As we surpass the year mark of the COVID-19 pandemic, businesses continue to adjust, analyze and reflect on how they operate in both domestic and global economies. Many businesses were forced to pivot their processes in order to stay open, remain competitive, and proactively appeal to new customers. COVID-19 regulations forced major shutdowns and disruptions for businesses of all types, highlighting the importance of efficiently and affordably managing their business operations remotely and online. Here’s the future of global payments in a post-COVID world.
Conducting business in the midst of a global pandemic revealed the many barriers to traditional financial operations and international banking. Sending conventional wire transfers follows a multi-step process that is both lengthy and complex. The intricacies of traditional global payments require diligent and accurate information on both the sender and receivers behalf. In addition, businesses must consider the foreign exchange rates being offered, the insight and accessibility to their transactions, and the overall security of the transferring of funds. The antiquities and slow processes of global payments are even further exacerbated in a post-COVID world, increasing the need for a technology-driven and integrated global payments solution.
Remote labor and the rise of e-commerce
Veem, a global payments network, released a 2020 State of Small Business report during Q4. Following one of the most challenging years in recent history, 1,183 small business owners expressed the many lessons learned. The majority of respondents (58%) reported their biggest takeaway is “the importance of making my business resilient and open to change”. COVID-19 influenced major structural and behavioral changes in the B2B industry and the world of e-commerce as a whole: an opened labor market and the globalization of payments.
Worldwide lockdowns demanded many businesses to move their operations online, with an influx of employees working from home. Remote work has challenged traditional hiring procedures that are usually confined to, or influenced by an employee’s geographical location and accessibility to the office. Companies now are embracing the freedom of hiring professional talents across the globe, with 32% of small business owners stating they plan to outsource more work in 2021 when compared to years past.
As remote employment grows, it is accompanied by a swift change in consumer behavior. COVID-19 required consumers to adjust their shopping tendencies, surging e-commerce as the established and preferred method of shopping. Merchants were forced to adjust to this structural change, highlighting the need for streamlined globalized payments and shipping, while avoiding the antiquated friction of traditional payment systems.
Making sense of global payments
Global payments are an inherent part of international trade and efficient supply chain management. Cross-border payments allow businesses to reach cost-efficient suppliers from around the world to build a better functioning and more profitable supply chain. Having access to a wider network also helps businesses tap into new marketplaces and regions with an expanded capability to do business in international markets.
Global payment networks are an easy way to get payments processed across borders with less headache and fewer hassles, as well as a secure way for businesses to create value for consumers in a smooth transaction. Adopting new technology helps secure advantage against marketplace competitors through operational efficiencies that help businesses capitalize on every transaction. Digital solutions offer B2B payments a new, efficient and cost-effective way to send money globally online.
The future of global payments is digital
COVID-19 established consumer habits that are the new standard. With an opened labor market and the rise of e-commerce, the future of global payments is digital. Modern, electronic, B2B global payments resolve the many problems that have previously plagued businesses such as the friction-filled and complicated processes of bank wires. The global payments industry is riddled with complex regulation; businesses that adapt to modern technologies benefit from increased security while adhering to laws, avoiding fees, and remaining compliant.
A business’s ability to grow quickly can mean the difference between marketplace leadership and status quo. Facilitating growth at a speed necessary for long-term success, and the future of global payments networks allow for success without excessive overhead expense or investment.