Digital payments platform WorldFirst has debuted a solution to help small businesses speed cross-border payments.
WorldTrade, announced Thursday (April 18), is aimed at small and medium-sized enterprises (SMEs) that procure products from suppliers based in China.
“The launch of WorldTrade aims to build trust in B2B trade through digital means,” Ma Qisheng, head of global B2B business at WorldFirst, said in a news release.
“WorldTrade facilitates intelligent payment processing aligned with agreed trade terms, minimizing trade barriers and streamlining global business interactions.”
According to the release, WorldTrade protects SME buyers’ funds by examining sellers’ reliability and enforcing contracts, helping prevent the risk of financial losses from fraudulent transactions.
It also allows for immediate payment directly into sellers’ accounts while offering international buyers the flexibility to pay their suppliers using a credit card, a debit card or the WorldFirst platform World Account.
“Current channels usually process an international B2B trade payment within a span of one hour to seven days,” the release said.
PYMNTS Intelligence examined the hurdles businesses face when making payments to buyers and suppliers overseas in the recent report “Cross-Border Sales and the Challenge of Failed Payments,” which showed the toll of faulty cross-border payments, costing U.S. merchants at least $3.8 billion in sales last year.
According to that report, 82% of merchants said they find it tough to determine the causes of failed payments. Those merchants with a higher cross-border focus suffered an average failure rate of 11.4%, compared to 10.1% for those less of a cross-border focus.
“Once the payments fail, other headaches may surface. Sixty-seven percent of respondents identified customer recovery as being a challenge,” PYMNTS wrote last month. “Sixty-two percent said the reputational damage that follows is problematic. Increased workloads after the fact are an issue for 59% of respondents.”
And earlier this week, PYMNTS examined the efforts businesses make to improve their cross-border payment operations, with companies debating whether it is best to buy, build or partner their way to a wider share of the market.
“For businesses looking to expand internationally, the calculus among payment providers is starting to shift toward leveraging partnerships when providing payment services,” that report said. “This enables solutions to come to market quicker than it would take for an organization to build a solution, or acquire one, on their own.”
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