AFEX_State_of_International_Payments_2016

afex.com
September 2016
STATE OF INTERNATIONAL
PAYMENTS REPORT – 2016

2 State of International Payments Report – 2016
afex.com
© 2016 Associated Foreign Exchange, Inc. All rights reserved.
Although we have seen a significant amount
of volatility in the global markets this past year,
businesses are seeking to increase their exposure to
international markets as they look to capitalize on the
opportunities brought on by increased globalization.
Increased international trade brings with it new
challenges as firms are tasked with handling higher
volumes of more complex international payments.
As a result, many firms have made evaluating their
payments systems a high priority.
Providing global payment and currency risk
management solutions for more than 35,000
clients worldwide, AFEX is uniquely positioned
to understand the challenges of international
commerce. At the same time, we work continuously
to ensure we have the clearest view of the issues
and opportunities for the businesses we work with.
This is why we are pleased to release our inaugural
State of International Payments Report.
We questioned more than 500 of our SME client
base worldwide to explore their experiences and
their approaches towards managing international
payments. The responses offer some fascinating
insights into the steps these businesses are taking to
efficiently grow their trading capabilities beyond their
own borders and fully capitalize on the potential of
cross-border trade.
Firms scaling their businesses overseas need
to be cognizant of currency exchange risks and
complexities involved when dealing with different
banking systems. Automated payments solutions,
coupled with currency exchange, FX products and
expert advice, can go a significant way to mitigating
the risks inherent with the challenges of international
commerce. This report will show that many firms see
greater automation in their payments processes as
a way to improve operational efficiency and reduce
costs. While the following survey results speak to
companies of all shapes and sizes, the accessibility of
these new technologies will no doubt help level the
playing field for smaller and medium sized businesses
trying to remain competitive in the global markets.
We hope you find the results valuable and, of course,
welcome any questions they may prompt with regard
to your own business.
Jan Vlietstra
Chief Executive Officer, AFEX
International payments on the rise

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5
6
8
9
10
11
12
Contents
Executive summary 4
Use of international payments is on
the rise 5
Changes in international payments 7
Use of international payments tools 11
Automation trends in international
payments 13
Choosing an international payments
provider 15
Appendix 17

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AFEX’s inaugural State of International Payments
Report, which is based on a survey of more than
500 financial decision makers at SMEs globally
that engage in estimated $230 million worth of
international transactions per month, presents the
picture of a global SME community that is largely
content with their current ability to make and receive
payments on the global stage, but that is anticipating
growing volumes of international payments which is
causing them to reevaluate their processes.
Despite uncertainty in global markets, SMEs
anticipate faster growth in international markets than
domestic. Nearly half of the surveyed firms (46%)
expect to increase their international payments this
year, while only 28% expect to see a commensurate
rise in domestic payments.
This greater weighting given to international
payments brings with it greater complexity, with FX
volatility (43%), cost (26%) and payment accuracy
(18%) all high on the list of challenges indicated by
the respondents.
With 47% of firms saying that ease and automation
are their key considerations when it comes to making
and receiving payments, it’s unsurprising that nearly
one in three companies (28%) are looking towards
online automated international payments tools in the
next 12 months to help reduce this complexity.
Indeed, nearly half of these businesses (46%) are
looking to reduce the amount of time they spend
processing payments as a key reason for turning to
automation.
Firms are looking for other benefits that will help
them operate more efficiently and effectively,
with 39% seeking the ability to make and receive
payments in real-time. One third of respondents
(33%) are adopting automated payments
technologies to drive down the costs associated with
making international payments.
Of the issues firms encounter when making and
receiving payments internationally, the most common
complaint is the result of FX volatility. A third (34%)
of firms have experienced issues as a result of
this. Delays in receiving payment is also a common
occurrence with 20% of firms experiencing this and
5% have been victims of fraud. While the impact of
this generally has little impact on businesses, a third
(34%) have seen their profitability affected while 3%
have lost business as a result.
Overall, firms are anticipating faster growth in
international commerce, and are beginning to take
a hard look at their current payments systems to
ensure they can keep pace with this growth and
remain competitive. Upgrading to automated online
platforms for international payments serves many
businesses well in increasing operational efficiency,
mitigating risk and reducing costs.
46%
of surveyed firms expect to increase
their international payments this
year, with only 28% expecting to see
a commensurate rise in domestic
payments
Executive summary

