What accountants want in a cross-border payment provider

Accountants are now playing a critical role in shaping the financial decisions of small and medium-sized businesses (SMBs). According to the  2023 Global Advisory Trends Report by Spotlight Reporting, 65% of accounting firms now consider themselves to be progressive or hybrid firms that offer substantial advisory services.

Recognizing accountants' significant clout, payment providers—especially foreign exchange (FX) or cross-border payment providers—now see them as valuable referral channels and purchase decision influencers—and rightly so. After all, accountants can and often do have a say in the tools and providers SMBs add to their financial stack. 

To understand what accountants truly seek in a payment provider and how platforms can best meet these expectations, at Codat we recently spoke to Russell Frayne, Director of Transformation at Gravita, and conducted an in-depth survey of 140 US and UK-based qualified accountants. 

How do accountants choose a preferred payment provider?

Understanding and recommending different financial tools has become a core component of the value proposition accountants offer clients, as evidenced by the thousands of accountants who attend conferences like Xerocon each year to stay up-to-date on the latest financial technologies.

According to Russell, most accounts have a “core platform” of financial tools they recommend to all of their clients. This way, accountants have a basic tech stack that integrates well together, making it easier to upskill their staff and clients effectively. 

Codat's findings reveal this to be the case for more than 58% of accountants, all of whom have one or several preferred foreign currency payment providers they consistently recommend to their clients—a preference that stems from a combination of factors.

Accountants look to various different sources of information to inform their recommendations to clients, such as reading industry reports from financial institutions or market analysts (43.9%), conducting thorough online research (42.4%), directly engaging with providers (35.3%), and consulting with professional networks (33.8%). Social proof points and word of mouth also play a significant role in the assessment of payment providers among respondents.

Additionally, social media platforms like LinkedIn and Twitter and informative vendor webinars play a crucial role in their evaluation process.

Essentials for cross-border payment providers: price, transparency, and problem-solving

Unsurprisingly, price is a top determining criterion when choosing a cross-border payments provider, after being a trusted brand. When it comes down to it, organizations want the best price and value for their money (i.e., cost-effectiveness). 

However, the quest for competitive pricing doesn't overshadow the need for price clarity, as "transparency of fees" was ranked nearly as important as overall  "price" by respondents. Put simply, accountants and SMBs want to avoid any surprises or changes in the rate once it's locked in—from draft to approval to payment stages.

That said, not all cross-border payment providers can easily adjust their prices. In such situations, focusing on other valuable offerings can help them avoid getting stuck in a race to the bottom on price. To do this effectively, Russell emphasizes the need to articulate clearly the unique problems cross-border payment providers solve for SMBs. 

“In today's saturated market, a provider simply stating that they offer certain services is not enough. There may be multiple vendors who offer the same services, turning it into a pricing competition. This approach is not ideal when dealing with an accountancy firm. Instead, providers should focus on providing unique solutions to the core problems of their clients”.

– Russell Frayne, Director of Transformation at Gravita 

Ultimately, without differentiation, providers may find themselves in a pricing war they can't win.

How cross-border payment providers can stand out

Codat’s data shows a clear pathway to how cross-border payment providers can carve out a competitive edge.

1. Differentiation with end-to-end accounting integration

The seamless end-to-end integration of payment solutions with existing financial software is the key factor for accountants, with 94% of respondents finding such integrations fairly important, very important, or critical. Russell confirms this:

 “The biggest thing is the end-to-end integration. Many solutions require manual workarounds, and there is a lot of importing and exporting involved. Having everything connected from start to finish is a huge bonus”.

In other words, avoiding the need for manual intervention is essential, especially for foreign currency transactions, where there's more room for error.

  2. Trust through transparency, support, and competitive exchange rates

To capture accountants’ attention, payment providers need to focus on improving pricing transparency (37.1%), enhancing customer support (37.1%), and offering competitive exchange rates and transaction fees (35.7%). Doing so will establish trust and make it easier to build long-term, meaningful partnerships.  

Other research, such as Swift's 2023 Small payments. Big opportunity report, echoes the importance of transparency. The report found that hidden fees have a stronger negative impact than a payment not arriving at all, with around 70% of respondents stating that they wouldn’t use a payment provider again if they encountered hidden fees.

According to Russell, payment providers should consider implementing a proof of concept or pilot program to tackle this challenge. This approach can accelerate the implementation process and allow users to experience the platform's benefits firsthand. By offering a chance to test out the service, payment providers can establish trust with their users and build confidence in the service.

3. Education around providers’ solution and value

Over 43% of the accountants we surveyed said that training and educational resources for themselves and/or their clients were important, underscoring the need to help them understand how to use the payment solution. In turn, this knowledge could ease the burdens of change management and increase user adoption, allowing organizations to accelerate their time to value.

Russell believes that providing support to clients to help them understand, use, and roll out the solution is more important than training them on FX hedging strategies, especially for large accounting firms. While the latter may be interesting for a long-term partnership, it requires a high level of trust in the relationship upfront. Otherwise, providers may risk encroaching on the accountant's responsibilities. 

Hundreds of solution providers worldwide have realized the value of partnering with accounting practices to reach small businesses at scale, given their trusted advisory role to SMBs. However, success in this partnership hinges on understanding and aligning with accountants' expectations.

Accountants seek partners who offer more than just a service—they want a relationship built on trust and value. This means providing fair and transparent pricing, seamless integration with their existing tech stack, and robust support to roll out the solution to their clients.

By meeting these expectations, providers not only differentiate themselves in a crowded market but also foster mutually beneficial relationships. Accountants can deliver enhanced services while clients reap the benefits. It’s a win-win scenario that fosters mutual growth and long-term success.