The COVID-19 pandemic accelerated a seismic shift in workplace dynamics, leading to a widespread adoption of remote work and the emergence of globally distributed teams. Companies, especially those headquartered in developed markets, are increasingly seeking talent from around the world.

The shift towards global workforce management is not solely driven by HR cost reduction, but also by a global search for talent. As businesses expand their operations and seek to compete in the global marketplace, they are increasingly recognizing the value of accessing a diverse pool of skilled workers from around the world.

However, managing global teams presents unique challenges, including:

• Employment Law & Liability: Navigating complex labor laws and potential legal risks across different jurisdictions.

• Tax Compliance: Ensuring adherence to diverse tax regulations in multiple countries.

• KYC & Data Privacy: Conducting due diligence and complying with data privacy laws.

• Communication & Cultural Differences: Overcoming language barriers, respecting cultural nuances, and managing time zone differences for effective collaboration.

When it comes to cross border payments, There are considerable, well-documented issues with SWIFT, the method used by traditional banks for global payments.

• Slow processing times: SWIFT payments can take several days to complete.

• High and hidden fees: Fees can be complex and difficult to predict, significantly impacting the cost of transactions.

• Manual compliance checks: Time-consuming and error-prone processes can further delay payments.

Despite the emergence of a multitude of new global HR SaaS platforms, like Deel, Remote, OysterHR, and many more, often with advanced cross-border payment capabilities through partnerships with companies like NIUM, Wise, and Airwallex, the vast majority of hiring companies are still at an early stage and opting to rely on manual processes and their traditional banking partners.

As these companies mature and their global teams gain critical mass, they will undoubtedly seek alternative solutions to streamline their global team operations and improve payouts to them.

In this sense, the primary competition for providers in this space is not other alternative providers, but rather traditional attitudes that are shifting in their favor. Those with a payment focus are even more able to outcompete traditional banks. This trend is well-established, and we can expect the shift from banks to alternative solutions to continue for the next few years.

From a fintech perspective, cross-border payments offer a real business case opportunity. Potential customers currently face high fees and poor service associated with traditional banking methods. This presents a significant opportunity for fintech companies to provide superior solutions and capture market share.

With a focus on innovation, competitive pricing, and excellent customer service, fintech providers can successfully position themselves to capitalise on the growing demand for efficient and cost-effective cross-border payment solutions.