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Nearly half of surveyed companies (46%) expected
to increase international payments this year as they
seek to take advantage increase globalization. This
compares to just 28% of firms looking to grow
domestic payment volumes in the same
period. In total only 8% of firms see the size of their
international payments book decreasing this year.
This proportion is fairly consistent across all three
geographies.
42.7%
48.3%
9.1%
46.9%45.8%
7.3%
46.3%44.4%
9.3%
45.8%
45.8%
8.3%
Total
Less than in 2015
More than in 2015
Same as in 2015
Australia
UK
North America
In 2016, do you expect to utilize international payments:
Use of international payments is on the rise

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In 2016, do you expect to utilize domestic payments:
60.9%
30.4%
8.7%
65.5%
23.6%
10.9%
54.5%
30.7%
9.3%
60.8%
28.1%
11.1%
Total
Less than in 2015
More than in 2015
Same as in 2015
Australia
UK
North America

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Ease of payments (47%) trumps security (22%)
as the most commonly cited consideration when it
comes to managing international payments and is
the same across all territories. Thirteen percent of
companies said that the ability to consistently use the
same payments system across multiple countries is
an issue. This increases to 16% in Australia, where
this may be more of an issue given its greater trade
with Asia-Pacific.
Managing FX volatility (43%) was the most
frequently cited challenge to making international
payments, highlighting the role that the range of
hedging products has in helping firms to manage
their FX exposures. This was particularly the case
for UK companies (62%). Given the research
period closely followed the EU referendum which
saw a steep decline in the value of sterling, this
may have been a factor. Cost (26%), particularly for
North American firms (37%), was also frequently
mentioned.
As the biggest challenge facing firms, it’s
unsurprising that FX volatility (34%) has been the
main issue for companies to contend with over
the last 12 months. Again, this was particularly the
case for UK firms (45%). Twenty-two percent of
companies experienced a delay in receiving payment
but there were few other commonly cited issues,
such as the 5% who experienced fraud. The impact
of these in most cases was negligible with 61%
saying they experienced no ill effects, although 34%
reported that their profitability had been hit.
Which of the following best describes your main consideration when managing international payments?
5.9%
2.2%
3.9%
3.9%
44.4%
51.1%
44.2%
46.7%
18.5%
25.0%
22.7%
21.9%
4.4%
2.2%
5.2%
4.2%
10.4%
8.7%
10.4%
10.1%
16.3%
10.9%
13.6%
13.1%
Record keeping
Automation/ease of
payments
Security
Integration of payment
system/FX
Maximizing operational/
personal efficiency
Ability to use the same
payments system in multiple
countries (consistency)
Australia TotalUK North America
Changes in international payments

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What are the biggest challenges when it comes to making international payments?
13.4%
13.5%
26.3%
15.5%
19.7%
13.5%
23.7%
16.7%
12.0%
16.2%
16.1%
12.5%
17.6%
21.6%
25.4%
17.7%
49.3%
62.2%
37.3%
42.5%
27.5%
24.3%
37.3%
26.3%
6.3%
4.1%
7.6%
5.2%
5.6%
4.1%
5.1%
4.9%
17.6%
9.5%
20.3%
15.2%
Different banking/payment
systems
Different regulations
Security
Ensuring payments are
made on time
Ensuring payments are
made correctly
Managing/mitigating FX
volatility
Cost of making payments
Negotiating terms with
trading partners
Ensuring timely delivery of
funds

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Have you experienced any of the following issues when making/receiving international payments in the last
12 months?
4.4%
5.5%
5.2%
5.1%
1.5%
4.4%
2.6%
2.8%
7.4%
9.9%
9.2%
8.4%
35.6%
45.1%
23.5%
34.4%
9.9%
7.8%
4.4%
5.2%
7.4%
6.7%
6.4%
4.4%
17.8%
14.3%
22.2%
19.6%
40.7%
35.2%
41.2%
1.3%
0%
40.3%
1.5%
3.3%
7.4%
6.6%
6.5%
7.9%
Fraud
Delay in receiving payment
Lost or failed payment
Inability for payment provider
to track missing payment
Higher charges than you
were expecting
FX volatility
Higher total expense/lower
amount received than you
were expecting due to FX rate
Unable to make/receive
payment to/from desired
currency/country
Been contacted by a
regulatory body
Haven’t experienced
any of these issues

