Engaging in global business has been made seamless. Thanks to technology, you have so many options to make payment for transactions without experiencing any challenges. Unlike in the past, you have to inform a friend to assist you in purchasing the item and you pay them when returning.
This is no longer the case because there are different alternatives, from more traditional options to modern forms of managing payment collection. We share some of these ways.
PayPal is what will probably come to mind when you want to pay for a transaction. It is very easy. You simply need to open a PayPal account, afterward, you can start receiving money by simply sending your email you used in opening the PayPal account to receive money. It is quick and fast! Do not forget that they charge a currency exchange fee.
Bitcoin is one of the modern ways to receive payment for international transactions. This is because a handful of ecommerce stores, as well as other businesses, now accept Bitcoin. The best bitcoin wallet is available online for your use. However, ensure that you strictly follow instructions to successfully make payments.
It is also possible to directly transfer money from your bank account to most banks in the world through the use of a SWIFT code. This is a unique identification code for a particular bank consisting of 8 or 11 numbers and used to transfer money between banks via international wire transfers. It is an easy way to move money around the world, but it is not really cheap or affordable
You may view Western Union as old-fashioned, with the arrival of newer payment platforms such as Paypal and Bitcoin, regardless, they still remain a reliable option in some cases. The biggest advantage of using Western Union is their global reach. They are particularly useful if you need to pay into a country that doesn’t have a big banking sector.
Letters of credit
A letter of credit is an instrument issued by a buyer’s bank as a guarantee for payment. The bank agrees to pay the seller upon delivery of the product. In the event that the buyer fails to pay the bank, the bank will still be liable to pay the seller. It is one of the safest means of payment for both parties.