Transaction Times: Speed Matters — Global Payment Aggregators vs. Local Payment Providers in Emerging Markets

The speed at which payments are processed can have a significant impact on a company’s cash flow management and overall customer satisfaction. In emerging markets, where access to funds can be particularly crucial, businesses need a payment solution that offers quick and reliable transaction times. This article compares the transaction speeds of global payment aggregators and local payment providers, emphasizing why local providers may offer a significant advantage.

Transaction Times with Global Payment Aggregators

Global payment aggregators, with their broad networks and extensive infrastructure, might seem like the go-to solution for businesses that need to process payments across multiple countries. However, the speed at which these transactions are completed can often be slower than expected, particularly in emerging markets.

• Delays Due to Multiple Intermediaries: One of the primary reasons for slow transaction times with global payment aggregators is the involvement of multiple intermediaries in the payment process. Each step in the chain adds potential delays, meaning that funds may take several days to reach their intended recipient. For businesses that rely on prompt payments to manage their cash flow, these delays can be particularly problematic.
• Challenges with Cross-Border Transactions: Cross-border payments often require navigating different regulatory environments and financial networks. This can result in additional processing time, especially in regions with less developed financial systems or where regulatory compliance is more complex. These delays can be frustrating for businesses that need to access their funds quickly to sustain their operations.
• Extended Settlement Times: Global payment aggregators may also have longer settlement times, meaning that even after a transaction is processed, it can take several days for the funds to become available in the business’s account. This can create cash flow challenges, particularly for SMEs that depend on fast access to capital.

Transaction Times with Local Payment Providers

Local payment providers like Cadana are specifically designed to operate efficiently within the regions they serve, offering significantly faster transaction times that can be a game-changer for businesses in emerging markets.

• Faster Transactions with Fewer Intermediaries: Local providers typically minimize the number of intermediaries involved in the payment process, which allows for much quicker transactions. For domestic payments, funds can often be transferred in real-time or within just a few hours, providing businesses with immediate access to their money.
• Seamless Integration with Local Financial Systems: Local providers are deeply integrated with local financial systems, enabling them to process payments more efficiently. This is particularly important in emerging markets, where the financial infrastructure may not be as advanced, but where local expertise ensures swift transactions.

Summary

When it comes to transaction times, the difference between global payment aggregators and local payment providers can have a significant impact on a business's ability to operate efficiently in emerging markets. While global aggregators offer a broad network and extensive services, the involvement of multiple intermediaries and the complexity of cross-border transactions often lead to slower processing times. In contrast, local payment providers like Cadana, with their streamlined processes and direct integration into local financial systems, typically offer faster transactions and quicker access to funds.