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What, if any, impact did this have on your business?
4.4%
1.1%
3.9%
3.4%
37.8%
40.7%
21.6%
0.7%
0.0%
0.7%
0.5%
54.8%
1.1%
0.0%
0.7%
2.0%
1.0%
1.5%
1.6%
1.1%
51.6%
64.7%
61.7%
34.1%
Lost business
Had to get involved with
legal action
Reduced profitability
Ceased trading for a period
of time
Lost supplier
Didn’t experience
any issues

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The majority of businesses surveyed (59%) use a
non-bank provider (like AFEX) to make and receive
the majority of their international payments. Given
the survey was conducted among AFEX’s network of
contacts, this is perhaps not surprising. Wire transfers
are more common in North America (22%) than
other territories, with only 13% globally using these
services. Bank transfers (13%) are also the most
often used method for a significant number of firms.
Payments processes seem to be in focus for the
respondent sample with only 12% never reviewing
them. Given the complexities involved in making
and receiving international payments, firms are right
to keep these under close watch. It is interesting
that 18% review their processes whenever their
transaction volumes grow, supporting findings
elsewhere that efficiency of payments when scaling
is a primary consideration.
How do you currently make/receive the majority of your international payments?
13.3%
12.0%
13.0%
68.9%
65.2%
44.8%
12.8%
3.2%
0.0%
3.0%
6.5%
2.7%
0.7%
2.7%
0.0%
58.5%
6.7%
9.8%
22.1%
13.3%
3.0%
2.2%
4.5%
3.9%
0.7%
7.6%
1.9%
2.7%
0.6%
0.0%
0.7%
0.5%
3.2%
3.0%
2.9%
3.3%
Transfer funds from an
in-country/local bank
account
Make an international
wire/telegraph transfer
via your bank
Use an automated online
international payments
tool
Use a manual online
payments tool
Use a non-bank
international payments
service (like AFEX)
Credit/debit cards
E-Wallets (eg PayPal,
Netteller, Skrill)
Check/cheque
Other
Use of international payments tools

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How often do you review your payment process to improve it?
24.4%
20.9%
20.1%
22.4%
9.2%
7.0%
10.1%
15.3%
12.8%
10.1%
13.7%
14.5%
20.9%
18.0%
19.1%
30.2%
18.7%
17.6%
23.9%
27.9%
10.5%
11.5%
12.1%
9.2%
Annually
Semi-annually
Monthly
Whenever our transaction
volumes grow
Whenever we encounter
an issue/problem or after
a client complaint
We’ve never reviewed it

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In order to keep up with the increase in international
payments, respondents indicated that they intend
to upgrade their payments systems in order to
keep pace with this growth. A quarter (28%) intend
to upgrade to an online automated payments
systems this year. This increases to a third (33%) of
Australian companies.
While current payments systems seem to be
satisfactory for some firms, those taking a proactive
approach and upgrading their technology will
help address the common challenges mentioned
throughout this report, such as reducing the time
spent processing (46%) and delivering (39%)
payments, in addition to cutting costs (33%).
Improved security (19%) was also a significant driver
for businesses seeking to improve their systems.
Over half of the firms (55%) that do not intend to
automate in the next 12 months are confident their
existing systems will support them while 29% prefer
to handle payments manually. This is particularly the
case in Australia where 37% of respondents prefer
to handle payments manually.
If you don’t already, do you intend to start using online automated international payments solution in the next
12 months?
Yes Don’t knowNo
0%
50%
100%
38.5%
28.1%
33.3%
16.5%
46.2%
37.4% 34.6%
36.6%
28.8% 27.9%
35.3%
36.8%
Australia
United
Kingdom
N
orth
Am
erica
Total
Automation trends in international payments

