Research commissioned by Earthport highlights the greatest opportunity for improvement exists in the mid-market, particularly for payments below $10,000
London, UK – 20th September 2011 – Earthport (AIM: EPO), the global payments provider, today released the results of a new report that provides a detailed understanding of the ideal cross-border payment solution from the perspective of both payment professionals and payment initiators. The global survey, which is based upon responses from professionals across the financial ecosystem, was conducted by payments strategy consulting firm Glenbrook Partners.
According to the report, there is widespread concern and frustration over current practices and prices within the cross-border market specifically amongst payments in the ‘sub-$10,000 level.
Other key findings include:
•54% of respondents expressed interest in cross-border payment solutions that connect to local ACH/EFT schemes around the world. This strong appetite exists for high-volume, low-value payments service. If a system of this kind could scale and be reliable, then an overwhelming majority of those interviewed will be very interested (54%) or somewhat interested (35%) in this approach.
•65% feel reduced costs is the most likely benefit to result from improved cross-border payments systems. There are numerous opportunities for improvement, with the top three potential benefits cited as reduced costs (65%), improved payments quality (55%) and improved relationships with suppliers (49%). Other recurring themes include concerns over security, transaction fees and a need for simplified reconciliation.
•Even those Corporates with mature treasury and payment functions still face sizable challenges transacting on a global basis. Respondents cited the biggest challenges as being the length of time it takes to clear funds, difficulty tracking payment progress and problems with payment reconciliation. They also expressed concern about the lack of foreign exchange fee transparency.
Hank Uberoi, Executive Director, Earthport comments: “Our research indicates that as companies conduct business with an increasing number of customers and suppliers overseas, they demand more sophisticated cross-border payments systems. Payments systems set-up decades ago, many of which have been retro-fitted to meet modern-day needs, are creaking and groaning under the strain, and the market is voicing concern over current practices and prices.”
Hank continues: “These findings are timely because globalisation and slow growth at home are driving companies of all sizes to conduct business in other parts of the world. A host of new products and services are emerging to satisfy this need, offered by both new players and by industry incumbents. Cross-border payments are arguably the largest unsatisfied opportunity in the payments industry today.”
Erin McCune, the partner at Glenbrook who led the research effort, said: “Our findings clearly show that the market is voicing concern over current practices and prices, and showing an interest in lower cost alternatives. There are also attractive opportunities to improve the payments experience of both the sender and the receiver of funds.”
Supporting Resources
•To access the full report please visit:
https://www.e-junkie.com/ecom/gb.php?c=cart&i=993333&cl=107306&ejc=2•Keep up with Earthport news by visiting the company's website and follow us on Twitter
•Click here to learn more about Glenbrook Partners
