Building an Intelligent Global Payments Infrastructure
With the wrong strategy, cross-border payment costs eat into revenues. To arrive at an infrastructure that fits your needs, consider both the scope of your operations and the global forces at play.
You are here
- Assess your domestic set-up, spanning:
- Payment sources/locations
- Payment destinations
- Average transaction values
- Bank relationships
- Clearing & settlements
Operational costs for international payments average well above $20 per transaction
Where are you planning to expand to?
- Pin down expansion & partnership plans by country. Flesh out each market with:
- Market Size and Demographics
- Locations for accepting and making payments
- Short-term expansion locations
- Long-term expansion locations
Look out for:
Economic headwinds that can change the ease of transactions
Currency & exchange risks that can change the real value of revenue
- Interest Rates
- Labor Markets
Working with a trusted commercial banking partner can help you understand payment culture & acceptance by geography
Project costs and revenues to targeted destinations
Determine expected nature & amount of cross-border payments.
- B2C? B2B?
- Estimated transaction values by country
- Expected revenues by country for long- and short-term
Cross-border C2B payments are expected to grow at the fastest rate (25% a year) due to growing cross-border e-commerce.
Define your strategic goals
Are you aiming to:
- Boost transaction volume?
- Establish corporate clients?
- Shift resources to new markets?
Due to high fees, strategy affects international success. A $15k to $20k average transaction value implies a typical $30 to $40 fee per transaction.
Look out for:
Digital transformation that can make it easier to enter new markets
- Real-time payments
- Social, P2P
How will digital drive your goals forward?
Investing in automation, AI, or robotics can allow you to:
- Redesign systems and streamline processes
- Eliminate redundancies and inefficiencies
- Redeploy talent to revenue-generating functions
- Track ROI on expansion and investments
Getting there with partnership
Work with experts to understand costs, benefits, and liabilities.
- Payment partners: Who do they work with? How do they aid in data management?
- Fintech tools: How can they keep fees low?
- Foreign currency exchange: Platforms? Processes? Risks?
- Bank relationships: How can they help with integration best practices?
- Clearing & settlements: Costs? Impact? ROI?
- Data Standards: New regulations, fines, risks? Compliance needs?
Fifth Third Bank has the commercial banking expertise to help mid-market companies create the right payments foundation for global expansion.