Emerging markets are one of the hot topics in cross-border payments. These markets present a unique opportunity for companies to broaden their customer bases, discover new use cases, and unlock significant growth.

A prime example is evolving in the heart of Brazil’s digital revolution. Since its launch two years ago, Brazil’s online payment system, Pix, has reached 122 million customers and processes two billion transactions each month.

Non-cash retail payment transactions increased at a compound annual growth rate of 13% between 2018 and 2021 globally, 25% in emerging markets. 

This poses opportunities for investment platforms seeking to grow into new geographical markets.

Join us as we explore the thrilling world of cross-border payments and unlock the strategies that drive businesses to global success.

Challenges in cross-border payments for investment platforms.

International fund transfers are crucial to the global economy in our globalized era. The value of cross-border payments is projected to reach $250 trillion by 2027, a 60% increase over a decade.

Despite their rapid growth and significance, these transactions face monumental challenges.

• Regulatory compliance: One of the most significant hurdles is navigating regulatory compliance, such as PSD3 in Europe. Each jurisdiction has its own requirements, resulting in barriers to entry for competition, as well as significant operational complexity and friction for businesses. Payment compliance involves collecting and verifying customer identity, screening customers against global watchlists, conducting enhanced due diligence for high-risk transactions, and monitoring transactions for unusual patterns or behavior.

• Interoperability between payment systems: The lack of standardization in payment infrastructures and operating practices between countries adds complexity. Fragmented legal and regulatory standards make cross-border payments slower, more expensive, and more complex to process.

• Cybersecurity concerns: Security concerns, including data privacy, fraud, and cyber threats, can limit the adoption of digital payment solutions. The risk of interception by sophisticated cybercrime groups and concerns over the theft and misuse of data privacy create apprehensions among businesses and consumers.

Addressing these issues is no longer a matter of convenience but a critical stepping stone towards a more inclusive global financial ecosystem.

Zimpler addresses these challenges with innovative solutions that allow businesses to reach customers across Europe in seconds. Our cross-border payout system is automated, cost-effective, and operates 24/7/365, ensuring that money arrives instantly without extra fees or tedious administration. With coverage from over 4,500 connected banks and in-house currency exchange with SEPA coverage, Zimpler offers a high transaction limit, enabling businesses to operate seamlessly across borders.

The importance of secure cross-border payments.

Here are key considerations highlighting the challenges and impacts of secure cross-border payments:

• Increased fraud: Unfortunately, the rise of global commerce also comes with increasing global fraud. The United States Federal Trade Commission reports that the share of cross-border fraud complaints rose from less than 1% in 1992 to more than 11% in 2022. This increase underscores the critical need for secure cross-border payment systems.

• Variance in customer onboarding: There is considerable variance in customer onboarding and due diligence rules across jurisdictions, increasing costs and delaying transaction processing. Cross-border payments are deemed high risk, necessitating sanctions screening, which can lead to further delays in investigating alerts.

At Zimpler, we are dedicated to providing instant payment solutions that are secure and highly accessible. Our robust Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols are designed to ensure the safety and speed of our transaction flows.

Zimpler’s API allows seamless integration into existing software systems, utilizing open banking APIs to streamline payments by accessing customer account information and initiating payments directly from their bank accounts. This enhances efficiency through standardized APIs.

Secure cross-border payments are essential for trust and efficiency in global commerce. Addressing regulatory compliance and cybersecurity challenges is crucial for a more inclusive and secure global financial ecosystem.

Streamlining cross-border payments for investment platforms

Historically, cross-border transactions suffered numerous challenges, including delays, high fees, and currency conversion issues. Traditional international wire transfers can take several days to complete, incurring substantial costs along the way. These inefficiencies slow down trade and hinder businesses from exploring new markets and building international partnerships.

Real-time or instant payments have gained prominence in recent years, enabling near-instantaneous fund transfers 24/7, 365 days a year. While these systems have revolutionized domestic transactions, their potential in cross-border commerce is even more promising and remains a key focus for expansion.

Efficient payment processing systems can significantly enhance the overall financial health of a business by reducing payment delays, minimizing risks, and improving customer satisfaction.

With Zimpler, you can initiate safe and instant payouts directly to your customer’s bank account, resulting in thrilled customers. Say goodbye to waiting for the money that is rightfully yours. 

The benefits speak for themselves.

• Building loyalty: Don’t let your customers wait for money that’s rightfully theirs. Provide prompt payments to keep them happy and nurture loyalty.
• Always ready: No intermediaries, no delays, no fuss. Instant Payouts are available 24/7, 365 days a year.
• Less admin: Forget manual data entry and unnecessary admin. Our flows are automated for accuracy. If a customer has deposited with Zimpler, it’s a one-click payout. We have all the information and authentication needed. It’ll land in their account as soon as they request the payment. If a customer still needs to deposit with Zimpler, it’s a quick flow. After requesting the payment, the customer enters a quick account information flow. When done, the money arrives instantly.
• Less cash management: Lighten the cash management burden. We handle Instant Payouts from your Zimpler client account. Pay your customers in seconds using our AML-compliant platform. Anytime, anywhere.

By adopting Zimpler’s streamlined payment solutions, businesses can overcome traditional cross-border payment inefficiencies, improve cash flow, and provide a superior customer experience.

What’s better than instant payment solutions? Instant payment solutions with stellar security and reach, of course. Zimpler offers instant payment solutions with stellar security and reach.

Join the payment revolution.

The information contained in this post is intended for informational purposes only, and should not be relied upon for professional advice of any kind. Zimpler does not make any representation or warranty as to the completeness or accuracy of the information, and assumes no liability or responsibility that may result from reliance on such information.