‘The confirmation of the transaction is just as important as the underlying transaction’: Truist’s Chris Ward on how to simplify global transactions for SMBs

The days when small businesses (SMBs) were tethered to their home markets are long behind us. Today, SMBs are eagerly embracing global opportunities, expanding into new regions, and viewing cross-border sales as a key growth driver. Yet, with this expansion comes a major challenge: navigating the complexities of international payments.

49% of SMBs cite the ease of managing cross-border payments as a top concern. Many have faced friction with traditional banks, which has created a fertile ground for non-bank alternatives to step in. This shift is reflected in the growing trend of SMBs switching providers. While pricing and fees were once the main reasons for switching, today, the search for “better and more convenient” digital solutions is becoming a powerful motivator alongside these operational needs.

So, how can FIs respond to this shift?

Chris Ward, Head of Enterprise Payments at Truist Financial Corporation, addresses this question and its potential solutions at Tearsheet’s The Big Bank Theory Conference, recently held in New York.

The Big Ideas

1. The 3 S’s of the economy – Simplicity, Speed, and Security: Chris introduces what he calls the “3 S’s of the economy”: simplicity, speed, and security, as essential pillars for modern payment systems.

• How can SMBs easily interact with their clients? Chris says that simplicity is the cornerstone of payment services. He emphasizes that payment services should be easy to use for SMBs when interacting with their customers. Financial institutions need to reduce friction points and streamline transactions, making them smoother and more user-friendly.

• How can they do it quickly? Next, Chris highlights the importance of speed. Customers expect transactions to move quickly, even if they’ve been scheduled in advance. He likens it to ordering an Uber — where customers are notified about the ride’s progress, creating a sense of immediacy and transparency. Customers expect a similar level of interaction and confirmation with payments. 

“The confirmation of the execution of the transaction is just as important as the underlying transaction happening,” notes Chris.

He highlights that simplicity and speed are interoperable because customers want immediate confirmation that their transaction is processed and completed. For SMBs, this ease of payment collection and instant confirmation are essential for standing out in a competitive market.

• How can they do it in a safe, sound, and secure manner? Lastly, Chris underscores the importance of security. Alongside simplicity and speed, ensuring a secure transaction environment is non-negotiable. SMBs cannot afford security breaches, whether it’s an account running on fumes or a ransomware attack that halts operations. 

“When considering the future of embedded payments and embedded finance, regardless of the terminology, it’s crucial to focus on how to build resilience for smaller customers,” asserts Chris. “We need to ensure that they can keep transacting smoothly, even in the face of any business disruptions.”

2. Check fraud remains on an upward trend: A significant source of fraud for SMBs stems from their continued reliance on checks. In fact, the largest fraud vector is among small businesses, largely because most checks are still sent through the mail. With mail theft on the rise, it’s easy to forge signatures, which often go unchecked for authenticity.

Additionally, check fraud is increasing as banks and card companies focus their efforts on tightening security around electronic fraud, leaving checks more vulnerable.

Despite the growth of digital payment options, Chris notes that check usage, particularly in B2B transactions, remains high. 

“In the first six months of Covid, versus now, I would have said everybody’s going to be converting off of checks. Because when you couldn’t go to the office and couldn’t issue checks, you couldn’t receive checks,” he says. “But that hasn’t happened.”

3. How small businesses can win big with new payment methods: Concurrently, Chris observes a shift toward faster payment rails in the US. An increasing number of small businesses are turning to payment methods like Zelle.

Small businesses, operating much like consumers, expect transactions to move in real-time, even on weekends. As a result, small businesses are adopting faster payment options when they are accessible through their banks, affordable, and available 24/7. 

Another compelling reason for SMBs to consider these faster payment solutions is the transparency and clarity provided by payment completion confirmation, which acknowledges the successful deposit of funds and provides richer insights into transaction data.

“While major players are handling a high volume of transactions, it’s actually small businesses driving the increase in faster payment usage,” he says.

In contrast to large retailers, which tend to stick with traditional payment processes, SMBs are quick to adopt faster payment methods and tools like Zelle because they don’t have to overhaul complex systems or processes, making it easier for them to integrate these newer payment options.

“They (SMBs) have the opportunity to see newly formed patterns in a much easier and more aggressive way, and it’s easier for them to adopt because they don’t have processes that need to change,” says Chris.

Chris emphasizes the importance of choosing the right partnerships and software for small businesses to fully capitalize on these advancements. 

“Whether it’s a food truck or a specialized industry, most small businesses rely on some form of software to manage their operations. Selecting the right tools and processes is key — not only for handling payments efficiently but also for enabling employees to interact smoothly with clients,” he advises.

4. The role of technology in enabling new payment practices: As the payment landscape shifts toward virtual cards and faster rails, Chris highlights the need to educate businesses regarding emerging payment solutions and urges SMBs to move away from checks. He notes that embracing evolving technology can help SMBs rethink their payment strategies, creating opportunities for more streamlined and secure transactions.

Listen to the full Session

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