Advances in consumer payment technologies are often the source of innovations in business payment tools. While businesses and consumers have different payment service needs, end users often want the same things: simplicity and transparency.
In cross-border payments, however, none of these things are always guaranteed. Traditional global payment Services, whether aimed at consumers or businesses, are often opaque and complicated, sometimes imposing high and hidden fees on users, and rarely facilitating the kind of speed that customers increasingly demand.
Identifying the main issues related to global remittances and cross-border consumer payments laid the groundwork Sokin CEO Vroon Modgill to launch a cross-border business payment solution. Speaking to PYMNTS, Modgill explained how enterprise payments continue to take a page off consumers’ payment playbooks to combat end-user friction.
Different end users, same needs
Recalling his own experience watching his father, an Indian citizen, struggle to send money home, Modgill said he found some of the biggest problems in cross-border payments in the space of consumer remittances. . The high costs, recurring fees, and a lot of paperwork made the process a headache.
“It’s just too complicated,” Modgill noted. “I wanted to offer a solution that works at all levels for customers [and] businesses of all sizes. “
Interestingly, it was this consumer problem that led Sokin to launch a business payment solution. Announced earlier this month, Sokin company is designed to prioritize transparency by offering paid businesses fixed and wholesale fees exchange (FX) for unlimited transactions facilitated through Sokin’s banking relationships and multi-currency International Bank Account Number (IBAN) accounts.
The enterprise offering, as well as an upcoming service for small and medium enterprises (SMEs), will accompany the company’s existing money transfer solutions, and Sokin also plans to offer the fixed fee model to its customers. consumer users later this year.
Deploying a B2B solution first reflects how similar the weak points of cross-border payments can be between consumers and businesses, Modgill said. Businesses also face a lack of transparency about the costs associated with transferring money across borders and face friction when funds take days to land in a recipient’s bank account.
Basically, the company’s plans to roll out cross-border payment services for business, SMEs and consumers will be quite similar. In addition to the transparent fees, the support instant payments is also a must for all three categories of users, Modgill noted.
Supported use cases
The payment needs of businesses are indeed different from those of the average consumer. Large companies generally have to move higher fund values, and they have to do so for different reasons than a consumer.
But according to Modgill, it’s not so much that the cross-border payment needs of businesses and consumers are inherently different. This is because each end user will have different use cases for different functionality, whether that user is a business or an individual.
For example, a consumer may want instant payment capability so that a loved one overseas can access funds faster. A business can also gain value through real-time transactions, but probably in different scenarios. Modgill referred to a client of Sokin Football Club, who finds instant payments useful for the football business model in which money has to change hands quickly between clubs, to facilitate a seamless transfer of players from team to team. another.
The trend towards a consumer-like experience for commercial payments is also paving the way for integrated services to continue to improve the end-user experience. Modgill said businesses and consumers want a payment experience so seamless that they barely recognize the payment is in process.
Features like instant payments, transparent fees, and built-in functionality will be key drivers of innovation that can improve the user experience for businesses and consumers. As Modgill pointed out, the cross-border payments ecosystem has long had to improve.
“What we’re seeing is that the corporate client is still having this mindset of, ‘Well, I’m doing this on a personal level, but I want to do it in real time for my business too, and I don’t want to wait, ”he said. “We are now in a world where everything is global and we have to make payments quickly. It’s just the world we’re heading into.