Empowering SMEs in Cross Border Payments With UX

The Transformative Power of UX in Cross-Border Payments

In today's global economy, cross-border payments have become essential for small businesses looking to expand their reach and tap into new markets. However, the surging popularity of these transactions has been accompanied by a host of challenges, particularly for small and medium-sized enterprises (SMEs). These challenges include late or failed payments, lack of transparency, security risks, and the need to navigate complex regulatory environments.

The Frustrations of Cross-Border Payments

For many SMEs, the experience of engaging in cross-border payments has been characterized by frustration and uncertainty. Late or failed payments have eroded the confidence of businesses, with nearly half of those affected expressing a significant loss of trust in cross-border payment systems. Moreover, concerns about fraud and the struggle to recover funds have further compounded the challenges faced by SMEs, making it increasingly difficult for them to navigate the evolving cross-border payments landscape.

The impact of these frustrations is not limited to financial losses. Failed B2B payments can be disruptive in areas beyond cash flow. For instance, if a bank has to repeatedly put in extra work to process ACH payments, there’s a chance they could stop making the necessary changes to pay files and file a complaint. Seven out of every 10 businesses and financial institutions around the globe are unsatisfied with the average global straight-through processing rate, which stands at a lamentable 26%.

The direct and indirect costs of failed B2B payments are substantial, with 95% of respondents reporting negative impacts, such as extra time spent reconciling vendor accounts and re-issuing payments. Additionally, the average fee incurred per failed B2B payment is $12.10, and when combined with accidental duplicate payments, multiple unsuccessful payments can erode profitability.

The Impact of UX-led Payment Solutions

To address these pressing issues, UX-led payment solutions, meaning solutions that prioritize the user experience, must be tailored to the specific pain points faced by SMEs in cross-border payments. Here are some powerful examples of how UX can be leveraged to enhance the cross-border payment experience:

1. Localization: Language and cultural differences can create significant barriers in cross-border payments. UX writing can play a pivotal role in providing clear and culturally sensitive content, such as explaining foreign exchange rates in a way that is easily understandable to users from different regions.
   
   An intuitive workflow that gives users the total of any payment converted to the recipient’s currency, along with transparent and reassuring UX writing about payment status and settlement expectations, can significantly enhance the cross-border payment experience.
2. Transparency: The lack of transparency over fees and the amount of money received has been a major concern for SMEs. UX design can address this by providing real-time tracking of payments and clear explanations of the entire process.
   
   For example, dynamic help features and a reduced number of screens can be implemented to ensure that users are fully informed about any extra charges and have the option to check their balance while making a payment.
3. Security and Fraud Prevention: Enhancing security measures without compromising the user experience is imperative. By integrating strong security protocols seamlessly into the payment process, businesses can instill trust and confidence in their cross-border payment systems.
   
   This can include handling user data, feedback, and complaints with care and professionalism, as well as communicating user benefits, risks, and responsibilities effectively.
4. Speed and Convenience: Balancing the need for speed, security, and convenience is crucial in cross-border payments. UX design can streamline the payment process, making it simpler, faster, and safer for businesses.
   
   This can involve providing personalized recommendations and offers, as well as implementing feedback mechanisms to enhance the overall payment experience and drive digital payment adoption.

Center UX in Your Cross-Border Payments Strategy

In conclusion, the potential of UX to transform cross-border payments is immense. By being user-centric in your international payments strategy, you not only enhance the payment experience but also foster confidence, trust, and long-term sustainability. As payment leaders, it is imperative to recognize the pivotal role of UX in empowering SMEs to thrive in the global market.

WDIR, the leading UX agency in B2B payments globally ensures that you empower SMEs globally through a UX-led payments strategy. Good UX is vital to helping SMEs thrive globally, which ultimately leads to sustainable growth in the global economy.