The first challenge when entering foreign markets comes down to accepting payments in different currencies without losing money on conversion. Traditional banking solutions charge 3-5% per transaction plus additional fees for international transfers. Modern payment gateways work differently.
Adyen, used by Netflix, Spotify and Uber, provides a single integration for over 250 payment methods in 150+ currencies. Instead of dozens of separate contracts with local processors, businesses connect one API. The system automatically determines the optimal transaction route depending on the buyer’s location, card type and time of day. This reduces the percentage of declined payments from 15-20% to 5-8%.
Companies with regular international settlements open multi-currency accounts. Payoneer allows holding balances in euros, dollars, pounds and yen simultaneously, exchanging money at interbank rates without markups. A European IT outsourcer working with clients from the US, Germany and Japan can receive payment in dollars, pay contractors in Europe in euros, and handle local salaries in the home currency — all from one account.
Worth mentioning that crypto payment solutions from Inqud open additional opportunities for businesses with international settlements, allowing them to accept payments in digital assets alongside traditional currencies. Integrating such systems proves particularly relevant for e-commerce projects with audiences in Asian and Latin American countries, where cryptocurrencies see more active use.
Automating Currency Operations and Hedging Risks
Exchange rate fluctuations can eat up profits from even successful international projects. A European exporter who signed a contract to supply services for 100 thousand euros three months ago might receive 15-20% less in local currency today due to depreciation. Large corporations hire entire departments to manage currency risks, but small and medium-sized businesses lack that luxury.
Platforms like Kantox automate the hedging process. The system analyzes a company’s future cash flows, identifies currency exposures and suggests protection strategies. Algorithms track market quotes and execute forward contracts at the most favorable moment. The average business saves 1.5-3% of annual turnover just on optimizing currency operations.
Revolut Business took a different path. Instead of complex derivatives, they offer currency exchange at interbank rates on business days and holding funds in any of 28 currencies. A marketplace that purchases goods in China for dollars, sells in Europe for euros, and settles in pounds converts money when the rate is favorable, not when the payment calendar demands it.
Instant International Transfers and SWIFT Alternatives
The interbank SWIFT system has operated since 1973 and remains the standard for large corporate transfers. A transaction takes 3-5 business days, passes through several correspondent banks, each taking a commission. For a transfer of 10 thousand dollars from the US to Europe, they’ll charge 40-60 dollars total and spend 4 days.
TransferWise (now Wise) figured out how to bypass this system. Instead of actually transmitting money across borders, they use account balancing. If someone in London sends pounds to the US, and someone in New York sends dollars to the UK, the system simply credits pounds to the American’s British account and dollars to the Brit’s US account. Money doesn’t physically cross borders, so the transfer completes in an hour with a 0.5-1% commission.
Ripple developed a protocol for banks that works similarly. Santander launched the One Pay FX service on Ripple technology — transfers between the US, UK, Spain and Poland execute in 10-40 seconds. J.P. Morgan created its own Liink network, which unites over 400 financial institutions and allows instant payment information exchange.
For small businesses, the most accessible solutions come from Payoneer and Airwallex. They issue virtual accounts in the US, EU, UK and Australia. A European company gets an American bank number and can accept ACH transfers like a local business. The commission for incoming payment is zero, for withdrawal to a European card — up to 1%. The US client pays as for a domestic transaction, and the European supplier receives money the next day.
Digital Assets in International Trade
Bitcoin appeared in 2009 as an alternative to traditional finance, but gained mass business application only in recent years. Companies use cryptocurrencies not for speculation, but as a working tool for international settlements.
Tesla in 2021 accepted bitcoins for electric vehicles, though later suspended the program due to environmental concerns. Microsoft sells software for crypto through BitPay. This processor handles over a billion dollars in transactions annually for 40 thousand companies. The client pays in bitcoin or ether, the seller receives traditional currency to their account — conversion happens automatically.
Stablecoins eliminated the main problem — volatility. USDC and USDT are pegged to the dollar and fluctuate within 0.1%. For business, this means predictability. An exporter from Argentina, where inflation exceeds 100% per year, receives payment in USDC, keeps it on a crypto wallet and converts to pesos only the portion needed for current expenses. The rest preserves value in dollar equivalent without opening an offshore account.
Ripple (XRP) specializes precisely in interbank settlements. Transferring 100 thousand dollars from Thailand to Mexico through traditional banks takes 3 days and costs 500-700 dollars. Through RippleNet — 4 seconds and 2 dollars commission. Siam Commercial Bank and Banco Santander have already integrated this technology.
Regulatory Challenges and Licensing
Global expansion inevitably encounters regulatory restrictions. Each country has its own requirements for financial operations, tax system and data protection rules.
