Cross-border payouts are traditionally known for being time-consuming and highly bureaucratic, but disruptive payout solutions are changing the game and allowing worldwide companies to work with foreign talent and expand businesses.
Digitisation keeps changing every aspect of how businesses are done, blurring frontiers and allowing companies to interact with service providers, professionals, and partners from anywhere in the world with virtually no friction. Well, at least when it comes to the work itself. Several processes are ripe for innovation, still being traditionally highly bureaucratic and time-consuming. That’s the case of cross-border payout processes, which now represent great business opportunities in fast-disruptive countries like Brazil.
Only now starting to become more efficient due to the efforts of expert companies such as BoaCompra, payout is the process with which a company can send financial payments to a non-employee service provider or partner in another country. It opens up several doors since it facilitates working with a professional from abroad – a growing trend not only because of innovation but also due to the Covid-19 pandemic.
Besides digitisation, restrictions due to the Covid-19 pandemic also highlighted the vast possibilities of working from home and cross-border work, with professionals in one country providing services for a company in another. According to BoaCompra by PagSeguro’s white paper Brazilian E-commerce and Payouts in 2021, Brazil has around 12 million payout recipients, coming up to a total of USD 18 billion in payments in 2020. This volume is expected to grow by 29% up until 2024, as more and more people join in on rising markets such as entertainment, online education, and streaming.
Brazil also has a strong culture of delivery and marketplace apps, which need local service providers connecting the company (if it’s a foreign business without a local entity) to the final client. The same white paper shows that 49% of consumers that still don’t use such apps plan to start doing so.
Social media also represents a significant opportunity for payouts: Brazilian streamers, content creators, and influencers are some of the main recipients of payouts, especially with the growing culture of game streaming – Brazil already has around 95 million game players, which represent a USD 2.3 billion market volume. Payouts are also becoming a great resource to attract social media engagement, rewarding users for carrying out actions such as inviting friends to the platform and posting or simply consuming content.
You can see that payouts are usually connected with highly digital and fast activities: gaming, social media, delivery, and e-learning are vastly different markets, but they all have in common the fact that their users expect – demand – a quick, frictionless, agile experience. With the world becoming even more digital day by day, the need to provide the experiences clients demand just keeps increasing. If you don’t offer what they want as fast and easy as they want it, they will just move on to another company.
With BoaCompra’s Payout Solution, we aim to solve the major pain points of cross-border payouts, overcoming them with robust technology, our expertise, and the strength, compliance, and reliability of PagBank PagSeguro, of which we are part of. Thus, we are able to offer a disruptive solution for single or mass payouts to Brazilians directly in the local currency, Reais, instantly and with no banking fees.
This is what businesses need to grow and what end users demand in our increasingly digital era. BoaCompra took a traditionally time-consuming process, full of bureaucracy and hidden fees, and turned it into a disruptive process attuned to the speed, security, and agility the digital world needs. Borders are not a thing of the digital world, and payout allows you to make the most of that.
About Renato Odakara
Renato Odakara is Global Payments Director at BoaCompra by PagSeguro. He has over 17 years of experience in the payment industry, working for companies such as Adyen, Ingenico, and Rede (BR), and as a startup founder.
About BoaCompra by PagSeguro
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