Global partnerships are becoming commonplace among businesses of all sizes. With that comes an increase in risk from global payments. Finance automation is the best way to make the payment process efficient and safe for all stakeholders, says Rob Israch, president of Tipalti.As a result, companies payouts automation must ensure the correct payment of taxes and value-added taxes, the accuracy of financial reporting, and localized data protection regulations. International expansion also increases the risk of fraud, as companies are more exposed to international threats and fraudsters.
Since the pandemic, the global digital economy has grown exponentially. As platform-based businesses try to scale to keep up with a fast-moving digital and international landscape, there’s a growing need to be able to pay digital partners across a range of different payment methods, currencies, and regions. This influx in global payouts brings with it new complexities and concerns.
Expanding operations to offer international payment options tends to come with an increase in overhead costs and resources. These include international transfer and currency conversion fees, and the staff needed to manage a global payouts scheme. The finance function also needs to be prepared for the various regulatory hurdles in each country of operation.