For many businesses, delayed settlements from payment processors can create cash flow pain points, impacting operations, vendor payments and customer experience. Liquidity, therefore, is crucial for maintaining healthy business cash flow and seizing growth opportunities.
These challenges can be addressed with faster settlement payment solutions that provide businesses with immediate liquidity, ensuring smooth financial operations. Here we discuss the challenges and solutions for payout processes.
Cash flow pain points — the need for speed
One of the most common challenges businesses face is delayed access to their funds. Whether it’s waiting on settlements from payment processors or delayed transfers from customers, these gaps in cash flow can hinder business operations, limit growth, and even prevent timely vendor payments. For merchants, especially those in high-growth industries like eCommerce or travel, access to working capital is crucial for maintaining momentum.
In the travel industry, for example, OTAs have two significant payment problems. Firstly, the complexity of supplier payments to airlines, hotels, tour operators in different currencies and markets. Secondly, the OTA would need to pre-fund these payments when operating with incredibly slim margins.
Nuvei's payment tech is directly solving these pain points. Advancements in virtual card issuing and back-to-back funding allow OTAs real-time money movement from their merchant acquiring account (their receivables) into their issuing account to enable these supplier payments, removing the requirement for any pre-funding and high levels of working capital.
By offering faster settlements, Nuvei ensures that businesses can maintain a healthy cash flow, enabling them to quickly access their funds and handle essential financial tasks such as paying vendors or managing operational expenses.
Settling cross-border payment complexity
A travel company needs to pay overseas suppliers or refund global customers. A remittance company offers instant international transfer of funds to customers. However, business face complexity and time delays with cross-border transactions.
Faster cross-border settlement is essential for businesses operating internationally, allowing them to accept payments in multiple currencies. In general, we guarantee to settle international funds within a given timeframe, to provide our customers with operational peace of mind and SLA confidence for their customers.
Meanwhile, our blockchain-powered cross-border solution changes the game. By leveraging the speed, transparency, and cost-efficiency of stablecoins, we enable near-instant cross-border settlements. You can pay and receive funds in your local currency quickly and affordably, slashing both the time and cost associated with traditional payment methods.
Leveraging virtual cards for vendor payments
An innovative solution for vendor payments is using virtual cards, which offer a streamlined and secure way for businesses to manage payments. With Nuvei’s faster settlements, businesses can access their funds more quickly and use virtual cards to pay vendors instantly, improving relationships and reducing delays in the supply chain.
Virtual cards provide an added layer of convenience and security, making them ideal for businesses that need to issue frequent payments to multiple vendors. By integrating virtual card payments into their processes, businesses can simplify the payment cycle and enhance operational efficiency.
Now, merchants can combine card issuing with acquiring and settlement accounts, all on one platform. Nuvei’s unified payments platform bridges your acquiring and card issuing, ensuring funds flow seamlessly across your business without any delays. Read more about card issuing with Nuvei here.
Opening business accounts for liquidity management
For businesses dealing with large transactions, multi-vendors or sellers, and other complex payment needs, managing liquidity is a priority.
By opening business accounts specifically for cash flow purposes, companies can allocate funds for specific uses such as vendor payments or reinvestment in growth initiatives.
Our faster settlement offerings, including Visa Direct and Mastercard Move, complement this strategy by giving businesses immediate payout capabilities, allowing them to manage their customer experience and cashflow more effectively. In addition, rather than prolonged settlement periods, businesses can handle their funds promptly and with confidence, ensuring that their operations run smoothly.
Case study: Curve
As a financial service provider that unites users’ card payments into one app, Curve needs instant processing to maintain its exceptional user experiences. Working with a sole acquirer meant an inflexible pricing strategy and limited scope for expansion. Furthermore, Curve faced challenges with reconciliation, settlement times, and limited cashflow management so it sought out an additional acquirer with a forward-thinking mindset and support strategy that matched its own.
At Nuvei, we implemented a payments optimization strategy designed to improve acceptance rates, speed up settlement times, lower false declines, increase liquidity, and reduce Curve’s overall costs.
Read the full case study results here.
Speed and flexibility in the payment process
By offering faster settlements, Nuvei helps businesses stay ahead of the curve by ensuring they receive their funds without delay. Whether businesses need to pay vendors, cover operational expenses, or reinvest in the business, access to funds in real-time keeps operations smooth and stress-free.
We believe in empowering businesses by ensuring they have control over their cash flow. Unlike traditional processors that may hold onto funds for extended periods, we prioritize liquidity and provide businesses with their settlements as quickly as possible.
We don't hold your funds: liquidity on your terms
At Nuvei, we won’t delay business settlements. We understand how vital liquidity is to operations, and we ensure that our clients have immediate access to funds. Businesses can manage their cash flow effectively, pay vendors without delays, and reinvest capital into growth opportunities.
Faster access to money means more agility and flexibility for your business. Our customers have the tools to handle their finances on their own terms. Such solutions are designed to eliminate cash flow pain points and give businesses the liquidity they need to thrive.
Whether it's paying vendors with virtual cards, opening business accounts for liquidity management, or simply accessing your funds without delay, Nuvei’s commitment to faster settlements ensures that businesses can focus on growth and success.
Merchants can be in better control of cash flow—funds are delivered quickly, giving you the flexibility to make smarter financial decisions for your business, and continue servicing customers with exceptional service. Read more about our faster settlement and payout solutions to accelerate your business.
TL:DR: Faster settlement payment solutions address cash flow issues by providing merchants quick access to funds. With no delays, businesses can immediately use liquidity for operations like paying vendors through virtual cards. Nuvei allows businesses to handle their funds without holding them, giving full control over cash flow. This is crucial for companies that rely on instant access to funds for liquidity management, making the entire process fast, flexible, and seamless.
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