How OTC Trading is solving cross-border payments for African businesses

Date

November 24, 2023

|

6 min read

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Introduction

In the Financial Services space today, Over-The-Counter (OTC) trading is fast becoming a pivotal force. This article will examine how OTC trading is utilized within the financial services industry, emphasizing its role in revolutionizing cross-border payments using Wewire Africa as a case study.

Understanding OTC and Cross-Border Payments

Over-the-counter (OTC) trading is a popular way of buying and selling assets without relying on an intermediary. OTC trading allows both parties to negotiate directly with each other, avoiding price slippage and accessing higher liquidity.

Cross-border payments are payments from one country to another, usually involving different currencies.

A business might need to send money from one country or continent to another for many reasons.

For context, in Africa today, a business in Nigeria that needs to send money to Ghana will have first to convert the local currency, which is the Naira, to USD and then send USD to Ghana.

OTC trading is fast becoming the preferred way to tackle the many bottlenecks of cross-border payment. OTC trading's relative ease of implementation and practical usefulness to customers have made it attractive for providers trying to move transaction volumes quickly.


The Current Landscape of Cross-Border Payments


According to research, the B2B Payments Market Size was valued at USD 1,324.43 billion in 2022 and is anticipated to reach USD 1,589.56 billion in 2023. It is projected to reach USD 2,456.76 billion by 2031, growing at a CAGR of 9.2% during the forecast period (2023-2031). However, challenges such as high transaction fees, currency exchange rates, and compliance with regulations and tax laws must be addressed to streamline B2B payments and improve efficiency. In Africa, Diverse payment systems, currency fluctuations, and limited banking infrastructure have hindered African cross-border payments. High costs, additional fees, and security concerns further complicate transactions.

OTC in Cross-Border Payments: A New Approach

One of the most significant applications of OTC trading is in the realm of cross-border payments. Traditional methods of international fund transfers have long grappled with high fees, slow processing times, and volatile exchange rates. OTC trading provides a solution by facilitating direct currency exchanges, reducing costs, and expediting transaction times.

Platforms like Wewire Africa harness cutting-edge OTC platforms and technologies to facilitate cross-border payments. This ensures transaction speed, easy customer accessibility, and secure and transparent transactions.

When a customer who lives in Nigeria and has Naira in his possession needs to pay his supplier in China, for example, for raw materials, there's a need to look for Yuan, which is the Chinese currency. Hence, a currency trade has to be made.

OTC Trading flow

Currency trading is the process of buying and selling currencies. When a customer needs to move money from one currency to another, a trade has to happen, trading his currency for the currency needed, like buying and selling. Depending on the transaction volume, The customer comes to an OTC trader such as Wewire Africa and explains his specific needs. Then, an offer is made. This means that rates are agreed upon, and the trading team completes the transaction.



Advantages of OTC Trading in Cross-Border Payments

Adopting OTC solutions for cross-border payments by Wewire Africa translates into tangible benefits, especially for users. Users experience expedited transaction times, reduced fees, and increased accessibility. The flexibility of OTC trading enables Wewire Africa to tailor its services to the unique needs of cross-border transactions.

When asked, one of Wewire’s customers, Mr Roger Gbeve of Maison T'acier, a steel manufacturing company with a presence in 3 African countries, said that before he started using Wewire Africa, he would usually have to go to the bank for his cross-border payments needed by his business. Still, he was never sure that the banks would be completely helpful. With Wewire Africa, he always has the foreign currency he needs to pay his suppliers or sort out his business operations across multiple geographies, which was made possible by OTC trading. Some reasons why customers prefer Wewire Africa for OTC trading in cross-border transactions include

  1. Volume of transaction
  2. Ability to negotiate price
  3. Liquidity availability
  4. Security or Safety
  5. The human factor

Mitigating Challenges and Risks of OTC Trading in Cross-border Payments

While OTC trading offers substantial benefits, acknowledging potential challenges and risks is crucial. Wewire Africa addresses these risks by ensuring thorough regulatory compliance, security, and innovative security measures on the digital platform. For any customer to be able to perform a transaction, they must have completed their verification with complete background checks, as well as had their business verified to be legitimate.

Conclusion

In conclusion, OTC trading has become a dynamic force within the financial services industry, especially in making cross-border payments accessible globally.

You're better off going the OTC route as a business owner who utilizes large liquidity in multiple currencies and across different countries for business transactions.

