Cross-border payments and remittance exchange are more complex than domestic activity. The latest report by senior analyst Nancy Atkinson examines how companies based outside of the United States transmit remittance information to and from US-based companies; it also provides insight into firms’ preferences regarding the exchange of remittance details.

Wire transfers constitute the highest percentage of payments made to (41% of respondents) and payments received from (30% of respondents) US-based companies.

When it comes to how remittance details are exchanged to both payables and receivables respondents, respondents generally comply with the trading partner agreement or mandate (directive) by one company or the other. With US small business trading partners, however, non-US-based companies are reported to make the decision.

Email is the most frequently used remittance channel for exchange of remittance details for most types of payments.

When a choice of delivery solution for remittance details is being made, timeliness of remittance delivery with respect to payment receipt is the most important consideration from the perspectives of both receivables.

Aite Group