Airwallex and BILL team up to optimise SMB payment solutions

This initiative will enable BILL to provide its customers with faster payment options, including the potential for same-day or next-day payment delivery in local currencies.

The collaboration is set to address the growing needs of SMBs that are increasingly engaging in international transactions with global partners, employees, and customers. By leveraging Airwallex’s proprietary global infrastructure, the partnership will facilitate direct transactions with local banks overseas, enabling businesses to execute payments as if they were local entities, thereby avoiding delays and reducing costs associated with intermediary banks.

The payment infrastructure aims to replace traditional, slower methods of international payments with a more agile and integrated solution. This improvement is particularly crucial for SMBs that prioritise efficiency and speed in their operational processes to compete effectively on a global scale.

Airwallex’s technology will also allow BILL's customers to manage foreign exchange conversions and payouts more effectively, enabling automatic processing and reconciliation of international payments. This capability is designed to support the scaling needs of SMBs by making cross-border transactions more straightforward and less time-consuming.

Embracing global markets: SMBs navigate challenges and opportunities

In recent years, the globalisation trend among SMBs has gained significant momentum. Traditionally seen as local or regional entities, SMBs are now looking beyond their domestic markets to tap into international opportunities. This shift is largely driven by advancements in technology, reductions in trade barriers, and a better understanding of foreign markets. According to a report by McKinsey, small businesses engaging in global markets are more likely to achieve higher growth rates than those operating solely domestically. This underscores the growing importance of international exposure for these businesses.

This global expansion is not without its challenges, however. SMBs often face hurdles such as complex foreign exchange regulations, cultural and linguistic barriers, and the need for localised business strategies. Nevertheless, the benefits of accessing broader markets – such as increased sales, diversified revenue streams, and enhanced competitiveness – are compelling SMBs to adopt global operational models. As a result, the demand for services that can streamline international transactions, manage cross-border payments efficiently, and help overcome logistical and regulatory challenges is on the rise, highlighting the critical role of financial technology solutions in the era of SMB globalisation.

Regulatory shifts in global payments: challenges for SMBs

The regulatory landscape surrounding global financial markets has also undergone significant shifts, impacting international payment processes, particularly for SMBs. One notable trend has been the implementation of stricter compliance requirements aimed at combating money laundering, terrorism financing, and other illicit financial activities. Regulatory bodies worldwide have introduced measures such as enhanced due diligence protocols, KYC procedures, and AML regulations, imposing greater scrutiny on cross-border transactions. While these regulations are crucial for maintaining financial integrity, they also pose challenges for SMBs, which often lack the resources and expertise to navigate complex compliance frameworks effectively.

Additionally, there has been a concerted effort to standardise and simplify cross-border transactions to promote transparency, efficiency, and cost-effectiveness. Initiatives such as ISO 20022, a global standard for electronic data interchange between financial institutions, aim to streamline payment processes by establishing a common language for payment instructions. Similarly, regulatory bodies and industry associations have collaborated to develop frameworks and guidelines for interoperable payment systems, facilitating smoother transactions across borders. Despite these efforts, SMBs still face obstacles related to varying regulatory requirements across jurisdictions, highlighting the need for comprehensive solutions that can adapt to evolving regulatory landscapes while minimising compliance burdens for businesses.