Cross-border payments have long been a pain point for businesses because they can be complex and lack transparency. As a result, companies have sought services that make international payments look more like domestic payments, with increased efficiency and reduced friction. 

New York-based Amex may be seeking to capitalize on an expected surge in cross-border B2B spending by its customers. Citing a survey it conducted in June, Amex said nearly two-thirds of small and mid-sized business owners in the U.S. polled believe their B2B cross-border spending will increase over the next six months, per the news release. 

In an increasingly connected world, businesses seek to compete on a global scale. Additionally, supply chain snarls have business owners diversifying their suppliers. That means “more B2B spending is happening online and is cross-border,” Dean Henry, Amex’s executive vice president of global commercial services, said in an email.  

More than one-quarter of the business owners surveyed said the complexity of the process is an issue, and nearly half want more transparent rates. Plus, about 44% want a simpler user experience.

Amex aims to give its small business clients an easy-to-use service “without big tech integrations or hurdles,” Henry said. The card company makes the service accessible in the same place card customers currently manage their online account, he said.

“While larger companies have access to cross-border payments offerings, our clients have asked for a solution more specifically designed for the needs of smaller businesses, too,” Henry said in an email.

Because the new service is connected to payment systems like SEPA Instant Credit Transfer in the European Union, payments may qualify for same-day delivery, per the news release.

By Caitlin Mullen on Aug 2, 2022
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