In a move to capitalise on the growing demand for cross-border payments, United Parcel Service Capital, a unit of United Parcel Service, has announced the launch of a new online business to business payment service that will be powered by Payoneer, a major cross-border payments company.
UPS Capital believes that the launch of this service will enable a lot of US businesses to reach out to a wider global audience without the fear of non-payments or damaged goods, which are the two major factors that make many businesses think twice before expanding their service overseas.
Scott Galit, CEO of Payoneer, said: “With B2B secure payments, businesses can more safely expand sales to new customers and purchase from new suppliers, while significantly reducing payment risk.”
He added: “Buyers can pay with confidence knowing their supplier gets paid when and if they deliver as expected, and sellers can deliver goods with the certainty that payment is in process. Both parties are protected. Our platform ensures transparent and quick outcomes should any dispute arise, enabling global growth with minimal risk. We’re thrilled to help UPS Capital offer the security of online escrow to their small and mid-size business customers which will allow them to reach new markets.”
UPS Capital hopes that this service will reduce the payment risk and make transactions much faster and safer. The fact that it is online could make such payments easier, cheaper and more secure.
UPS Capital has made the product more attractive by announcing a 10% discount on the escrow fee for those companies that ship within the UPS service.
These are great times for payment service providers, as more companies realise the need to move online and into mobile to serve their customers better and faster.
Recognising this need, there have been a couple of large deals in the payment services industry of late showing the growing clout of this industry in a sector that was dominated by banks until only recently.