On October 31, 2023, the Reserve Bank of India (RBI) issued a master circular on the import of goods and services titled <a href="https://m.rbi.org.in//Scripts/NotificationUser.aspx?Id=12561&amp;Mode=0">Regulation of Payment Aggregator – Cross Border</a>.&nbsp;&nbsp;

According to the circular, the RBI will regulate all Indian entities facilitating online cross-border payments for the import and export of permissible goods and services. Moreover, these entities will be collectively termed Payment Aggregators Cross Border (PA-CB).

The circular comprises guidelines to streamline the existing cross-border payment framework in India. Previously, cross-border transactions were carried out through Online Payment Gateway Service Providers (<a href="https://www.skydo.com/blog/online-payment-gateway-service-provider-opgsp?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">OPGSPs</a>) as per a circular issued by RBI in 2015.

OPGSPs operate by partnering with an Authorised Dealer (Category I) Bank (AD Bank) and notifying the RBI. According to RBI guidelines, no formal license is needed to function as an OPGSP.

Hence, RBI has issued a circular to establish a concise and clear framework for cross-border payments. RBI will now oversee all cross-border payments in India related to the import and export of goods. The circular applies to PA-CB, PAs, authorised banks and OPGSPs.&nbsp;The PA-CB circular also denotes that there can’t be any new OPGSP.

This blog discusses the key provisions related to the latest RBI circular on the import of goods and services, RBI guidelines for payment gateway, and OPGSP guidelines.

Master Circular on Import of Goods and Services: RBI Bank Guidelines

The following are the key guidelines mentioned in the circular.

The following entities need to adhere to RBI guidelines/instructions provided in the circular.

Here are the key developments included in the new PACB circular.

Categories of Authorisation as per PA-CB Activity&nbsp;

Based on the cross-border payment activity undertaken by the PA-CBs, they can seek authorisation for one of the following three categories.

PA-CB, facilitating cross-border payments for Indian exporters, has to open an Export Collection Account (ECA) with an AD bank.&nbsp;

ECAs can be opened in either Indian currency or foreign currency. In the case of the latter, various ECAs have to be opened for different currencies.

The PA-CBs will credit all export proceeds in the respective ECAs. Additionally, export PA-CBs need to follow the below guidelines:

Similar to export PA-CBs, import PA-CBs have to open an Import Collection Account (ICA) with an AD bank.&nbsp;

They will collect the payment from importers in an escrow account managed by the payment aggregator. It will then be transferred to ICA and will eventually be transferred to the bank account of the foreign merchants.

These entities are allowed to directly onboard foreign merchants, e-commerce marketplaces, or other overseas entities that offer payment aggregation services.&nbsp;

Here are the guidelines Import PA-CBs need to follow.

Those PA-CB who engage in both import and export activities have to comply with the requirements for both Import PA-CB and Export PA-CB.

They also need to ensure that the maximum value per unit of exported or imported goods or services should be ₹25,00,000.

Non-banks who want to provide PA-CB services will have to seek authorisation from RBI. However, before seeking RBI authorisation, it is necessary to register with the Financial Intelligence Unit-India (FIU-IND).&nbsp;

However, RBI has issued the following net-worth criteria for non-banks providing PA-CB services.

The accounts of existing non-bank PA-CB who are unable to meet the net worth requirement will be closed by banks by 31 July 2024.

Snapshot Comparison Between OPGSP Circular (2015) and PA-CB Circular (2023)&nbsp;

Here are the key differences between the OPGSP Circular (2015) and the PA-CB Circular (2023)

Here is the process of seeking approval from RBI for existing or new PA-CBs.

Step 1: Draft the application through Form A, which includes the following parts.

Step 3: The RBI will process the application.

(RBI may raise queries related to various aspects such as shareholding, product processes, etc.)&nbsp;

Step 4: In principle approval from RBI.