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[If answered Yes] Why is that? Australia TotalUK North America
37.8%
40.0%
27.3%
20.0%
13.3%
25.0%
33.0%
18.2%
13.3%
22.2%
2.3%
18.8%
6.7%
3.6%
0.0%
21.4%
15.6%
13.3%
15.9%
14.3%
42.2%
40.0%
52.3%
46.4%
33.3%
26.7%
43.2%
39.3%
2.3%
0.0%
4.4%
2.7%
13.6%
13.3%
13.4%
13.3%
Reduce costs
Reduce errors
Reduce amount of
time spent processing
payments
Faster time to delivery/
real time payments
Better tracking
Improve security
Will enable us to enter new
markets
Our competitors are
Transparent pricing
2.4%
2.8%
2.6%
7.1%
2.6%
16.1%
3.6%
5.4%
10.5%
6.9%
7.1%
2.6%
4.8%
1.8%
2.8%
26.2%
36.8%
28.5%
21.4%
55.4%
59.5%
50.0%
54.9%
7.1%
15.8%
11.8%
16.7%
9.7%
Expense of using new
software
Expense/hassle of
training people to use
new software
Prefer to handle
manually
Security concerns
Our existing system
works well
Customer service
support won’t be as
good
Other (please specify)
[If answered No] Why is that?

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When faced with the task of selecting a payments
provider to work with, the three most commonly cited
considerations were ease of use (55%), competitive
exchange rates (55%) and price (49%). It is also
worth noting that nearly half (44%) of respondents
also cited quality of customer service as a high
consideration, meaning that they value the expertise
and guidance they receive when partnering with
a payments provider. Interestingly, less than one-
third (31%) listed security as one of their main
considerations.
Given the anticipation of increased international
payment volumes, it is unsurprising that over one-
third (34%) of respondents say they expect to work
with their payments technology provider more this
year than in 2015.
What functionality or factors are most important in your choice of an international payments provider?
(Please choose up to 3 answers)
Choosing an international payments provider
Ability to make payments
on the move
Ability to automate
payments
Price
Ease of use
Quality of customer service
Currency expertise
Variety of hedging options
Holistic currency overview to
gauge exposure
Transaction speed/speed
of delivery
Up-to-date currency information
Pricing associated with hedges
Competitive exchange rates
Range of available currencies
Safe and secure way to send
funds
Ability to track payments
Automatic reconciliation
14.8%
8.8%
15.7%
14.3%
3.7%
12.1%
9.2%
8.9%
54.1%
40.7%
46.4%
49.0%
48.9%
63.7%
51.0%
54.8%
40.7%
41.8%
45.8%
43.9%
13.3%
16.5%
19.0%
16.6%
6.7%
8.8%
5.2%
6.9%
2.2%
3.3%
0.0%
1.8%
21.5%
25.3%
26.1%
24.2%
22.2%
25.3%
26.1%
24.2%
5.9%
4.4%
2.0%
4.3%
60.7%
57.1%
43.8%
54.6%
3.7%
4.4%
6.5%
5.4%
31.9%
27.5%
28.8%
31.1%
12.6%
9.9%
19.6%
15.3%
0.0%
1.1%
1.3%
1.0%

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Do you expect to use your payments technology provider in 2016
More than in 2015Less than in 2015 The same as in 2015
0%
50%
100%
6.9%
58.0%
35.1% 31.0%
59.8%
9.2% 5.8%
58.3%
36.0% 34.4%
58.5%
7.1%
Australia
United
Kingdom
N
orth
Am
erica
Total