The PSD2 directive in Europe obliged banks to open APIs for third-party providers. This spawned the open banking industry. Plaid connects to users’ bank accounts (with their consent) and provides financial data to third-party applications. Venmo, Robinhood and other fintechs use Plaid to verify accounts and initiate payments. The company processes data from 11 thousand financial institutions in 14 countries.
GDPR in Europe, CCPA in California, LGPD in Brazil — each jurisdiction requires a special approach to customer personal data. Violations cost up to 4% of global company turnover. Stripe Atlas helps startups register in jurisdictions with the most liberal regulation (usually Delaware, US or Estonia) and automatically comply with local requirements when operating in other countries.
Licensing payment operations is a separate story. In the EU you need an EMI (Electronic Money Institution) license, in the UK — FCA approval, in the US requirements vary by state. Obtaining licenses takes 12-18 months and costs hundreds of thousands of dollars. The alternative is partnering with licensed providers. Railsbank provides Banking-as-a-Service: a company gets ready regulatory infrastructure and issues financial products under its own brand without licensing.
Artificial Intelligence in Financial Compliance
Anti-money laundering (AML) and customer verification (KYC) are mandatory procedures for any financial service. Traditionally, this meant a staff of compliance officers who manually reviewed documents and checked transactions for suspicion.
Onfido uses computer vision to verify passports and other documents. The system detects forgeries, compares photos with user selfies and checks data against global databases in 30 seconds. Fake document recognition accuracy reaches 99.5%. Revolut verifies 15 thousand new clients daily automatically, without human involvement.
Compliance.ai tracks regulatory changes in 200+ jurisdictions in real time. Algorithms analyze bills, regulator decisions and legal precedents, issuing alerts about changes affecting specific businesses. A fintech company learns about new EU requirements for crypto exchanges not from news releases a week later, but the moment the directive publishes.
Fraud detection based on machine learning analyzes millions of transactions and identifies anomalies. If a card typically gets used in London for supermarket purchases, and suddenly a transaction for 5000 dollars appears at a Macau casino — the system blocks payment in milliseconds. PayPal blocked 33 billion dollars in fraudulent transactions in 2022 thanks to algorithms that learn from historical data.
Financing and Capital Management
International expansion requires capital. Classic bank loans for small businesses mean 12-18% annually plus collateral. Alternative financing sources have become more accessible.
Revenue-based financing provides money against future income without diluting ownership stakes. Pipe allows SaaS companies to sell annual client contracts for cash now. If a subscription costs 1000 dollars per year, Pipe will pay 900 dollars immediately and receive payments from the client throughout the year. For the company, this means immediate liquidity for growth without credit or investment.
Trade finance platforms solve cash flow gap problems. An exporter ships goods but receives payment in 90 days. Taulia buys this receivable at a 2-3% discount, the supplier gets money now, the buyer pays on standard schedule. Global trade finance volume exceeds 10 trillion dollars annually.
Multi-currency treasury management helps large companies manage cash flows in dozens of currencies. Kyriba integrates with ERP systems and banks, forecasts future receipts and expenses, automatically moves funds between accounts to optimize interest income and minimize commissions. Unilever saved 50 million dollars per year by centralizing treasury management through such platforms.
Infrastructure for Remote Teams
Global business means employees in different countries. Hiring, salaries, taxes and benefits in each jurisdiction represent separate accounting systems.
Deel and Remote solve the employer of record problem. A European IT company wants to hire a developer in Brazil but has no legal entity there. Deel becomes the formal employer, maintains all documentation according to Brazilian law, calculates salary taking into account local taxes and social contributions. The company simply pays one invoice monthly, Deel distributes money among employees in 150 countries.
Papaya Global and Oyster automate payroll processing for international teams. The system accounts for each country’s specifics: in France the 13th salary is mandatory, in Japan bonuses pay twice a year, in the Netherlands the employer must compensate the commute to the office. Algorithms calculate gross-to-net considering progressive income tax rates, social deductions and local benefits.
Brex and Ramp issue corporate cards for distributed teams. Each employee receives a virtual or physical card with limits and spending rules. A manager in the US books a hotel in Singapore, a developer in Poland buys software licenses, a designer in Argentina pays for stock photos — everything charges to the corporate account automatically with expense categorization for accounting.
Conclusions
The future of global finance will belong to companies that treat fintech not as an add‑on but as a core operating layer. By combining modern payment rails, digital assets, AI‑driven compliance, and global employment infrastructure, businesses can enter new markets faster, cheaper, and with less risk. Those that start building this stack today will not just keep up with global competition — they will define the standards everyone else is forced to follow.