Step 5: Filing of system Audit Report

(RBI may raise queries related to SAR audit observations)&nbsp;

Step 6: Final authorisation(state additional conditions that must be complied with)&nbsp;

The evolving cross-border payments environment and the emergence of several OPGSPs and other fintech entities encouraged RBI to issue the circular. Its main purpose is to ensure seamless and more transparent cross-border payment transactions.

Even though regulatory authorities are constantly working on making cross-border payment transactions seamless, transparent, secure, and quicker, businesses often face difficulties in receiving timely payments.&nbsp;

Skydo aims to simplify the cross-border payment landscape for businesses by automating various tasks and helping businesses open foreign bank accounts. <a href="https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">Join Skydo today</a> to streamline your invoicing and financial management activities!

Q1. RBI’s master circular on the import of goods and services and cross-border payments applies to which entities?

Ans. AD banks, PAs, and PA-CBs involved in the online processing/settlement of cross-border payment transactions related to the import and export of goods and services have to comply with the guidelines mentioned in the circular.

Q2. What are various compliances according to RBI payment aggregator guidelines for cross-border payments?

Ans. All PA-CBs have to follow the guidelines provided in the circular dated October 31, 2023. Additionally, they also have to follow the various guidelines for payment aggregators mentioned under a circular issued by RBI on March 17, 2020.&nbsp;The circular includes guidelines related to customer grievance redressal and compliance with Baseline Technology Guidelines to ensure fraud prevention and risk management.

Q3. How can PA-CB seek authorisation for facilitating cross-border payment transactions?

Ans. AD banks do not need to seek authorisation to facilitate cross-border payment transactions. However, a non-bank PA-CB can seek authorisation from RBI by sending the application to the Department of Payment and Settlement Systems (DPSS), RBI, Central Office (CO), by April 30, 2024. PA-CB entities must fulfil the minimum net worth criteria before applying to RBI.

 Know more about RBI's circular that mandates payment aggregators to seek authorization for facilitating cross-border transactions by April 30, 2024.

BI’s PACB Circular: Key OPGSP Updates of 2024 to Note 

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Imagine running your business as if you were driving a high-performance car, accelerating through the busy streets of your industry. The engine of your enterprise is powered by your products and services, propelling you to success. Yet, just as a powerful engine needs precise engineering, your business requires an optimised invoicing process to maintain its financial momentum.&nbsp;

Let's consider an example to understand this better.

Tech Solutions, a company that provides IT services to various clients, has recently completed a project for a major client and needed to send the bill. Sounds simple, right? However, it turned out to be a problem.&nbsp;

Creating the invoice meant gathering all the work details, checking expenses, and ensuring the pricing was accurate. Then came sending the invoice through email, which required manual data entry, leaving room for mistakes. Once the invoice was sent, the waiting game began. Tech Solutions had to constantly switch between emails, spreadsheets, and reminders to see if the client got the invoice, approved it, and when they'd pay.

For Tech Solutions and countless other B2B enterprises like yours, managing the invoicing process is an integral aspect of conducting business. However, with a manual invoicing system in place, this journey can be challenging and frustrating. You have to be careful with details and remember many things, and it takes time.&nbsp;

This situation highlights the necessity for a more streamlined invoicing solution, such as the transformative benefits that Skydo brings to the table.&nbsp;

Skydo solves these pain points, delivering efficiency and accuracy and freeing up valuable time for you to focus on growing your business. Here’s how.

Existing Invoicing Methods and Their Limitations

With the traditional method, managing your invoicing feels like trying to catch raindrops in a storm—a never-ending battle that drains your time and resources.&nbsp;&nbsp;

Like Tech Solutions, your business struggles with the limitations of traditional invoicing methods—follow-up calls, endless paperwork, and manually tracking payments and invoices.&nbsp;

Over the last quarter, your dedicated team spent countless hours on aggressive follow-up calls and reminders. These precious hours, which could have been better used in delivering top-notch services, were consumed in chasing payments. And it doesn't stop there—the manual tracking of payments and invoices led to myriads of errors, confusing both your valued clients and your meticulous accounting team.

