Cross-border trade payments platform XTransfer has joined forces with payments firm EBANX.
The partnership, announced Tuesday (July 23), is designed to streamline B2B payments in Latin America.
“This collaboration will empower XTransfer’s clients — small and medium-sized enterprises (SMEs) worldwide working with imports and exports — to navigate LatAm’s digital economy with greater ease and efficiency,” the companies said in a news release.
Despite the widespread digitization of consumer payments, the release noted, most businesses in rising markets rely on non-digital payments, with B2B payments taking weeks and requiring the involvement of multiple intermediaries.
“Latin America has rapidly emerged as a powerhouse in the digital economy, with a burgeoning market ripe for innovation in B2B payments,” the companies said. “With an increasing percentage of businesses purchasing online there is a significant opportunity to streamline processes and enhance the efficiency of cross-border transactions.”
With this partnership, EBANX will process payments for China-based XTransfer in five key Latin American markets, Brazil, Chile, Colombia, Mexico and Peru, focusing on alternative payment methods such as electronic transfers and bank transfers, e-wallets, cash-based vouchers, and the Brazilian instant payment Pix.
“Business-to-business payments represent the next frontier for fintechs, and EBANX is once again at the forefront, investing in solutions that meet the demands of this segment,” said Eduardo de Abreu, vice president of product at EBANX.
“The importance of alternative payments for B2B transactions cannot be overstated, and we are committed to providing innovative and intuitive financial tools for businesses.”
As noted here earlier this week, the latest data from PYMNTS Intelligence shows how digital payments can lead to a healthier cash flow and efficient financial operations. It’s why “embracing automation to unlock better B2B payments is top of mind for both buyers and suppliers,” that report said.
The digital landscape has transformed the calculus around the ease, convenience and visibility that firms expect from their B2B payments, and the reality is only trending toward further convenience and a streamlined user experience as generational shifts reshape the B2B ecosystem.
Meanwhile, PYMNTS Intelligence in the inaugural edition of “The 2024 Certainty Project Report” showed that uncertainty, especially around payments, costs middle-market companies more than $20 million on average. Many of these uncertainties come from incompatible technologies, manual data entry and the complexities of legacy systems that lead to poor data quality.
“Legacy frictions, such as paper-based processes, siloed systems, and lack of integration, have long plagued B2B operations,” PYMNTS wrote. “These frictions not only hinder efficiency but also increase the risk of errors and delays.”
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