Digital Payments Will Simplify Complex Cross Border Ecommerce
The global village is smaller and closer than ever. Our increasingly connected world has made us more receptive to international cultures, opening the door for new business opportunities and creating a growing, borderless digital economy.
Few countries are in a better position to take advantage of the new world than India. A bustling country of 1.3 billion with a vast and diverse culture, India has around 30 million small and medium businesses. These enterprises are using the power of the internet to reach new audience segments, and succeed on a global stage.
The many paths of India’s success
India’s biggest success stories are coming from Tier II and III cities. According to a recent report by The Better India, merchants are selling Indian-made products like clothes, jewelry, shoes and leather products, handicrafts and more to the world. Online marketplaces like Amazon in the US, Linio in South America, and Lazada in South East Asia have made it easier for sellers to get their products in front of customers from all over the world, providing simple solutions for everything from shipping to marketing.
The market revolution extends to freelancing, too. From coders to photographers, accountants to paralegals, freelancers are connecting with businesses who are increasingly looking for a skilled, on-demand workforce. Today, India brings in about 40 percent of the global freelancing business, and it’s no wonder that the country is predicted to become one of the top innovation capitals of the world. Here, marketplaces are also gateways to global growth, with platforms like Upwork, Fiverr, and 99Designs, making it easy for freelancers to get started and grow quickly.
The country is now the third largest global startup hub, according to Assocham and the Thought Arbitrage Research Institute. These businesses are offering their products and services to other countries in domains like tech, design, professional services, digital marketing and ecommerce. Today’s businesses are no longer restricted by the resources available in their geographical locality, and are reaping the vast benefits of a borderless workforce.
Overcoming the challenges
While the internet reduces borders, one cannot ignore the logistic and regulatory processes any transaction must go through. Exporters still find it cumbersome to work with banks who facilitate cross border trade. Bank fees are sometimes prohibitive, opaque and inconsistent. These fees alone can be a large part of the merchant or service provider’s costs. While technology has lowered barriers for cross border trade, traditional payment processes have yet to see the same level of innovation in India.
However, cross border payment providers are tackling the gaps in legacy financial systems. Companies like Payoneer are providing comprehensive solutions for a diverse market like India, in a rapidly evolving global market. By building an innovative digital platform on top of the world’s financial systems, we’ve made cross-border trade as easy as local trade. Now, businesses can receive funds from around the world quickly, easily and at a minimal and pre-defined cost.
India’s businesses need solutions that can eliminate the complexity of cross-border trade. Our goal is to be India’s partner for growth, helping them be more connected, collaborative and efficient.