<a href="https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">Sagar, the Founder of Primathon</a>, a software company, encapsulates the situation perfectly: "Manual invoice payment recon is unscalable and needs a product solution." Sagar's words mirror the sentiments of countless decision-makers like you who understand that these limitations hinder your business's growth and innovation.

Traditional methods fall short in the face of these challenges. You need an easier way to do invoices.&nbsp;

With Skydo, you won't have to worry about chasing payments or making mistakes. The challenges of traditional <a href="https://www.skydo.com/blog/should-i-invoice-in-inr-or-foreign-currency?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">invoicing methods</a> may be formidable, but they're no match for Skydo's capabilities.

Streamline Your Invoicing Process for FREE With Skydo

By streamlining the invoice creation and dispatch process, Skydo can also help you to improve your working capital and reduce your Days Sales Outstanding (DSO). This means you'll have more money available to invest in your business, and you'll be able to improve your cash flow and overall financial health.&nbsp;

With an intuitive and user-friendly interface, Skydo's integrated payment system also enables you to accept payments in multiple currencies. This allows you to collect accounts receivable faster and improve your cash flow.

Imagine effortlessly creating invoices the moment a new customer signs up. In just a few clicks, your invoices are in their inbox, ready to roll.&nbsp;

The best part? Automated reminders that alert your customers when their invoices are due. This way, your invoices become a priority such that money does not get held up in administrative backlogs anymore.

It goes a step further with automation capabilities that handle recurring invoices, automated invoice numbers, and purpose codes, essentially taking the grunt work off your shoulders.&nbsp;

With just one click, you can generate an e-invoice in practically any global currency, allowing you to customize invoices and add notes for clients. You don't have to worry about misplacing valuable information; Skydo also stores extensive records of client interactions and payment histories so that your accounting team always has access to accurate financial data.

Skydo makes it easy for businesses to streamline their invoicing process while still getting paid quickly and securely. With its automated features, intuitive interface, and global payment capabilities, you get more time, less hassle, and efficient automated invoicing that keeps your business moving forward. With Skydo, streamline invoicing, improve cash flow, and do it all at zero cost.

Track All Your Invoice Statuses in One Place

Imagine having a crystal-clear view of each invoice's status, knowing precisely when it has been viewed, paid, or if it's overdue. With Skydo, this isn't merely a dream—it's a reality that empowers your financial operations. 

1. Transparent Invoice Status Tracking&nbsp;

Skydo's innovative feature provides <a href="https://www.skydo.com/blog/real-time-tracking-of-international-payments?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">up-to-the-minute updates on each invoice's status</a>, offering a transparent and comprehensive overview. It enables you to promptly address overdue invoices and reduces the uncertainty surrounding payments.&nbsp;

2. Enhances Financial Stability&nbsp;

The benefits of having such a lucid view of your outstanding payments are manifold. It is the cornerstone of financial stability for your business, enabling you to exercise proactive control over your finances. It provides an invaluable snapshot of your financial health, helping you identify bottlenecks in cash flow and plan your expenditure accordingly.

Furthermore, it significantly reduces the risk of missed payments and defaults, thereby reinforcing your business reputation.&nbsp;

3. Global Payment Visibility&nbsp;

In addition to Skydo's efficient and seamless payment tracking, this visibility of outstanding payments extends to global payments, making it an indispensable tool for businesses operating in the international arena.&nbsp;

4. Efficient Invoice Management&nbsp;

Skydo’s integrated approach enables businesses to stay in control of their invoicing methods and reduce the time spent chasing payments. The system's digital nature also means all updates are automated, ensuring up-to-the-minute accuracy.&nbsp;

This level of invoice management offers valuable insights into your business's cash flow and helps streamline operations and improve financial management. The clear, concise, and up-to-date overview provided by Skydo's payment tracking feature makes managing invoices effortless.



