Noticing what can be done via the internet and digitalisation to transform communication, consumers and businesses strive for the same experience with payments, money transfers, and (e)commerce. No matter what channels are used (physical card, bank transfer, even cash), the action taken (swipe, tap, wave, wink, touch) is not so much due to COVID-19.
Regardless of where the process of payments starts (online, offline), consumers aim for a quick and stress-free experience – and, most of the time, this happens when buying a small, common item, such as a cup of coffee. But when paying for imports or sending money to relatives abroad, the process often involves filling out forms (therefore it is paper-based), waiting for days, and paying too much, given that there are hidden fees sometimes. Cross-border payments are too slow, too expensive, and not everyone has access to them.
The rise of digital money
The world needs reliable and interoperable payment means and trading rails that can deliver on the promise of ‘the internet of money’ – and goods, we might add. Moving money and products around the globe, while abiding to country-specific regulation, should be as easy and cost-effective as sending a message or sharing a photo. We are about to get there sooner than some have expected, as cross-border payments are about to be disrupted, with solutions such as Alipay, Libra, M-Pesa, Paxos, Stablecoins, Swish, WeChat Pay, DCEP (China’s Digital Yuan), and Zelle that are expanding consumers’ choice of ecommerce payments.
What keeps international merchants up at night?
To better understand the disruptive potential of the new payment means that have captured our attention, let’s start by examining the challenges encountered by merchants when it comes to cross-border payments and (e)commerce. Prior to that, it is worth mentioning that while adapting to local customs, and especially while trying to innovate, many international merchants have turned these challenges into opportunities.
Read more: https://thepaypers.com/expert-opinion/the-untapped-potential-of-digital-money-in-cross-border-payments-and-trading–1246914