Today, Paysend announced the launch of instant settlement accounts. This new feature enables PSPs, banks, marketplaces, FX brokers and freelancer/contractor EOR payroll platforms to unlock $400 billion in liquidity trapped in cross-border payment processing. Treasurers and CFOs can receive, convert, and settle funds instantly between the UK, Europe, and North America to optimise liquidity. Instant Settlement Accounts provide businesses with full clarity, control, and flexibility to move funds around to meet financial obligations in real-time, 24/7, 365 days a year. With this launch, Paysend is advancing in its journey to build the largest digital payment network, enabling instant movement of funds and seamless cross-border payments at scale.
Today, Treasurers and CFOs prioritise an efficient and productive use of funds, but are often forced to tie up capital in payment processing or corporate pre-funding accounts for ~2-3 days. Moving funds and converting the currency internally between corporate accounts across borders can take 1-3 days to settle, incur an FX and payment fee and liquidity unnecessarily. Additionally, payment partners of these businesses require funds to be parked in pre-funding accounts on a T-1 basis, which further traps liquidity, ties up cash and puts a strain on corporate cash. This is especially problematic during holiday periods or spikes in payout demands, when businesses may need to hold $5-10m in pre-funding accounts on a T-3 basis. The liquidity constraint can be alleviated through credit facilities (10%+ interest rates) or by having an abundance of cash available – a rarity for businesses of this size. This means that, on average, $400 billion is trapped in 2-3 days’ worth of cross-border payment cycles at any given time.
With instant settlement accounts, you no longer need to tie up funds in cross-border payments between corporate accounts or in pre-funding accounts with payment partners. You can now receive, convert and settle funds instantly between accounts in the UK, Europe, and North America, powered by Paysend’s Open Payment Network. You can access local bank accounts in GBP, USD, EUR or CAD for real-time funding or cross-border accounts in 7 currencies, and you can instantly sweep funds between Instant Settlement Accounts overseas using the most competitive FX rates. From there, you can clear and settle funds in bank accounts in the UK, Europe, and North America, or send payments to over 80 countries using local rails through the Open Payment Network.
Abdul Abdulkerimov, Paysend’s founder and executive chairman, says, “In the high interest rate environment of today, businesses need to use their funds productively to remain competitive. With Instant Settlement Accounts, businesses can unlock capital previously tied up in payment processing or pre-funded accounts. The instant FX conversion and settlement between accounts, paired with low-cost, reliable and real-time cross-border payments, enables businesses to have full control of their capital and flexibility in their liquidity. These capabilities are central to Paysend’s journey in building the world’s largest digital payment network.”
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