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Australia United Kingdom North America Total %
Australia 78.3% 0.9% 0.6% 25.4%
Canada 0.0% 0.0% 41.8% 16.4%
China 7.0% 4.6% 1.7% 4.4%
France 2.1% 1.9% 2.8% 2.2%
Ireland 0.0% 2.8% 0.6% 2.0%
Italy 0.0% 4.6% 4.0% 2.9%
Malta 0.0% 0.0% 0.0% 0.0%
New Zealand 0.7% 0.0% 1.1% 2.9%
Sweden 0.0% 0.0% 1.1% 0.4%
Switzerland 0.7% 0.9% 0.6% 0.7%
United Kingdom 0.7% 72.2% 1.1% 18.2%
United States 9.8% 10.2% 44.1% 23.5%
Other 0.7% 1.9% 0.6% 1.1%
More than in 2015 30.4% 30.7% 23.6% 45.8%
Same as in 2015 60.9% 54.5% 65.5% 45.8%
Less than in 2015 8.7% 14.9% 10.9% 8.3%
More than in 2015 48.3% 44.4% 45.8% 45.8%
Same as in 2015 42.7% 46.3% 46.9% 45.8%
Less than in 2015 9.1% 9.3% 7.3% 8.3%
Full list of results
In which country does your company conduct most of its business?
In 2016, do you expect to utilize domestic payments:
In 2016, do you expect to utilize international payments:
What percentage of your payments are international?
0% 0.7% 0.9% 1.8% 1.2%
Between 1% and 25% 32.2% 43.5% 40.0% 38.3%
Between 26% and 50% 21.7% 16.7% 15.8% 19.3%
Between 51% and 75% 20.3% 18.5% 13.3% 17.4%
Between 76% and 99% 13.3% 13.9% 15.8% 16.0%
100% 8.4% 0.0% 13.3% 7.9%

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$0-750,000 94.9% 93.1% 91.5% 92.3%
$750,001-2,000,000 3.6% 6.9% 4.8% 5.3%
$2,000,001-10,000,000 1.4% 0.0% 3.0% 1.6%
$10,000,000+ 0.0% 0.0% 0.6% 0.7%
$0-750,000 94.9% 93.1% 91.5% 92.3%
0% 3.6% 3.0% 8.5% 5.6%
Between 1% and 25% 36.2% 39.6% 44.8% 40.1%
Between 26% and 50% 16.7% 27.7% 17.0% 20.0%
Between 51% and 75% 22.5% 17.8% 10.3% 16.2%
Between 76% and 99% 10.9% 8.9% 11.5% 11.1%
100% 10.1% 3.0% 7.9% 7.0%
Australia n/a 6.9% 9.1% 9.5%
New Zealand 9.4% 5.5% 5.7% 8.6%
China 42.3% 15.9% 12.0% 27.1%
Other Asia 27.5% 16.6% 13.9% 23.0%
France 11.4% 16.6% 10.5% 15.3%
Ireland 2.7% 7.6% 3.8% 5.3%
Italy 6.7% 17.2% 15.3% 16.0%
Malta 0.7% 0.7% 1.0% 0.9%
Sweden 3.4% 4.1% 2.4% 3.9%
Switzerland 2.0% 7.6% 3.8% 5.3%
United Kingdom 18.1% n/a 17.7% 21.3%
Other Europe 27.5% 46.2% 23.0% 38.3%
United States 43.0% 26.9% 34.9% 42.7%
Canada 5.4% 4.1% 11.5% 9.3%
Africa 4.0% 3.4% 9.1% 7.4%
Full list of results cont’d
What is the estimated value of your international payments each month?
What percentage of your costs are exposed to foreign currencies due to international payments?
Which countries and regions do you currently send international payments to?

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Australia n/a 0.0% 1.4% 0.7%
New Zealand 2.3% 0.0% 2.1% 2.0%
China 5.4% 2.2% 3.5% 3.4%
Other Asia 4.6% 2.2% 3.5% 3.4%
France 0.8% 1.1% 3.5% 2.0%
Ireland 1.5% 0.0% 1.4% 1.0%
Italy 2.3% 3.3% 2.1% 2.5%
Malta 1.5% 1.1% 1.4% 1.7%
Sweden 1.5% 0.0% 0.7% 0.7%
Switzerland 1.5% 0.0% 0.7% 0.7%
United Kingdom 1.5% n/a 0.7% 1.5%
Other Europe 3.1% 4.4% 2.8% 3.2%
United States 3.8% 3.3% 2.1% 2.7%
Canada 1.5% 3.3% 2.1% 2.0%
Africa 2.3% 1.1% 1.4% 1.7%
No/None 87.7% 86.7% 91.0% 83.5%
Are there any countries/regions below that you do NOT currently make payments to, but expect to in the
next 12 months?
How satisfied are you with your ability to make/receive payments internationally at the moment?
Very satisfied 47.4% 56.5% 50.0% 51.1%
Quite satisfied 48.9% 42.4% 46.8% 45.9%
Not very satisfied 3.0% 1.1% 3.2% 2.7%
Not at all satisfied 0.7% 0.0% 0.0% 0.2%

