Global cross-border payments still stand as a great opportunity for fintech players. However, this potential faces resistance from established industry giants, while challengers emerge from various directions. Let’s delve into the challenges of cross-border transfers and explore the cross-border transfer software offered by the Veengu Platform.
The Cross-Border Transfer Challenge
Cross-border payments involve financial transactions between parties located in different countries. In comparison to domestic transactions, these transactions are plagued by inefficiency, high costs, limited transparency, and slow response times. Outdated technology, complex processes, and archaic data formats are the primary culprits.
Cross-Border Transfer Market
When you are building a cross-border payment service and are about to purchase a cross-border transfer software it’s nice to consider the staggering statistics:
- EY estimates global cross-border payment flows at a staggering $156 trillion in 2022.
- McKinsey projects a cross-border transfer revenue opportunity exceeding $230 billion.
- Oliver Wyman and JP Morgan reveal that global corporates move nearly $23.5 trillion across countries annually, approximately 25% of global GDP. This incurs transaction costs of $120 billion per year under the current correspondent banking model.
Landscape of cross-border transfer players
The key players are:
- SWIFT, entrenched in the correspondent banking model since 1973, handles the majority of B2B cross-border payments facilitated by banks.
- Blockchain, represented by players like fintech startup Ripple, attempts to disrupt the market with a decentralized infrastructure, although volumes remain relatively modest.
- Entities like Western Union and MoneyGram operate with their end-to-end global infrastructures, primarily serving the retail remittance sector.
- Fintech disruptors, exemplified by TransferWise (now Wise), employ innovative approaches to address existing pain points.
- Major schemes like Visa and Mastercard introduce push payment solutions (Visa Direct, Mastercard Send) through existing rails, partnering with leading players (Visa with WU, Mastercard with Paysend).
- Central Banks are entering the arena with Central Bank Digital Currencies (CBDCs) and constructing multi-currency networks for cross-border payments, promising substantial annual savings for global corporates.
Advantages of Veengu cross-border transfer software
The Veengu Cross-Border Transfer Software addresses the challenges inherent in cross-border payments and provides many technical advantages that set it apart from the competition.
1. Comprehensive transfer options:
Veengu Software offers diverse transfer options, including cash transfers, transfers to bank accounts, and transfers to mobile money and wallets. This versatility ensures that users can choose the most convenient and efficient method for their needs.
2. Flexible implementation models:
With both close-loop and open-loop implementations, Veengu adapts to a variety of requirements enabling both independent implementations as well as seamless integration into existing cross-border money transfer systems.
3. Multi-party payment orchestration:
Veengu cross-border transfer software orchestrates complex multi-party payments, streamlining processes that involve multiple stakeholders.
4. Extensive connectivity:
Veengu’s capability to connect with hundreds of recipient corridors and multiple third-party providers, including payment aggregators (hubs), ensures a broad reach and facilitates seamless transactions across diverse channels.
5. End-to-end process coverage:
From authorization and settlement to dispute processes, Veengu cross-border transfer software covers every step of the cross-border payment journey. This end-to-end coverage minimizes friction points, reduces processing times, and enhances overall transaction efficiency.
6. Online currency conversion:
Veengu facilitates online booking of foreign exchange deals for transfers with currency conversion. This real-time feature empowers users to optimize currency exchange rates, resulting in cost savings and reducing risks for a fintech service.
7. Regulatory compliance:
Veengu cross-border money transfer software ensures compliance with regulatory standards through both online and batch regulatory reporting. This commitment to compliance reduces the risk of legal complications, offering users peace of mind in their cross-border transactions.
8. Risk management:
The platform integrates seamlessly with third-party monitoring and fraud prevention tools, enhancing security and minimizing the risk of fraudulent activities.
9. White-label solutions:
Veengu white-label money remittance software caters to businesses and financial institutions by providing white-label solutions for cash remittances, wallets, and cash payouts.
10. Transparent transaction logging:
Detailed logging of transaction processes ensures transparency and accountability. Fintech service can track every step of the payment journey, simplifying troubleshooting, maintenance of secondary business processes, and providing an audit trail for regulatory compliance.
11. Customizable fee structures and limits:
The Veengu Software Platform users with advanced configuration options for fees and limits. This allows fintech services to tailor the platform to their specific financial models, as well as ensure business and regulatory limitations.
In conclusion, the Veengu Cross-Border Transfer Software emerges as a frontrunner in the cross-border payments arena, combining innovation, versatility, and reliability.
