Tazapay Secures MPI Licence from Singapore's MAS, Bolstering Its Cross-Border Payment Capabilities

The Hidden Cost of Cross-Border Payments

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In cross-border trade, money doesn’t simply move — it passes through a network of banks and intermediaries, each taking a small cut. Those seemingly minor deductions add up fast.

According to McKinsey’s Global Payments Report 2023, over $250 trillion in cross-border payments flow worldwide every year — and a significant portion of that value erodes through FX markups, double conversions, and delays. For exporters, SaaS firms, fintechs, and digital marketplaces, these invisible losses directly reduce profit margins.

Most businesses don’t notice until they reconcile. The reason? Every unnecessary conversion or intermediary hop means lost value. Virtual accounts change that.

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Why Hidden FX Losses Occur

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FX losses rarely stem from bad luck — they come from how traditional systems handle money movement:

• Forced conversions: Buyers pay in one currency, but banks automatically convert it to another before settlement.
• Double FX hops: Funds pass through multiple intermediary banks, each adding its own markup.
• Delayed settlements: Holding periods expose funds to rate fluctuations before conversion.
• Fragmented treasury: Managing multiple regional accounts increases operational cost and FX exposure.

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Even a 1–2 % FX spread across large volumes can cost hundreds of thousands annually.

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How Virtual Accounts Change the Equation

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A virtual account is a named, multi-currency account issued under your business name — without needing a local entity in each country.

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With Tazapay, businesses can:

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• Collect payments in 35 + currencies via local bank transfers or SWIFT.
• Hold funds in those currencies to avoid premature conversion.
• Pay out in 100 + currencies through local rails or SWIFT, converting only when rates are favorable.

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For example, an exporter serving clients in the US, EU, and Singapore can receive USD, EUR, and SGD into corresponding virtual accounts, hold those balances, and later pay suppliers in USD or INR — all from one dashboard.

By choosing when and how to convert, businesses protect their margins instead of surrendering them to intermediaries.

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How to Tell if You’re Losing to FX Costs

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You might be facing hidden FX losses if:

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• Your settlement amounts differ from invoice values.
• Customers pay in one currency, but you receive another.
• Third-party processors automatically convert before settlement.
• You manage several regional accounts to handle multiple currencies.

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If these sound familiar, consolidating your treasury with virtual accounts can restore visibility and control.

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From Conversion Chaos to Currency Control

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A $100,000 invoice illustrates the difference:

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• Traditional route: The payment crosses two or three correspondent banks, each taking a fee and applying its own FX rate.
• Virtual account route: Funds arrive directly into your named account in the transaction currency — no forced conversions, no double hops.

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This direct-to-account model increases transparency, accelerates settlements, and helps finance teams plan conversions strategically instead of reactively.

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Powering a Smarter Global Money Movement

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The future of cross-border payments is about unifying the collect–hold–pay cycle under one infrastructure.

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Tazapay brings these pieces together:

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• Global collections through local bank rails and multi-currency virtual accounts.
• Cross-border payouts in 100 + currencies via local rails and SWIFT.
• Stablecoin settlement capabilities (offered by Tazapay Canada Corp.), where regulatory frameworks permit, enabling faster treasury cycles and near-instant cross-border settlements.

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This unified approach enables exporters, SaaS firms, marketplaces, and fintechs to manage global transactions seamlessly. It’s not just faster — it’s smarter, designed to retain more of every dollar earned.

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Benefits of Using Virtual Accounts

1. Simplified operations – One dashboard for global collections and payouts.
2. Visibility and control – Real-time balances help you decide when to convert.
3. Regulatory assurance – Licensed under MAS (Singapore), FINTRAC (Canada), AUSTRAC (Australia), and VASP (Lithuania). (View licenses)‍
4. Faster access – Same-day or T + 1 settlement for many corridors.‍
5. White-label POBO infrastructure – Fintechs can use Tazapay’s on-behalf-of framework to offer their own compliant payout solutions.

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Turning FX Management into a Strategic Advantage

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Controlling conversions isn’t just cost-saving; it’s strategy. By holding balances and converting when rates are favorable, companies can improve realized value across markets.

Delaying a USD → INR conversion by even 48 hours can shift returns by up to 1 %, enough to cover multiple transaction fees. The difference lies in timing — and infrastructure that gives you that choice.

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Key Takeaway

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FX losses are a symptom of fragmented global banking. Virtual accounts centralize collections, reduce unnecessary conversions, and restore margin control.

The future of money movement isn’t just global — it’s intelligent, connected, and designed to keep value within your business.

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Introduction

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Expanding across borders should be exciting for exporters — not overwhelming.
Yet for many Brazilian businesses selling to buyers in India, one of the biggest barriers isn’t logistics or marketing. It’s getting paid efficiently.

Cross-border payment systems remain complex, slow, and costly. Funds often pass through multiple intermediaries, currencies are converted prematurely, and reconciliation becomes a painful manual process.

