8 min read
Businesses face a myriad of challenges and opportunities in the global economy. Whether a company is a multinational corporation, e-commerce startup or freelance professional, payments play a pivotal role in breaking down barriers between borders. A topnotch payments strategy can even help a business that feels like it’s lagging behind competitors by expanding into new regions. Read on to learn how operational efficiency, scale, and trust and safety are all crucial to an effective global payments strategy, the benefits of each and how our cross-currency solutions are differentiated in all these spaces.
Summary: Operational efficiency is the heartbeat of any successful global business. With payments, treasurers can create efficiencies through streamlining their workflow processes, hasten their time to complete payments and effectively collaborate with their partners.
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:
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:
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.
Summary: Global business success often hinges on the ability to scale operations efficiently and effectively with their payment processing needs. A larger provider offers benefits related to more reach and services to ensure that businesses can keep up with demand without compromising customer satisfaction.
Differentiator: We conduct FX transactions in 200+ countries and territories and 120+ currencies.4
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.
A provider with scale has certain characteristics that can offer clients more services in the following areas:
Further, scale allows a provider to continuously invest in exploring additional solutions that can add value for clients. For instance, our $12 billion annual tech investment allows us to explore payments innovations such as Data Analytics, AI, blockchain and digital assets.
Overall Takeaway: Trust and safety are non-negotiable in the world of global business because customers and partners need to have confidence in your payment processes. Sending money across borders can amplify concerns that already exist. For instance, a business can add more risk when they send money to places in which they’re less familiar. A company can mitigate its risks with topnotch trust & safety protocols.
Differentiator: We’re the World’s #1 Best Bank with global security, resiliency, and stability from Global Finance.6
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.
In addition, providers can help to reduce other types of risk:
Given opportunities in operational efficiency, scale and trust and safety, it’s crucial to choose the right partner to support your needs in these areas (and more). Our scalable and secure cross-currency solutions7 can help your business to grow, diversify and thrive as it uses payments as a strategic lever for growth in the global economy.
JPMorgan Chase Investor Day, May 2023.
Member FDIC. Deposits held in non-U.S. branches are not FDIC insured. All rights reserved.
The statements herein are confidential and proprietary and not intended to be legally binding. Not all products and services are available in all geographical areas. Visit jpmorgan.com/paymentsdisclosure for further disclosures and disclaimers related to this content.
To learn more about how we can support your business, please contact your
J.P. Morgan representative.
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