remit, Bancore, PaySend, Terrapay, Ria Money Transfer (Euronet), Dlocal, Ripple, TripleA, FoMo Pay, Wings, etc.

For more information, please get in touch with us through:

🌐https://finfan.io

📞(+84) 2866 85 3317

✉ support@finfan.vn

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