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Different banking/payment systems 13.4% 13.5% 26.3% 15.5%
Different regulations 6.3% 4.1% 7.6% 5.2%
Security 12.0% 16.2% 16.1% 12.5%
Ensuring payments are made on time 19.7% 13.5% 23.7% 16.7%
Ensuring payments are made correctly 17.6% 21.6% 25.4% 17.7%
Managing/mitigating FX volatility 49.3% 62.2% 37.3% 42.5%
Cost of making payments 27.5% 24.3% 37.3% 26.3%
Negotiating terms with trading partners 5.6% 4.1% 5.1% 4.9%
Ensuring timely delivery of funds 17.6% 9.5% 20.3% 15.2%
Transfer funds from an in-country/local
bank account
13.3% 12.0% 13.0% 12.8%
Make an international wire/telegraph
transfer via your bank
6.7% 9.8% 22.1% 13.3%
Use an automated online international
payments tool
3.0% 2.2% 4.5% 3.9%
Use a manual online international
payments tool
0.7% 7.6% 1.9% 2.7%
Use a non-bank international payments
service (like AFEX)
68.9% 65.2% 44.8% 58.5%
Credit/debit cards 3.0% 0.0% 3.2% 2.7%
E-Wallets (eg PayPal, Netteller, Skrill) 0.7% 0.0% 0.6% 0.5%
Check/Cheque 0.7% 0.0% 6.5% 2.7%
Other 3.0% 3.3% 3.2% 2.9%
What are the biggest challenges when it comes to making international payments?
How do you currently make/receive the majority of your international payments?
If you don’t already, do you intend to start using an online automated international payments solution in
the next 12 months?
Yes 33.3% 16.5% 28.8% 27.9%
No 28.1% 46.2% 36.6% 35.3%
Don’t know 38.5% 37.4% 34.6% 36.8%

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Reduce costs 37.8% 40.0% 27.3% 33.0%
Reduce errors 15.6% 13.3% 15.9% 14.3%
Reduce amount of time spent processing
payments
42.2% 40.0% 52.3% 46.4%
Faster time to delivery/ real time payments 33.3% 26.7% 43.2% 39.3%
Better tracking 20.0% 13.3% 25.0% 21.4%
Improve security 22.2% 13.3% 18.2% 18.8%
Will enable us to enter new markets 4.4% 0.0% 2.3% 2.7%
Our competitors are 6.7% 0.0% 2.3% 3.6%
Transparent pricing 13.3% 13.3% 13.6% 13.4%
Other 4.4% 0.0% 13.6% 7.1%
Expense of using new software 2.6% 4.8% 1.8% 2.8%
Expense/hassle of training people to use
new software
2.6% 2.4% 3.6% 2.8%
Prefer to handle manually 36.8% 26.2% 21.4% 28.5%
Security concerns 2.6% 7.1% 16.1% 9.7%
Our existing system works well 50.0% 59.5% 55.4% 54.9%
Customer service support won't be as good 10.5% 7.1% 5.4% 6.9%
Other 15.8% 16.7% 7.1% 11.8%
[If answered Yes] Why is that?
[If answered No] Why is that?

