Despite the company's historic focus on payment solutions for individual customers, the world of corporate financial transactions and the size of the network that the organization operates in are quite literally far more expansive.

Challenges of International Transfers for European Companies and Individuals

The complete integration of digitalization across corporate operations, including the use of integrated cloud platforms, has not eliminated outdated challenges when money is sent across the globe. It's astonishing but true that issues such as not being able to identify the final amount received by the beneficiary or the precise timing of the completion upon initiating a transaction still occur. "Money doesn't need a passport to cross borders," says Sármay, emphasizing the natural desire of businesses to seek faster, cheaper, and more transparent options for international payments, despite the existing infrastructure being unable to meet their needs fully.

Historical Background and Current Challenges

The practices of B2B bank transfers date back to the 19th century, born out of the rise in international trade which necessitated cross-border payments and gave birth to the correspondent banking system. Despite technological advancements, the core structure of complex correspondent and intermediary relationships has remained the same. This contrasts sharply with our day-to-day experiences of immediacy and convenience in transactions, such as ordering a pizza and expecting prompt delivery, highlighting the lag in the corporate payments sphere.

Visa's Innovative Solutions

Visa posits turning what has been historically a one-way street into a highway. Their network, connecting nearly 15,000 financial institutions worldwide, paves the way for direct remittances to merchants' bank accounts, family remittances across borders, and swift, secure governmental and business payments to each other.

By reducing the number of intermediaries in the cross-border payment process, Visa offers an alternative model that could potentially benefit both financial institutions and corporate clients. "What if we turned that one-way street into a highway?" illustrates Sármay, suggesting a newfound fluidity in these transactions.

Product-Level Innovations: Visa B2B Connect and Visa Direct

The launch of Visa B2B Connect in 2019 marked a significant milestone, with the service now accessible in over 100 countries. This new model eliminates complex intermediary connections, enabling direct fund flows from the originating bank to the beneficiary's bank. Visa Direct expands this even further, offering immediate transfer capabilities to more than 7 billion endpoints in various ways, including transfers to bank cards, accounts, or digital wallets.

Visa's Role in Supporting Local Small and Medium-Sized Enterprises (SMEs)

Visa remains committed to supporting Hungarian businesses by providing access to the most innovative, convenient, and secure payment methods. This includes simplifying cross-border payments for small and medium-sized enterprises. With local initiatives like Visa She’s Next, aimed at empowering female entrepreneurs, and social and economic sustainability programs, Visa is actively involved in fostering business growth and innovation within the Hungarian SME community.

As Visa continues to navigate the complexities of global financial transactions, its focus on innovation, security, and convenience positions it as a crucial player in shaping the future of cross-border payments. With initiatives catering to various sectors and sizes of business, Visa's efforts promise to make the world a smaller, more connected place financially.