B2B IS THE NEW FUTURE FOR CROSS-BORDER DIGITAL PAYMENT COMPANIES

Priscilla D’Oliveira Friedman CrossTech COO

Business payments has transformed how payment companies around the world are positioning their new business model to provide digital services and facilitate the flow of funds internationally.

Accordingly, to the last report from Deloitte, the global B2B Payment Market is valued at USD 994 Billion in 2022 and is projected to reach USD 2146 Billion by 2030 at a CAGR of 10%. These figures show a largely untapped opportunity for payment companies.

By connecting businesses and communities with partners and suppliers worldwide, these products and services help create a more dynamic and diverse business ecosystem. This will allow businesses and communities to tap into a wider range of skills, knowledge, and resources to boost their capacity to innovate, grow, and thrive.

Looking ahead, the future of B2B cross-border products and services is very promising.

As the global economy becomes increasingly interconnected, the demand for these products and services will likely continue to grow. Moreover, the ongoing evolution of technology and data analytics is opening new possibilities for more efficient and effective cross-border payments, further enhancing the potential impact of B2B cross-border products and services. Mid-market and enterprise-level companies can now leverage B2B digital payments to support their growth.

The reason why we decided to host our new conference this year with the theme of B2B is because of this disruption and the new trend in the market. Some of the companies joined us to explain the state of the market along with new ways of doing business such as Uniteller, Payoneer, Paysend, and Nium have taken the new business opportunity and position themselves as leaders of the market.

Alberto Guerra UniTeller CEO

What do you see as the biggest challenges facing the cross-border payments industry in the next 5-10 years?

There are still some inefficiencies in the cross-border payments space that need to be addressed. Technologies and products like cryptocurrencies and blockchain are promising but have failed to make an impact, at least for now. Although some countries have embraced cryptocurrencies and have established clear regulatory frameworks for their use, others have been cautious by imposing restrictions or bans altogether.

With the world becoming increasingly interconnected each day, there's a growing need for efficiency in the industry to facilitate real-time, low-cost, and transparent cross-border payments.

Cross-border payments have a significant impact on our global economy, and partnerships among entities such as Banks, Payment Processors, Corporations, and Fintechs play an important role.

Such partnerships will continue to facilitate how cross-border payment transactions are paid and collected, not only for individuals but also for businesses and between them.

Therefore, partnerships and interoperability between different, new, and existing technologies are crucial for the development and growth of the industry.

As new technologies emerge, it will be important to ensure they can work seamlessly with existing payment systems to provide secure and cost-effective cross-border payment solutions for individuals and businesses.

Lastly, the regulatory landscape for cross-border payments is constantly changing. It will continue to be challenging, costly, and time-consuming for businesses to keep up with the evolving requirements. Settlement costs, liquidity issues, and financial inclusion also pose significant challenges that affect these efficiencies.

10 years ago, we envisioned the potential factors and changes that would allow us to play a positive role in the industry. Based on that analysis, we then decided to invest primarily in the following areas:

Digital Capabilities: We invested considerably in improving our Digital Capabilities not only for the consumers but also by offering them to our business partners who can leverage our technology and licensing to serve their customer base.

Strengthen our compliance function: We not only take compliance very seriously, but we also believe that it may be a key differentiator that brings added value to the table. Businesses that demonstrate a strong commitment to compliance can build trust with their clients and partners, which can lead to increased loyalty and long-term success.

AI and data analytics: Proper and active use of AI and data analytics brings significant value as these technologies help identify trends, optimize processes, and improve decision-making. UniTeller has already seen the benefits of these technologies, and we still see a lot more potential in the near future.

Global Reach: We believe that niche regional players will find it challenging to compete with global providers.

However, having a global presence is easier said than done. It goes far beyond just having a global footprint. It’s about having a global footprint with local capabilities.

Business Payments: The efficiencies that we witness in the P2P payments arena should be leveraged for business payments as well. In fact, there are significant opportunities to improve business payments using P2P channels and technologies.

It is because of all these efforts and investments that have helped transform the capabilities of UniTeller into one of the top 100 Companies in cross-border payments by FXC Intelligence. Being ranked at this level is a testament to our commitment as we continue to deliver value to our clients and business partners.

We are a solution provider for all types of companies. We are not just a network aggregator providing a regional network. We provide a full umbrella of solutions and a global network not just for P2P remittance payments but for all types of cross-border payment needs.

From licensing, compliance, settlement, risk underwriting, and multi-channel digital capabilities to a global payment network, UniTeller has become the go-to solution for digital and processing services, not only for the consumer, but also for Fintechs, Neo-Banks, Telcos, and Corporations that seek a comprehensive solution to access cross-border payments efficiently.

