As an e-commerce business owner, you recognize the importance of scaling up and expanding into new regions while maintaining localized business operations.

For e-commerce businesses, wire transfers are one of the most common options for accepting money and transferring funds internationally. Not only are wire transfers fast but they are also highly secure. However, there are also key challenges that come with wire transfers – many of which relate to keeping accurate records and costs.

To send wire transfers online in a fast, safe, and reliable way, it is crucial for e-commerce businesses to develop the right strategy. In this article, we cover what wire transfers are, why they are used in e-commerce, and what the best ways to send wire transfers online are.

What are Online Wire Transfers?

An online wire transfer is a type of financial transaction in which money is transferred automatically between two parties. These parties can be banks, businesses, and individuals. Money movements via wire transfer can be completed both domestically and internationally.

According to the U.S. International Trade Administration, wire transfers and credit cards are the two most commonly used options for international sales.  

For e-commerce businesses, online wire transfers can be useful for several different tasks – including paying suppliers when needed. E-commerce business owners who utilize online wire transfers will typically do so through the use of a Fin-tech service provider – which we will discuss further in a moment.

Why Should E-Commerce Businesses Use Online Wire Transfers?

The year 2020 marked a notable change within the payments and e-commerce industries. In retail e-commerce alone, global sales grew from $1.3 trillion (USD) in 2014 to more than $4.9 trillion in 2021 – with an estimated growth forecast of 50 percent ($7.4 trillion) by 2025 – according to Statista.

However, the story is more varied when it comes to global payments.

According to McKinsey’s Global payments 2021 report, global payment revenues fell 5 percent between 2019 to 2020. However, in this same period, McKinsey reports that a significant rise in e-commerce combined with a reduction in cash use ultimately helped to minimize the domestic transaction fee income decline.

The McKinsey report further states:

“Real-time payments are playing an increasingly important role in the global payments ecosystem, with the number of such transactions soaring by 41 percent in 2020 alone, often in support of contactless/wallets and e-commerce.”

There are many key benefits of wire transfers for e-commerce businesses, including:

•   Speed: As mentioned, wire transfers are one of the fastest options for sending money both domestically and internationally.
•   Security: When using the wire transfer method, neither party has to disclose their financial details to make the payment. As such, wire transfers are highly secure and trustworthy.
•   Accessibility: Wire transfers have excellent global reach and can be accessed around the world. However, there are usually local regulations to adhere to when sending wire transfers into m regions.

How to Send Wire Transfers Online

The best way to send wire transfers online is through an integrated solution that can meet all the needs of your specific payment system.

To send a wire transfer online, there are 2 main methods to choose from:

1.     Work with a Fin-tech Provider: Working with a specialized Fin-tech provider is one of the safest ways to ensure your online wire transfers go smoothly. Fin-tech providers are often intimately familiar with international regulations and can help you make traceable transfers.
2.     Send Wire Transfers Manually: You can always send a wire transfer – both physically and online – without using a third-party Fin-tech provider. However, it’s important to research appropriate security measures and regional regulations.

While wire transfers are generally considered to be one of the safest options for accepting and sending international payments, in the event of a wire transfer failure, the process of diagnosing and fixing the problem can be complex, time-consuming, and expensive. A Fin-tech provider can help take away any lingering risk.

Compared to a traditional wire transfer, an online wire transfer carried out through a Fin-tech provider can reduce the number of parties involved and eliminate delays caused by bank intermediaries. Fin-tech powered online wire transfers can also help e-commerce businesses avoid the expensive handling fees associated with traditional wire transfers.

Additionally, wire transfers can become more complicated when carried out internationally. A Fin-tech provider specializing in international transactions and payments can help reduce this complexity.

Final Thoughts: PingPong Helps Simplify E-Commerce Money Transfers

Here at PingPong, we have helped more than 1 million e-commerce sellers simplify their payment processes. On average, we transfer more than $150 million per day internationally. We strive to ensure you always have access to same-day transfers and accurate tracking tools.

Along with offering the best method for transferring money internationally, PingPong also provides solutions for:

•   Supplier Payments: PingPong enables customers to pay suppliers in a range of currencies.
•   Payroll: With PingPong, customers can modernize their payroll process. PingPong allows customers to make payroll remotely, whether from an office, home, or anywhere in between.
•   Virtual Wallets: PingPong offers a virtual wallet solution that operates on a multi-currency system.
•   API Integrations: Along with offering powerful payment and wallet solutions, PingPong also assists with API integrations to improve existing systems, products, and operations.
•   VAT: When using PingPong, customers can handle VAT & GST payments easily.

To learn more about PingPong’s integrated solution and what we can accomplish for your e-commerce business, contact our team today!