Why Faster, More Efficient International Money Transfers Are Important To Business
Many businesses routinely need to send money internationally. These days, supply chains for even quite small companies can cover several continents. A company may deal with businesses in multiple countries, not only for supply of raw materials and parts for manufacture, but also for services such as accountancy and payroll. Some businesses also need to send money to subsidiaries and partners in other countries, or remit profits back to parent companies in other countries.
Procurement has become an international business in its own right, as people and businesses purchase goods and services from vendors in other countries. Online marketplaces feature businesses from all around the world and accept payment by card or alternative providers. If the purchase is in a foreign currency, that is no problem – the foreign exchange will be handled by the card or service provider. Just as it has never been so easy to send money internationally, it has never been so easy to buy internationally.
Many of today’s businesses are “virtual organisations”, with employees and contractors in multiple countries linked by the Internet and telephone. For these businesses – and their workers – a fast, efficient way of making international money transfers is crucial to paying those employees and contractors. Other businesses may use migrant workers, who often remit funds to their families and friends in their countries of origin. Money transfer businesses that offer ways of sending money online safely, quickly and at low cost are a beneficial to migrant workers and to the businesses that employ them.
Handling cash flow in multiple currencies has become an essential skill for business owners and managers. Online payment service providers give businesses the ability to control when and how to make international money transfers, helping them to manage their foreign exchange exposures and offset incoming and outgoing payments.
Money Transfers To Developing Market Countries
Faster and more efficient international money transfers are not limited to developed countries. They are available for some developing market countries, too.
Some developing market countries have capital controls, including India, from which Australia has accepted more immigrants than from any other country for several years (34,874 people in the 2014-2015 year, the last for which the government has published data1). But despite the capital controls, there are numerous ways of sending money to India, converting Australian dollars to Indian rupees in the process. For example, remittances can be sent via an Australian or Indian bank,2 or one can use a money transfer service.
