In as little as a decade we will look back at the fractured banking and payments sector with utter astonishment at just how long traditional banking services weren’t challenged – costing businesses millions of pounds.
Businesses of all sizes trade internationally every day, and have done for many years.
Yet still they routinely accept – or sleepwalk into accepting – high charges from their normal bank for paying foreign suppliers or receiving payment from customers abroad.
Market disruptor Saxo Payments, which is behind a unique new pioneering community-based payment model, believes these costs are an intolerable extortion and is urging businesses to fight back.
Transfer fees mean businesses are losing money unnecessarily when sending or receiving payments internationally using a traditional bank. Saxo Payments is plugging the holes where banks allow money to seep through the cracks, by creating a marketplace in which everyone can benefit.
Designed to empower the swathe of fintech businesses seeking to exploit the explosion of global digital enterprises, Saxo Payments is a seamless conduit for transfers; fees are negligible (less than 1% rather than around 5% with banks) and transfers occur instantly within the community, even across borders, as if the two companies were neighbours.
Saxo Payments enables fintech businesses with international client bases to focus on their core activities, while extending their value chain and product offering allowing them to compete directly with the banks.
As direct members of the Saxo Payments marketplace, these enterprises create a new revenue stream for their business by utilising a web-platform in their own name in order to provide their merchants with transfer capabilities. It is a solution that is truly empowering global trade, while ensuring that financial regulation is completely adhered to, without impacting on business success.
This is how payments should be. Saxo Payments believes it will be the norm in future.
A world not shrinking quickly enough
We have all heard the over-used cliché of the internet making the world a smaller place. If it’s been said for long enough to become a cliché, why are payments still lagging quite so far behind? The simple answer is demand.
It appears that consumers are now more willing to switch bank accounts to get the best offer and benefits for their personal needs, forcing providers to respond with better offers. If it works so well for consumers, why are businesses slower to follow suit? The traditional banks are profiting from companies dithering over seeking a better service – and businesses are paying for it.
Businesses seem to be afraid to stand up and demand instant global transfers, cheaper international payments, access to low FX rates and a better, more customer-centric service. But that is now set to change.
The long-overdue modernisation of the financial industry has begun, with Saxo Payments leading the charge. Anyone not already on board will be left further behind by the day.
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