afex.com
Ability to make payments on the move 14.8% 8.8% 15.7% 14.3%
Ability to automate payments 3.7% 12.1% 9.2% 8.9%
Price 54.1% 40.7% 46.4% 49.0%
Ease of use 48.9% 63.7% 51.0% 54.8%
Quality of customer service 40.7% 41.8% 45.8% 43.9%
Currency expertise 13.3% 16.5% 19.0% 16.6%
Variety of hedging options 6.7% 8.8% 5.2% 6.9%
Holistic currency overview to gauge
exposure
2.2% 3.3% 0.0% 1.8%
Transaction speed/speed of delivery 21.5% 25.3% 26.1% 24.2%
Up-to-date currency information 22.2% 15.4% 16.3% 19.6%
Pricing associated with hedges 5.9% 4.4% 2.0% 4.3%
Competitive exchange rates 60.7% 57.1% 43.8% 54.6%
Range of available currencies 3.7% 4.4% 6.5% 5.4%
Safe and secure way to send funds 31.9% 27.5% 28.8% 31.1%
Ability to track payments 12.6% 9.9% 19.6% 15.3%
Automatic reconciliation 0.0% 1.1% 1.3% 1.0%
What functionality or factors are most important in your choice of international payments provider? (Please
choose up to 3 answers)

afex.com
Fraud 4.4% 5.5% 5.2% 5.1%
Delay in receiving payment 17.8% 14.3% 22.2% 19.6%
Lost or failed payment 7.4% 9.9% 9.2% 8.4%
Inability for payment provider to track
missing payment
1.5% 4.4% 2.6% 2.8%
Higher charges than you were expecting 7.4% 6.6% 6.5% 7.9%
FX volatility 35.6% 45.1% 23.5% 34.4%
Higher total expense/lower amount
received than you were expecting due to
FX rate
4.4% 9.9% 7.8% 7.4%
Unable to make/receive payment to/from
desired currency/country
6.7% 4.4% 5.2% 6.4%
Been contacted by a regulatory body 1.5% 3.3% 0.0% 1.3%
Haven't experienced any of these issues 40.7% 35.2% 41.2% 40.3%
Lost business 4.4% 1.1% 3.9% 3.4%
Had to get involved with legal action 0.7% 0.0% 0.7% 0.5%
Reduced profitability 37.8% 40.7% 21.6% 34.1%
Ceased trading for a period of time 0.7% 1.1% 0.0% 1.0%
Lost supplier 1.5% 1.1% 2.0% 1.6%
Didn't experience any issues 54.8% 51.6% 64.7% 61.7%
Less than in 2015 6.9% 9.2% 5.8% 7.1%
The same as in 2015 58.0% 59.8% 58.3% 58.5%
More than in 2015 35.1% 31.0% 36.0% 34.4%
Have you experienced any of the following issues when making/receiving international payments in the
last 12 months?
What, if any, impact did this have on your business?
Do you expect to use your payments technology provider in 2016:

afex.com
Annually 24.4% 20.9% 20.1% 22.4%
Semi-annually 15.3% 12.8% 10.1% 13.7%
Monthly 9.2% 7.0% 10.1% 9.2%
Whenever our transaction volumes grow 19.1% 20.9% 18.0% 18.7%
Whenever we encounter an issue/problem
or after a client complaint
17.6% 27.9% 30.2% 23.9%
We've never reviewed it 14.5% 10.5% 11.5% 12.1%
How often do you review your payment process to improve it?

