Episode 89 - Growing a Fintech Business for Small Business Cross-border Payments by Outgrowing the Blockchain - Marwan Forzley, Veem
Manage episode 230092638 series 101397
Cross-border B2B payments are frustrating, time consuming, and expensive, especially for small and medium businesses. To dig into why and what's being done to overcome those concerns, join George and Marwan Forzley, CEO of Veem, for an explanation.
SMB B2B payments, particularly cross border payments, have always been time consuming to accomplish and expensive to do.
They are time consuming because sending an international “wire” payment was historically slow with uncertain delivery timing and with uncertain, and high, costs to both the sender and the receiver. For the sender, the process of initiating a cross-border payment has always taken no little time compared, for example, to writing a check.
Cost is a second concern because cross-border payment economics are not always transparent. At least a few times a year, when Glenbrook gets paid by one of our international clients, the funds we receive are less than what we invoiced. While our client sends us the correct amount at the prevailing exchange rate, intermediaries along the way may take “bene deduct fees” - beneficiary deductions - from the funds in transit in order to compensate themselves for their services. I prefer the more accurate term of “lifting fees."
This uncertainty of timing and cost affects millions of small businesses participating in the global supply chain.
Companies like Veem, Western Union, TransferWise, PayPal and many others compete on speed, predictability, low cost, and global reach. Super helpful integration into business accounting and AR/AP functions is a big plus.
Veem’s story is compelling as it began using the bitcoin blockchain to send money between its operations in multiple countries. Since then, the company has added other partners and its own in-country account balances to fund transactions. Veem’s SMB customers can send money to 90 countries and receive funds in 25. The company has served over 100,000 SMB customers.
If blockchain, cross-border, B2B, small business and fintech are terms that interest you, take a listen to George and Marwan as they catch up on the company, SMB pain points, and the impact of Chinese tariffs on Veem customers.