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Skydo: The Solution To Cross Border Payments Challenges

Skydo: The Solution To Cross Border Payments Challenges
sukanya
Sukanya29 November 2023

For Indian tech exporters like Ravi in the bustling city of Bengaluru, the booming tech industry offers immense opportunities. However, managing cross-border payments can be incredibly complex. 

From navigating international transaction fees to dealing with currency conversion rates and delayed payments to cumbersome documentation - understanding and overcoming these obstacles can be difficult and time-consuming.

B2B cross-border payment challenges can have more than just financial impacts. They can lead to strained client relationships, delayed projects, and decreased trust. These issues are especially damaging in digital marketing, where timely delivery and trust are key to success.

This blog explains how Ravi and other tech exporters can solve this problem, moving from chaos to convenience.

Cross-Border Payments for Tech Exporters Today

India is a powerhouse of tech innovation and digital solutions. Over the past decade, it has become one of the world's biggest internet markets, with an estimated tech revenue of $245 Bn in 2023 - exports alone will contribute $194 Bn while showcasing 9.4% growth. With its rich software development capabilities, India provides cutting-edge technological advancements revolutionising the global tech industry.

However, these figures merely hint at the tip of the iceberg. Beyond the numbers, an exhilarating ecosystem thrives, encompassing a myriad of startups, renowned tech giants, and enthusiastic individuals, collectively propelling the limits of what can be achieved.

India's tech industry is an ever-expanding powerhouse of potential and talent, filled with innovators from every corner of the nation. The growth opportunities are seemingly endless, from Bengaluru's tech-savvy entrepreneurs to Hyderabad's leading AI and machine learning experts. 

As technology advances, India aims for rapid expansion within its borders and strives to become a renowned force in the global market. With each tech solution comes possibilities to achieve success on an international scale—from Mumbai's bustling city to New York’s metropolis.

Cross-Border Payment Challenges 

As a tech exporter, Ravi's business encounters numerous obstacles regarding cross-border payments. With each transaction, he faces a daunting list of challenges.

Cross-Border Payment Challenges
  • Unpredictable fees: Ravi must deal with varying fees for every international transaction, which can significantly impact his budgeting efforts, potentially leading to financial strain.
  • Currency fluctuations: The unpredictable nature of currency exchange rates means that Ravi may receive a lower amount than expected, causing uncertainty and impacting his business profits.
  • Payment delays: Payment delays for international transactions can be prolonged and severely disrupt Ravi's cash flow, leading to difficulty paying employees and vendors or investing in his business.
  • Exhaustive documentation: Ravi spends considerable time and effort on the excessive documentation required to comply with local and international regulations, often leading to erroneous mistakes that result in further delays.
  • Hidden charges: On top of regular fees, additional intermediary bank charges or unexpected fees are possible, leading to a further reduction in the received amount.
  • Communication barriers: Ravi faces communication issues when dealing with international banks or clients, and the different time zones and languages can cause confusion, misunderstandings and further delays.
  • Trust issues: Due to payment defaults or fraudulent activities by new clients or partners, Ravi naturally hesitates to expand his client base, impacting his business's potential growth.

For Ravi, these issues represent more than just operational inefficiencies. These obstacles potentially hinder his business's growth and prosperity, impacting profitability, client relationships, and his ability to compete effectively in the global market.

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