Contact Wewire Africa to get a quote today. Visit the website or send an email to Hello@wewireafrica.com to get started now.

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Cover Image for How to Plan for Your UK Visit from Nigeria

How to Plan for Your UK Visit from Nigeria

Planning to Visit the United Kingdom from Nigeria? Here are things you must know to have a hitch-free trip.

Article Outline:

  • Introduction
  • Preparing for Your UK Visit
  • Applying for a UK Visa as a Nigerian
  • Paying for IHS Fees
  • Booking Flights to the UK
  • Current Payment Methods for International Travel and Their Drawbacks
  • Introducing Wirewire's Virtual Dollar Card
  • Why Choose Wirewire's Virtual Dollar Card?
  • Getting Started with Wirewire's Virtual Dollar Card
  • Conclusion

Introduction:

The United Kingdom is a great travel destination that attracts people globally who visit for different purposes such as tourism, education, etc. Planning a trip to the United Kingdom from Nigeria is exciting, but thinking about managing your finances for the journey can be challenging. Fortunately, with Wirewire's Virtual Dollar Card, you can simplify your payment needs and make the most of your UK experience. In this comprehensive guide, we'll walk you through the steps to plan your UK visit seamlessly using Wirewire's Virtual Dollar Card. We will also cover the visa application process, paying IHS fees, and booking flights to the UK.

Preparing for Your UK Visit

Before you start preparing for your travel, here are some things you can do to make your planning easy.

  • Consider converting your Naira to US dollars to load onto a dollar card provider like Wewire Africa’s Virtual Dollar card to make it easier to pay for the things you'd need before your trip.
  • Research the current exchange rates for better planning.
  • Create a budget for your UK visit, including accommodation, food, transportation, and activities.

Applying for a UK Visa as a Nigerian

Visa Application Process

  1. Visit the official UK government website to initiate your visa application.
  2. Complete the online application form, providing accurate information.
  3. Schedule an appointment at the Visa Application Center (VAC) for biometrics and document submission.
  4. Pay the visa application fee, which varies based on the type of visa you are applying for. Here. You must pay using a card that can process foreign currency transactions, such as the Wewire Africa virtual dollar card.

Paying for IHS Fees

If you’re going to be in the United Kingdom for an extended period, for example, traveling for your education there, you would need to get health insurance and pay for the Immigration Health Surcharge (IHS). Here's how to make the required payment


  • After your visa application is approved, you will receive instructions to pay the IHS fee.
  • Log in to the official UK government website to make the payment.
  • Use a trusted card provider like your Wirewire Virtual Dollar Card for a secure and convenient transaction.

Booking Flights to the UK

You'd need to book a flight after securing your visa and establishing travel dates.

  1. Use reliable online travel agencies or airline websites to search for flights to the UK.
  2. Compare prices, flight options, and airlines to find the best deals.
  3. Pay for your flight tickets using your Wirewire Virtual Dollar Card for a smooth and secure transaction.

Current Payment Methods for International Travel and Their Drawbacks


  • Traditional Credit/Debit Cards: High foreign transaction fees and unfavorable exchange rates.
  • Currency Exchange Services: High commissions, less favorable rates, and inconvenience.
  • Cash: Risk of theft, limited acceptance, and exchange hassles.

Introducing Wirewire Africa's Virtual Dollar Card

Wirewire Africa's Virtual Dollar Card is a secure and convenient payment solution that allows you to transact in US dollars while traveling abroad. It's a digital card linked to your Wirewire account, providing ease and flexibility in managing your finances internationally.

Why Choose Wirewire Africa Virtual Dollar Card?

  • Competitive Exchange Rates: Wirewire offers competitive exchange rates, ensuring you get the most value for your money.
  • Security: Your financial data is protected with state-of-the-art security measures.
  • Worldwide Acceptance: The Virtual Dollar Card is widely accepted, making it ideal for international travel.
  • Ease of Use: It's user-friendly and can be easily managed through the Wirewire mobile app.


Why choose the Wewire Africa Virtual Dollar Card while preparing for your UK trip

Use your Wirewire Virtual Dollar Card for various payments, such as hotel bookings, flight bookings, travel insurance, online shopping, and more.

  • Enjoy the convenience of making payments in US dollars.

Tracking Your Expenses: The Wirewire customer app tracks your expenses in real time. