{"id":12811,"date":"2025-01-13T15:43:22","date_gmt":"2025-01-13T14:43:22","guid":{"rendered":"https:\/\/www.voxelgroup.net\/blog\/?p=12811"},"modified":"2025-01-24T14:52:18","modified_gmt":"2025-01-24T13:52:18","slug":"overcoming-the-challenges-of-cross-border-b2b-payments","status":"publish","type":"post","link":"https:\/\/www.voxelgroup.net\/blog\/en\/overcoming-the-challenges-of-cross-border-b2b-payments\/","title":{"rendered":"Overcoming the Challenges of Cross-Border B2B Payments"},"content":{"rendered":"Tiempo de lectura:<\/span> 3<\/span> minutos<\/span><\/span>

The travel industry is inherently global, with businesses often operating across multiple currency zones. Even businesses that focus on a single region often have to manage inbound and outbound payments in different currencies, highlighting the complexity of financial operations in this sector.<\/span><\/p>\n

At the <\/span>Bavel Travel Summit<\/a> 2024, Tiago Coimbra<\/b>, Account Director Travel at Modulr; <\/span>Severin Gerstenkorn<\/b>, Strategy Manager at Pliant; <\/span>Mike Carlo<\/b>, CEO at XanderPay; <\/span>Coco He<\/b>, Global General Manager at Sunrate; and <\/span>Alfredo Stefani<\/b>, Director of Partnerships at Voxel; shared their <\/span>insights into the complexities of cross-border B2B payments and the solutions shaping the future of the industry<\/b>.<\/span><\/p>\n

Cost, speed and transparency: key pain points\u00a0<\/b><\/h2>\n

When it comes to overseas expansion, <\/span>\u201ccost is probably the biggest pain point that travel companies experience\u201d<\/b>, noted Alfredo Stefani. In terms of travel agencies, for example, a European agency might benefit from cost-effective SEPA (Single Euro Payments Area) transfers for regional transactions, but may face significantly higher fees when dealing with suppliers in countries like Turkey or the UK, shared Severin Gerstenkorn.<\/span><\/p>\n

In this regard, Coco He pointed out that, for example, in the case of a company that makes a payment to Thailand from Europe, there are usually two costs. One is the bank transaction fee, and the other is the margin. This type of cost is not usually that transparent for the payer. <\/span>\u201cThe markup can be especially significant for small and medium-sized businesses, if they pay a small amount but add costs frequently\u201d<\/b>.<\/span><\/p>\n

Additionally, <\/span>speed becomes a critical factor<\/b>; while European transfers are often instant or same-day, international payments can take several days to process, said Severin.<\/span><\/p>\n

Mike Carlo highlighted how <\/span>misinformation in the hotel sector leads to inefficiencies<\/b>. Many hotels operate in the local currency and USD, often having suppliers pay in USD and converting the funds at banks, incurring a 3-4% margin. \u201cCompanies frequently accept these high costs as normal, unaware of potential savings through optimised payment strategies\u201d, he stated.<\/span><\/p>\n

The role of technology in addressing Cross-Border B2B payments\u00a0<\/b><\/h2>\n

Modern payment solutions are transforming how travel businesses navigate these issues, and are helping to make the industry more efficient. In terms of costs, Severin Gerstenkorn explained that an important aspect to consider is the fixed rate. Unlike SWIFT (Society for Worldwide Interbank Financial Telecommunications) transfers, whereby the amount sent must match the amount received, and often require specialist providers that are not available in every country, <\/span>virtual credit cards are widely accepted globally<\/b>. They also <\/span>offer an instant payment method, ensuring timely payments to suppliers<\/b>.<\/span><\/p>\n

Tiago Coimbra shared an example of an online travel agency (OTA) that transitioned to virtual card payments. The switch <\/span>streamlined their reconciliation process, reducing the workload for finance teams<\/b> and unlocking valuable time for strategic tasks.<\/span><\/p>\n

However, Mike Carlo emphasised that virtual cards are not a one-size-fits-all solution. <\/span>Regional regulations, cultural differences, and varying levels of acceptance mean businesses must tailor their payment strategies<\/b> to each market:\u00a0\u00a0<\/span><\/p>\n