Explore the current state of Singapore’s B2B cross-border payment landscape and discover how fintech solutions can address challenges and unlock opportunities. Download the full report now for insights into digital payments, cost-saving measures, and the optimism among Singaporean businesses for future growth.
New Rapyd Research Unveils Optimism, Challenges, and the Need for B2B Fintech Solutions in Singapore
Singapore, a global business leader, stands as a beacon of opportunity for enterprises, both local and global. Its reputation as Southeast Asia’s hub offering easy access to thriving markets is grounded in a welcoming business climate, innovative government policies, and a robust economy that draws businesses from around the world. And yet, many local enterprises still grapple with slow, costly cross-border payments.
The city-state has transitioned to a nearly cashless society and is regarded as an innovative leader in real-time payments and e-wallets. However, these innovations in consumer payments haven’t carried over to B2B transactions. Many businesses in the B2B sector still rely on wires and bank transfers, which hinder the efficiency of cross-border transactions.
In this article, guided by Rapyd’s 2023 State of B2B Cross-Border Business in Singapore report, we’ll dive into the state of Singapore’s B2B payment landscape and demonstrate how fintech can solve existing challenges and unlock new opportunities.
Business Leaders in Singapore Are Optimistic – for Good Reason
According to Rapyd’s research, 60% of Singaporean businesses are optimistic about business opportunities in the future. In today’s turbulent markets, this figure is significant – and contrasts with the global outlook. For instance, only 30% of Brazilian businesses share this same level of optimism. This APAC optimism could be rooted in Singapore’s robust economy, dedication to technological innovation, and its central position in the global trade networks.
The B2B Digital Payments Transformation Is Underway
Digital payment systems offer dramatic improvements in speed and productivity compared to manually sending invoices. In Singapore, two-thirds of businesses surveyed say digitizing payments is their top priority or one of their top priorities. Singapore is one of the most advanced payment markets in the world. Yet, less than a quarter of B2B businesses report already adopting digital payments. There is an opportunity for innovative companies to provide modern, streamlined solutions that make it easy for B2B businesses in Singapore to adopt and integrate digital payment systems and benefit from Real-Time Payment networks and simplified payment processes.
The Importance of Digitizing Payments to B2B Businesses in Singapore
Cross-Border B2B Businesses in Singapore Still Face Challenges from Slow and Costly Payments
One of the primary hurdles that Singapore business leaders face is the speed and cost of cross-border payments. Despite the innovation of the city-state, many businesses still rely on slow bank transfers and expensive wire transfers. Delays in receiving payments can disrupt cash flows, particularly for small and medium-sized enterprises (SMEs).
Rapyd research shows that Singapore grapples with credit card acquiring delays spanning from 5 to 10 days. Such delays can throttle cash flows, especially for SMEs, putting business efficiency at risk.
Singapore business leaders also face other key issues: manual processes, cross-border compliance complexities, and tedious reconciliations. These are not mere operational challenges; they’re strategic hurdles. While Singapore might be an epicenter for tech startups and Fortune 500 companies, the solutions required for swift, efficient B2B transactions are lacking without a trusted fintech partner. A more integrative approach to cross-border payments – pioneered by Rapyd – is needed to prioritize speed, transparency, and cost-effectiveness.
Decoding the High Cost of Cross-Border Transactions
Rapyd research shows that 43% of B2B businesses in Singapore pay between $10 and $25 per transaction for cross-border fees. When compounded with foreign exchange fees, the financial implications are far-reaching. These elevated costs can hinder growth, limit expansion opportunities, and strain resources, posing a direct challenge to firms striving to capitalize on cross-border commerce and highlighting larger inefficiencies in the system.
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The Digital Transformation is Underway
Almost Half of B2B Business in Singapore View Better Fintech Solutions Important For Addressing their Business Concerns
A growing number of businesses in Singapore today realize the imperative for change. Digitization is no longer a luxury but an absolute necessity. Nearly half – 48% – of respondents from Singapore identified ‘Better Fintech Solutions’ as the paramount factor in addressing their most pressing business concerns. This percentage surpasses any other category in Singapore and demonstrates that B2B businesses in Singapore prioritize fintech as a way to solve business problems more than their counterparts in any other country surveyed.
It’s Time to Rethink B2B Cross-Border Payments in Singapore
Singaporean businesses are optimistic about their future prospects. However, B2B businesses are being challenged by a lack of solutions for payments that leverage the technology and infrastructure that make Singapore one of the world’s most advanced markets for consumer payments.
Embedded fintech platforms like Rapyd can help B2B businesses in Singapore modernize their payment systems to accept and send payments faster and at lower costs worldwide.
Discover How Rapyd Helps Customers Spend 70% Less Time Managing Payments