Global B2B trade, worth approximately $190 trillion in 2023, comes with complexities in managing payments across borders. Finance leaders worldwide are recognizing commercial cards as essential tools for transactions and as strategic financial levers. These cards are helping businesses overcome hurdles like fluctuating exchange rates and hidden fees by streamlining the process.
Why Payment Optimization is a Priority
With cross-border transactions becoming a part of everyday business, CFOs and finance teams are shifting their focus to optimizing payments. “Many overlook cost-effective methods for cross-border payments,” says Dean M. Leavitt, CEO of Boost Payment Solutions. For many, commercial cards offer a unique advantage, improving cash flow by extending payment terms and enhancing working capital.
Commercial Cards: A ‘Working Capital Weapon’
Commercial cards are evolving into “working capital weapons,” especially for enterprises needing flexibility in cash management. By increasing days payable outstanding, these cards provide companies with the flexibility they need to keep global supply chains running smoothly. However, limitations exist, as many financial institutions still lack the infrastructure to support seamless card transactions internationally.
Boost 100XB: Revolutionizing Global Payments
Boost Payment Solution’s new product, Boost 100XB is leading this transformation. The innovative solution allows U.S.-issued commercial cards to be used seamlessly for payments in over 180 countries, bypassing traditional banking complications. Suppliers benefit, too, with faster payments and lower fees. “This isn’t just innovation, it’s leveling the playing field,” Leavitt explained.
Reducing Complexity and Costs
One example highlights the potential: a U.S.-based firm with a Belgian supplier can avoid cross-border fees and currency conversion costs through Boost 100XB, simplifying transactions and reducing costs for both buyer and supplier.
Future of Cross-Border Payments
The commercial card space for cross-border transactions is evolving quickly. “Shortly, we’ll see billions in transactions shifting to cross-border cards,” Leavitt predicts. His vision foresees international B2B payments becoming as simple as a click, marking a significant shift in global financial operations.
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