As the world of finance embraces the digital age, businesses now have the luxury of choosing platforms that offer convenience and efficiency in managing their finances. For companies dealing with international clients, digital payment systems for cross-border transactions are becoming essential, offering speed, safety, and cost savings.
Africa is witnessing a significant rise in regional real-time payment infrastructure, enabling instant account-to-account transactions. This development is shifting the tide of global remittances. Digital remittances are surpassing global cash-based remittances for the first time in history, paving the way for new channels for cross-border transactions, particularly across Africa.
PCMI’s The Changing Competitive Landscape in Global Money Movement report highlights that some of the largest remittance corridors are within Africa, with $19.4 billion being sent throughout the continent. The largest volume between countries includes over $1.3 billion transferred between Cameroon and Nigeria, $1.2 billion between Niger and Nigeria, and $1 billion between South Africa and Zimbabwe.
This substantial capital transfer between African countries has made the continent the most expensive global remittance market, spurring the need for services that reduce costs, often contrary to those offered by traditional banks.
Despite traditional banks seeming like the default choice for many businesses, the benefits of partnering with a single digital platform, such as Verto, are numerous, particularly for SMEs.
Traditional banks often incur additional currency conversion fees, wire transfer charges, and slower processing times. In contrast, single digital platforms offer streamlined services specifically designed for international transactions
Customers can expect lower fees and more favorable exchange rates compared to traditional banks, which often impose higher charges due to their extensive infrastructure and intermediary involvement.
This transparency allows SMEs to make informed decisions, understand the exact amount that will be received by the recipient, better manage their finances, avoid unexpected costs, and ensure more accurate budgeting and financial planning. By leveraging Verto’s services, SMEs can focus more on growth and less on navigating the complexities and uncertainties of traditional banking structures, ultimately leading to greater success and sustainability in the long run.
For example, when converting as much as R2 million into USD, Verto outshines notable traditional banks in South Africa for cross-border payments. A transaction like this may incur a total cost of up to R76,025 with a leading traditional bank, whereas Verto charges a flat rate of R10,000 for the same process.
Moreover, Verto caters specifically to the needs of SMEs by offering user-friendly technology and dedicated customer support. The platform is designed to be easy to use, making cross-border transactions more accessible for businesses of all sizes.
Verto understands the challenges faced by SMEs and provides personalized support to help navigate the complexities of international payments. Verto also offers a range of products that SMEs can utilize to collect, hold, convert, and payout. This includes payment links, virtual cards, and API integrations.
Verto’s cost-effective solutions, enhanced transparency, tailored support, and diverse range of products for SMEs position it as a compelling alternative to traditional banks in South Africa, offering businesses the means to streamline cross-border payments and significantly reduce overall costs
By Ola Oyetayo, CEO at VertoThe post The future of cross-border payment: Traditional vs digital first appeared on IT News Africa | Business Technology, Telecoms and Startup News.