The great digital shift has made it possible for all kinds of traders, in particular small and medium-sized enterprises (SMEs), to leave their home territory and cross borders to conquer new markets.

USEND COO / CTO Ran Grushkowsky told PYMNTS as businesses move further into other countries – and payments accelerate – complexity reigns and traditional back office workflows fail. can no longer follow.

To that end, he said, companies can outsource some of the more manual aspects of cross-border payments.

As Grushkowsky noted, with cross-border payments, “the biggest bottleneck is the human touch that people often think is necessary.”

This is especially true in the case of compliance, which he says is a complex business. There may be separate regulatory and compliance considerations on each side of the transaction, depending on the location of the issuing and receiving financial institutions.

“The industry is realizing,” said Grushkowsky, “that, especially on the ‘send’ side, you can automate a lot of these activities, but on the ‘receive’ side it’s a little more difficult.” Each financial institution on this side of the transaction, he said – whether it’s a bank or a licensed financial institution – can have their own compliance rules, around which protocols are built.

Platforms like USEND’s, he told PYMNTS, can automate the checks that are part of cross-border payments; the platform can also integrate KYC and KYB functions into algorithms (or intelligent routing technology) which can ensure that the correct procedures are followed.

“We’re able to basically streamline the whole process,” said Grushkowsky, which in turn creates a positive ripple effect – fewer transactions rejected due to compliance risks. With a high level of automation, he said, up to 90% of a client company’s transactions, depending on volume, can be done “automatically.”

With a nod to the recent acquisition of USEND by Brazilian digital bank Banco Inter, the goal is to foster “vertical integration”, which can help increase the speed of transactions – which is important then. as the world gets closer and closer to real time. Payments. Banking and merchant services offered in Brazil, with an initial focus on this market, the United States and Europe, will be expanded globally, he said.

Prepare for real-time payments

“When you talk about cross-border transactions, offering real-time payments requires that no human is involved in the transaction…” he said.

The push towards real time, he predicted, will lead to optimal experiences where payments are settled instantly and at low cost. To get there and to adhere to emerging standards governing real-time transactions (including more transparency), Grushkowsky said automation would become especially urgent for small businesses that want to sell into new markets or need to reconfigure their businesses. supply chains.

This means choosing the right payment service provider (s), he said – where the one he uses locally will be responsible for correctly registering these transactions with local tax authorities and tracking. import / export rules.

These small businesses want to be able to accept customers from (and paying for) anywhere, Grushkowsky noted. Regarding cards, he said as an example, it is important to process payments locally for better authorization rates; in other markets, alternative payments are essential. In yet other markets, such as Brazil, installment plans are standard features in e-commerce.

“We see a lot of companies working with us in the different markets we operate in… they usually ask for help after being mistreated. And they end up in trouble with the local authorities, ”said Grushkowsky. “So making sure everyone they’re with has a thorough understanding of local markets – what’s accepted locally, what payment terms are referred to, is definitely something we see becoming of greater demand for the little ones. traders – and large companies as well. “



On: Forty-seven percent of U.S. consumers avoid digital-only banks due to data security concerns, despite considerable interest in these services. In Digital Banking: The Brewing Battle For Where We Will Bank, PYMNTS surveyed over 2,200 consumers to reveal how digital-only banks can boost privacy and security while providing convenient services to meet this unmet demand.

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