state of international payments report – 2016 · management solutions for more than 35,000...

afex.comSeptember 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 VlietstraChief Executive Officer, AFEX

International payments on the rise



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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 internationalpayments 13

Choosing an international payments provider 15

Appendix 17



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



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



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



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



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




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




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




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



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



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%

Austra

lia

United

King

dom

North

America To

tal

Automation trends in international payments



[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?



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%



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%

Austra

lia

United

King

dom

North

America To

tal

APPENDIXFULL LIST OF RESULTS



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%




$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?





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%




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%






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?





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)




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:





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?




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.

© 2016 Associated Foreign Exchange, Inc. All rights reserved. “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

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