afex.com
State of International
Payments Report
About AFEX
AFEX polled clients based in the United States, Canada, the United
Kingdom and Australia, and across a wide range of industries,
to determine their perspectives on payments. The survey was
conducted from Thursday, July 28th, through Friday, August 12th,
2016 with 513 respondents in total.
“AFEX” is the marketing trading name for the International Payment Solutions and Risk Management Solutions provided by several subsidiaries of Associated Foreign
Exchange Holdings, Inc. Services in Australia are provided by Associated Foreign Exchange Australia Pty Ltd; in Canada by Associated Foreign Exchange, ULC; in
Switzerland by Associated Foreign Exchange (Schweiz) AG; in Indonesia by PT. AFEX Indonesia; in the UK and the European Economic Area (EEA) on a cross-border
basis by Associated Foreign Exchange Ltd; in the Channel Islands by AFEX Offshore Ltd; and in the U.S. by Associated Foreign Exchange, Inc. (collectively referred to
as “AFEX” or “Associated Foreign Exchange”). For more information, visit www.afex.com. The AFEX name, logo and related trademarks and service marks, owned by
Associated Foreign Exchange, Inc., are registered and/or used in the United States and many foreign countries. All other trademarks, service marks, and trade names
referenced in this brochure are the property of their respective owners.
Associated Foreign Exchange Australia Pty Limited ABN 119 392 586 and AFSL 305246, authorised and regulated by the Australian Securities and Investments
Commission, Citigroup Centre, 2 Park Street, Suite D 38th Floor, Sydney NSW 2000. Registered Office: Grant Thornton Australia, Level 17 383 Kent Street,
Sydney NSW 2000. Associated Foreign Exchange, ULC, 200 Front Street, Suite 2203, Toronto, ON M5V 3K2, registered as a Money Services Business with the
Financial Transactions and Reports Analysis Centre of Canada and with the Autorité des marchés financiers (“AMF”). PT. AFEX Indonesia is a private limited company
incorporated in Indonesia with its head office located at 45th floor, Menara BCA, Grand Indonesia, Jl. MH Thamrin No. 1, Jakarta Pusat 10310. PT AFEX Indonesia
is licensed by the Bank of Indonesia as a Fund Transfer Operator (License Number: 17/158/DKSP/61). Associated Foreign Exchange (Schweiz) AG, Reg. No.
CHE-114.547.009, with a registered place of business at Stampfenbachstrasse 5, 8001 Zurich. Associated Foreign Exchange Ltd (registered in England and
Wales, Company Number 4848033, Registered Office Address: 4th Floor, 40 Strand, London WC2N 5RW), authorised by the Financial Conduct Authority under the
Payment Services Regulations 2009 (Register Reference: 502593) for the provision of payment services and is registered as an MSB with HM Revenue & Customs
(Registered No: 12159000). Associated Foreign Exchange Ltd, Italian Branch. Registered office: Piazza Pio XI 1, 20123 Milan, Italy. Tax code and VAT number:
08042310964. Registration number at the Chamber of Commerce of Milan: 08042310964. Authorised by the Bank of Italy to provide payment services in Italy and
registered to the list of payment institutions established number 36043.8. Associated Foreign Exchange Ltd, Branch in Spain. Spanish registered office: Paseo de
la Castellana nº 18, PL. 7º, 28046 Madrid, Spain (Bank of Spain code number: 6873). Tax code and VAT number: W8265977B. Authorised by the Bank of Spain
to provide payment services in Spain as a branch of Associated Foreign Exchange Ltd. AFEX Offshore Limited is authorised and regulated by the Jersey Financial
Services Commission for Investment Business and Money Service Business under the Financial Services (Jersey) Law 1998. Registered in Jersey (registered no.
117732). Associated Foreign Exchange, Inc., 21045 Califa Street, Woodland Hills, CA 91367, licensed and regulated by multiple State departments including the
California Department of Business Oversight, New York State Department of Financial Services, Illinois Division of Financial Institutions, and Texas Department of
Banking. For a complete listing of U.S. State licensing, visit https://www.afex.com/unitedstates.
This report in whole or in part may not be duplicated, reproduced, stored in a retrieval system or retransmitted without prior written permission of AFEX. AFEX has
based the opinions expressed herein on information generally available to the public. AFEX makes no warranty concerning the accuracy of this information and
specifically disclaims any liability whatsoever for any loss arising from trading decisions based on the opinions expressed and information contained herein. Such
information and opinions are for general information only and are not intended to present advice with respect to matters reviewed and commented upon.
This report is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other
jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would subject AFEX or its affiliates to any registration
or licensing requirement within such jurisdiction. All material presented herein, unless specifically indicated otherwise, is under copyright to AFEX.
Established in 1979, AFEX is a leading global payment and risk
management solutions provider that specializes in cross-border
transactions and provides market expertise and unrivalled customer
service for businesses and private clients. With a client base of over
35,000 active commercial customers worldwide, AFEX prides itself
on tailoring its payment and foreign exchange services to meet
its clients’ needs. AFEX’s online payment platform - AFEXDirect
provides clients with one consolidated overview of their currency
exposure and makes it easy for companies to manage international
invoices. AFEX maintains offices across the Americas, EMEA and
Asia Pacific.

To find out more, please visit www.afex.com

AFEX_State_of_International_Payments_2016

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