Research commissioned by Earthport highlights the greatest opportunity for improvement exists in the mid-market, particularly for payments below $10,000
London, UK – 20th September 2011 – Earthport (AIM: EPO), the global payments provider, today released the results of a new report that provides a detailed understanding of the ideal cross-border payment solution from the perspective of both payment professionals and payment initiators. The global survey, which is based upon responses from professionals across the financial ecosystem, was conducted by payments strategy consulting firm Glenbrook Partners.
According to the report, there is widespread concern and frustration over current practices and prices within the cross-border market specifically amongst payments in the ‘sub-$10,000 level.
Other key findings include:
54% of respondents expressed interest in cross-border payment solutions that connect to local ACH/EFT schemes around the world. This strong appetite exists for high-volume, low-value payments service. If a system of this kind could scale and be reliable, then an overwhelming majority of those interviewed will be very interested (54%) or somewhat interested (35%) in this approach.
65% feel reduced costs is the most likely benefit to result from improved cross-border payments systems. There are numerous opportunities for improvement, with the top three potential benefits cited as reduced costs (65%), improved payments quality (55%) and improved relationships with suppliers (49%). Other recurring themes include concerns over security, transaction fees and a need for simplified reconciliation.
Even those Corporates with mature treasury and payment functions still face sizable challenges transacting on a global basis. Respondents cited the biggest challenges as being the length of time it takes to clear funds, difficulty tracking payment progress and problems with payment reconciliation. They also expressed concern about the lack of foreign exchange fee transparency.
Hank Uberoi, Executive Director, Earthport comments: “Our research indicates that as companies conduct business with an increasing number of customers and suppliers overseas, they demand more sophisticated cross-border payments systems. Payments systems set-up decades ago, many of which have been retro-fitted to meet modern-day needs, are creaking and groaning under the strain, and the market is voicing concern over current practices and prices.”
Hank continues: “These findings are timely because globalisation and slow growth at home are driving companies of all sizes to conduct business in other parts of the world. A host of new products and services are emerging to satisfy this need, offered by both new players and by industry incumbents. Cross-border payments are arguably the largest unsatisfied opportunity in the payments industry today.”
Erin McCune, the partner at Glenbrook who led the research effort, said: “Our findings clearly show that the market is voicing concern over current practices and prices, and showing an interest in lower cost alternatives. There are also attractive opportunities to improve the payments experience of both the sender and the receiver of funds.”
Supporting Resources
To access the full report please visit:
https://www.e-junkie.com/ecom/gb.php?c=cart&i=993333&cl=107306&ejc=2Keep up with Earthport news by visiting the company's website and follow us on Twitter
Click here to learn more about Glenbrook Partners
-ENDS-
Notes to Editors
The Cross-border Payments Perspectives survey was conducted in two phases:
Phase 1 of the survey (March 2011) generated responses from more than 200 bankers and other payment professionals worldwide. Respondents included 173 banks and other payment service providers as well as 28 payment users, consultants, investors and other participants in the payments industry. More than 50% of responses came from companies headquartered outside the US.
Phase 2 (August 2011) surveyed 60 members of the Institute of Financial Operations, who are representative of mid-sized and larger North American corporate payments initiators. More than 80% represent the Accounts Payable function in their business, with most being accounts payable managers or supervisors. In smaller companies, the finance manager or CFO responded to the survey.
About Earthport
Earthport plc, a global financial services organisation, is a market leader in the provision of white-label cross-border payment services. Through its international platform, Earthport provides low cost, secure, high volume global payment capabilities in 200 countries worldwide.
The company has been making national and international payments and collections since 1998, and is regulated through its UK Financial Services Authority (FSA) status and SWIFT membership. Providing a transparent and reliable service, partners include some of the largest financial institutions and corporations in the world.
Earthport operates worldwide and is listed on the Alternative Investment Market (AIM) on the London Stock Exchange. To learn more, please visit www.earthport.com and follow us on Twitter @Earthport.
About Glenbrook Partners
Glenbrook Partners is a payments-industry consulting, research, and education firm that offers its clients a unique combination of specialized skills in electronic and mobile payments. With many years of senior, hands-on management experience, and a network of professional relationships, Glenbrook is well positioned to help clients with strategy definition, product conceptualization, and the application of emerging technologies to solve leading edge problems in the financial services industry. For more information, visit http://www.glenbrook.com.
For all media enquiries please contact:
Billy Burnett
onechocolate communications for Earthport
Tel: +44 (0)20 7437 0227
Email: Earthport@onechocolatecomms.co.uk