International Trade Finance

The evolution of payment methods is reshaping the way we pay, but how do merchants handle this constant change on a global scale? The past few years have seen an explosion in alternative payment methods (APMs) available to consumers, driven by rapid advancements in technology, growing consumer expectations for seamless experiences, and increased awareness of data privacy. With a myriad of options like digital wallets, cryptocurrencies, and mobile payment apps, consumers now expect the flexibility to choose how they pay. For large merchants, managing such a diverse ecosystem of payment methods can seem overwhelming. However, there are strategies to ensure a smooth integration and management of these options, ultimately providing the best customer experience: Partner with a reliable payment orchestration provider: A well-established payment orchestration platform can handle hundreds of APMs on a global scale, providing merchants with a unified platform for easy management, reduced operational complexity, and region-specific security features. Prioritize popular APMs: Focus on integrating the most widely-used APMs in your target market, while also keeping an eye on emerging trends to stay ahead of the competition. Optimize user experience: Seamless integration of APMs into your existing checkout process is crucial. Design user interfaces that cater to various preferences and devices, ensuring a frictionless payment experience for all customers. Prioritize security and compliance: As you adopt new payment methods, be vigilant about maintaining strict security standards and staying compliant with relevant regulations to protect your business and customers. Stay agile and adaptable: The payments landscape will continue to evolve. Be prepared to iterate on your payment processes and adopt new technologies as they emerge to stay relevant and competitive. By proactively managing the integration of alternative payment methods, large merchants can unlock new opportunities, provide better customer experiences, and stay ahead in the rapidly changing world of commerce. Source Ali Ahmed #payments #fintech #digitalwallets

INCOTERMS Incoterms, short for International Commercial Terms, are a set of standardized rules published by the International Chamber of Commerce (ICC) that define the responsibilities of sellers and buyers in international trade transactions. They clarify who is responsible for tasks such as transportation, insurance, customs clearance, and risk of loss during the shipment of goods. Here’s a short elaboration on how Incoterms play a part in import and export: Clarity and Agreement: Incoterms ensure clarity and consensus between the buyer and seller regarding their respective obligations and costs at each stage of the transaction. They prevent misunderstandings and disputes by clearly defining each party's responsibilities. Risk and Cost Allocation: They specify when the risk of loss or damage to goods transfers from the seller to the buyer. This is crucial for determining who should purchase insurance and at what point during transit. Logistics and Transport: Incoterms dictate where the seller’s responsibility for transport ends and where the buyer's responsibility begins. This includes specifying whether the seller is responsible for arranging main carriage, loading and unloading, and export/import clearance. Global Standardization: Since Incoterms are recognized worldwide, they facilitate smoother international transactions by providing a common language and set of expectations across different jurisdictions and cultures. Legal Implications: Choosing the right Incoterm can have legal implications, as it defines contractual obligations. It's essential for parties to select the appropriate term based on the mode of transport, delivery location, and desired level of responsibility. In essence, Incoterms are indispensable tools for international trade, ensuring clarity, reducing risks, and facilitating smoother transactions between parties in different countries.

Alternative Payment Methods (APM's). There was a scramble a few years ago from every PSP and Acquirer to offer as many APM's as they possibly could. PPRO did very well out of this scramble and many platforms still utilise their rails for APM accessibility, alongside 3-4 other enabler players that have entered the market more recently. The big question for me is what are the leading APM's that a PSP or Acquirer really needs to be enabling for a fast growing UK retailer that is opening up their sales channel cross border into Europe in 2024. ______________________ Here is my view as a starting point (there are many more but I'm taking an initial launch focus here).👇 ⦿ Unique local payment methods: Germany - SEPA Direct Debit / giropay / SOFORT Netherlands - Currence iDEAL B.V. Spain - Bizum Poland - BLIK & Przelewy24 Sweden - Swish Switzerland - TWINT ⦿ Local Card Schemes (these can sometimes be co-branded ventures with Mastercard and Visa): It is worth noting that access to local card schemes can also be a limiting factor if your acquirer doesn't offer support for them. Good examples of these are: France - GIE Cartes Bancaires Belgium - Bancontact Denmark - Dankort Check the connectivity of your acquirer in regards to these local schemes. ⦿ BNPL: One of these providers should really be offered in the ever growing and competitive BNPL market if you are a retailer (depending on niche retail sector or B2C vs B2B requirements, EU focus again): Klarna Clearpay (Afterpay) Zilch Mondu ⦿ Other: PayPal - Still very popular in a variety of EU countries, PayPal should still be offered as a payment method for UK retailers looking to sell into Europe. Digital Wallets are just a given in 2024, if you still aren't offering Apple Pay and G Pay, you are falling behind your retail competition, period. Pay by Bank - Is the open banking payment method ready to challenge the legacy APM players in the EU? For me, the answer is currently no. The reason being that I have heard the payment flow is a bit of a mess compared with the slick checkout flows we are moving towards with Pay by Bank in the UK (over a dozen payment flow screens was referenced with one specific EU bank in order to complete a payment!). ______________________ It would be great to hear from my network on other APM requirements that you have encountered in recent times and further recommendations for UK retailers selling cross border to the EU.

