Image: UPS | OTR Freight Truck in Europe

UPS announced they have partnered with Payoneer to provide secure, faster, and reduced risk payment services for B2B cross-border trade transactions.

This new service by UPS Capital, a subsidiary of UPS, gives customers and companies in more than 200 markets and 150 currencies the ability to use a secure and digital payment platform. B2B transaction protection is provided by licensed escrow.

“The risk of non-payment is a major challenge for small and mid-sized businesses trading across borders” said Ron Chang, President of UPS Capital. “The loss of revenue or receiving a defective product can cripple cash flow leading to devastating business impacts. The B2B secure payment service helps mitigate the risk for our customers — either buyer or seller — and gives them peace of mind that the funds will be available and the goods delivered as described.”

CROSS-BORDER TRADE, THE NEW NORMAL

With about 95 percent of the world’s population residing outside the U.S. and two-thirds of global purchasing power overseas, U.S. companies have to enter new geographies and build international relationships.

Unfortunately, many Small to Medium sized Businesses (SMBs) lack the knowledge and infrastructure to tap into this global marketplace.

  • Navigate foreign currencies and languages
  • Vet new customers
  • Collect on delinquent invoices
  • Manage multiple banking relationships

These are common pain points for many SMBs when engaging in cross-border trade.

As a result, many SMBs limit international expansion and often cede markets to competitors. A Payoneer study found that 75 percent of SMB respondents declined business due to risk of non-payment. And 57% of sellers realized their current approach to ensuring payment limits their growth.

“With B2B secure payments, businesses can more safely expand sales to new customers and purchase from new suppliers, while significantly reducing payment risk,” said Scott Galit, CEO of Payoneer.

UPS PROVIDES INTEGRATED SOLUTIONS AND SERVICES

The new payment service by UPS Capital is just one of many solutions to help SMBs enter new markets and mitigate the risks of global trade. Other services offered by UPS include:

  • Unique finance options to enhance cash flow
  • Marine cargo insurance to cover in-transit and warehouse goods
  • Wide variety of integrated UPS transportation services
  • Customs brokerage services for efficient clearance
Image: Maersk Line | Maersk Munich Container Ship
Image: Maersk Line | Maersk Munich Container Ship

UPS SERVICES AIM AT B2B MARKET

The transactions that benefit the most from this new service are a larger volume of goods. Often, these transaction utilize LCL or FCL shipments.

Working with one partner that can handle the entire transaction from financial to logistics will simplify the process.

Of course, there may be less expensive methods to accomplish payments and logistics. But UPS is looking at those U.S. companies that have been reluctant to enter the global trade.

Since the first pain point after agreeing on price and goods in cross-border B2B trade is payment method, UPS Capital aims to provide an easy minimal risk payment solution.

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