By enabling your business to seamlessly track invoice statuses all in one place, it paves the way for improved financial forecasting, positive <a href="https://www.skydo.com/blog/how-you-can-streamline-international-transactions-for-your-business?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">cash flow management</a>, and a robust bottom line—all crucial elements of a thriving business.

Step into the future with efficient invoicing

Efficient invoicing methods are the lifeblood of maintaining a healthy, positive cash flow for businesses. It ensures your business thrives in this competitive market.

<a href="https://www.skydo.com/?https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">Skydo</a> revolutionizes this experience by providing an all-in-one solution to manage your invoicing needs. Its user-friendly interface, real-time payment tracking, and unmatched global payments handling capabilities put you in the driver's seat of your financial operations.&nbsp;

No longer do you need to worry about late payments or lost invoices. Skydo empowers businesses to stay on top of their finances, enabling them to focus on what they do best—growing their business. <a href="https://www.skydo.com/?https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">Book a demo today</a> to transform your invoicing experience and increase business revenue.

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The '<a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6751263/">Self Determination Theory</a>' by Ryan and Deci suggests that, with work, individuals have three psychological needs: autonomy, competence, and relatability. While two out of three needs are often met, freelancers struggle with relatability as they work independently. This feeling or sense of relatability can be fulfilled by networking for freelancers and building quality relationships with like-minded individuals by facilitating the exchange of ideas, collaborating with people, and receiving leads.

However, networking for freelancers goes beyond engaging in conversations, exchanging business cards, and sharing your story. It isn't mere collecting of contacts. Instead, networking involves planting seeds of potential collaboration that go beyond transactions – relationships that are founded on trust, understanding, and mutual benefit.

Let's delve deep into networking for freelancers and understand the importance of building quality client relationships through effective networking strategies.

The Dynamic of Freelancer-Client Relationship

As a freelancer, one of the most secure investments you can make to grow your freelancing career is building strong good client relationships. The accrued trust and credibility help you gain long-term dividends as referrals and collaboration. However, the relationship is built on the foundations of mutual trust, effective communication, <a href="https://www.skydo.com/blog/receive-timely-payments-with-skydo's-automated-reminder-feature?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">timely payments</a> by the client, and a clear set of expectations from both.&nbsp;

The client explains the requirements, sets out clear objectives, gives continuous feedback, and provides resources to deliver projects successfully. The role of a freelancer is to understand clients' requirements and objectives and use their skills, expertise, and necessary resources to deliver quality projects. Thus, it is a collaborative relationship.

Let's understand how meaningful client relationships can boost your freelancing career.

In the book <a href="https://www.goodreads.com/book/show/197014262-network-like-a-pro">'Networking Like a Pro',</a> authors Ivan Misner and Brian Hilliard explain that 'networking is about farming for new contacts, not hunting them.' This means networking is not about aggressively hunting for the right prospects and rushing to get them on board for short-term gains. Instead, it is about building profitable relationships by planting seeds (focusing on branding) and patiently waiting for them to produce a rich harvest. The idea is to focus on building a community first instead of directly creating a list of potential customers.

1. Self-assessment: Identify your strengths, skills, and areas of expertise

The foundation of effective networking for freelancers is based on personal branding or marketing your services by demonstrating expertise. To build a credible brand, you must assess your skills, strengths and weaknesses. You can utilise and enhance your skills to demonstrate your industry knowledge and build meaningful connections.

2. Defining your niche and target audience

The next step in your networking plan should be defining what you cater, how you cater, and to whom you cater. Networking requires a strategic approach. You cannot extremely diversify your network as it will not offer much value.&nbsp;

Thus, you need to narrow down your industry and the target audience you will engage with based on various factors such as profession, type of business, industry and experience level.

