As an exporter, you deal in currency every day. You have customers and suppliers around the globe on different time zones and currencies, involving risk in currency fluctuations. Choosing the right B2B currency exchange can increase your profit margin by 20%. That is why you want to get the most from your bank account when it comes to exchanging and transfer.
Payment APIs are shaping the future of money. While this has become more and more obvious in customer-facing sectors, it is also happening in the business-to-business (B2B) space. B2B Pay provides an API for international B2B payments.
For Singapore, B2B import and export is one of the biggest pillars of the economy. Singapore is a city state and doesn't have much space for industry, let alone agriculture. Hence, the bulk of the economy is made up by goods that are imported to Singapore to be exported later.
When it comes to international B2B payments, there are not many options. In almost all cases, the importing company will simply initiate a payment with their local bank, which will then send the money to the exporter'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€. This means there is a huge potential for savings! Considering that most profit margins are not very big for global companies in competitive markets, finding a solution is important.
SEPA stands for Single Euro Payments Area. SEPA money transfer is a payment system that simplifies bank transfers denominated in EUR. SEPA is an initiative by the European Union. As of July 2015 there are 35 SEPA countries: the 28 member states of the EU, Switzerland, Iceland, Norway, Liechtenstein, Monaco, San Marino and Andorra.