Scale, complexity, speed and accuracy are issues affecting many areas of the maritime industry. Payments are a particularly challenging area of maritime operations for several important reasons.
The level of complexity involved, compounded by the large number of payments enacted by maritime businesses, is increasing. Finance teams are therefore under pressure to address payment challenges that arise in ways that deliver efficiency and economy while mitigating risk and adhering to compliance requirements.
Challenges for finance teams
Finance teams often engage in complex cross-border and cross-currency transactions with suppliers and service providers.
There are different methods available to make payments to vendors, with many companies using traditional banking providers that offer basic customer and compliance support, as well as charging high transfer and banking costs.
Many traditional banking providers do not cater for the intricacies of the shipping industry, such as compliance requirements that change on an almost daily basis, which need to be adhered to. Traditional channels can create a bottleneck in payment processes, reducing overall efficiency for finance teams.
The main challenges for finance teams include:
● Keeping up with the compliance landscape – are certain banks sanctioned; are certain payments being held for compliance reasons?
● Poor customer service experience with traditional banking providers
● Time spent identifying the current status of individual payments to suppliers with traditional banking providers
● Expensive transfer, banking and FX charges
The search is on for more time- and cost-efficient payments in maritime. Improving transaction processes is a key part of streamlining day-to-day operations and enabling finance teams to reclaim time that can be spent on more important tasks.
Smart solutions for shipping companies
Shipping companies and their finance teams should opt for specialist payment services that remove many of the challenges associated with making payments to suppliers.
Providers that offer specialist maritime compliance assistance enable faster transactions and significantly reduce the amount of administration required when managing vendor payments.
Specialist providers combine many benefits within a single solution, including improving efficiency and payment accuracy. They also offer low-cost transfers and access to leading FX rates, which make payment processes much more cost-effective, especially at scale.
Given the benefits felt in several significant areas of operations, specialist payment providers such as MarTrust, are a smart solution for finance teams compared to traditional banking providers.
The benefits of partnering with a maritime-focused payment provider
1. Industry-specific expertise
Maritime-only payment providers have an in-depth understanding of the complexities, regulations, and dynamics of the maritime industry.
2. Streamlined processes and lower costs
Maritime-only payment providers offer streamlined processes and automation tools that accelerate payment workflows and deliver lower transfer costs and better FX rates.
3. Enhanced compliance and anti-fraud risk mitigation
Maritime-only payment providers enable shipping companies to leverage specialist compliance knowledge that helps ensure payments reach their intended destination. They also provide anti-fraud risk mitigation, as suppliers are pre-screened against a database of known vendors across the shipping industry before being processed.
If you would like information on MarTrust for vendor payments, which includes services such as enhanced compliance and dedicated support for finance teams, please click here