Forget one size fits all, local payment methods are the new consumer favorites in markets round the world Local Eats Global, as global card schemes lose ground to local favorites like digital wallets A2A, carrier billing and BNPL in Ecommerce These are some findings from a The 2024 Global Ecommerce Report which analyses data from 37 major markets, highlighting global, regional and country specific trends. Key Findings ▸ Local payment methods will reach 58% of all ecommerce transaction value globally by 2028, reflecting a major shift within the ecommerce payments market. ▸ By 2028, almost 37% of all individuals globally will actively use local payment methods, reflecting massive growth and expansion of the ecommerce market across the world. ▸ Card values will decline to 20% of transaction value by 2028, from 31% in 2023, reflecting a major shift as the ecommerce market expands. ▸ BNPL is steadily growing its share of ecommerce values, from 4% in 2023 to 5% in 2028, reflecting steady progress outside of key, already highly saturated markets, such as Australia, Germany and Sweden. ▸ A2A payments are seeing strong growth, from 8% of ecommerce spend in 2023 to 16% in 2028, a dramatic increase, reflecting major shifts in this market. Why Going Global Needs Local Payment Solutions As someone who knows payments, I'll explain why understanding local preferences matters for success worldwide. Thinking Globally, Acting Locally: ▸ One-size-fits-all no longer works: Countries have very different ways to pay. If you ignore this, you'll lose sales. ▸ Welcome local favorites: Give your customers the payment methods they like. This shows respect for their choices and helps build trust. ▸ Give a variety of payment options: People enjoy choices when shopping online! In some places, folks use several ways to pay. Don't stick to just one. ▸ Make the user experience smooth: Cost might not be the main factor. An easy and familiar way to pay is crucial to get more sales. Keep in mind, a global outlook means changing how you do things in each market. When you cater to local payment likes, you'll open up a whole new world of chances. Source: Boku (Link in comments) #DigitalPayments #Fintech #Payments #Ecommerce #Cards

What do alternative payment methods look like in emerging markets? The high adoption rates signals might just be a hint of how important these payment methods are for ecommerce success. This report takes a look at how local and alternative payment methods are changing in Africa, Asia, and Latin America. Here are my main takeaways: 🔶 In Southeast Asia, digital wallets are super important. In the Philippines, for example, 33% of ecommerce payments are made using eWallets. 🔶 In Africa, mobile money systems like Kenya’s M-Pesa have expanded quickly. It offers a simple way to manage money where banking options are limited. 🔶 Brazil’s Pix system has achieved 87% adoption in just three years. 🔶 In emerging markets with lower internet access like Nigeria, bank transfers are still an important payment method, especially for large transactions. 🔶 Despite the digital shift, cash is still widely used in countries like Egypt and Morocco, where it makes up a large portion of transactions because of economic and infrastructure challenges. 🔶 Mobile money and digital wallets are helping more people in Sub-Saharan Africa access banking services. The growing use of alternative payment methods is simplifying cross-border transactions. This makes it easier for international businesses to enter these markets. #Fintech #Payments #Digital

