Overcoming International Payments Challenges: Insights from the State of B2B Cross-Border Payments Report

How fintech solutions can help businesses navigate cross-border challenges and drive growth.

Businesses around the world understand that now more than ever, tapping into the global marketplace is crucial. The 2023 State of B2B Cross-Border Commerce report by Rapyd reveals that despite facing significant challenges, cross-border businesses remain optimistic and focused on expansion – so long as they team up with the right payments and fintech partner that understands these complexities and has the expertise to support them in their cross-border growth endeavors.

In February 2023, Rapyd conducted a research study to understand the payment preferences and challenges faced by business-to-business cross-border focused companies in seven markets.The study reveals the challenges and opportunities B2B businesses face when accepting payments cross-border and sending payments cross-border – and what solutions they’re calling on to solve today’s most pressing business challenges. The report includes responses from 715 business owners and payment decision-makers based in Brazil, Canada, Germany, Mexico, Singapore, the UK and the US.

In this article, we’ll break down the key findings from the report and discuss how businesses can overcome common obstacles hindering expansion so that they can capitalize on the $48 trillion B2B growth opportunity within cross-border commerce. 

Key Findings: With the Right Fintech Partner, Cross-Border Businesses Are Optimistic About Business Expansion

Optimism abounds: Over half of the respondents have a positive business outlook despite some concerns about the state of business in 2023.

Solutions should focus on savings: Businesses are seeking new, cost-effective ways to send payments and accept payments cross-border and reduce high FX fees.

Pay attention to payment providers: Payment providers gain popularity by delivering fast, convenient, and cost-effective payment solutions.

Cross-Border Expansion Is More Important Today Than Ever Before

What Are Cross-Border Businesses’ Top Concerns?

What Are Cross-Border Businesses’ Top Concerns?

According to the report, 41% of global organizations believe that international expansion is crucial to ease their current business concerns. Inflation, high-interest rates and market volatility are the top challenges faced by these businesses today, with 50% citing inflation as their biggest worry. Despite mixed levels of optimism, cross-border businesses are eager to grow and see expansion as the best remedy for these challenges.

Speed, cost and efficiency are the core building blocks of cross-border expansion

How Much More Do Businesses Pay in Fees for Cross-Border Payments?
Cross-border fees average between $10 to $25 more per transaction, for all business sizes. 

Roadblocks Abound On the Road to Cross-Border Growth

While businesses around the world realize that cross-border expansion is a key priority in today’s market, their desire for growth faces many obstacles.  Our study shows that when compared to domestic business expenses, cross-border businesses face significantly higher costs and greater payment delays.

Cross-border fees are an obstacle – our data shows they average between $10 to $25 more per transaction. The report highlights that 76% of businesses are burdened by transaction fees of $10 or more on cross-border payments, and 23% of large businesses report paying over $50 more in fees per transaction. Additionally, 42% pay between 0.25% to 1% in foreign exchange (FX) fees, with 25% paying even higher fees of between 1%-3% or more. 

How Long Does It Take To Send and Receive Cross-Border Payments?

While cost is a significant challenge for B2B cross-border businesses, delays in sending or receiving payments add to the complexities. Our study showed that 38% of respondents experience delays of five days or more when sending or receiving cross-border payments. These costs and delays are inhibiting growth by eating into revenues, harming cash flow and complicating financial planning. 

The Impacts of Slow Cross-Border Payments
Higher fees, cash flow and lack of visibility are the top concerns. 

The effect of delayed payments are not just a headache for the CFO – these negative impacts are felt by every area of business. Our research shows market volatility creates higher unexpected costs for 46% of cross-border businesses. 43% of businesses face cash flow and challenges with planning as a result of payment delays. 38% report lack of visibility into the transaction flow. 37% of businesses agree payment delays require manual reconciliation, and the same percentage agree that payment delays require the organization to use more of its resources. 

Research Proves Fintech’s Crucial Role in Driving Cross-Border Growth and Solving

What Are The Top Challenges B2B Businesses Face When Sending And Receiving Cross-Border Payments?
Managing Foreign Exchange Is the Biggest Challenge for Cross-Border Businesses. 

When sending payments, the top challenges organizations face are managing the complexity of foreign exchange and regulations (26%), high costs (25%), security/compliance risk (23%) and delays (23%).

The Number One Complaint with Receiving Cross-Border Payments Is Speed

When receiving payments, payment delays (31%), managing the complexity of foreign exchange and regulations (28%), high costs (25%) and cross-border payments compliance (25%) are the top challenges for cross-border businesses.

Businesses Are Calling For Better Fintech Solutions To Ease Current Economic Concerns

Decision Makers Are Turning to Fintech as a Service Solutions like Rapyd to Accelerate and Simplifying Cross-Border Payments
Our study found that 61% of financial decision-makers have made payment system digitization a top priority, while another third have already automated their systems. Businesses recognize the need to overhaul legacy cross-border payment processes and see technology as essential to this transition. 

Our study makes it clear that business leaders are aware of the opportunities cross-border commerce presents. But to act on those opportunities they need solutions and trusted partners that can help them navigate international expansion.

How Do Thousands of Cross-Border Businesses Simplify Complexity, Lower Costs and Accelerate Payments?
By providing faster, more cost-effective payment solutions, Rapyd helps businesses overcome the challenges of global commerce. Rapyd has the experience and know-how to help businesses navigate global expansion and the comprehensive global payments platform businesses need to send and receive money virtually anywhere on earth with confidence.