Cross-border payments options for businesses
As e-commerce businesses grow, the demand for cross-border payment grows also. In 2018, cross-border B2B money transfers were valued at 150 trillion U.S. dollars, with this value projected to increase to 218 trillion U.S. dollars by 2022, according to reports.
Cross-border payments offer support that is beneficial for economic growth and facilitates international trade and financial inclusion. However, this service, primarily used by large businesses as well as small and mid-size enterprises (SMEs), has suffered for too long due to high costs, low speed, limited access, and insufficient transparency.
For example, with the SME sector, although cross-border payments are an essential part of day-to-day business operations, it is currently plagued with numerous challenges. The SME sector is the backbone of major developed economies and contributes to 90% of all businesses worldwide, creating 7 out of every 10 jobs in emerging markets per World Bank report. In Nigeria, SMEs contribute 48% of national GDP, account for 96% of businesses and 84% of employment, yet this vital part of the economy faces several challenges with business operations.
- Same-day payments are unusual in cross-border transactions, although they are widespread in domestic payment environments.
- Cross-border transactions are harder to track these days, making settlement timelines impossible to predict.
- When it comes to cross-border transfers involving several jurisdictions, keeping up with the regulatory environment is time-consuming and costly. There might also be uncertainty when it comes to interpreting rules, which could lead to non-compliance.
- There is a substantial expense associated with cross-border transactions. Hidden transfer and exchange costs are some of the most significant issues that merchants encounter when accepting cross-border payments.
For businesses, choosing the proper cross-border payment solution is critical to success, growth and gaining customer trust. We have built the following suite of products to facilitate seamless cross-border payments and support business growth
- Klasha Checkout: Klasha Checkout allows businesses to collect payments from Africa in local currencies and can be integrated into any e-commerce platform, website or app. Through this checkout, customers in Africa can make payments using their preferred African payment method (card, bank account, USSD, M-Pesa, Mobile Money.) and enjoy cheap and fast delivery of their goods.
- Klasha Payment Links: A no-code option to accept payments for B2B and B2C merchants or independent sellers that do not have an e-commerce storefront. The Klasha Payment Links provides a flexible and easy way for international businesses to collect payments from customers in Africa without needing a website, app, or coding skills. With just a few clicks, companies can create a simple custom checkout page directly from their KlashaDash dashboard and share it with their customers via email, WhatsApp or other social media platforms to receive payments.
- KlashaWire: A fast and easy way for businesses to pay their suppliers overseas in their preferred African currency, whether Naira, Cedis or other currencies. The suppliers, on the other end, receive the money in the dominant currency of their choice. With this feature, small business owners can easily make large payments to suppliers overseas while lowering the cost of the transaction directly on the Klasha dashboard. When payments are made, the supplier will generally receive it in their dominant currency in two business days.
If you are looking to make cross-border payments, choosing Klasha as your payment partner is one of the best decisions you’ll make. To start accepting payments via Klasha, sign up for free here.