SINGAPORE: A recent study has revealed a significant trend among small and medium enterprises (SMEs) in Singapore, with seven in 10 planning to expand their business internationally.
The study by Mastercard indicated that 72 per cent of these SMEs were considering sourcing suppliers, partners, and workers from multiple countries to diversify and mitigate future risks.
As the global marketplace became increasingly accessible to SMEs, technology adoption for cross-border transactions has risen.
According to Mastercard’s data, 61 per cent of SMEs in Singapore were already utilizing apps for cross-border payments, marking a notable 6 per cent increase from 2022.
This shift showcases a growing reliance on digital solutions for facilitating international business transactions.
Security remains a top priority for SMEs venturing into the realm of cross-border payments, with 43 per cent emphasizing the importance of online payment solutions that could safeguard both transaction and personal financial information.
The report also identified key global preferences among SMEs regarding cross-border payment solutions.
A substantial 39 per cent prioritized platforms that could deliver funds within 24 hours or less, showing a demand for efficient and expedited financial transactions.
Additionally, 38 per cent of respondents sought solutions that provided confirmation of fund receipt, given the importance of transparency and accountability in cross-border financial dealings.
34 per cent of SMEs preferred payment solutions that enabled status tracking, allowing them to monitor the progress of their transfers and anticipate when funds would arrive.
This desire for real-time visibility highlights businesses’ need for greater control and insight into their financial transactions, contributing to a smoother and more informed international business experience.
As local businesses navigate the complexities of global markets, the emphasis on security, efficiency, and transparency in financial transactions becomes increasingly pivotal for SMEs looking to thrive on the international stage.