3. Crafting a compelling personal brand and elevator pitch

Before networking with people, follow a <a href="https://www.entrepreneur.com/starting-a-business/the-12-x-12-x-12-rule-for-successful-networking-from/302635">12 x 12 x 12 rule</a>. One of the 12 in this rule stands for preparing the first 12 words to speak when you meet anyone at networking events or any other place. This is also called an elevator pitch. It includes a brief intro about you and the services that you provide, and your Unique Selling Point (USP).

The other two 12s are explained in the “Offline Networking Tactics” section of this article.

The increasing use of digital technologies has made cultivating connections easier for freelancers. The following are some of the most beneficial online networking strategies for freelancers.

1. Social media platforms (LinkedIn, Twitter, Instagram, etc.)

Undoubtedly, one of the most popular freelance networking strategies is leveraging social media platforms like <a href="https://in.linkedin.com/">LinkedIn</a>, <a href="https://www.instagram.com/">Instagram</a> and <a href="https://twitter.com/?lang=en">X</a> to build a personal brand and market your services.&nbsp;

You can optimise your social media profiles with a professional display picture and bio. The next step is to consistently post educational or relatable content that offers value to your target audience. You should also engage with other professionals by sharing your opinions and experiences by commenting on relevant posts.

Another popular way to build a personal brand and network is by creating an impressive portfolio website demonstrating your best work and case studies. You should include testimonials and success stories in your portfolio. Add the portfolio website link to your social media accounts.&nbsp;

Some top freelancer portfolio websites are <a href="https://contently.com/">Contently</a>, <a href="https://www.notion.so/">Notion</a>, <a href="https://www.behance.net/">Behance</a>, <a href="https://dribbble.com/">Dribble</a>, <a href="https://www.wix.com/">Wix</a> and <a href="https://www.squarespace.com/">Squarespace</a>.

Writing a blog is one of the most underrated networking tactics for freelancers. You can leverage the platform to demonstrate industry knowledge, address common challenges in the respective industry and provide solutions to businesses. This gives you a competitive edge as it boosts engagement and website traffic.

One of the best strategies for networking for freelancers is to join freelancing communities on <a href="https://www.facebook.com/">Facebook</a> or <a href="https://web.telegram.org/">Telegram</a> where you can connect with other freelancers as well as potential clients.

You can also join the <a href="https://academy.hubspot.com/">HubSpot academy</a> to get advanced resources related to networking for freelancers.

While online networking has become immensely popular after the pandemic, offline networking for freelancers is also getting back to speed. Here is how you can do it.

1. Joining local business organisations and chambers of commerce

You can join local business communities and be a member of various chambers of commerce for specific industries. Their events, mixers or presentations serve as a brilliant opportunity to connect with various business professionals and make them aware of their services.&nbsp;&nbsp;

2. Hosting or participating in meetups and networking events

You can host or attend small social meetups for businesses and freelancers or attend networking events.

Remember the 12 x 12 x 12 rule above? The other two 12s stand for how you appear to others from 12 feet away and how your body language seems from 12 feet away. The first part means that you should appear professional. The other part means that your body language should communicate trustworthiness, openness and friendliness.

One of the best ways of networking for freelancers is to join co-working spaces and connect with other entrepreneurs and professionals. This helps build new connections and facilitates the exchange of thoughts and collaboration ideas.

In the book, <a href="https://www.goodreads.com/en/book/show/84699">'Never Eat Alone'</a>, Keith Ferrazzie explains that trust is the cornerstone of relationships and it isn't built by asking what others can do for you but what you can do for others. It is based on generosity and not greed. Therefore, to nurture your client relationships, you should never keep score. Instead, here are some effective networking tactics or networking strategies that you can follow:

Every customer has a distinguished set of business challenges, goals and requirements, a template approach does not work. Hence, personalisation is a powerful element of successful networking. You need to tailor your approach, services and <a href="https://www.skydo.com/blog/implementing-effective-communication-practices-for-better-productivity?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">communication style</a> to cater to their individual needs.

