Challenges of Cross Border Payment
The world has developed into a digitalised global village and people are now making better and more informed choices on products purchased. The ease of technology at our fingertips has made searching for products all over the world incredibly flexible providing consumers so many options to choose from. However, cross border payments comes with a lot of challenges which are enough to put off the average buyer. Here are the top four challenges of cross border payments.
- Shipping fees- Cross border payments come with outrageous shipping fees that can be both expensive and unpredictable. There are always a lot of checkpoints and custom regulations fees to be made at every spot. There’s a shipping tariff that is often imposed by the shipping company and any other additional tax that comes up. With so many intermediaries involved in transferring the money from one country to another, the fees keep climbing up.
- Payment method and Slow transactions- There’s always the complexity that comes with using a payment option that is accepted by the target country. If the payment option is not supported, it delays the process of the product arrival or in some cases may not even process it at all
- Language barrier- For some brands, there’s always the issue of translating and localizing a product content after arrival and it takes a lot to work through the product information, catalog and images of each product. The result is extra labor and time factor. This is because extra attention has to be paid on cultural and language differences in global markets for a brand to fit into the habit of their target customer.
- Security problems- Cross border payments usually encounter security breaches from time to time such as hackers stealing money from the payment pathway and no guarantee that the money will be recovered by banks. The risk always comes with countries with a very low security and access option.
These challenges affect businesses, banks and other financial institutions as a whole. Consumers would rather chose a payment service option that offers an instant and cheater option of payment, they would most likely avoid a payment service that doesn’t have a good security measure and risk management in place. Finally, they would want a brand that they can relate with in terms of language and cultural differences.
Centiiv Pay app presents a flexible, cheaper and faster solution. It is faster than the average financial institution and uses 80% less of the amount of money most businesses spend on cross border payments. It comes with a peer-to-peer method and direct crypto-to-bank payments that allows a smooth transfer of funds all over the world in record time. With Centiiv Pay technology and wide network, businesses and consumers can now make seamless international payments and transfers.