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3 Keys to Cross Border Payments Success

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This session will feature breakouts into different industries to have specific discussions with your industry peers about key treasury and use of treasury management solution issues. Featured industries include Retail & eCommerce, Healthcare, Insurance, Technology, Manufacturing, and Travel & Hospitality.

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3 Keys to Cross Border Payments Success

  1. 1. 3 Keys to Cross- Border Payments Success Jeremy Thomson-Cook March 5th 2019
  2. 2. Agenda WorldFirst and the problems we solve The future of payments Something wicked this way comes My 3 keys for payments success
  3. 3. Who is WorldFirst?
  4. 4. We’re now a global business London Amsterdam Tokyo Hong Kong Shenzhen Singapore Sydney 640+Employees across 8 locations worldwide 80,000Active Clients £60bnTransferred globally Shanghai
  5. 5. Current Global Payment Process for most Importers and Exporters Slow, inefficient, complicated and expensive Seller Process: Buyer/Seller settle payments internationally through different banks Time: 2-5 days FX cost: 0.2-2.5% Payment Fee: €18-65 Total cost for €10k: €182 Buyer Banks
  6. 6. International Payments Improved Turn a cross-border payment into a local payment Process: Buyer makes local payment to seller’s local account Time: 0 days + 0-1 day FX cost: 0 + <1% Payment Fee : €0 Total cost: €15+€50 = €65 Seller’s Local EUR Account SellerBuyer
  7. 7. International Payments Transformed Then get the Buyer and Seller using the same platform – payments are ledger-to-ledger SellerBuyer Process: Buyer transfers from their account to another on the platform Time: Immediate FX cost: 0 + 0.5% Payment Fee : 0 USD Total cost: €50
  8. 8. Tremendous Growth in Payments Industry Revenues Reimagining International payments Solves the problems Slow Complicated Opaque Expensive Un-trackable
  9. 9. Tremendous Growth in Payments Industry Revenues Reimagining International payments Solves the problems Slow Complicated Opaque Expensive Un-trackable Fast Simple Transparent Free/inexpensive Trackable
  10. 10. Tremendous Growth in Payments Industry RevenuesWho will solve this? Bank? Bank Consortium? SWIFT? Governments? Payment Companies? X X X X 
  11. 11. The Future of Payments
  12. 12. The Future of Payments When I think about progress from an industry or product point of view I think of one body
  13. 13. The Future of Payments THE PROBLEM DEFINITION CHECKLIST Why is it necessary to solve the problem? What benefits will you receive by solving the problem? What is the unknown? What is it you don’t yet understand? What is the information you have? What isn’t the problem? Is the information sufficient? Or is it insufficient? Or redundant? Or contradictory? Should you draw a diagram of the problem? A figure? Where are the boundaries of the problem? Can you separate the various parts of the problem? Can you write them down? What are the relationships of the parts of the problem? What are the constants of the problem? Have you seen this problem before? Have you seen this problem in a slightly different form? Do you know a related problem? Try to think of a familiar problem having the same or a similar unknown Suppose you find a problem related to yours that has already been solved. Can you use it? Can you use its method? Can you restate your problem? How many different ways can you restate it? More general? More specific? Can the rules be changed? What are the best, worst and most probable cases you can imagine?
  14. 14. Problems solved — Blockchain pre-compatability and the network effect — Sunk data will be outweighed by UX — Invest or die — Analogue, Digital, Autonomous The Future of Payments
  15. 15. Something wicked this way comes
  16. 16. International trade has never been more in the crosshairs — Tariffs are a tax on consumers not on producers — Non-tariff barriers are always more important and problematic — Costs vs the dollar — The customer isn’t always right Something wicked this way comes
  17. 17. My 3 keys for payments success
  18. 18. My 3 keys for payments success Foreign exchange risk arises when your company is exposed to a financial transaction in any form that is denominated in another currency. Your company can be exposed to this risk through a number of channels – most notably: What are the risks my company could be exposed to?
  19. 19. Stick to your mandates and your budgets My 3 keys for payments success Knowing the flow IS knowing the know Trade like a local with local accounts

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