According to a <a href="https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/the-value-of-getting-personalization-right-or-wrong-is-multiplying">McKinsey report</a>, 71% of consumers expect personalised interactions. Moreover, personalisation helps businesses increase their revenue by 40%. Interestingly, 78% of customers are likely to repurchase and recommend businesses that offer personalised services. Thus, personalisation is extremely crucial in the digital age.

Personalisation can be divided into four actions steps:

You can ask them personalised questions about their business such as what made them start the business and the type of clients they work with. In essence, you should be genuinely interested in knowing more about the client and their business rather than seeking superficial information.

Active listening and prompt response are two of the most crucial elements of building effective client relationships. Communication does not refer to only connecting with the client regarding project queries and updates. Effective communication includes the following&nbsp; actions:

Another way to nurture client relationships is to offer them valuable insights without sounding too sales-y. You can also offer complementary services, or additional resources beneficial for their business. The thumb rule is to under-promise and over-deliver by providing timely delivery and excellent quality services that exceed their expectations.

Building and nurturing quality client relationships requires a lot of time and effort. You can follow the VCP process to enhance your networking strategies. It follows these three stages.

Following this process helps you assess the status quo of your client relationships and prepare how you can take it to the next step.

Bonus: Maintaining Long-Term Relationships

<a href="https://www.skydo.com/blog/building-a-global-network-of-customers-for-your-cross-border-business?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">Building client relationships</a> is not a one-off thing. You must make consistent efforts to keep them engaged and loyal. The few steps to achieve this are as below.

1. Keeping in touch beyond project completion

Once a project is completed, it is best to connect with the client through a personal call or email to discuss the project, any issues that they faced, their overall feedback and anything that you can help with. This helps you understand and address any of their concerns and enhances trust. Moreover, you should also stay in touch with the people who refer clients to you.

2. Providing periodic updates on industry trends

You can engage with your previous clients after project completion by sharing periodic updates through customised emails, blogs or newsletters. This helps in customer engagement, boosts your credibility as an industry expert, enhances trust and increases the chances of them reaching out for future work.

3. Offering loyalty discounts for repeat clients

Offering special discounts or incentives to repeat clients conveys the message that you value client relationships. It also boosts customer loyalty and helps retain customers.

Networking for freelancers is the key to being successful. However, building a strong, diverse and valuable network is not easy. You need to be an active listener, be enthusiastic to collaborate with others, focus on authenticity and do personal branding to gain trust and credibility, and gain customer loyalty. By implementing the right network strategies and networking tactics, you can generate multiple leads for your business and build quality client relationships.

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"The current state of cross-border payments is not fit for the 21st century."&nbsp;

Mr. Ravi Menon, the Managing Director of the Monetary Authority of Singapore, said this in his speech at the <a href="https://www.bis.org/review/r221011b.htm">Annual SWIFT International Banking Operations Seminar</a>, 2022.

The <a href="https://www.pwc.in/assets/pdfs/the-indian-payments-handbook-2022-2027.pdf">Indian Payments Handbook 2022-07</a> explains two prevalent challenges with cross border payment solutions –high transaction cost and the long duration for end-to-end settlement of cross-border payments. The average price of receiving inward remittance is 6% at present. The United Nations is working on reducing this cost to 3% by 2030. In fact, it is one of their Sustainable Development Goals (SDG).

Furthermore, according to the Handbook, India is the largest market for inward remittance flow, making seamless cross-border transactions crucial for the economy.&nbsp;

However, these challenges serve as the biggest threats to the business landscape. It means letting go of a significant sum in every transaction and delays in receiving payments. These factors trigger critical issues such as cash flow, reduced profit margin and increased debt.

Payment platforms, like Skydo, aim to revolutionise the sector by making cross-border payments more efficient and cost-effective. Let's understand the pros and cons of cross border payment solutions in detail and how to choose the right payment gateway.

