Why Fintech Is Transforming Corporate Payments
With new technologies and digital currencies, innovation is driving change in the corporate payments space.
As the world races towards an increasingly cashless world, the corporate payments space is transforming. There are ever-more innovative ways to carry out transactions and companies are demanding ever-faster, more friction-free solutions.
An expert says that the biggest change in the corporate payments space over the past years has been motivated by Covid stated from 2019. The pandemic dramatically accelerated payment trends that were already starting to develop. Most notably, the transition to online commerce and the move away from cash. But something more significant developed as a result.
He also gives his opinion that the line between physical stores and online blurred for even those most resistant to technology in the shopping experience. “This mass shift required organizations to create seamless links between their stores, websites, and apps, which need a much more sophisticated payments solution.”
A professional from IBM Consulting points out that the single most impactful change in the corporate payments space over the past decade has been the dramatic shift in emphasis toward Real-Time: the instantaneous movement and settlement of cash and data.
For those disruptions to finance, fintechs have embraced them, to a point where innovations created by market newcomers, are dramatically altering the global financial marketplace.
For business holders, when working with traditional banks, opening an international account is a long, difficult, high-cost and painful process. Especially with cross-border payments, many banks don’t just charge the exchange rate and the FX margin, they also inflate the overall price.
However, fintechs are enabling businesses to set up their own international account with a multi-currency IBAN in their organization's name. They can manage corporate cash flows and view trading history, market data and statistics, all in one place. Virtual cards then ease the process of making payments without taking a physical card everywhere.
As increasing the speed and agility of transactions is good for business, more companies than ever before are recognizing the need to shift from traditional service.
Fintech companies often offer lower transaction fees compared to traditional banks. This is possible due to their leaner operations, reduced overheads, and innovative technology solutions. For instance, digital wallets and payment gateways can process transactions at a fraction of the cost of traditional methods.
Fintech solutions operate online, eliminating the need for physical branches, ATMs, or other traditional banking infrastructure. This digital nature translates into cost savings for both the fintech companies and their customers, who benefit from lower service fees.
Fintech companies offer a variety of payment methods, including digital wallets, virtual cards, and multiple currencies. These alternatives to traditional payment methods provide businesses with greater flexibility and convenience.
For example, fintech solutions often come with built-in capabilities for handling multiple currencies and cross-border transactions. This is particularly beneficial for businesses operating in multiple countries, as it simplifies foreign exchange management and reduces the complexity of international payments.
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Additionally, fintech solutions are designed with user experience in mind. They often feature intuitive interfaces, seamless integration with existing systems, and mobile-friendly platforms. This ease of use can lead to higher adoption rates among employees and customers.
Fintech solutions are often highly customizable, allowing businesses to tailor the services to their specific needs. Additionally, they can scale easily, accommodating the growth of a business without requiring significant infrastructure changes.
Meanwhile, Fintech platforms often include powerful analytics tools that provide businesses with insights into their payment processes and financial health. These insights can help companies make more informed decisions, optimize cash flow, and identify cost-saving opportunities.
Fintech firms invest heavily in advanced security measures, such as encryption, tokenization, and multi-factor authentication, to protect transactions and sensitive data. These measures help reduce the risk of fraud and cyber-attacks.
As for regulatory Compliance, fintech companies often have to navigate complex regulatory environments. Many offer built-in compliance tools that help businesses adhere to financial regulations, such as anti-money laundering (AML) and know your customer (KYC) requirements.
Qbit provides robust financial solutions for business
Qbit Global Account
With Qbit, owners can open multiple business accounts in various currencies. This feature is perfect for those who regularly deal with different currencies, providing a convenient way to manage your international finances without the hassle of maintaining multiple accounts. Qbit Global Account covers over 180 countries and support withdrawals in over 40 currencies — that’s considerably more than most other providers. The platform supports SWIFT and local bank transfers in various countries, enable companies to send and receive money globally with ease, making it simple to manage cross-border payments and transfers.
Qbit Employee Card
Qbit offers an integrated card management tool for corporates. Businesses can apply for both virtual or physical cards with customized budgeting for different employees to make payments for business purposes. Cardholders add the card to Google Wallet or Apple Pay or Alipay just like any other Visa or Mastercard. Every payment can be categorized and logged, making it easy for accounts to keep track of payments, receipts and invoices. Having a great deal of control over company spending also makes it easy to reconcile payments at the end of each month and to identify any unnecessary expenses. This streamlined process can save time and effort in accounting and financial reporting.
Conclusion
Fintech, or financial technology, is transforming corporate payments in several significant ways. This transformation is driven by the adoption of advanced technologies and innovative business models, addressing the limitations and inefficiencies of traditional financial systems.
By leveraging these fintech capabilities, businesses can significantly reduce their payment processing costs, improve efficiency, and allocate resources more effectively.
Learn more about Qbit or sign up, visit www.qbitnetwork.com .