Paysend launches Instant Settlement Accounts for businesses to unlock liquidity

The new feature enables PSPs, banks, marketplaces, FX brokers, and freelancer or contractor EOR Payroll platforms to unlock up to USD 400 billion in liquidity trapped in cross-border payment processing. Moreover, businesses can instantly convert funds at market FX rates and make real-time cross-border payments into local bank accounts. 

Treasurers and CFOs can receive, convert, and settle funds instantly between the UK, Europe, and North America to optimise liquidity. The Instant Settlement Accounts solution provides businesses with the ability to transfer funds in real-time, 24/7, 365 days a year to meet their financial obligations.

Over USD 5 to 10 million held in pre-funding accounts

CFOs and treasurers often face the issue of capital being trapped in corporate pre-funding accounts or payment processing for two to three  days. Transferring funds and converting currency internally between corporate accounts across borders can take approximately one to three days to settle, incurring FX and payment costs and unnecessarily damaging liquidity.

Additionally, payment partners of these businesses require funds to be filled in pre-funding accounts on a T-1 basis, which further impedes liquidity, ties up cash, and puts a strain on corporate cash. This becomes an issue during holiday periods or spikes in payout demands, when businesses may need to hold up to USD 5 to 10 million in prefunding accounts on a T-3 basis. The liquidity constraint can be alleviated through credit facilities (10% and interest rates) or by having substantial cash available. On average, this totals USD 400 billion trapped in two to three cross-border transactions at any given time. 

Users can access local bank accounts in GBP, USD, EUR, or CAD for real-time funding or cross-border accounts in seven currencies, transferring funds between Instant Settlement Accounts overseas using advantageous FX rates. 

Through the Open Payment Network, businesses can clear and settle funds to bank accounts in the UK, Europe, and North America, or send payments to over 80 countries using local rails.