Flywire began as an international payment processor for education and healthcare institutions and will now leverage its online platform to make cross-border B2B transactions faster, easier, less expensive and more transparent for businesses around the world.
Flywire is already processing billions of dollars each year in international payments. Now we are taking an additional step to use our platform to connect all the entities involved in cross-border B2B transactions around the world. Our rationale for moving into cross-border B2B payments is twofold: these payments are devilishly tricky for companies, creating an opening for processors that can ease the pain; and we have already built much of the infrastructure we needs through our efforts in the education and healthcare markets. “We’re applying that platform,” says Jason Moens, who was Flywire’s second employee and now serves as vice president of product.
Jason continued by explaining the migration into B2B payments from the education sector. To this point, Flywire has just been focused on the receiving end of international payments, building expertise with colleges and universities trying to collect tuition from foreign students. “There’s unique set of pain points when it comes to receiving,” says Moens.
Flywire will continue to use this business model of receivables on businesses. Outreaching to businesses will establish local accounts, so all fees and regulations should be well-known, and currency risks are eliminated. The payor overseas will likewise pay into a local account in its own currency. Flywire quotes a foreign-exchange rate to the payor and deposits the funds in full into the collecting business’s local account. “From end to end, it stays within the rails of Flywire,” says Moens. “Everything is agreed upon so there aren’t any surprises.”
Even as economies become more global, international payments and receivables remain complex, costly, non-transparent and difficult to reconcile for both payers and receivers. This makes international business increasingly difficult for companies and their customers on multiple levels:
- Slow, unpredictable processing times hurt cash flow and impede growth.
- A lack of transparency creates frequent manual errors increasing operational costs and hurting customer satisfaction.
- Hidden unnecessary fees and unpredictable FX rates cost companies and their customers millions of dollars every year.
- Businesses trying to expand into new countries spend unnecessary time and cost setting up international payment infrastructure, distracting from their core business.
- Country-specific regulatory restrictions add additional complexity and costs.
With Flywire, businesses can now offer their business customers a highly-tailored, international payment experience — customized by country, currency and vertical — at a fraction of the cost of traditional bank and wire transfers. The platform enables payment acceptance from 220 countries and territories, in over 100 local currencies via the most popular methods. It also provides businesses with the ability to manage international receivables with 24/7 online tracking for themselves and their customers, enabling easy reconciliation while also ensuring robust compliance and anti-money laundering controls are applied to every transaction. Flywire will also provide end-to-end multilingual customer service via phone, email, and chat.
“If you’re a business trying to expand internationally, and want to sell to different countries, you require local bank accounts, certifications, relationships and more in each country to be able to accept payments from your customers,” said Mike Massaro, CEO of Flywire. “This is complex and time-consuming and makes it unnecessarily difficult for your customers to do business with you. We’re able to eliminate all of this friction and make the receipt of international payments as easy as domestic payments for any type of business.” The following are examples of how Flywire’s solution can solve international business challenges:
- Accelerate cash flow: Flywire’s cross-border processing services provide banks and processors with familiar transaction flows in their expected regional formats, with all necessary identifiers. This makes it easier for both payers and receivers to reconcile payments, accelerating cash flow by improving speed and transparency.
- Reduce costs: Improved cross-border payment efficiencies can eliminate hidden fees and demystify complicated and unpredictable foreign exchange rates that cost companies and individuals millions of dollars in unnecessary fees.
- Improve compliance: Flywire operates in multiple jurisdictions, adhering to country-specific regulations and anti-money-laundering guidelines, reducing complexity, costs and restrictions.
- Improve reconciliation: Flywire can enhance international payment reconciliation by connecting all entities involved in cross-border transactions. This can enhance customer satisfaction while reducing operational costs caused by short payments, manual errors and lack of transparency.
- Provide complete infrastructure: Flywire provides businesses with an out-of-the-box, compliant, cross-border infrastructure, enabling them to transact in multiple countries and regions without needing to establish bank accounts, certifications and relationships in each country.
The B2B solution is available immediately and Flywire has put dedicated operations, sales and support teams in place to support it with personnel in the US, UK, Singapore and Australia to start.