Export is confusing only until you understand ONE thing - where your responsibility ends. For months now, my phone hasn’t stopped buzzing. Young founders. Startup operators. Professionals from tech, finance, marketing. Same question every time; “What exactly is export?” “Who pays for what?” “When does my role actually end?” So today, let me explain exports like I’d explain it to a first-time founder, using one simple story + illustration from our experience at Tirra Origins. (And a sincere thank you to Jeena for creating one of the clearest Incoterm visuals) Imagine this; You’re selling spices from India to a buyer overseas. Export is simply how the box changes hands. #EXW – Ex Works You keep the box ready at your factory. Buyer comes, picks it up. 👉 Once it leaves your gate, not your headache. #FCA – Free Carrier You hand the box to a logistics company. 👉 Once the carrier signs, risk moves. #FAS – Free Alongside Ship You place the box next to the ship at port. 👉 Loading is buyer’s job. #FOB – Free On Board You load the box onto the ship. 👉 Ship sails, responsibility shifts. #CFR – Cost & Freight You pay for the ship ride. 👉 But if something happens at sea, buyer bears the loss. #CIF – Cost, Insurance & Freight You pay for shipping and insurance. 👉 Buyer feels safer, risk still moves early. #CPT – Carriage Paid To You pay transport till buyer’s city. 👉 Risk moved much earlier (this is where many get confused). #CIP – Carriage & Insurance Paid To Same as CPT, plus insurance. #DPU – Delivered & Unloaded You deliver and unload at buyer’s place. 👉 Only then does your job end. #DAP – Delivered At Place You deliver to the door. 👉 Buyer unloads and clears duty. #DDP – Delivered Duty Paid You handle everything - shipping, customs, duty. 👉 You act like the importer. The real lesson; Export is not about containers. It’s about clarity of responsibility. Once you understand where risk and cost transfer, export stops being scary and starts becoming systematic. #ExportBasics #Incoterms #FounderInsights #GlobalTrade #IndianExports #TirraOrigins

With all the recent discussion about USAID, I looked into USAID-funded collaborations with China. Interestingly, the top OpenAlex research topic is MXene and MAX Phase Materials—materials I previously studied in the context of the PLA. MXenes, first reported in 2011 by Drexel University, have unique properties that the PLA has strategically integrated into military applications. Research from the Army Engineering University and the PLA’s 63850th Unit has explored MXene composites for electromagnetic wave absorption, stealth, and infrared camouflage. The National University of Defense Technology (NUDT) even developed an “electronic fish skin” using MXenes for underwater sensing, enhancing naval surveillance. China’s rapid adaptation of MXenes exemplifies how it converts civilian scientific breakthroughs into military advancements. From stealth technology to next-gen materials, these developments highlight the strategic prioritization of emerging technologies for defense applications. USAID’s funding of research collaborations involving MXene could inadvertently bolster the PLA by accelerating access to cutting-edge material science advancements, enabling China to integrate these innovations into stealth, sensing, and defense technologies critical to its military modernization. #china #usaid #materials #research #researchsecurity #breakthroughs #science #security #defense #intelligence #research #pla #military #militaryresearch https://lnkd.in/guvZTy7B

