In the 1990s, the fashionable word in the corporate world was globalization, which presented the context of large multinational corporations and the actual internationalization of products, services, and even culture as a reality. What was unknown was that technology and payment systems would advance to the point where we could make automatic cross-border payments with same-day processing.
Are we more connected? Certainly! However, we're not just talking about data. Working with payments from Europe, USA and China to Brazil, for example, demands an operational effort, and legal and tributary knowledge. If the language barriers have already been won, there are still steps to be taken to consolidate cross-border payment to Brazil.
These are purchasing and transactions between a buyer and a seller that are in different countries. In commercial terms, this is a great leap forward for consumers and companies that, in many cases, have access to products and services not available in the country of origin, or, for instance, need to expand their operations internationally. A practical example is that with globalization itself, and the popularization of Internet access around the world, the hiring of labor has also become globalized, creating the need for companies that hire professionals in a country other than their headquarters to make payments.
Cross-border payment to Brazil: the need to understand the challenges
When considering making cross-border payments to Brazil, it is important to take into consideration Brazilian culture and reality. Here are some challenges:
Brazil is among the largest countries in the world, with a size of 8,514,876 square km. There are different needs and habits for different states and cities. Not considering these differences is one of the biggest mistakes, not only in payment transactions.
Solution: when structuring or rethinking your operations for Brazil, remember what we mentioned at the beginning of the text. In the 1990s, the term in fashion was globalization. However, times have changed, and now it is necessary to adapt solutions locally. You can see an article about "glocal" thinking in this link. It is crucial to connect with local providers who understand the culture and regulation. Know-how is essential in Brazil for smooth operation, scale gain, and tax intelligence.
When we think that Brazil was ranked, in 2018, as one of the ten countries with the most unbanked people by Forbes, or that one in three Brazilians does not have a bank account, we can see a barrier.
Solution: technology advances, and with solutions such as Cash Pick-up from WePayOut, it is possible to make cash payments to these people to withdraw at over 15 thousand points spread throughout Brazil. Soon, with the launch of PIX, the Brazilian instant payment system, of which WePayOut will be a part, democracy, in the way of paying beneficiaries, will be increased, with the possibility of withdrawals in the retail network with QR code and without the need of a bank account or card.
Each Brazilian bank has a different standard of bank accounts. The lack of knowledge about these features can lead to delays and rejections in cross-border payments to Brazil, as well as damage to the company's image in the market, and rework of foreign exchange operations.
Solution: WePayOut launched a tool for bank account qualification that checks and corrects data automatically before processing payments. This provides better reliability and increased conversion in the processing of payments to third parties.
Currency conversion is usually an issue when processing cross-border payments. International companies don’t usually have a full understanding of the fees and costs involved in the process.
Solution: WePayOut has transparent operations as one of its principal values. Hidden fees and costs are not part of the company's culture. The foreign company is aware of how much it will pay and how much the beneficiary will receive. Always!
Next steps for cross-border payment
The cross-border payment is consolidated and is open to growth, with potential for much progress. Especially from the development of technologies that bring international companies closer to their beneficiaries on Brazilian soil.
Simplicity and dynamism must be taken into consideration to make the process easier. Through integration via API between software or with the simple upload of spreadsheets, as it works on WePayOut dashboard, it is possible to safely make payments to Brazil on the same day and have access to portfolios in different currencies.
The integration between technological solutions, knowledge of the Brazilian market, and the use of new payment methods and systems allow companies connected to international solutions to process international payments with the same ease as a local payment.
WePayOut decided to be a specialist in what it does: payments to third parties in different ways. Being connected to expert providers is a factor that will bring more success and to every step of the process.
Do you want to learn more about our dashboard and the features offered by WePayOut? Click here and start mastering the challenges of cross-border payments to Brazil.