B2B supplier payments

B2B International Payments

Basics

The world has changed and instantaneous is the new fast. With banking, things have clearly lagged behind. Technology and transparency were placed second to a multi-departmental bureaucratic nightmare. B2B Pay offers international payments that take full advantage of FinTech and the latest regulations with virtual bank accounts fit for modern businesses.

Problem and
Solution
Problem

International payments are complicated and expensive. Banks are slow, frustrating, and offer little to no support. Once money is sent, there is little way to track where it is in the transaction process.


Without B2B Pay, your company:
  • Cannot open a bank account in Europe
  • Cannot collect or send domestic wire transfers (SEPA Payments)
  • Pays SWIFT fee of €30
  • Pays currency conversion cost of 3-6%
  • Cannot access local payment gateways
  • Suffers the Frustration of bureaucratic banking processes
  • Cannot collect payments from marketplaces like Amazon
  • Takes 2-5 days per transfer
Solution

A virtual bank account with unique IBAN number for non-resident companies. The account is linked to your home bank account in your home country. You get a faster, 80% cheaper and transparent B2B transfer.


With B2B Pay, your company:
  • Receives SEPA payments from 35 EU countries for free in 2-12 hours
  • Makes SEPA payments to 35 EU countries
  • Saves €30 SWIFT charges and +80% on FX
  • Takes advantage of FX conversion automation
  • Uses its IBAN to integrate with marketplaces and payment gateways
  • Accesses premium brokers to make global payments in 138 currencies
  • Gets Instant notifications of incoming payments
  • Takes advantage of online onboarding
Benefits
Good customer service
Cost savings
Agility
Less complexity
Example

Sending money to Brazil from Europe can take 3 or 4 days and the conversion fees are 5% or more. FinTechs use automatic processes and bulk transfers to lower that fee to 1-2%. But just lowering the fee isn’t enough: using blockchain technology, sending money to Brazil takes hours.

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Let's Make
B2B Payments

Let's make your transfer.
Let’s do it well.


B2B International payments

When it comes to B2B international payments, there are not many options. In almost all cases, the European company will simply initiate a payment with their local bank, which will then send the money to the non-resident partner's bank, possibly through some intermediary banks. Each bank makes money on the transaction. Consequently, the incurred fees are at least 3% and can - at times - even exceed 6%. For a transaction of 50,000€, this can mean fees between 1,500€ and 4,000€. There is a huge potential for savings! Considering that most profit margins are not very big for global companies in competitive markets that need a B2B money transfer, finding a solution is important. B2B Pay offers that possibility.

Growth of Global B2B Payments

With the exception of 2009, global trade has been growing year on year for the past two decades. In Europe alone, the numbers are in the trillions and projections of continuous growth.


Your own B2B international payments account

With B2B Pay, non-EU companies of can get their own European IBAN number, which they can include on invoices. The European partner can do a simple SEPA transaction to pay you. When the money arrives in your European account, B2B Pay sends the money for a very low fee to your local bank account. We can do this thanks to our partnerships with bluechip banks such as Barclays and Nordea.

How it works

Spread costs on global B2B payments

When contacted, almost all banks claim there is only a fixed cost incurred for a transaction. Usually this hovers around 30€. This, however, is only a small part of the story. If you inquire about the specific exchange rate used for sending money you'll find out that there is a huge gap between the buy and sell rates. That is called the spread. For international transactions, banks take 3%, which means there's a 6% spread. The total spread can sometimes be over 10%!

Now, if you were to make an international transfer of 10 million euros you can call up your bank and get a much better rate. But this isn’t the case for most businesses. B2B Pay is offering international B2B payments with exchange rates much closer to the mid-market price. The total costs of our transactions from Europe to any country are 1%, saving a company 250€ on a 10k€ transaction.


Different options for a B2B money transfer

  • Within Europe: SEPA
  • SWIFT international transactions
  • B2B Pay: IBAN account number for non-resident companies

Cross-border payments for B2B

Cross-border payments for B2B can be expensive

These are the various types of cross-border payments:

  • B2B supplier payments
  • Salary B2B money transfer
  • E-commerce purchases, including digital goods
  • international B2B e-commerce
  • Forex payments
  • Payroll, benefits, and retirement payments are most often C2C, but can also include B2B-type payments to contractors for IT work
  • Remittances: payments made by foreign workers to family in home countries, measured by country pairs, or "corridors".

The size of global B2B payments

According to WTO and World Bank sources, global trade amounted to between 13 and 15 trillion USD in 2009.


EU B2B cross-border payments & B2B Money Transfer

Within the European Union most B2B cross border transactions are paid in Euros and handled through SEPA, which has greatly simplified payments. It's now as simple to make a Euro payment within the EU as within a country.

According to Eurostat and the WTO, the EU is the biggest trading block and it accounts for 16% of the total world imports and exports. For 80 countries, the European Union is the top trading partner.

Save 80% on cross-border payments & B2B supplier payments

B2B Pay provides a payment solution to any company outside of the Europe that saves time spent muddling through bureaucracy and 80% of the fees. The exporter gets their own IBAN number inside the EU, which can be used to receive payments from 34 countries. When the money comes in (through a simple SEPA payment), we send it to the local bank of the exporter for a fee of 1%.

We are powered by two major banks, Barclays and Nordea.

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Further reading

  • Barclays
  • Techstars
  • Nestholma
  • Nordea
  • Tekes