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We all know that in order to be agile in today’s environment, working with a third-party fintech payment provider is your best option. When it comes to innovative fintech’s in the international payments space they are a dime a dozen. Even though tech companies are preferred to banks and financial institutions due to their speed to market and payment flexibility, there are only a few that have seamless integration, can really save you and your business money, while at the same time offering an all-in-one solution to satisfy all your businesses international payments needs.
When businesses turn to fintech’s they usually have to partner with multiple solution providers to ensure they have all their needs met, and this can become cumbersome, driving businesses to revert back to working with banks simply due to lack of management and complexity of their day-to-day business, even though, in the end, it costs them more. The importance of the user experience and ease of use when integrating a third-party platform provider is just as important as saving costs.
When it comes to working with a third-party platform provider for your business, work with a partner that puts your business's needs first and provides an all-in-one solution that protects your business from market volatility.
Banks usually have less competitive foreign exchange currency rates. They employ what is known as the mid-market rate in trading with other banks. The mid-market rate is not a rate they disclose or offer to customers.
Alternatively, some tech providers offer a discounted rate, to begin with, which can severely change over time. Ensure that when working with partners that have these agreements your “spread” for conversions is fixed and also periodically review your transactions to ensure that your rates remain competitive as the market changes.
Ensuring that any provider you work with is fully licensed and compliant with all local regulations in the countries they work in is essential.
Your payments provider needs to take compliance seriously. Review your partner's policies and verification procedures for KYC, fraud, sanction screening, and anti-money laundering to ensure they are iron clad and either meet or surpass industry standards.
It is very important to know how to efficiently work with your solutions provider. Some partners will provide you with a single point of contact or an account manager that you can work with 24/7; others offer online-only assistance during particular working hours.
If you work in an industry or have a type of business that deals with a high volume of payments, working with a dedicated market expert may work best for you. Know what you need from your provider and ensure that their ways of working match your business needs.
Managing exposure to FX currency fluctuations is an additional level of due diligence any business owner needs to practice. Your cash flow is the lifeblood of your business and you need to protect it from unfavorable shifts in foreign exchange.
Ask a potential partner what risk management solutions and hedging tools they have available for you to utilize. Some important hedging tools that help manage market risk are forward contracts and market orders. Your partner should be able to offer these solutions in a customized way, with competitive global pricing, that is tailored for your business needs.
Find a partner who was built to save your business money on overseas transfers while providing you low exchange rates and transfer options for your business. A strategic partner should reduce your business's exposure and improve your cash flow by having the ability to make payments and hold funds in local currencies that you can access at any time 24/7.
Working with a partner with in-country payment solutions can enable your business the ability to open and hold money in domestic multi-currency accounts across multiple currency types, removing the complexity of trying to open and manage multiple bank accounts across borders, saving your business time and money.
If you want to learn more about why MTFX should be your third-party payment platform provider contact one of our market experts. We will show you how foreign exchange currency risk management can protect your business while increasing profits.
Open an account today with MTFX. Register in less than five minutes and unlock competitive rates and low fees for long-term savings.
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