The major causes of these challenges are hidden fees, a lack of transparency, and inefficient processes.
In the survey, sponsored by Western Union Business Solutions, and conducted by Proformative, 35% of respondents cited high fees and hidden transaction costs as their biggest challenge in making cross border payments, while 28% cited currency volatility, or the payments’ timing.
According to the survey, only 40% of the respondents report that their company has a formal foreign exchange risk management policy.
Only 20% cited customer service or level of expertise as the main reason for choosing a partner in managing FX payments.
Western Union Business Solutions Regional Divisional Director for North America Ian Taylor said that effectively understanding and mitigating currency risk exposures is becoming ever more important to small and medium enterprises. With the right payments provider, however, these businesses are in a strong position to seize opportunities internationally.
