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WorldFirst Uses World Account As A Novel Approach To Address UK SME Trade Issues

March 28, 2024
3 Min Reads

SMEs may encounter management difficulties in organizing and making sure all of their accounts in various locations are correct and operating as they should when they attempt to trade internationally. WorldFirst, a one-stop digital payment and financial services platform for international firms, has introduced a new e-commerce growth solution in an effort to address this problem in the UK.

The World Account is a new payment solution designed by the payments platform especially for SMEs involved in international trade. It lowers the charges UK businesses incur when transferring money abroad. These expenses, which include FX, payment operations, and compliance, usually make up two to three percent of the total value of a transfer.

But according to WorldFirst's industry analysis, this drops to less than 0.75 percent with the World Account. This supports long-term business success by helping SMEs increase their margins.

Unrealized potential in international e-commerce

This year, there will be a 3.3% increase in global trade, and 8.8% growth in retail e-commerce sales is anticipated over the same time frame.

But according to the most current Annual Business Survey of Exporters and Importers by the Office for National Statistics, just 11.4% of UK businesses—that is, just more than one in ten—are engaged in exporting. This figure had only increased by 0.7% over the three years prior. Eighty percent of businesses surveyed by a UK bank felt that exporting is essential to their company's future.


"Against this backdrop, there's an excellent opportunity for many more UK SMEs to tap into the opportunities of international trade," says Bruce Ding, general manager of WorldFirst foreign Business. With the help of outside partners like us, we can support SMEs in their efforts to export internationally, even in the face of the challenges associated with cross-border e-commerce.


With travel excluded, the cross-border e-commerce sector in Europe, which includes the UK, reached a revenue of €265 billion in 2022. Marketplaces contributed €167 billion, or 63%, of this total revenue. Nevertheless, eMarketer reports that Europe is lagging behind nations in South America and Asia, where a number of regions have experienced notable increases in e-commerce sales.

Cross-border e-commerce is driven by younger generations.
 

According to WorldFirst, Millennials and Gen Z make up more than 50% of the vendors utilizing its cross-border e-commerce platform. It appears that these corporate leaders are more cognizant of the prospects presented by international e-commerce.

"Consumers are increasingly buying directly through social media platforms, online marketplaces, and SMEs' websites," Ding continues. This implies that consumers are making purchases from companies all across the world without even being aware of it. Younger entrepreneurs have recognized this as an opportunity to operate their own independent online stores or open fronts on international marketplaces.
 

Nonetheless, obstacles such as the intricacy of foreign exchange and international payments, fraudulent payments, and unstated service fees continue to discourage would-be entrepreneurs, jeopardize the viability of fledgling companies, and erode the longevity of established enterprises.

By collaborating with outside vendors, UK SMEs can simplify their global operations and assist address these issues. Business owners in the UK may trade globally like a local in just a few minutes by opening a World Account. The account facilitates payment collection through fourteen local or international accounts and enables payouts to more than 130 countries and regions in more than 40 currencies. WorldFirst's wide alliances with major e-commerce companies make cross-border transactions easy.

WorldFirst has a proven track record of accelerating SMEs' e-commerce growth. In terms of transaction volume, WorldFirst is the leading payment service provider for Chinese e-commerce companies who sell on global e-marketplaces like Amazon and Lazada. WorldFirst had a 16-fold rise in new customer acquisition in South-east Asia in January 2024, while the region's total customer transaction volume surged by 90% year over year.


 

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