Voice of the Industry

Creating an interconnected economy: how global payment networks can connect businesses globally

Wednesday 22 November 2023 13:03 CET | Editor: Irina Ionescu | Voice of the industry

Moshe Kimhi, CEO of Israeli fintech company Neema, provides insights about the importance of cross-border payment networks, and issues that must be considered when making global payment solutions in today's world.

The modern world is more intense than ever. Trade and commerce are happening across multiple regions and time zones, 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. Banks are relatively useful for transferring money inside the borders of one's country, however transferring money between borders is a far more challenging and expensive task. For all the importance of the banking system, which provides the mainframe for the modern economy, it is not well known for either speed or efficiency. The intense market of today forces the need to move money between countries with minimum bureaucracy and maximum security for all sides of the transaction. 

This solution hides in the fintech sector in the form of cross- border payment platforms: systems that provide the ability to move money between different countries with minimal effort. The goal of such a platform is to allow global organisations and businesses to control their cash flow between different parts of the world in a comfortable manner, without unnecessary bureaucracy and without using multiple tools.

The solution is simple, the problems are complicated

Global payment networks are a simple, elegant solution, or at least that's the experience we wish to create for the clients. However, there are major issues that must be dealt with, all of which are critical for creating a useful global money transfer solution for businesses. We identified some main issues that must be considered. 

The first issue is the reach. 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 Furthermore, many countries and areas are not included in today's outdated systems. Any global payment service must strive to achieve a variety of destinations and services for money transfers, not only for bank accounts but for digital wallets and applications as well as remote destinations and countries.


Another issue is about speed and transparency. Sometimes a business needs to complete transactions quickly, mostly when an opportunity comes by. In these scenarios, three-four business days for a single cross- border transaction is not an option.  A global payment service must rely on a fast-paced platform that will allow make the transaction time minimal, and not an issue for the customers.  However, speed alone is not enough. Any service that allows money transfers between businesses must provide transparency, in the form of real- time must provide developments, in a manner that both sides can follow and trust. 

The lack of transparency is mostly the result of using more than one system or platform for money transfers and payments, in which only one side can gain information about the status of the transaction. This lack of information will make the process it more difficult, less efficient, and more stressful to all parties involved. The solution is one system with one API that allows all parties to gain information about the transaction in real- time.

Unorganised and complicated transfer process using multiple platforms can also cause problems with safety and compliance, further showing the advantage of using a ‘one- stop shop’ platform for money transfers. The last issue to consider is of course pricing. Progress comes with a cost, but a lack of progress can cost even more: money transfers through the banks can reach to dozens of dollars or euros per transfer, amounting to prices of hundreds or even thousands per month. Digital global payment networks must allow simpler, and cheaper transfers.

Considering and addressing these issues is critical in creating a faster- paced environment, where money can move around the world more freely and safely between businesses from different regions. 


About Moshe Kimhi

Moshe Kimhi 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 of Jerusalem, and an MBA in Finance & Financial Management Services from the University of Tel Aviv. Before his role at Neema, Moshe had worked in several positions in both the finance and IT sectors, including PwC Israel. 

About Neema

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 a cross- border international money transfer system, which allows nearly instant movement of money between digital wallets and bank accounts in 100 different countries. Our vision is to increase the speed and efficiency of global cross- border transactions and trade, creating a more interconnected world. 

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Keywords: cross-border payments, cross-border ecommerce, fintech, money transfer, online banking, payment gateway, online payments, payment processor, PSP, API
Categories: Payments & Commerce
Companies: Neema
Countries: World
This article is part of category

Payments & Commerce


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