Sara Savidge
CEO, Fexco International Payments
Irish small and medium-sized enterprises (SMEs) expanding globally have a significant opportunity to tap into new markets and diversify revenue streams, which is why managing their foreign exchange and payments efficiently is crucial.
A cost-effective FX strategy isn’t just a necessity — it’s an enabler for growth, helping businesses streamline processes and maintain cash flow to stay competitive.
Global ambitions, local challenges
Engaging in international business presents an exciting opportunity for Irish SMEs, providing access to a global market that encompasses over 8 billion people and 360 million businesses, thereby offering immense potential for growth and expansion.
To capitalise on this, SMEs must navigate multiple challenges when entering new markets. This includes managing complex logistics and supplier relationships, as well as securing new partnerships and staff while establishing brand presence in unfamiliar territories.
In addition to these challenges, a critical concern for SMEs is managing cash flow and the consequences of delayed or high-cost payments and volatile exchange rates, which can threaten financial stability.
Research involving members of the Irish SME Association (ISME) and Small Firms Association (SFA) highlights the extent of this problem. Studies reveal that more than one-third of Irish SMEs experience difficulties sending or receiving payments to and from international sources.
Hidden costs of going global
The high cost of international payments is one major stumbling block, hindering global ambition. “Smaller companies operating overseas or expanding into new markets can often be subject to high fees or uncompetitive FX rates,” explains Sara Savidge, CEO, Fexco International Payments, one of Ireland’s leading cloud-based cross-border payments solutions providers.
SMEs need confidence that
international and FX payments
will be made on time, every time.
Balancing automation and expert support to safeguard SMEs
The consequences of inadequate security and compliance can be severe. Without the right support and safeguards in place, businesses face financial losses and reputational damage due to fraud, delays or errors. “With most fintech and traditional payment providers, support comes in the form of an online guide, FAQ or chatbot,” says Savidge. “Just to be clear: it’s important to leverage automation, however, there needs to be a balance.”
She adds: “SMEs should be focused on their own growth and expansion. Our research shows that expert guidance from someone familiar with international markets can help overcome challenges to prevent costly delays, reduce risks and improve the customer or supplier experience.”
Savidge continues: “An inefficient payment solution without the right support structure can leave SMEs vulnerable to fraud, which remains a significant issue across the payments industry.”
Critical role of payment reliability in SME global success
SMEs require reliable, timely payments to ensure growth and mitigate global operational risks. Their reputation, often their most valuable asset, is crucial to maintaining credibility and brand integrity.
“Unlike large organisations that can weather a PR crisis with established goodwill and resources, SMEs typically have fewer buffers to absorb the impact that poor experience, payment delays and unresolved issues can cause. This may lead to financial losses and strained supplier or client relationships. SMEs must pay on time or risk losing the foothold they have worked hard to secure in key overseas markets,” says Savidge.
How payment fraud can derail SME international growth
According to the recent FraudSMART Payment Report released in May 2024, the Banking & Payments Federation Ireland quoted that fraudsters stole almost €100 million through various scams with an alarming increase in email-related fraud, including invoice redirection and impersonation scams. This trend and increase of over 16% compared to the previous year highlight the need for SMEs to be vigilant and safeguard their business from cybercrime.
“The impact of fraud on a global corporate can be severe,” says Savidge. “However, if you’re a small business, it can have a devastating impact on your P&L along with your confidence to explore new markets. Research confirms that a bad experience in one market can close the region for an SME entirely.”
The importance of choosing the right payments partner
For any SME exploring international growth, the right payments partner can be the difference between success and failure. The trouble is there are so many providers in the market that selecting the right one can be confusing.
Savidge, who has worked in the payments industry for almost 30 years, says: “SMEs should look for an international payments partner that is equally as committed to their growth and success by delivering solutions that:
Mitigate and reduce risk: Choose a provider that is committed to addressing security concerns, protecting against fraud and reducing FX exposure, ensuring compliance with industry standards.
Improve economics: Benchmark your current fees and FX rates by leveraging communities such as SFA and ISME who have established partnerships with providers where discounts and transparency mean you can be confident of competitive terms.
Empower international growth: Most providers offer traditional currencies for popular countries. However, many high-growth markets across Asia and Latin America will require access to exotic currencies and experienced personnel with geographical insight.
Streamline operations: Sending or receiving an international payment should be seamless, efficient and easy to reconcile.