This is where virtual accounts — a cornerstone of modern global money movement — are transforming how exporters collect payments internationally.

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The Challenge: Slow, Costly, and Complex Cross-Border Collections

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Brazil and India are two of the fastest-growing emerging markets, together representing a bilateral trade value of over USD 11 billion in 2024 (Trading Economics).
But while goods move smoothly, payments lag behind.

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Brazilian exporters selling to Indian buyers often face:

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• Limited local payment options — Indian buyers prefer to pay via domestic rails rather than international wires.
  
  
• Forced FX conversions — Payments often settle in USD, leading to exchange losses and limited control over when conversion happens.
  
  
• Slow settlements — Traditional cross-border transfers can take several days due to intermediary banks and time zones.
  
  
• Complicated reconciliation — Payments from multiple buyers arrive in mixed currencies, often with incomplete details.
  
  

These friction points aren’t unique to Brazil and India — they exist across many emerging trade corridors where domestic payment rails dominate but aren’t easily accessible to foreign exporters.

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The Shift: From Traditional Banking to Virtual Accounts

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Traditional trade banking systems were never built for real-time commerce. They work for large institutional transactions but are inefficient for exporters handling frequent or high-value payments across multiple buyers and markets.

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Virtual accounts change that by giving businesses local-like access to global collections — without the need to establish or maintain local registered entities in each country.

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With a single Tazapay account, exporters can:

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• Receive named collection accounts in multiple currencies
  
• Collect locally from buyers through domestic transfers
  
• Hold and convert funds in supported currencies for settlement
  
• Manage global receivables through one unified dashboard
  
  

This means a Brazilian exporter can now receive funds from an Indian buyer in INR via a local transfer — just like a domestic business would — while managing everything seamlessly through Tazapay.

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Example: A Brazilian Exporter Selling to India

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A sustainable packaging manufacturer in São Paulo has multiple Indian buyers. Previously, these buyers paid via international wire, with funds arriving several days later, minus significant bank and FX fees.

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Now, using Tazapay’s Global Collection Account, the exporter can:

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1. Generate a named virtual account in INR.
   
2. Share it with Indian buyers, who can pay through familiar local bank transfers.
   
3. Receive funds in hours instead of days.
   
4. Monitor settlements and convert INR proceeds into USD when needed for global operations.
   
5. Reconcile payments automatically by buyer or invoice.
   
   

The result: faster settlement cycles, reduced FX exposure, simpler reconciliation — and more liquidity for reinvestment.

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Why This Matters for Exporters

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1. Predictable cash flow
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Faster collections mean exporters can plan shipments, inventory, and restocking with greater confidence.

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2. No need for a local entity
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Virtual accounts let exporters receive local payments without opening a local entity or subsidiary in every market.

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3. Transparent FX conversion
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Funds can be received in INR and converted when the exporter chooses — not when intermediaries decide.

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4. Better buyer experience

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Buyers prefer local payment options because they’re faster, cheaper, and require no international setup. That convenience builds trust and repeat business.

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5. Easier scaling across markets
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Once it works for one corridor, exporters can replicate it in others — such as Singapore, Indonesia, or the UAE — using the same unified account structure.

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The Broader Context: Virtual Accounts and Global Money Movement

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The rise of virtual accounts represents more than just a collection upgrade — it’s part of a larger shift toward global money movement.

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Modern trade is moving away from fragmented, bank-dependent systems toward integrated fintech-led infrastructures that connect local payment methods, multi-currency accounts, and global payouts.

This ecosystem lets businesses collect, hold, and pay in the currencies they need — creating true interoperability between local and international finance.

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Platforms like Tazapay are at the center of this evolution:

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• Providing access to 173+ countries and 80+ local payment options
  
• Supporting 35+ currencies through Global Collection Accounts
  
• Enabling same-day settlements in many markets through local clearing systems
  
• Helping businesses manage both collections and payouts through one compliant platform
  
  

This isn’t only about speed — it’s about enabling financial inclusion in global trade, allowing exporters of any size to operate with the same efficiency as multinational companies.

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Traditional vs. Virtual Accounts

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SWIFT and wire transfers remain reliable and widely trusted for global settlements, especially for large-value transactions or corridors where local rails are limited.However, virtual accounts provide a faster and more flexible alternative — especially when exporters need visibility, speed, and control. You can read more about it here.

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The Emerging Markets Advantage

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Emerging markets such as Brazil, India, Indonesia, Vietnam amongst others are driving global trade growth but still operate within asymmetrical payment systems.
While domestic innovations like PIX in Brazil and UPI in India have improved local efficiency, cross-border settlements continue to rely heavily on legacy systems.

By combining local collection rails with virtual accounts, exporters can now receive payments globally — without the friction of opening multiple bank accounts or creating local entities in every market.

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These capabilities are particularly powerful for B2B exporters, digital marketplaces, and SMEs handling both small and large international payments.