Currently, the most common ways to send money across borders are through banks, credit cards, e-money wallets, and mobile payments. These methods often depend on systems like SWIFT or the related payment platform. As a result, international transactions are usually slower, more expensive, and less transparent than domestic ones.

Hence, cross border payment solutions are fundamental for business growth and expansion. Here is how they help businesses receive global payments seamlessly by tackling regulatory challenges.

Many businesses are sceptical of offering their services or products to international clients because of payment delays. However, cross border payment solutions like Skydo help receive cross-border payments quickly by incurring low costs.

This enables entrepreneurs to expand their business globally, get access to a large client base, and boost revenue.

Cross border payment solutions can accelerate transactions and optimise cash flow. The processing time for global payments through banks is around 5-10 days. However, it can take up to a month if the transaction gets stuck due to regulatory challenges or inadequate details.&nbsp;

Digital payment gateways like Skydo significantly reduce the processing time for cross-border payments by opening a virtual bank account for your business in another country.&nbsp;

This way, the client can remit the money to your virtual bank account in the respective country, which will pass through the Skydo platform and into your bank account maximum within T+2 days. You can further track this whole journey through the tracker available against each invoice.

3. Currency Conversion and Risk Management

In tech service exports, businesses often lose money due to currency conversion fees and additional hidden charges. Skydo’s cross border payment solution offers transparent currency conversion by displaying real-time exchange rates.

They also offer competitive exchange rates and help businesses calculate the accurate currency cost compared to traditional banks.

Some payment gateways also help manage currency conversion risk by offering hedging options. It allows businesses to hold their payments securely in case the value of the foreign currency depreciates.

4. Enhanced Security and Fraud Prevention:

According to a <a href="https://www.pymnts.com/news/b2b-payments/2022/56-percent-businesses-are-concerned-about-cross-border-payments-fraud/">survey</a>, fraud in global payments is a concern for 56% of businesses. Moreover, 52% of them also consider data theft during payment transactions as one of the significant risks in international payments.

cross border payment solutions mitigate this risk by offering enhanced security measures. Payment gateways use artificial intelligence systems to detect and stop fraudulent activities.



Learn more: <a href="https://www.skydo.com/blog/how-skydo-increased-success-rate-on-international-payments?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">Breaking Barriers, Bridging Borders: How Skydo Increased Success Rate on International Payments</a>

While cross border payment solutions have been a game changer for businesses in expanding their services to international markets, there are four significant challenges - cost, speed, access and transparency.&nbsp;

High transaction cost is a significant roadblock to receiving global payments. The complexities arise primarily because a) multiple currencies are involved and b) various channels or levels in payment flow, such as banks, payment facilitators and payment operators exist.

The <a href="https://www.google.com/amp/s/www.livemint.com/brand-stories/how-to-save-on-international-money-transfer-rates-fees/amp-11687963871859.html">average cost of international wire transfers</a> is between $15-$75 per transaction. Therefore, before you choose a payment gateway, research and compare the transaction value in-depth, currency conversion, and processing fees charged by cross border payment solutions. Moreover, you must be aware of any hidden costs levied by the payment service provider.

Regulatory challenges and adherence to international financial compliances are massive obstacles while dealing with cross border payment solutions. Businesses have to navigate through anti-money laundering laws in foreign countries. Global payments often get stuck in regulatory processes, leading to unnecessary delays.

<a href="https://fbj.springeropen.com/articles/10.1186/s43093-020-00013-0">Studies</a> suggest that foreign exchange rate volatility harms cross-border imports and exports. Multiple currencies are involved, and the value can change at the time of the payment. If the value of the foreign currency decreases, your earnings in Indian currency might take a direct hit.

The best way to avoid exchange rate risk and receive accurate payments is to quote proposals in INR.

