- Payall |
- In the Press
- Mar, 2021
Cross-Border Payments: An Untapped Revenue Stream for Community Banks
The cross-border payments market has an estimated value of $21 trillion in 2021, with a 90% compound annual growth rate, according to analyst group CB Insights, writes an Independent Banker article.
It’s an untapped revenue stream for community banks, which can’t enter the scene due to the high entry-level costs for processing cross-border payments. Independent Banker is making the case that things may be changing, in an article titled “Why it pays to offer cross-border payments”, quoting Payall Founder & CEO, Gary Palmer.
The market’s rapid growth is attributed to small and medium sized businesses offering and purchasing goods on a global scale. Industry studies indicate that 60% of U.S. small and medium businesses already participate in foreign trade, with another 18% planning to, in the near future.
A SWIFT survey of corporate treasurers revealed that 55% have no plans to use alternative providers to their current banks to make cross-border payments. This might just be the opening for community banks to make their entrance into the market.
However, it’s difficult for community banks to open the tap on this revenue stream. “Community banks are challenged to offer cross-border payments, because in a traditional model, they can really only be justified by substantial volume … Historically, there has been no such thing as a ‘cross-border payment process’ powering a bank product, but that is changing in today’s landscape”, states Gary Palmer as the reason.
The change Gary Palmer mentions comes with Payall’s Single shared Global Multicurrency Asset and Payments Platform (SiGMAPP), designed to specifically enable banks to offer safe, fast and compliant cross-border payments, through a turn-key, end-to-end product.
With a breakthrough in compliance, “new rails” that require no change to a bank’s core and unprecedent recipient options, Payall delivers 24x7 instant global payments, safely, with an up to 90% reduction in cost and satisfaction on all ends.