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How Exporters Can Get Started

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1. Sign up with a licensed cross-border payments platform like Tazapay (regulated by MAS Singapore and FINTRAC Canada).
   
2. Open a Named Virtual Account to receive payments from vendors and buyers via local transfers in 35+currencies.
   
3. Share account details directly with buyers — they can pay through familiar domestic banking channels.
   
4. Monitor, hold, or convert funds through a single dashboard.
   
5. Scale globally, adding new supported currencies and corridors as your business expands.
   
   

Within days, exporters can move from fragmented systems to a fully integrated global collection framework — the foundation of modern money movement.

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Conclusion

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For Brazilian exporters — and any business expanding across emerging markets — the difference between slow, manual banking processes and instant, transparent collections is the difference between growth and limitation.

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Virtual accounts remove unnecessary friction, empower exporters to collect locally, and bring cross-border trade into real time.

They’re more than a product feature; they’re the future of how businesses collect, hold, and move money globally. And for exporters ready to simplify their next chapter of growth, that future is already here.

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Introduction

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Expanding globally isn’t only about finding new customers. It’s also about how easily you can pay the people who keep your business running — sellers, vendors, suppliers, and partners around the world. For B2B companies, payouts are one of the most important parts of building trust and keeping relationships strong.

The challenge is that many businesses still face high fees, banking delays, and a lack of visibility when sending money across borders. The good news is that smarter payout methods are now making it possible to cut costs while giving sellers and vendors a smoother, more reliable experience.

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The Cost Problem in Cross-Border Payouts

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International payouts have long been weighed down by inefficiencies. SWIFT and wire transfers often move through several banks before reaching the final recipient, and each step adds fees. Foreign exchange spreads can also reduce the final amount received. When you’re sending payouts at scale, these costs add up quickly.

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The Seller and Vendor Experience Problem

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For sellers, vendors, and suppliers, payouts are more than just transactions — they’re a sign of trust in the company they work with. When payments are late or unclear, confidence in that relationship weakens. Common frustrations include:

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• Having to wait several days before funds arrive.
  
• Unexpected intermediary fees that reduce the final amount.
  
• Not knowing exactly when the payout will clear.
  
• Experiencing different timelines depending on the country.
  
  

Companies that solve these problems don’t just save costs; they build stronger, more reliable relationships with their global network of sellers and vendors.

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How to Reduce Costs at Scale

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The most common ways businesses send cross-border payouts today are through local bank transfers and SWIFT or wire transfers. Alongside these, newer options like stablecoin-to-fiat payouts are helping businesses remove banking delays and avoid extra costs.

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Local bank transfers

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By working with licensed partners in each country, payouts can move directly through local banking networks. This usually means lower transaction fees, faster settlement times, and fewer surprises for the recipient subject to the local bank’s cut-off time.

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SWIFT and wire transfers

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SWIFT and wires remain the backbone of many international payouts. They’re secure and widely accepted, especially for corridors where no local alternative exists with the option of sending out large payments. While they can take longer and involve more fees than local transfers, costs can be reduced by using payout providers that optimize routes and minimize intermediary bank charges.

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Stablecoin to fiat payouts

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Smarter payout methods are also emerging. Stablecoins allow value to move almost instantly, without the usual banking delays or intermediary deductions. With the right infrastructure, they can be converted directly into any supported local currency, so sellers and vendors always receive fiat in their accounts. Tazapay supports this flow, giving businesses more flexibility while reducing unnecessary costs and delays.*

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How to Improve Seller and Vendor Experience

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Reducing costs is important, but speed and reliability matter even more to sellers and vendors. A strong payout experience usually comes down to:

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• Speed. Local bank transfers and stablecoin-to-fiat payouts can settle in hours or within a day, compared to several days for some wires.
  
  
• Clarity. Dashboards that show payout status, FX rates, and reconciliation help recipients plan ahead.
  
  
• Consistency. Sellers and vendors expect the same dependable payout experience whether they’re in India, Brazil, or Europe.
  
  
• Flexibility. Offering multiple payout options gives businesses the ability to meet different needs and build stronger trust.
  
  

Scaling Payouts with Confidence

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Managing payouts across multiple countries and currencies isn’t simple. It requires more than just moving money — it calls for compliance, automation, and a partner that can handle scale.

Tazapay brings all of this together. We support local bank transfers, SWIFT/wire transfers, and stablecoin-to-fiat payouts, all managed through a single dashboard. Businesses gain efficiency and compliance, while sellers, vendors, and suppliers receive a reliable experience they can count on.

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Conclusion

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Cross-border payouts are no longer just an operational detail. They directly shape how sellers, vendors, and suppliers see your company and whether they continue working with you. By combining local bank transfers, SWIFT, and smarter options like stablecoin-to-fiat, businesses can reduce costs, avoid unnecessary delays, and deliver a payout experience that grows with them.

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👉 Learn more about Payouts with Tazapay and how we help businesses streamline global payouts at scale.

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*Stablecoin services are offered through Tazapay Canada Corp.