Are you a business based outside the EU making large payouts to partners in Europe? If so, you’ve probably suffered delays and expensive rates, and jumped over enough regulatory hurdles to qualify for the Olympics.
While technology has made it easier for companies to transact money across borders, it’s not been without challenges. The new TransferGo API seeks to mitigate these challenges and reduce the time, and costs that come with making payouts to European countries.
However, before we get to that, let’s start with an honest conversation about the current state.
Why is it so hard for companies outside the European Union to make payouts to Europe?
Think about the regulatory juggling that comes with operating a multinational company across just two countries. Now extend that thought to 27 countries with varying financial regulatory requirements.
To transact with European businesses, companies have resorted to opening multiple bank accounts or subsidiaries across different EU countries. This comes with the headache of going through the business registration process i.e having to get a physical address in Europe—even when you don’t need it—a tax identification number, licenses etc.
Additionally, since these regulatory measures are in place to curb financial crime, companies that follow this route have to commit resources to ensure regulatory compliance. If that is not enough to make executives squirm, high exchange rates and the long wait-times your suppliers or employees experience before receiving their money will.
Alternatively, some companies choose to establish their own payments infrastructure through either building APIs from scratch or getting ready-made APIs and paying for integration. Research by Dream Factory, an API development platform, pegs the average cost of building an API from scratch at $20,000 (not including the time cost), so frying pan… meet fire.
What is the solution?
TransferGo’s new API takes all the pain points of international payouts and turns them around; linking our real-time cross border payments network to businesses. If you’re paying suppliers, partners, off-shore employees, offering rebates or reward programmes, the process is simple.
Payouts are now delivered in as little as 30 minutes. Fees are also reduced by up to 90% while companies are able to send money to 27 countries—free of the regulatory hassle of old. Additionally, you can now pay directly to recipients’ bank accounts or cards, no more going around in circles. All this happens at the same security level as at a commercial bank through a simple API integration.
The aim is to make it easier for companies to settle payments in foreign countries. It will also allow them to build upon our international payments network to support their international operations. For example, through the TransferGo API, financial companies can extend their services across borders; if you’re providing a peer to peer (P2P) money transfer service, imagine the power of reducing the cost of transactions, offering better exchange rates and cutting the transaction time from days to hours.
The new TransferGo API can also help e-commerce companies accept international payments faster and at better exchange rates. It can also connect platforms (payroll, CRM, accounting etc.) to international money transfers.
What do you get from the TransferGo API solution?
Hassle-free regulatory set-ups
Ironically, the same hurdles that make it slow and expensive for e-commerce companies to receive international payments. This causes headaches to logistics teams trying to make recurring payouts to international suppliers.
If your best option for international payments is to open subsidiaries and bank accounts in multiple regulatory environments, then it’s time to find a way out. With our Transfers API, there’s no need to have end-destination banking relationships that take forever to set up.
TransferGo’s API integration is free. This saves you the time and money it takes to develop an API from scratch. In addition to hosting, maintenance, transaction management and monitoring costs.
You shouldn’t be penalised for high-volume transactions. Nor should you have to pay a high percentage fee per transaction amount. That is why we offer volume-based, bespoke and competitive prices.
‘Last mile’ payouts
Offshore employees, suppliers, freelancers, affiliate partners have one thing in common. They all hate having to go through an extra step to access their money. That’s why the TransferGo API solution provides last-mile payouts.