3 Ways Cross-Border Payments Help You Pay Your Workforce
- Last updated: October 16, 2024
International companies that settled on the African continent enjoy several advantages: from highly receptive markets, qualified workforces and tax exemptions to being able to make use of the continent’s many natural resources. The reasons to stay and expand business are indeed many but most companies will run into one significant issue during their expansion: international payments. These never fail to pose a serious dilemma for companies operating in African countries. As such, employers are expected to pay their distributed workforce in a timely and efficient manner across Africa.
Cross-border payments stand as a solution to this problem, offering great assistance to companies.
What are cross-border payments?
Cross-border payments are international financial transactions that involve parties from at least two countries, including individuals, businesses, banks, or settlement institutions. These payments include both wholesale and retail operations.
While payments can be made domestically from one bank to another, cross-border transactions require the use of several mechanisms and different currencies. Most domestic payments take longer to clear, and most foreign transfers are a complicated jumble of security and compliance issues.
Benefits of cross-border payments
1. Timeliness
When a company employs the services of a reputable institution for their cross-border payments, they ensure the timeliness of their transactions – which is an essential aspect of business. Companies may risk souring their business relationships and may make losses if important payments are not made in time. Timely and efficient payments are especially important when it comes to employees’ salaries. Failure to do so would not only seriously aggravate morale, as studies have previously indicated, but would also constitute a worker’s rights violation for which companies can be sanctioned.
2. Secure payments
Whenever mention of money is made, security must follow. Choosing cross-border payment services by an experienced operator will help ensure the safety of payments, thanks to reliable transfer methods.
3. Payment in multiple currencies
Making payments in different currencies can be a challenging experience. Since currencies are usually converted multiple times during payment processes, it is difficult to keep up with and calculate conversion rates, local taxes, and foreign transaction fees. Partnering with an experienced cross-border payment service provider will relieve you of the need for such calculations and considerations.
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Partner up with Africa HR Solutions for your Cross-Border payment needs
At Africa HR Solutions, our team has learned to refine the way we deliver our cross-border payment and payroll services.
Should you wish to learn more about the ways we can streamline and facilitate salary distribution for your talents all across Africa, give us a call!