Our latest insights

How Virtual IBANs Enhance the Growth of B2B Cross-Border E-commerce Businesses

Share this post

Share on facebook
Share on linkedin
Share on twitter
Share on email
How Virtual IBANs Enhance the Growth of B2B Cross-Border E-commerce Businesses

One of the more vexing problems of the modern age when it comes to international business is that regulatory regimes often do not keep pace with technological innovation.

Nonetheless, novel solutions to B2B cross-border business have emerged in the form of virtual IBANs, financial instruments that drive the innovation economy and enable new, powerful business models.

Here we have outlined three ways that virtual IBANs are transforming the way companies do business locally and abroad:

Enabling International Partnerships and International Trade

Virtual IBANs are helping B2B cross-border business with payments solutions as well as creating new and innovative business models that are found in everything from the gig economy to eCommerce.

Secure and scalable, virtual IBANs offer ideal solutions that traditional banking cannot match. Not only does this make international partnerships easier to facilitate but it also opens up new markets and opportunities for business as well.

Harmonizing Global Financial Regulatory Regimes

Perhaps the biggest, hidden benefit of virtual IBANs with regard to B2B cross-border payments comes into play when dealing with different financial regulatory regimes around the world.

Because virtual IBANs act as a singular clearing account for international transactions, there is no need for a business to maintain a banking relationship with local firms in order to conduct commerce with local businesses.

Further, this means that the laws and regulatory regimes of that particular country do not impact the company’s ability to do business insofar as domestic industries in that country are allowed to transmit payments to a virtual IBAN.

In other words, businesses do not have to worry about what is happening locally and can, instead, focus on the broader picture.

Sangiita Yoong, Analyst from East & Partners Asia, tells the BBC, “Not only do incumbent providers need to overcome certain legacy challenges in their payment infrastructure, the legal and regulatory frameworks governing payment transactions vary across countries.”

Closing the Technology Gap

Similar to harmonizing international financial regulatory regimes, virtual IBANs flatten technology gaps between different firms and markets. In addition to closing this gap, virtual IBANs in B2B cross-border business largely eliminate the capital overlay requirements often found with traditional banking solutions.

This is largely in recognition of the increasingly borderless and global nature of business and payments. There are also administrative efficiencies to consider (which are increasing every single day) and the improved allocation of capital such systems make possible. This is largely the premise underpinning Visa’s new service, B2B connect.

“Regardless of your business’s size or location, there is a world of growth opportunities to be found outside of your own market. Visa’s role as a payments network is to process payment transactions between banks on behalf of their buyers and sellers.

Visa B2B Connect, which is readying for launch in 2019, is one way we’re enabling our bank clients to make that process easier for their corporate customers that need to make international payments,” Senior Director, Visa B2B Connect, Asia Pacific, Visa Business Solutions Charlotte Le Gargasson tells the BBC.

Changing B2B Needs

Firms doing business internationally and operating in the e-commerce space are always looking for ways to optimize their cross-border B2B payment processes to stay competitive and be positioned for continued success ahead of their competitors in the specific market niche they operate in.

The challenge in this sophisticated endeavor is not only in finding efficient and available solutions but also in implementing them effectively – meaning that they work flawlessly for all the parties involved i.e core business, partners, suppliers and customers.

Deciding which tools are best suited to the specific companies’ and their international partners’ payment needs is a major key to also helping them survive the current global pandemic and thrive after it ends.

The team of Monneo specializes all the topics covered in this article so if you would like to learn more about the set of services we offer or how your business can also benefit from the global payment advancements and technological innovations contact today us and we will be glad to provide more information on your specific questions.

More To Explore

Login or Register

Don't have an account?

Are you part of the Payments Association community?

Not yet set up your login for the Payments Association Community Platform? Set it up now

Set up a free account for instant access to our content

You don’t need to be an Payments Association member to view the majority of our content. Simply enter your details below once to set up your login details and get access to our library of whitepapers, podcasts, consultation papers, webinars and more.

First Name*
Last Name*
Company Name*
Job Title*
Business Email Address*
Confirm Password*
The Payments Association exist to help drive the industry forward. As such the Payments Association may contact you about any future content or events that we think you may have a legitimate interest in. We will store your information securely and will never share your details with third parties other than the relevant resource(s) sponsor(s)/curator(s). You may opt out at any time. By clicking register you are agreeing to the terms of our Privacy Policy.

← back