Optimized workflows

Treasurers can optimize their workflows by initiating all cross-border payment needs from a single platform. Payments-related tools can introduce new types of flexibility to support and streamline complex account structures. For instance, virtual account management allows a treasurer to consolidate all or group sets of their accounts into a single one that allows them to see all obligations and inflight transactions while retaining the benefits of multiple accounts (i.e., balances, transaction reconciliation and reporting).

This integration also introduces significant opportunities to automate invoices, recurring payments and reconciliations. These opportunities save time, enhance accuracy and reduce the risk of disputes and chargebacks, among other benefits:

1. Consolidating providers, which can also save time, energy and money.
2. Increased accuracy, as some comprehensive providers process payments with 99.99% accuracy^3.
3. Additional efficiencies achievable with a single account structure such as notional pooling.

Speed

In the digital age, speed and convenience are paramount to treasurers. Payments systems that facilitate quick and hassle-free transactions enable treasurers and businesses to streamline their operations. For instance, the adoption of instant payment methods allows companies to pay suppliers promptly, reducing the need for extensive financial buffers and the associated costs of capital.

But faster international payments also benefit businesses in the following ways:

1. Increased visibility, as businesses who can receive them have more clarity on when they can put funds to work.
2. Supply-chain efficiencies as businesses who are in critical need of inventory can more quickly pay suppliers who require confirmed receipt of payment to release inventory.
3. Cost savings as many real-time payments come with low transaction costs. 

Collaboration

At first glance, collaboration may appear to be a surprising opportunity, yet a provider that can serve as a strategic collaborator presents ample opportunities to unlock operational efficiencies. If a partner can offer enough flexibility, businesses can adapt solutions to work in conjunction with their preexisting systems, which opens the door to long-term innovation and integration opportunities while helping reduce tech debt. Further, a good partner can bring in others who can finds opportunities to improve operational efficiencies such as through netting. 

More reach

Businesses looking to expand into new geographies need access to localized payment methods and the ability to accept payments in different currencies. With scale, a provider is likelier to support more places in which a company may want to conduct business. For example, our global reach allows us to serve 200+ countries and territories in 120+ currencies, which is more countries and territories than many leading fintech competitors.⁴ And we’re able to provide this service to various businesses ranging from retails, multinational corporations, fintechs and media. 

And depth of expertise is critical to compound the benefits of reach. For instance, a provider with the right depth of expertise can help businesses navigate unique rules and regulations within each jurisdiction. Our 150+ year presence in Europe helps to support our ability to serve businesses in EMEA, in which we were recognized as the top web transaction acquirer for a seventh year. We also have a 100+ year presence in other regions like Latin America, Asia and the middle east.⁵ This depth can support businesses in various ways such as having a partner with the expertise to help navigate unique rules and regulations within each jurisdiction. 

More services

A provider with scale has certain characteristics that can offer clients more services in the following areas: 

1. More liquidity to support payments that are either larger in size or volume.
2. More payment methods to accommodate a business’s needs, such as batch or non-batch transactions.
3. More tools that allow businesses more flexibility to integrate with their systems such as SWIFT, host-to-host and APIs.

Reduce fraud-related risk

Providers that can customize fraud solutions around an organization’s unique needs — such as through Rule Authoring — can help to mitigate a business’s risk. For cross-border payments, this includes enabling solutions that can potentially minimize chargebacks and fraud-related losses.

One opportunity is through data security, which is paramount amid the rise of cyber threats. Payment providers can employ robust security measurers via payment gateways to encrypt and tokenize sensitive customer information. 

Help to reduce other risk

In addition, providers can help to reduce other types of risk:

1. Currency risk via an in-house team that can advise on effective hedging strategies.
2. Geopolitical risk that may cause a business to re-evaluate their exposure to a specific region.
3. Innovation risk related to falling behind continuous trends and investments in the global economy.

To learn more about how we can support your business, please contact your
J.P. Morgan representative.