from Europe to the rest of the world.
Our solution works for global exporters to Europe.
All countries have banking regulations. We have a two-step authentication process to ensure correct compliance.
Once the information is approved, you provide us with your local bank account details. We have strict procedures in place about changing these details.
As soon as the customer's due diligence checks are cleared, we issue you an IBAN number for your virtual bank account. Paperwork and bureaucracy are significantly reduced. You can use this IBAN on your invoices to European customers. When a payment arrives in the account we will inform you and send the money to your local bank account.
Your customer in Europe can make a simple SEPA payment. Euro payments in 35 European countries are handled without any fee (in most cases, or a nominal fee if there's a fee) and SEPA payments are usually settled the next business day. We have negotiated a deal with our Swedish/Finnish partner bank Nordea to secure our customers the best deal.
There are four reasons why B2B can offer this cheaper, simpler & quicker solution.
Financial technology, also known as Fintech, is a line of business based on using software to provide financial services. Financial technology companies are generally startups founded with the purpose of disrupting incumbent financial systems and corporations that rely less on software.
Fintech companies are taking parts of what banks are doing and optimising heavily.
They’re doing things that would have been impossible 10 years ago, that probably would have been impossible 5 years ago.
This quote is about peer-to-peer lending, but the same story is happening throughout all functions of financial institutions. B2B Pay is focusing on international B2B payments because we are confident that we can innovate.
Unlike banks we're not employing hundreds or even hundreds of thousands of people. We don't have big offices. Banks have many costly legacy processes. B2B Pay is a nimble organization that mostly automates its work.
We needed a partner who could understand our needs and provide us with a solution to take payment in our customers' currency, in order for them to not pay high fees via banks and international wire transfers. B2B Pay is the perfect solution for our business: SEPA wire transfers are easy and fast. Our customers don't pay any additional fees and they get the best conversion rate!
Our customers are very pleased with this solution, and so are we!
When it comes to building our company reliability comes first. Nevertheless we are still about a 100 times faster than any big bank.
We're combining a large number of transactions, so that a 10k€ payment will actually be transferred for the rate of a 10M€ transaction. When you do smaller transactions the spread costs are much higher. Banks typically charge between 3 and 6% on international transactions and currency exchange for transactions up to 1M€, without explicitly telling you. If you enquire you will get the reply that the cost is "only" 30€ for an international transaction.
If you look deeper into this you see that the currency exchange happens at a price far from the mid-market rate.