Page 18 - Logistics News - March_April 2023

CR OSS B O RD ER TR AD E

How to overcome cross-border

payment challenges

Financial technology company Verto has identified numerous ways for
exporters to optimise their cross-border payments. By implementing several
improvements to their strategies, financial risk can be reduced and payment
methods can be diversified, giving businesses more confidence and control over Ola Oyetayo, CEO at
their cross-border payments. Verto.

ross-border trade is a key driver of the South digital platforms, which allow for faster, safer and tracked
African economy, accounting for over half of the payments, can be a smart way to improve exporting.
Ccountry’s total exports. However, South African
exporters face several challenges in receiving cross-border Staying informed to stay agile
payments, including high transaction fees, currency For exporters, operating globally means that keeping
conversion issues and difficulties in verifying the identity abreast of the economic and political environments of the
of buyers. jurisdictions in which they operate is essential. Instability
and currency fluctuations in emerging markets can lead to
According to a survey conducted by the South African border problems, cash flow issues and delays in receiving
Chamber of Commerce and Industry (SACCI) in 2021, money safely and on time. Ola Oyetayo, CEO at Verto,
the high cost of cross-border payments was identified as a says being informed can help a business be adaptable and
significant challenge by 35 percent of exporting companies mitigate any potential risk. “Some steps to do so may be
in South Africa. setting news alerts on your computer or phone, working
with local partners who can keep you informed or working
Another challenge is the time it takes to process with a payments provider that understands these risks.”
cross-border payments. According to the same SACCI
survey, 29 percent of exporting companies identified “At Verto, we can help mitigate currency fluctuations
delays in payment processing as a challenge. These delays for our customers with our Marketplace, which allows
can be caused by a range of factors, including payment businesses to set their own foreign exchange (FX) rate
intermediaries, regulatory requirements and compliance and our competitive FX rates to always stay ahead of the
checks. market. In addition, our multi-currency wallets can hold
funds in up to 50 currencies, enabling businesses to lock in
There are several strategies that exporters can favourable exchange rates,” he notes.
implement to enhance global payments, decrease financial
risk and streamline their financial operations. This includes Implementing a helping hand
staying informed, partnering with an innovative payment A step towards better payments may lie with who the
provider and diversifying to improve overall efficiency of payments providers are, especially as exporters can work
cross-border payments. in markets that they are unfamiliar with and that have
differing regulations, which may result in the risk of not
Introduce digital diversification being financially compliant. Using an innovative global
A focal point of an exporter’s global payments strategy is payments provider can ensure exporters are provided with
L O GI S T I CS NEWS markets like South Africa where there is a reliance on fraud prevention and detection, and currency conversion.
a variety of services such as global compliance support,
to diversify payment methods, particularly in emerging
“For example, at Verto, we allow our customers to set their
cash or cheques as the most common way of payment.
own preferred rates via our Marketplace so that they can
While this is favoured, it leaves exporters at risk of not
negotiate and execute trades at a price that suits them,”
receiving payments or delays that can impact cash flow or
result in shipping delays. Using electronic transfers and

16 M A RC H/A P R IL 2023 concludes Oyetao. • www .l o g ist i csn e w s .c o .z a