The global volume of cross-border payments is increasing, driven by international students, freelancers with foreign clients, expatriates, digital nomads, and frequent travellers. While fintechs frequently enter the market touting unique selling points, true competitive advantage demands more than differentiated features alone.

The traditional payment options were riddled with hidden fees, markups on exchange rates, and uncertain processing speed, leading to a lack of trust. These downsides contribute to the popularity of cross-border payment solutions. Amidst this competition, a standout feature to consider is transparency. Transparency fosters trust and can be a competitive advantage in cross-border payments.

Also read: What freelancers should demand from a trustworthy fintech

What is transparency in cross-border payments?

Transparency in cross-border payments covers several aspects. It requires disclosing transaction fees, exchange rates, and other charges before transactions. It also means allowing users to track payments and ensuring that data collection and privacy are managed securely.

Fintechs and payment platforms now see transparency as both a regulatory requirement and a competitive differentiator. Key transparency aspects include:

• Transaction costs: Many traditional banks and exchange houses add mark-ups to foreign exchange rates or embed hidden charges within transfers. This affects financial planning and can be frustrating for users.
• Payment processing speed: Users need clear payment timelines. Uncertainty hurts businesses and freelancers who depend on prompt payments. Communicating transfer durations helps users plan.
• Fair exchange rates: Transparent providers display the mid-market rate and their fees upfront, so users know exactly how much will arrive. When this isn’t clear, users may feel exploited.

How transparency is a competitive edge

Customers want control and confidence when managing their money. Transparency enables users to make informed decisions and fosters trust between users and payment platforms.  Here are the benefits of transparency and how it gives a competitive edge.

Builds trust and loyalty

Transparency fosters trust, a crucial aspect in finance. People won’t commit funds to your care if they cannot trust you with them. When users know exactly what they’re paying for and why, they are more likely to be satisfied. This trust translates into loyalty and referrals.

Creates fewer disputes

Transparency enables businesses to manage their cash flow more effectively by providing users with clear information, reducing the likelihood of disputes and support queries. Enhances fraud prevention and security:

Enhances fraud prevention and security:

Transparency in processes includes transaction monitoring, clear documentation, and adherence to anti-money laundering (AML) and Know Your Customer (KYC) regulations. These measures significantly prevent fraud and build confidence. Real-time monitoring also helps identify and address suspicious activities promptly.

Promotes economic growth

Transparent payments support economic growth by facilitating cross-border trade and remittances. When transactions are faster and cheaper, businesses can expand globally. Families in developing nations benefit significantly from remittances, which in turn improve the local economy.

Also read: 5 red flags when choosing an international payment platform

Grey: Seamless cross-border payments with transparency

By prioritising transparent practices, payment providers meet regulatory demands and gain a competitive edge. Transparency builds trust, reduces costs, and fosters stronger, more lasting relationships. Grey exemplifies transparency by being upfront with fees and offering competitive exchange rates without markups. Users enjoy swift transactions and monitor payment processes on their dashboard. Grey is regulated by leading regulatory agencies – FinCEN and FiNTRAC, and complies with anti-money laundering and counter-terrorism financing policies. Users’ data and funds are protected by layers of encryption, conferring robust security.

Sign up on Grey today for transparent and seamless cross-border payments.

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