The importance of global payments networks in today's world

Moshe Kimhi, CEO of Neema, provides insights about the importance of cross-border payments, the problems such systems can solve for large organisations and businesses, and the story of Neema as a fintech company.

In today’s global world, money transfers must become global as well, especially when businesses wish to expand to different countries and grow. To do so, the ability to transfer money instantly between countries must be utilised. However, the current traditional financial systems promote local, limited, and relatively slow solutions that are not compatible with today's time.

Neema is an Israeli fintech company from the Direct Insurance Group, that develops advanced financial technology products. Other investors in the company include HaPoalim Bank and Discount Bank, two of the largest banks in Israel. We provide alternative digital banking services, and we also manage our own cross-border money transfer network, which allows nearly instant movement of money between digital wallets and bank accounts in different countries. Our vision is to increase the speed and efficiency of global cross-border transactions, enabling businesses to connect and transact better than before.

A cross-border payments network is a system that allows the transfer of money between different countries with minimal effort. The goal of such a platform is to allow global organisations and businesses to manage and control their cash flow between different parts of the world in a comfortable manner, without unnecessary bureaucracy and without using multiple tools.

Such platforms are necessary in today's environment: the commercial world of today is intense and ever-changing. Trade and commerce are happening across the world everywhere and all at once. Businesses are operating around the clock, on multiple fronts, to ensure growth and revenue in every turn, trying to stay ahead of their competition. The ability to transfer money between markets and complete deals and transactions in a matter of seconds or minutes is crucial for global, fast-paced organisations.

Today, however, the main channel for transferring money is the banking system. This system, as much as it provides the backbone of the economy, is not known for its speed or efficiency. Even when transferring money inside the borders of one’s country, banks have limited reach (no digital accounts, wallets, payment cards, etc. support), moreover, transferring money between borders is a far more challenging and expensive task.

We didn't always work with large organisations, but we always believed in creating solutions that would allow people to use their money freely and globally. Neema started as a vastly different company, back in 2015. The company was focused on helping migrant workers in Israel to send money back to their families abroad, a process that could take 3-4 days through the banks and was (and still is) rather expensive. I understood the need for such a platform following a conversation with a migrant worker who had taken care of my grandfather and told me about the amount of time and money he needed to spend, only to send his salary back to his family. Since then, we understood that instant international transfers can benefit many other sectors and customers. We wish to connect both people and businesses to the global economy around them.

We identified 5 main issues for businesses today, regarding the issue of global payments and transactions.

The first and most challenging one is limited reach, which is quite a barrier for businesses that wish to expand globally. Most banks today allow money transfers to other bank accounts only, leaving the options of digital wallets and digital services behind. Furthermore, many countries and areas are not included in today's outdated systems. We provide a solution for this issue, with more than 100 different countries and millions of financial institutions, including digital wallets.

The second issue is speed. Sometimes you need to conduct a transaction quickly. An opportunity or emergency comes by, and money is needs to be sent quickly. In these scenarios, 3-4 business days for a single cross-border transaction is not an option. Developments must happen in real time, in a manner that both sides can follow and trust. Global payment networks can achieve the same result in a few minutes or hours.

Information and transparency are also major issues. In many cases, using more than one system or platform for money transfers and payments creates an unwanted result in which only one side can gain information about the status of the transaction, making it more difficult, less efficient, and more stressful to all parties involved. Our solution is one system with one API that allows all parties to gain information about the transaction in real-time.

The same thing stands for Gaps and regulations. Laws and bureaucracy can result in an unorganised and complicated transfer process when using multiple platforms. However, one cross-border platform implies the usage of one international standard of regulation and compliance, allowing businesses to sleep soundly.

The last issue is of course one of pricing. Progress comes with a cost, but a lack of progress can cost even more: money transfers through the banks can reach dozens of dollars or euros per transfer, amounting to prices of hundreds or even thousands per month. Digital global payment networks are allowing simpler and cheaper transfers.

Our vision is to create useful global solutions for both large organisations and end users alike, and we'll continue to constantly improve and upgrade our products and expand ourselves to even more countries and payment options. We wish to do our part in creating a truly interconnected world where money can move in real time, to enable businesses to focus and their business and not on how to send or receive money.

About Moshe Kimhi

Moshe Kimhi (38) is one of the founders of Neema, the CEO of the company for the past 7 years, since late 2015, and a board member in SensePass since 2022.

He has a B.A. in both Accounting & Economics and Advanced Accounting Studies from the Hebrew University at Jerusalem, and MBA in Finance & Financial Management Services from the University of Tel Aviv. Before his role in Neema, Moshe had worked in several positions in both the finance and IT sectors, including PwC Israel.

About Neema

Neema, part of the Direct Insurance Group and backed by prominent investors like HaPoalim Bank and Discount Bank, is an Israeli fintech innovator. The company aims to enhance cross-border money transfers with their cutting-edge digital banking solutions, fostering seamless global transactions for businesses worldwide.