𝟰 𝗠𝗮𝗶𝗻 𝗖𝗿𝗼𝘀𝘀-𝗯𝗼𝗿𝗱𝗲𝗿 𝗽𝗮𝘆𝗺𝗲𝗻𝘁𝘀 𝗺𝗼𝗱𝗲𝗹𝘀 - 𝗽𝗼𝘄𝗲𝗿 𝗲𝘃𝗲𝗿𝘆𝘁𝗵𝗶𝗻𝗴 𝗳𝗿𝗼𝗺 𝗴𝗹𝗼𝗯𝗮𝗹 𝘁𝗿𝗮𝗱𝗲 𝘁𝗼 𝘁𝗼𝘂𝗿𝗶𝘀𝗺 𝗮𝗻𝗱 𝗿𝗲𝗺𝗶𝘁𝘁𝗮𝗻𝗰𝗲𝘀. Behind a simple “Send → Receive” button are very different infrastructures, each with its own cost, speed, compliance requirements, and user experience. Here are the 4 main models used globally today — and why they matter. 1️⃣ 𝗖𝗼𝗿𝗿𝗲𝘀𝗽𝗼𝗻𝗱𝗲𝗻𝘁 𝗕𝗮𝗻𝗸𝗶𝗻𝗴 (𝗦𝗪𝗜𝗙𝗧-𝗲𝗿𝗮 𝗿𝗮𝗶𝗹𝘀) The traditional backbone of international transfers. Banks rely on a chain of intermediaries holding accounts with each other. 𝗣𝗿𝗼𝘀: ✔️ Global coverage ✔️ Works across any two banks 𝗖𝗼𝗻𝘀: ❌ Slow (1–3 days) ❌ Expensive fees ❌ Opaque tracking ❌ Dependent on multiple middlemen This is still the default model for corporates and legacy institutions. 2️⃣ 𝗠𝗼𝗻𝗲𝘆 𝗧𝗿𝗮𝗻𝘀𝗺𝗶𝘁𝘁𝗲𝗿𝘀 (𝗪𝗲𝘀𝘁𝗲𝗿𝗻 𝗨𝗻𝗶𝗼𝗻, 𝗠𝗼𝗻𝗲𝘆𝗚𝗿𝗮𝗺) Instead of moving money across borders, they use local prefunding/pooling, paying out from balances already held in the destination country. 𝗛𝗼𝘄 𝗶𝘁 𝘄𝗼𝗿𝗸𝘀: Collect money locally at agent→ Message the partner abroad → Payout using prefunded local liquidity 𝗣𝗿𝗼𝘀: Fast, predictable, lower cost 𝗖𝗼𝗻𝘀: Requires large prefunding + liquidity risk management This is how Wise, Revolut, and many remittance apps scaled. 3️⃣ 𝗣𝗮𝘆𝗺𝗲𝗻𝘁 𝗔𝗴𝗴𝗿𝗲𝗴𝗮𝘁𝗼𝗿𝘀 (𝗪𝗶𝘀𝗲) 𝗔𝗴𝗴𝗿𝗲𝗴𝗮𝘁𝗼𝗿𝘀 𝗰𝗼𝗺𝗯𝗶𝗻𝗲: - Local bank accounts (multi-currency) - FX engines - Treasury & hedging - Local payout rails They operate more like global money routers, plugging into dozens of local clearing systems. 𝗣𝗿𝗼𝘀: ✔️ Efficient FX ✔️ Instant local payouts ✔️ Unified global API ✔️ Transparent fees 𝗖𝗼𝗻𝘀: Complex tech integrations Depend on banking rails FX and treasury risk Heavy compliance burden This is the blueprint for modern fintech payment companies. 4️⃣ 𝗦𝘁𝗮𝗯𝗹𝗲𝗰𝗼𝗶𝗻-𝗕𝗮𝘀𝗲𝗱 𝗖𝗿𝗼𝘀𝘀-𝗕𝗼𝗿𝗱𝗲𝗿 𝗣𝗮𝘆𝗺𝗲𝗻𝘁𝘀 The newest model — and the fastest-growing. Instead of messaging across banks or prefunding multiple accounts, stablecoins allow: - Instant on-chain settlement, 24/7 - Global interoperability - No correspondent chains Flow: USD → On-chain USD (USDT/USDC) → FX conversion → Local payout 𝗣𝗿𝗼𝘀: ✔️ Near-instant settlement ✔️ Low cost ✔️ Global reach ✔️ Programmable (smart contracts) ✔️ Ideal for SMEs, remittances, tourism, crypto-native users 𝗖𝗼𝗻𝘀: ⚠️ Regulatory variations ⚠️ On/off-ramp dependency But adoption is accelerating fast — especially in APAC, LATAM, and Africa. 𝙏𝙝𝙚 𝘽𝙞𝙜𝙜𝙚𝙧 𝙋𝙞𝙘𝙩𝙪𝙧𝙚: Cross-border payments are moving from: slow, bank-led, message-based systems → fast, programmable, interoperable settlement networks. Stablecoins aren’t replacing banks — they’re reshaping where banks add value: treasury, compliance, FX, liquidity, credit — instead of running the rails. Inspired by Matt Brown #crossborder #payments #digitalpayment #fintech #stablecoins #FX