My first visit to a Hispanic commercial street in California was an eye-opener into a world I had not previously seen. I learned about the importance of remittances. I understood the critical role that payments play in supporting individuals and communities around the world. It made me realize that remittances were indeed a crucial source of income for many people, particularly those who live in developing countries or regions with limited economic opportunities.

I was captivated by the ability to facilitate money transfers from a small bodega in LA to a rural community in Oaxaca, Mexico on the same day. I was drawn to study the opportunities and advances in technology and innovation to deliver a more efficient experience to consumers and businesses. To provide a system that offers greater convenience, speed, and flexibility than the traditional methods.

It was this experience, a simple visit to a bodega, that inspired my passion for payments and the thought that I could play a part in providing real-life solutions to real-life problems.

The payments industry is ultimately about people. Getting to know people from different backgrounds and cultures with the same ideals and goals was an enriching experience for me in my early days. I truly believe that it all comes down to being open to new experiences and recognizing the potential for innovation.

There’s no simple answer to this question because there is a combination of attributes that come into play. However, if I were to narrow it down to a few contributors to my career as CEO, it would be:

- Building a great team. A team with diverse skills and values is important, as it allows for a more well-rounded approach to problem solving and decision making.

- Listen to your team. They often have valuable insights and perspectives that can inform your strategy.

- Listen to your Business Partners and your Customers. This is related to the point above. Get to the bottom of the needs of your customers and business partners. Don’t invent the wheel from your corner office. Instead, get out of your box and take the time to understand the market, and focus on understanding what drives the needle. Sometimes, it’s easy to get lost in a given idea or a trend published by someone, but understanding the needs of the market and the industry is key.

- Read, read, and read some more.

- Be humble. Learn. Adapt.

- Lastly but most importantly, interpret what you see, read, and learn, and translate that into a strategic vision of the future with very clear action plans to achieve them.

Herbert Hernández Bantrab CEO

With the rise of fintech and digital banking, how do you see traditional cross-border banking evolving to stay relevant in the coming years?

Traditional cross-border banking began to evolve in the late 1980s when travelers still carried money as parcels. Later, this was transformed into money orders, which gave way to electronic transfers.

There were more innovations, but electronic transfers represented one of the best inventions for banking. This advance has caused large companies such as Google, Apple, and Meta to be part of the financial ecosystem. I am sure its involvement in the financial arena will bring more breakthroughs and innovations. In the near future, I see that Super apps will generate new business models and be a fundamental part of cross-border banking.

How is Bantrab addressing the challenge of foreign exchange rates and currency volatility in cross-border payments? What tools or solutions are you offering to mitigate this risk for customers?

It must be understood that the exchange rate is affected by internal and external factors. For example, in California, United States; Guatemala must have a fixed exchange rate. On the other hand, some companies buy Quetzals, Pesos, and Dollars through their treasuries and execute their financial planning when they see the remittance flows to Latin America. On the contrary, the banks have an established plan based on the volume received, which the financial industry already records as part of its day-to-day activities. This means that it does not have a major impact on the exchange rate of each operation. In the case of Bantrab, we already have an established schedule, which allows us to have the necessary flow two months in advance to respond to the family remittance business properly.

We must also highlight in this analysis that the nominal exchange rate in Guatemala is free, determined by the supply and demand of foreign currency in the market. According to the Banco de Guatemala, it is characterized by low volatility, which reflects public confidence in the national currency and the country's macroeconomic strength.

What partnerships or collaborations has Bantrab established with other organizations or community groups to further support the Latin community in the United States, and what impact have these partnerships had?

Bantrab has approached this issue from two perspectives. The first is from the financial field, which has allowed us to design technological and innovative solutions, such as the Bantrab Remittances App; an application for residents of the United States to send money, free of charge and in real-time, to their family and friends in Guatemala. In addition, we provide free insurance that provides the repatriation and funeral assistance service, while your family member in Guatemala has access to unlimited medical consultations with a general practitioner and preferential cost with specialists and laboratory diagnostic tests, among other benefits.

We also have YoLo, our electronic wallet, which allows Guatemalans living in the USA to open accounts from a cell phone. This application won a silver award for best Disruptive Innovation from the CMM Awards and a gold in the Disruptive Innovation in Financial Services category from the Awards for Financial Innovators in the Americas.

Our second front is strategic alliances. We recently partnered with the Guatemalan Consulate in Los Angeles, California, to guide Guatemalans for free in improving their financial health and using digital tools to open accounts and send remittances. The credit part complements this effort because family remittances can already serve as a guarantee to apply for a loan and cover their financing needs for housing or improvements in their lifestyle.

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