Originally posted in finmaps.com
The demand for an efficient, friction-free and global outbound solution for payments is substantially on the rise, especially as the global economy around us is becoming more intertwined and interconnected than ever before. The nature of today’s business are becoming dispersed with people and offices spread around the world seeking to globalize their reach and thus pursue further profit. However, we should no longer be bound to checks and wires. Fortunately, there is reason to be hopeful and optimistic over the development of global payouts becoming available to all in the not so distant future.
Costly and complex is how global disbursements are currently described, mainly due to unsuitable transactional traceability and extremely limited ACH interoperability across the globe. Restrictions, and very often delays, are normally rendered despite us consumers enduring the expense and inconvenience caused associated with such methods.
At a time when forecasts indicate payment volumes to partners around the world, contractors and resellers are all expected to escalate significantly, even the check/wire payment process itself continues to be plagued due to various bottlenecks.
Nonetheless, there is light seen at the end of the tunnel regarding global payouts witnessing significant enhancements in the near future. New players, and yet major disruptions, in numerous payment areas have been seen emerging in recent years. And while gone neglected have been cross-border payouts, the year 2017 has major potential of laying out groundwork for tangible innovations in the world of outbound disbursements.
Is there a solution?
What is certain is that needed now is a global solution providing results in a fast, efficient, secure and transparent method. But how we will reach such a point is the main question. What is needed to establish a payment solution that mirrors what is already available and provided in payment acceptance?
Answering such questions demands devoting a large amount of time and resources to review and evaluate the global financial situation. Key developments have to be examined and there will most likely be changes in how cross-border payouts are made in 2017.
Rising demand for integrated payout solutions
A network of networks able to constantly evolve and adapt itself with innovating technology and changing necessities will be what the future of business-to-business/business-to-consumer relations will look like. This will span across different industries, including the likes of banking, credit cards, digital payment platforms and mobile money. A growing number of chief financial officers and teams involved with treasury affairs will be looking for a single and very simple solution that enables paying anyone, anywhere in the world at any time.
Greater transparency desired
Purpose-built platforms will provide to be the next generation of solutions for outbound payments. These methods allow us to control costs, make data even more visible and operations further efficient, and present delivery methods free of any friction. Such platforms, enjoying technology to provide integrated payment tracking, significant compliance and tools needed for management tasks, can facilitate alterations in how people and business firms receive their payments in a vastly global economy.
Innovation, like it or not
It is a true fact that we are reaching the point of global disbursements nearing its tipping point. The volume and speed of global payouts will continue to grow and expand through the next 12 months and beyond. Businesses will need to pay their partners, resellers and contractors in countries throughout the globe, and this trend will continue to grow as forecasts show. It is inevitable that at some point down this road that we are in, it will no longer be tolerated for the existing infrastructure, having for decades reigned over the rules and regulations of cross-border payments. Developments show we may have even already passed that point. Global payments will most definitely undergo serious innovation. It is only a matter of time and even questions about how are being answered one by one.
The author, Paul McNeil is a tech analyst specializing in the political and moral perspectives of today’s innovative world. He blogs on these issues at TechMoralitics and followed on Twitter @mcneil_lfc. You can also view his LinkedIn profile here.