Businesses globally have seen a slight increase in international trade volumes over the past year, indicating that companies may expect a simultaneous boost in international payments activity. Travelex Global Business Paymentsâ research, conducted by Treasury & Risk magazine, released today revealed that senior finance executives found more than 25% of their total monthly payments are international payments.
Interestingly, while 65% of respondents categorized themselves as U.S. or North American businesses, 72% of respondents reported making and receiving international payments. Further, 81% noted that they saw differences in their clientsâ payment needs from region to region. When asked about the top three factors to ensuring a companyâs stability in doing business in other regions, respondents cited an increase in overall business volumes, the ability to manage international payment risks, and implementation of a risk management strategy in order of importance.
âThe one-size-fits-all approach to payments is a thing of the past. Decision makers in growing businesses recognize the need for innovative solutions that help them better manage their payment process, achieving increased visibility and predictability throughout the process,â said David Sear, Divisional Managing Director of Travelex Global Business Payments. âThese findings underscore the impact that todayâs globalization is having on how companies do business and manage their payments around the world.â
The Travelex Global Business Payments study also uncovered payment challenges that still exist for domestic and international businesses, alike. Over one quarter (26%) of respondents cite delayed confirmation of payments and/or receivables as the number one pain point when making or receiving international payments. One in five (20%) cited lack of visibility on international payments and receipts, followed by being unprepared for exposure to currency fluctuations (15%).
Sear added, âThis research shows that there is still work to be done to help global corporations create and implement payment solutions that are truly tailored for their business. At Travelex, we are committed to helping companies implement effective and scalable global payment solutions that can meet their needs as their business grows.â