A recent survey by 72Point commissioned by Revolut Business, the global business super app, has found that 87 per cent of UK businesses identify payment facilitation as the biggest financial challenge currently facing their business. As a result, Revolut Business is launching ‘RevTag’, its instant and free payments ecosystem.
The complications that arise when needing to enter IBANs or other beneficiary details are all removed with RevTag. In lieu of them, individuals or businesses only need to enter the RevTag of the recipient in the Revolut Business app. Over 30 million retail consumers already have access to this feature – now businesses will too.
The network makes sending and receiving fee-free-cross-border payments in over 29 currencies possible. The feature is completely free and provides businesses with the ability to pay employees and contractors with ease in more than 150 countries and regions around the world.
Fees are taking a heavy toll on business payments
As a part of its research, 72Point uncovered that sending, receiving and foreign exchange all list as the biggest financial challenge for businesses. It further shows that high costs and processing times are contributing to this challenge
In fact, just one in ten businesses report being able to make instant cross-border payments. This is because the majority of respondents (58 per cent) report payments typically taking more than 12 hours to process
Another challenge comes in the form of cross-border hidden payments. This often takes place when the financial service relies on a third-party bank to process the payment.
The report also found that more than 71 per cent of businesses in the UK reported paying fees of three per cent or more on cross-border payments. Meanwhile, one in 10 (13 per cent) businesses pay fees of six per cent or more. This can take a heavy toll on business finances in the current economic climate.
A desire for change
Revolut’s research also reveals a broader desire for more efficient and cost-effective ways to make global payments. When looking for payment solutions, almost half (48 per cent) of UK businesses said cost and speed of payments were the two most important factors they considered. In fact, 97 per cent of businesses said the availability of cross-border payment solutions was an important factor in picking which account provider to use.
James Gibson, general manager of Revolut Business said: “We are excited to introduce our new zero-free payments network with the launch of RevTags for business customers. Extending the availability of this feature to Revolut Business customers, paired with the launch of payout links, marks a significant milestone in our mission to make cross-border payments fee-free, instant, and seamless for businesses operating globally.”
RevTag is the next step in Revolut Business‘ mission to simplify international payments. Businesses will also have the added benefit of payout links too. This enables payments to customers and suppliers using just a URL, without the need for account details. Each payout link provides options to the recipient on how they would like to be paid. It allows Revolut Business customers to track and manage the payment from their account.