Learn more: <a href="https://www.skydo.com/blog/how-much-forex-fees-do-you-pay-on-your-international-transactions?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">How Much Forex Fees Do You Pay on Your International Transactions</a>

"The biggest issue is when I receive a wire: What does it relate to? What invoice specifically or a combination of invoices does it relate to?” — A large company in Chicago during the <a href="https://www.frbservices.org/binaries/content/assets/crsocms/news/research/wire-transfer-research.pdf">B2B Wire Transfer Payments Study</a> commented.

Receiving global payments through wire transfer does not provide much remittance information, making it difficult to reconcile payments with invoices, especially if multiple invoices are sent to a single client.

According to a <a href="https://www.frbservices.org/binaries/content/assets/crsocms/news/research/wire-transfer-research.pdf">study</a>, 94% of people consider remittance information valuable. However, cross border payment solutions often fail to provide this information, leading to extra manual efforts.

A seamless customer experience is the backbone of an efficient global payment system. However, business owners and account managers are forced to spend time choosing the suitable currency, dealing with currency exchange rates and resolving language barriers on cross-border payment platforms.

Moreover, businesses often have to worry about data security, facing regulatory challenges, payment delays and hidden charges, making the whole process cumbersome.

Learn more: <a href="https://www.skydo.com/blog/don't-stay-in-the-dark-anymore-monitor-your-international-payments-from-sender-account-to-your-account?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">Don’t Stay in the Dark Anymore: Monitor Your International Payments From Sender Account to Your Account</a>

Another issue with cross border payment solutions is the disruption of digital payments through technical glitches, downtime, or software failures. This can lead to delays or failure in receiving global payments. It further results in loss of revenue, extra transaction charges, operational inefficiencies, and customer dissatisfaction.

However, you can mitigate the risk caused by downtime by creating a contingency fund that they can use in emergencies. You must also recommend negotiating the payment terms with the customers and vendors to receive advance payments.

The world is witnessing an <a href="https://www.mckinsey.com/~/media/mckinsey/industries/financial%20services/our%20insights/the%202022%20mckinsey%20global%20payments%20report/the-2022-mckinsey-global-payments-report.pdf">embedded finance revolution</a> where individual consumers and businesses are not relying solely on banks for their financing needs. Finding the most suitable payment gateway becomes more stressful. Here is a quick and simple guide to help you shortlist the ideal cross border payment solutions for your business.

When onboarding vendors, it's crucial to assess if they can effectively address your unique business challenges and contribute to your growth.

You can understand payment gateways like a business vendor or a partner. However, before collaborating with them, you should evaluate your business requirements, such as the frequency, volume and nature of payment transactions, and your business goals.&nbsp;

You should also consider or explore payment gateways to assess various aspects like credit card acceptance, online checkout experience, transaction volume, security, international transactions, returns, and integration with your e-commerce platform.

A seamless returns and refunds process through the payment gateway can enhance customer satisfaction.

Assess the payment gateway's integration with your e-commerce platform to ensure smooth data flow between systems.

Evaluate the reporting and analytics features provided by the payment gateway for informed business decision-making.

Consider the quality of customer support offered by the payment gateway as it can be crucial in resolving issues promptly.

Understand the fee structure associated with the payment gateway, including setup and transaction fees, to align it with your budget.

Ensure the payment gateway can accommodate your business's future growth without significant disruptions.

Once you assess your business needs, you must choose the right payment gateway whose features align with your business requirements.&nbsp;

One of the best ways to do this is to conduct comprehensive market research, shortlist popular payment gateway providers, and consider the pros and cons and the features offered by the service providers.

To ensure that cross border payment solutions offer a frictionless payment journey, you can consider factors like transaction fees, quick customer support, and simple integration into your existing accounting system.

A key feature of embedded finance is that non-financial customers get easy access to financial products and technologies. It may, however, serve as a drawback for business owners who are unaware of fintech products or technologies.

Hence, before you integrate cross border payment solutions, you can consult business advisors or financial experts to find the ideal payment gateway for your business. They can assess your business needs, do risk assessment, and cost analysis, and ensure that the platform solves the regulatory challenges.

