Why Moving Money Across Borders Isn’t as Simple as It Looks
In today’s hyper-digital, globally connected world, we might assume that transferring money internationally would be a straightforward task. But anyone who has tried can tell you it’s not as easy as it seems.
Behind the scenes, businesses face challenges related to risk, compliance, customer exerience, technology, and the unique specifications of each foreign market. It’s not just about finding a payment provider and pressing “send”—it’s a complex process requiring a strategic approach to banking and payments.
The issue
Many businesses, particularly startups and international companies, don’t fully understand who handles their money, the regulatory requirements involved, or the potential risks. Often, the payment team consists of three key people: an accountant who oversees budgets and finances, a compliance officer who manages risk, and, ideally, someone with technical expertise to integrate the latest payment technology.
If any one of these roles is missing, businesses can quickly find themselves facing gaps in their payment and banking flows and operations. Without a comprehensive understanding, money can end up routed through unreliable channels, or businesses might choose providers that don’t fit their needs.
The providers
The digital payment landscape is crowded with providers. In places like Cyprus, we’ve seen payment providers “pop up like mushrooms,” driven by increasing global demand and the country’s business-friendly environment. Yet, with all these options, each provider has its strengths and weaknesses. Some may excel in technology, while others focus on low fees or customer service. The challenge for businesses is to balance their choice of provider based on what they prioritize: risk, customer experience, data security, or cost.
Each business must decide what they’re willing to sacrifice—since no single provider offers a perfect solution.
Risk
Risk is one of the primary concerns in international payments. Moving money across borders introduces complexities, especially for industries considered high-risk, like crypto and gaming, or for regions with varying regulatory standards. Choosing a provider that doesn’t fully understand a business’s industry or region can lead to disruptions in cash flow, frozen accounts, or even regulatory issues.
International expansion
For companies expanding internationally, understanding local payment methods is essential. In regions where mobile payments are more popular than bank accounts, a business using only traditional methods risks alienating a large portion of potential customers. Even if a company has succeeded in one country, entering a new market requires collaboration between marketing and payment experts to ensure they’re prepared with the right payment options and customer experience.
Education
Education plays a crucial role here. Business leaders need to know the basics of how their money is handled, the routes it takes, and the risks involved. Just as a business would trust its legal or accounting matters to experts, it’s wise to work with a professional who understands the details of payments and banking. An external consultant provides an unbiased view, helping businesses avoid the pitfalls that come from relying solely on a sales-focused provider who may not consider the company’s unique needs.
Startegy
With the right guidance, businesses can develop a sound banking and payment strategy that goes beyond fees and accounts for risk management, compliance, and long-term stability. The Soltesz Institute is working to bridge this gap, offering certifications and courses for both individuals and companies to better understand the payment and banking landscape and make educated decisions.
In an increasingly complex world of payments, having a knowledgeable partner can make the difference between smooth operations and potential missteps.
You can watch the full podcast here: https://www.youtube.com/watch?v=f0jdlCeuILw&ab_channel=FACTORY39
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