Cross-Border Conflict: U.S. Small Businesses Face Expansion Hurdles Due to International Banking Complexities
Research from Wise shows that 40% SMBs operating internationally say international payments have made it harder to operate abroad
The study, which polled more than 4,800 SMBs across the world, found the most common reasons
“Today’s digital tools and marketplaces have created more opportunities for small businesses to operate globally, yet many are held back from ever doing so by a series of disconnected domestic banking systems that present significant barriers when operating internationally,” says
A concerning finding from this survey is that even those already operating abroad are facing international banking woes. Eight in ten (79%) of
Even more alarming, less than half (47%) found it easy to understand the cost of sending money abroad, and only 12% were able to correctly identify the costs involved in cross-border payments– not realizing that most providers charge both an upfront fee and a fee to the mid-market rate.
Wise, the global technology company building the best way to move money around the world, provides SMBs an alternative to traditional providers. Businesses can send money abroad for a small, up-front transparent cost, with no fee hidden in the exchange rate with 40% of transfers moving instantly. Business-friendly features include the option to obtain local account details in 10 currencies, which allows businesses to get paid and pay others like a local, all without ever stepping foot into a foreign bank.
“As a small business owner doing business internationally, living and working like a local is something I’ve done for eight years, but making payments has often proved to be a challenge,” said
Additional findings from
- The Pandemic’s
Global Impact: 46% of micro-multinationals have delayed or canceled international expansion plans. Nearly one in three (32%) found it more challenging to attract new customers.
- Digital Tools To The Rescue: 75% of micro-multinationals say that technology has helped their business during the COVID-19 pandemic, so much so that 24% were able to reach new customers, and 31% were able to offer new services and products digitally.
- Banks and “old world” payments dominate: 70% of
U.S.micro-multinationals rely on bank transfers or card payments when sending or receiving international payments yet, only 1-in-10 (12%) believe that they are getting bang for their buck from their banks.
To download the full report and learn more about how big banks block small businesses’ international ambitions, visit https://wise.com/p/msmb-survey.
About the research:
The research took place online between the 16th August -
Wise is a global technology company, building the best way to move money around the world. With the Wise account, people and businesses can hold more than 50 currencies, move money between countries and spend money abroad. Large companies and banks use Wise technology too; an entirely new cross-border payments network that will one day power money without borders for everyone, everywhere. However you use the platform, Wise is on a mission to make your life easier and save you money.
Co-founded by Kristo Käärmann and Taavet Hinrikus, Wise launched in 2011 under its original name
11 million people and businesses use Wise, which processes over £6 billion in cross-border transactions every month, saving customers over £1 billion a year.
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