Half of Businesses Overpay 20% on Cross-Border Payments Due to Infrastructure Fragmentation

Quick Summary

New analysis reveals that 50% of businesses overpay by up to 20% on cross-border payments due to fragmented infrastructure. By consolidating multiple provider relationships into a single ecosystem, companies can significantly reduce intermediary fees, improve FX rates, and cut reconciliation workloads by approximately 30%.

How Does Fragmented Infrastructure Impact Cross-Border Payments?

Businesses operating internationally often struggle with a hidden financial drain caused by managing between 10 and 20 separate payment provider relationships. This fragmentation leads to inflated operational costs as each provider requires its own contract, compliance check, and reconciliation process. PayDo’s research highlights that cross-border payments costs are frequently obscured across intermediary fees and widened FX spreads.

• One in two companies overpays by up to 20% on total transaction costs.
• One in three businesses uses five or more providers for collections alone.
• Fragmented systems lead to delayed settlement times and higher financing costs.

What are the Benefits of Consolidating Payment Providers?

For modern technology firms, the move toward a unified payment ecosystem is driven more by operational efficiency than simple price hunting. Consolidating cross-border payments onto a single platform allows finance teams to reclaim valuable time, reducing the manual reconciliation burden by an estimated 30%. This shift enables faster monthly financial closes and provides greater treasury visibility.

• Consolidation can reduce reconciliation workloads by 30%.
• Two-thirds of tech firms cite fragmentation as the primary reason for switching providers.
• Direct infrastructure access eliminates costly intermediary fees and improves transparency.

Serhii Zakharov, CEO and founder of PayDo, said: "The reason fragmentation persists is that no single bill shows you the total. You see a small fee here, a slightly worse rate there, a few extra days of float. Individually, they look like the cost of doing business. Add them up across a year and you're looking at real money, and a finance team buried in reconciliation instead of strategy."

FF NEWS TAKE:

This data confirms that the "hidden tax" of legacy banking is still crippling international scale-ups. While many fintechs compete on FX margins, the real cross-border payments winner will be the one that solves the reconciliation nightmare. PayDo’s focus on consolidation moves the needle because it treats payments as a workflow problem, not just a pricing one. Reducing overhead by 20% is a massive competitive advantage in a high-interest environment.