Automated Payments Systems in High Demand as International Payments Soar
AFEX, one of the world’s leading non-bank providers of global payment and risk management solutions, announced recently the results of its first State of International Payments Report, finding that nearly half of North American companies involved with international commerce expect to utilize international payments more this year than in the previous year.
Because of this, nearly one in three North American companies are planning to start using, or plan to upgrade their online automated payments tools in the next year to increase operational efficiency, mitigate risk and reduce costs.
AFEX’s first annual State of International Payments Report, which polled more than 500 financial decision makers at SMEs and corporations from over the world who engage in nearly $230 million worth of international transactions per month, reveals that regardless of the uncertainty in global markets, these firms expect faster growth in international markets than domestic.
Online marketplaces such to likes of eBay and Amazon have brought international commerce within reach of smaller businesses, while mobile payments have opened up access to previously untapped and unbanked markets.
“As globalization continues to intensify, North American businesses seeking to increase their exposure to international markets are presented with a new set of challenges when handling higher volumes of more complex international payments,” said AFEX Chief Executive Officer, Jan Vlietstra. “As firms scale their business overseas, they need to be cognizant of currency exchange risks and the associated costs and the complexities involved when dealing with different banking systems. Automated payments solutions, coupled with currency exchange, FX products and expert advice, can mitigate the risks inherent in each of these challenges.”
The highly anticipated increase in global payment volumes have forces the drive of operational efficiencies, and 29 percent of North American firms surveyed plan to introduce or enhance their auto payment technologies.
“In addition to mitigating risk, many firms are turning to automated payment systems to reap the benefits of operational efficiencies,” noted Christian Spaltenstein, General Manager of the Americas at AFEX. “Increasing globalization means greater competition and payments is one obvious area where firms can cut costs, improve service and manage their exposure to international markets more effectively.”