The past few years have been rocky for treasury managers as geopolitical events brought new sanctions, COVID-19 slowed economic growth and raised interest rates, and supply chain frictions wreaked havoc on businesses around the world.
Although traditional payment rails are making attempts at modernization, many businesses do not have the time or capital to wait for an antiquated global payments system to evolve into a more equitable playing field. Legacy payment rails disproportionately serve financial players who tend to have long-standing relationships with correspondent banks, as well as ample resources (both human and capital) to expand into new markets and properly manage international treasury flows.
Compounding this, while it’s well known that cross-border payments are messy and fractured, events in recent years have created siloed regional pockets that exacerbate challenges associated with global treasury management. Increased barriers have led to greater friction in cross-border payments, putting pressure on businesses to diversify suppliers and strategically alter trade corridors. This equates to taking on additional FX rates, establishing new banking relationships, and understanding and complying with new tax rules and regulations.
As the international payments landscape becomes ever more complex, treasury managers deserve a forward-thinking solution tailored to fit their business needs. One that offers faster, more affordable, and flexible payments without tying up working capital.
Stake Your Claim as a Multinational
Although crypto can seem unapproachable, our Quick Guide to Crypto for Corporate Treasury helps untangle any preconceived notions by showcasing the real-world value that crypto solutions have on businesses across the globe.
For example, gaining the ability to pay global vendors or suppliers in their local currency reduces one of the many pain points associated with doing business outside of domestic markets. This can strengthen relationships with third parties, improve operational efficiency and further solidify a business’s footprint in a new region.
Treasury managers are also responsible for understanding foreign corridors well enough to accurately predict the necessary flow of funds, moving the right amount of capital at the right time at the most optimized possible price for the business.
But there are some corridors—like that of Southeast Asia, India, Brazil, and Mexico—that prove particularly challenging to manage the flow of funds, even for major banks. With Ripple’s global payments network, customers gain access to hundreds of new partners and financial institutions worldwide, without having to navigate these complex corridors.
Tap into New Opportunity
Data shows that emerging market economies average nearly 50% of global GDP. So there is clearly potential for businesses to thrive in these regions, but those that leverage crypto solutions to enter into new markets will be at an advantage, especially in complex corridors.
With a reduced need to prefund destination accounts and access to Ripple’s global network, businesses can develop regional positions at their own pace and even explore growth opportunities in multiple locations at once at a fraction of the cost compared to legacy payment rails.
Corporate treasury teams can also utilize crypto solutions to improve cash flow planning and lower operational overhead, enhance commercial terms and even help suppliers factor their receivables. Crypto presents a truly modernized solution that allows treasury managers to meet their business needs and expand into new markets without breaking the bank.
Download our Guide to learn more about streamlining treasury operations and growing your business with crypto.