Payments

PayPal wants to help small businesses go global as cross-border payments race heats up

  • PayPal launched a concierge service to help U.S.-based businesses that want to expand internationally by offering assistance with shipping, payments in local currencies and foreign-language website translation.
  • Despite the increased competition for cross-borer payments, there is broad agreement that the space can accommodate more players.
close

Email a Friend

PayPal wants to help small businesses go global as cross-border payments race heats up
For small businesses seeking to expand internationally, finding a web presence with product offerings in a local language that gives customers an accurate estimate of shipping and duties costs can be a challenge, one which many don't have the capacity to take on. "Small businesses aren't logistics experts," said Melissa O'Malley, director of global initiatives for PayPal. "When you look to expand, you need to know about logistics and shipping and it's an expensive proposition for you to be able to do that; many don't have the ability to make the investment to do it." Cross-border trade is big business for PayPal, on whose platform more than $400 billion in cross-border purchases have been made since 2003. On Tuesday, PayPal launched a value-added service called PayPal Global Sellers, a fee-free plugin for U.S. based businesses using PayPal as a payment method for international buyers. PayPal is partnering with e-commerce company Webinterpret to allow for localized website translation, localized secure checkout, low-cost shipping, and support from a dedicated account manager. Orders from U.S. companies that are shipping to other countries are flagged and sent to a shipping hub that coordinates the shipping. O'Malley said that while the local site uses an algorithm to estimate shipping and duties costs, the support of a dedicated real person is necessary to handle detailed inquiries. "When people have a question about their finances they want to speak to a human," she said. When  asked about whether the move is a way for PayPal to expand its reach internationally, O'Malley said the motivation was to make it easier for small businesses to transact internationally, but keeping businesses within PayPal's ecosystem reduces the need to deal with other companies. The cross-border payments space for small and medium-sized businesses is fast become a hotly contested market between banks and startups. Big incumbents like Bank of America, JPMorgan Chase, Wells Fargo, TD Bank and others all handle cross-border payments from businesses. Wells Fargo, for example, is offering low-value payments service to facilitate these transactions. "Working in combination with our wire coverage, these alternative payment types afford customers the flexibility to decide where higher volumes may warrant a more cost effective alternative to traditional wires," said Judd Holroyde, head of global product management at Wells Fargo. Among startups, companies like TransPay and Transferwise say they offer better service at a lower cost for companies that want to transact internationally. "Banks haven’t been the leaders, if you look at ease of use or speed, these are areas where traditional players haven't kept up their competitive advantages," said  Andrew Boyajian, head of international product and operations for Transferwise. "The market is now responding to awakened demand from the customer base." Despite the increased competition in cross-border payments, there is broad agreement that the market can accommodate more players. "There's a lot of room for growth to help more people join the digital economy," O'Malley said.

0 comments on “PayPal wants to help small businesses go global as cross-border payments race heats up”

Payments, Power of Payments Podcast

Power of Payments Ep. 22: ‘Frankly, the most important asset for SMB owners is time’ – Chase’s Brad Brodigan

  • Brad Brodigan, managing director and global head of SMB payments at Chase, joins host Ismail Umar on this week’s podcast.
  • He discusses the most important trends he’s seeing in SMB payments, the kinds of attributes SMBs look for in a payment processor, and how their needs differ from those of enterprise and retail customers.
Ismail Umar | January 27, 2023
Member Exclusive, Payments

Payments Briefing: On Gen Z’s changing relationship with digital payments

  • This week, we talk about Gen Z’s changing preferences when it comes to sending and receiving money digitally.
  • We also discuss PayPal’s evolving BNPL strategy in a crowded market.
Ismail Umar | January 19, 2023
Payments, Power of Payments Podcast

Power of Payments Ep. 21: 10 predictions for the payments industry in 2023

  • In the first Power of Payments episode of 2023, we discuss what the near future looks like for the payments industry.
  • Here are 10 trends that are likely to shape the payments landscape this year.
Ismail Umar | January 13, 2023
Payments

‘2023 is the year B2B ecommerce payments become real’: 3 questions with Bar Geron, CEO of Balance

  • As both the B2B payments and ecommerce markets continue to grow, what’s in store for their offspring, B2B ecommerce payments?
  • In this Q&A, Balance co-founder and CEO Bar Geron dives into the rise of B2B ecommerce in 2023.
Rivka Abramson | January 10, 2023
Payments

10 trends that will shape the payments industry in 2023

  • Tearsheet asked experts in the payments space to share insights on the most important payments trends for 2023.
  • Key themes for this year involve B2B payments, M&A activity, real-time payments, digital wallets, fraud, sustainability, and more.
Ismail Umar | January 06, 2023
More Articles