Headline: Ukraine’s Booming Arms Industry Seeks Western Investment Amid Wartime Surge ⸻ Introduction: As Ukraine braces for a renewed Russian summer offensive, its weapons stockpiles are under strain. To replenish and expand them, Kyiv is promoting its rapidly growing arms industry as a global defense hub. With vast untapped production capacity, the country is courting Western investors to support and capitalize on its battlefield-hardened innovations. ⸻ Key Details: Wartime Expansion and Capability • Ukraine’s military-industrial complex has dramatically scaled since Russia’s 2022 invasion. • Domestic defense manufacturing output has reached over $35 billion. • Notable focus on drone warfare: Ukraine aims to produce 2.5 million drones in 2025 alone. Underutilized Capacity • Despite production potential, only $12 billion in defense orders have been placed, leaving two-thirds of capacity idle. • Ukrainian officials describe the sector as the “Wild West” for arms investment: under-regulated, fast-growing, and ripe with opportunity. NATO and Global Support • NATO nations have donated $140 billion in military aid to Ukraine, but Kyiv is pushing for longer-term partnerships, not just donations. • Ukraine is positioning itself as the future “breadbasket for lethal equipment,” offering battlefield-proven systems and rapid innovation cycles. Strategic Appeal to Investors • Real-time combat feedback provides Ukrainian manufacturers a unique R&D advantage over traditional arms exporters. • Kyiv hopes Western nations will transition from aid to equity and contract-based support, anchoring Ukraine in global defense supply chains. ⸻ Why It Matters: Ukraine’s defense sector isn’t just about wartime survival—it’s about reshaping the future of military procurement. With unmatched battlefield testing, an entrepreneurial defense base, and massive excess capacity, Ukraine presents a compelling case for Western investors seeking resilient, high-impact defense ventures. Investing now could not only fortify Ukraine’s sovereignty but also integrate it more deeply into NATO’s long-term security architecture. Keith King https://lnkd.in/gHPvUttw

⚙️ 𝗛𝗢𝗪 𝗠𝗢𝗡𝗘𝗬 𝗔𝗖𝗧𝗨𝗔𝗟𝗟𝗬 𝗠𝗢𝗩𝗘𝗦: 𝟲 𝗣𝗔𝗬𝗠𝗘𝗡𝗧 𝗥𝗔𝗜𝗟𝗦 𝗖𝗢𝗠𝗣𝗔𝗥𝗘𝗗 From the outside, payments look simple. You tap a card, send a transfer, or pay with a wallet — and the money just moves. But behind the scenes, the global financial system runs on very different payment rails, each built for a specific use case. Here are six of the most important ones 👇 🌍 𝗦𝗪𝗜𝗙𝗧 Cross-border corporate transfers via correspondent banks. ⏱ 1–5 days | 💰 High fees | Global B2B standard. 💶 𝗦𝗘𝗣𝗔 Unified euro payments infrastructure. ⏱ 1 day or instant with SEPA Instant. 💳 𝗖𝗔𝗥𝗗 𝗦𝗖𝗛𝗘𝗠𝗘𝗦 (𝗩𝗶𝘀𝗮 / 𝗠𝗮𝘀𝘁𝗲𝗿𝗰𝗮𝗿𝗱) Authorization in milliseconds, but settlement in T+1–2 days. The backbone of POS & e-commerce. ⚡ 𝗥𝗧𝗣 / 𝗜𝗡𝗦𝗧𝗔𝗡𝗧 𝗣𝗔𝗬𝗠𝗘𝗡𝗧𝗦 (FedNow, UPI, Faster Payments) Domestic transfers in seconds, 24/7/365. 📱 𝗪𝗔𝗟𝗟𝗘𝗧𝗦 & 𝗔𝗟𝗧𝗘𝗥𝗡𝗔𝗧𝗜𝗩𝗘 𝗥𝗔𝗜𝗟𝗦 (PayPal, Apple Pay, M-Pesa) Abstract traditional rails behind a simplified user experience. ⛓ 𝗖𝗥𝗬𝗣𝗧𝗢 / 𝗕𝗟𝗢𝗖𝗞𝗖𝗛𝗔𝗜𝗡 Peer-to-peer transfers without intermediary banks. Settlement depends on the chain and network load. 📊 𝗥𝗘𝗔𝗟𝗜𝗧𝗬 There is no universal rail. Modern banks operate across multiple payment ecosystems at the same time — and the real challenge today is making all of them work together seamlessly.