Do you make international payments often?
Ever struggled with delays in payment, rigid payment processes, paper works, forex changes, banking hierarchies, currency fluctuations, etc? Now it is time to say goodbye to these headaches.
This blog is an overview of the major issues that may arise when making international payments. It also reflects why you should choose PingPong to get rid of all these problems.
Before that, let's take a look at the Indian market in the realm of cross-border payments.
Indian Market Today
As we all know, in the global corporate environment, India is a big contributor today. Where there are prospective commercial opportunities in the world, India is the number one pick for any multinational investment.
Also, for the next stage of progress, the whole globe focuses on the Indian market as it is one of the fastest-growing in the world. Thereby, India attracts several international investors to its diverse and most favorable market conditions. The main areas of interest for multinationals investing in India include air travel, manufacturing, and IT services.
In addition, the new "Make in India" project offers uncountable opportunities for Indian entrepreneurs with an assurance of a big quantity of ROI. This then gave a boost-up to the new start-ups in India to invest enormously in foreign currency.
However, we find that many face many difficulties when it comes to doing international transactions, especially in the case of Business transactions.
Top 5 challenges Businesses Face with International Payments
International trading enterprises have found it easier to develop into new markets anywhere in the world thanks to increasing globalization. New channels and innovations for communication and transportation have opened the road for them to easily reach international markets and find potential customers even by building a virtual company. Yet, many organizations are struggling with a key issue, which is nothing else than the hurdles they face while the exchange of cash for goods and services takes place.
In some worse circumstances, businesses sometimes persecute the bank to transfer the funds because it is a lengthy process to receive money from abroad. Because, above all, it’s a matter of money, the most important component of a business.
While talking about Indian businesses' real-time problems in transferring international payments, they confront several problems such as the following.
Forex
Banks charge a foreign exchange premium, which is frequently a high exchange-rate margin. The exchange rate can never be an exception in this case. It significantly affects both the importer who pays or sends money for the goods and the exporter who collects or receives the payment.
Calculate the actual amount of money you will receive after all the transactions using a PingPong calculator.
Hidden Charges
It is a fact that commercial enterprises still have to pay more than the actual bills. Charges that many do not understand often result in losses incurred in lieu of profits. In addition, intermediary banks may incur additional processing charges in the middle of the transaction.
Tracking of Payment
Unfortunately, international payments do not have carrier services tracking capabilities. Importers have no insight into if or when their payments have been transferred into the bank account of the exporter and the exporter has no knowledge of payment status.
Local Rules and Regulations
The fact is that it might be tough to pay internationally. Nations worldwide have different standards and rules, so you must manage a wide range of legislation and cope with local partners, the requirements of which also vary.
Virtual bank accounts
A bank account named in that currency might be particularly handy for companies making regular payments in foreign currencies. However, although there are large numbers of dollar and euro accounts in the UK, many banks do not offer anything more. Virtual bank accounts created for customers with distinct IBANs could be a good technique of controlling the problem of your bank by not providing the money you require.
International payment processors like PingPong can solve these problems by simplifying the procedure. Here, transactions between buyers and sellers have been made transparent and speedy so that significant cash flow problems are resolved. We also remove all the problems in markets where firms have no banking relations or infrastructure that face various regional challenges.
Why Choose PingPong?
PingPong is now an irresistible player in the industry offering highly advanced cross-border payment processing services internationally. We help you receive your money from abroad to your India Bank account in INR or USD/ GBP/EURO/JPY/AUD/CAD with maximum profitability and efficiency. ‘Simplicity and easiness in receiving international payments without much time delays and charges’ is what we especially try to provide to our customers.
We have recently cooperated with e-commerce giants such as Amazon, Shopify, and Wayfair to encourage the development of Indian salespeople throughout the world. We have also introduced an International Payment Platform for freelancers and offline exporters in India that can offer you highly lucrative benefits.
The growth of PingPong was fueled by the accuracy of the payment of international e-commerce sellers. And, we are now best known to lower the cost of overseas cash transactions.
The Market in India has so far given us an incredible response. Hundreds of e-commerce merchants, exporters, and freelancers have embraced PingPong India.
Read more: How PingPong assisted Soulflower in the global business expansion?
In the global e-commerce payment area, we have achieved a large market share and aim to become a dominant player over several years. Last year, we boosted our transaction volumes substantially by introducing new payment options for freelancers, offline exporters, and app developers.
Pingpong has globally indeed enabled international sellers to pay to suppliers, with product suites such as VAT payments to the UK and the EU. This year, PingPong started receiving accounts of AED, SGD, and MXN currencies and became India's best international payment processing service provider.
The release of FIRCs, in which PingPong took this issue upfront and developed a seamless digital issuance process of FIRC, has been another pain-long issue of Indian global dealers, making it an uncomfortable seller's experience.
Although the eCommerce industry had some effect in the midst of the epidemic, the demand for freelancers in India increased. While the majority of freelancers receive international payments straight from the existing platforms, the significant conversion expenses which occur when they receive overseas remittances are not calculated. This fee is often ignored leading to a decrease in the margins. Many freelancers face conversion expenses up to 4 percent by accepting direct payments from such platforms.
In addition, in India, a unique solution has been provided for freelancers who operate with international platforms or customers. Unlike other players, PingPong costs very little to receive payments internationally, so reducing the conversion charges and platform charges by roughly 50%.
In the numerous target markets of India, we have expanded our presence successfully in recent years to assist retailers worldwide on platforms such as Shopify and Magento.
We have also developed a payment processing platform that can offer potential benefits to Indian exporters and MSMEs. This will better support Indian exporters in receiving foreign payments at competitive rates to their local bank accounts and provides a 100% transparent dashboard.
Final words
Since we started our journey, we helped the seller group save 70% of other remittance charges. with more clarity, we saved about US$1.6 billion between 2016 and 2019 in comparison to past service costs.
We think India has a lot more to offer the world and Indian export companies are on the verge of achieving new heights. The Indian marketing community is destined to be a major force in world commerce, with its rising concentration on Make in India and on improving corporate efficiency. Our payment solution focussing on safety, compliance, and cost reduction will certainly be a tool for sellers to achieve a competitive advantage.