FinTech OpEd: Why is there a need for disruption in the Corporate (B2B) Remittances space?

FinTech OpED

Author: Praveen Chandiramani, Founder & CEO of WorkerAppz Payments

Why is there a need for disruption in the Corporate (B2B) Remittances space? 

Remittances and money transfers have always been synonymous with expats sending their hard-earned money back home at the month end and undoubtedly, this has been a large contributor to the GDP of several emerging & developing nations with the total volume expected to touch a trillion dollars over the next five years….

Since the acceleration of tech, there has been a lot of disruption in individual remittances through digitization and instantaneous payments. However, what has always been left to traditional and expensive channels is cross-border corporate (business-to-business) remittances which is bound to rise over the years with the direct increase of domestic and international trade. As per a recent research by Ripple, cross-border SME business-to-business payments are a $10-15 trillion dollar market that is highly untapped and quite a hit on a company’s profitability. In addition to this, a study inferred that B2B cross-border payments in general are expected to cross $35 trillion in 2022 after a COVID related low of $27 trillion in 2020. 

In an era where customers are not short of options and innovation is at its fastest pace, there is an increasing demand for solutions that subsidize the cost of corporate remittances while maintaining the speed at which the funds are credited to the beneficiary’s bank account. Praveen Chandiramani, Founder & CEO of WorkerAppz Payments mentioned “SMEs are usually the largest in number in most countries but yet, quite often fail to access financial services that are priced reasonably at an affordable level and that’s the crux of our offering. The usual timelines for trade transfer range anywhere between 48 hours to 7 days and are highly priced at almost $50-60 per transaction which is extremely unreasonable in today’s extremely competitive era. To disrupt this space, we craft our solution and business model to bring down the cost of such trade transfers to as low as US$ 15 per transaction and credit within 24 hours.

Banks & money exchanges usually sit on extremely high numbers of corporate clients which are quite often untapped as the funds are routed through alternative channels thereby causing a low of earnings for them. A corporate remittances platform like ours integrates with their current platform through API and enables these institutions to provide their corporate clients seamless & fully AML-compliant business-to-business remittance services.” added Praveen Chandiramani. 

With neobanks and digitization driving the shift from traditional modes of banking, it is not long that incumbent players will also have to align themselves with the evolving customer demands that would drill down to competitive pricing, accessibility and speed. 

About WorkerAppz Business

WorkerAppz Business, a segment of WorkerAppz Payments focused on corporate (B2B) money transfer, is catered towards providing banks, money exchanges and neobanks (popularly called digital banks) with a platform for facilitating business-to-business remittances & payments for their corporate and small & medium enterprises (SMEs) account holders or clients at competitive rates. Global US Dollar Payments, Payments to China in 24 hours, Payments to India and SEPA Payments across the European Union starting from as low as US$ 10 are some key services extended by WorkerAppz Business. 

www.workerappz.com

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