Tackling the Cross Currency Chaos: Why Form3 Built a Game-Changing API for International Payments

Blog· 6min April 17, 2023

Traditional cross-border payment approaches are expensive, complex, and slow. Form3's innovative ‘International Payments as a Service’ streamlines international payments and FX management through a single API, in partnership with Goldman Sachs. The result is a simplified, efficient, and user-friendly system that enables businesses to overcome the challenges of cross-currency transactions and expand their global reach while improving profitability.

Running a cross-border payments business can be expensive, complex, and slow to deliver. Currency conversion, multiple systems, and various liquidity providers all contribute to the problem. While some existing solutions in the market attempt to address these challenges, they often fall short in delivering a truly seamless and cost-effective experience. However, Form3 has reimagined this process with a single API, eliminating common issues and streamlining international payments, outperforming competitors in terms of simplicity and efficiency. In this article, we'll explore the limitations of traditional cross-border payment approaches, as well as the shortcomings of some existing market solutions, and discuss how Form3's innovative solution is revolutionising the industry.

Surging Cross-Border Payments: The Stakes Are High

The recent increase is set to continue for migrants sending money home, international students paying tuition fees, and small businesses using e-commerce platforms to sell to customers globally. Investors are seeking to diversify the currency risk of their portfolios as asset management flows operate globally, and manufacturers are wanting to expand supply chains for smooth processing of international trade transactions. These shifts in customer behaviour create a growing demand for customers to transact more frequently across borders.

As the global economy becomes increasingly interconnected, cross-border payments are projected to reach between $150-250 trillion by 2027. With numbers like these, businesses must get their international payment strategies right to stay competitive.

The Challenges of Going It Alone

Taking on international payments alone can be fraught with difficulties, such as the high complexity involved in setting up the necessary systems. This process often entails navigating a tangled web of regulations, payment networks, and multiple banking relationships, which can be time-consuming and resource-intensive for businesses. Moreover, the high complexity can increase operational risks, as companies may struggle to maintain compliance and ensure seamless payment processing.

These challenges are compounded by the heavy cost base associated with international payments, which can potentially affect a business's profitability. Factors like currency conversion fees, transaction charges, and correspondent banking fees can quickly add up, while the lack of transparency in fees can make it difficult for businesses to accurately estimate the true cost of cross-border payments. This further complicates budgeting and pricing decisions.

For small and medium-sized enterprises (SMEs) with global operations, access to efficient international payment solutions is essential to support import/export activities, manage overseas subsidiaries, and facilitate international business transactions. Without an efficient cross-border payment solution, SMEs may face operational challenges, missed opportunities, and reduced competitiveness in the global market.

As businesses grow and expand their international operations, they need to process payments in an increasing number of currencies and countries. However, this often requires working with a larger volume of correspondent banks, which introduces additional complexities and costs. To maintain cost-efficiency and streamlined operations, businesses must find ways to expand their currency and country reach without increasing their reliance on correspondent banking networks.

One strategy for achieving this is to manage balances in fewer currencies for more efficient liquidity usage. Holding balances in multiple currencies can be resource-intensive and inefficient for businesses dealing with cross-border payments, often leading to higher demand for liquidity and increased costs for managing international transactions. By consolidating and managing balances in fewer currencies, businesses can optimise their liquidity usage, reduce exposure to currency fluctuations, and improve cash flow management. This approach enables organisations to streamline their operations and better allocate resources, ultimately enhancing their competitiveness in the global market.

The Form3 Solution: Unleashing the Power of a Unified API

At the core of Form3's cross currency solution is a commitment to simplifying and revolutionising the way businesses handle international payments and FX management. Recognising the limitations and complexities of traditional approaches, we set out to create a unified, easy-to-use API in partnership with Goldman Sachs. Our solution empowers businesses to overcome common challenges in cross-border transactions while providing access to real-time FX rates, seamless payment delivery, and streamlined liquidity management. By prioritising simplicity, efficiency, and scalability, we aim to help businesses of all sizes expand their global reach and stay competitive in an increasingly interconnected world.

map showing connections and markets form3 solution works in.

Form3's cross currency solution tackles these challenges head-on, providing businesses with a simplified and efficient way to manage international payments and FX:

A single API

Leveraging a single API, Form3's collaboration with Goldman Sachs unites market-leading API technology and world-leading FX and correspondent banking capabilities. This integration offers cross currency via Goldman Sachs and domestic schemes, eliminating the need to manage multiple integrations or run large projects to comply with standards and regulatory changes. Form3 streamlines your financial operations, providing mission-critical processes through a unified JSON API integration.

Unlock Exceptional Customer Experiences with Form3's API

The Form3 API is expertly designed to facilitate exceptional customer experiences. Our user-friendly JSON API can be seamlessly integrated and utilized in various ways, including direct channel integration, incorporation into customer-facing applications, payment journey embedding, or deployment within back-office treasury systems, all backed by a single, consistent code base.

Crafted with a focus on anonymity, our cross-currency proposition empowers you to create your own personalized customer offerings and experiences. This approach guarantees that no external provider terms and conditions interfere with your customer interactions, allowing you to maintain control over pricing, revenue growth, and the crucial relationship with your customers. Experience the Form3 API difference today and unlock new possibilities for your business.

With Form3's API, you stay in full control of your customers' experience.

Evolving with Your Business: Scalable International Payment Solutions

Discover Form3's "International Payments as a Service" - a comprehensive, streamlined solution crafted to revolutionise international payment processing for banks and PSPs.

Effortlessly integrating our advanced "Cross Currency" and "Swift as a Service" offerings, this cutting-edge solution simplifies global transactions through a single API.

Begin with our "Cross Currency" solution and unlock the potential to access our complete "International Payments as a Service" offering, which includes our Swift API solution, as your needs expand and evolve.

Access direct Swift connectivity to effectively manage and grow your correspondent network while benefiting from Goldman Sachs' extensive reach as a direct liquidity provider, granting access to 123 currencies.

Our all-in-one solution minimises transaction costs, speeds up processing times, and gives you a competitive advantage in the global market.

Embrace the future of international payments with Form3's "International Payments as a Service" - the key to unlocking an enhanced customer experience, optimized risk management, and unparalleled scalability for your business as it grows.

Generate revenue

Form3's innovative cross currency solution empowers our customers to create sustainable, revenue-generating client-facing services in the realm of deliverable FX. By leveraging our single API and the partnership with Goldman Sachs, customers can access real-time FX rates and execute transactions across an extensive range of currencies and countries. This not only simplifies the international payment process but also enables businesses to offer competitive pricing and unparalleled service quality to their clients.

As the demand for efficient and cost-effective cross-border payment solutions continues to rise, businesses equipped with Form3's cutting-edge technology are well-positioned to capitalise on new market opportunities. By providing a seamless and user-friendly experience for both businesses and their clients, our solution enables the development of scalable and profitable deliverable FX services that cater to the evolving needs of the global market.

In essence, Form3's cross currency solution is a catalyst for business growth, unlocking new revenue streams and fostering long-lasting client relationships. By streamlining international payments and FX management, we help businesses thrive in a competitive landscape, driving innovation and shaping the future of the industry.

Transforming Cross-Border Payments with Form3

As the demand for efficient international payments and FX management grows, businesses need innovative solutions to stay competitive. Form3's cross currency solution, powered by a single API, simplifies the process, and enables organisations to overcome traditional challenges in cross-border payments. By partnering with Goldman Sachs and offering an easy-to-use API, Form3's solution is set to transform the world of international payments, helping businesses expand their global reach and improve profitability.

Expand your international offering today with the power of Form3 and Goldman Sachs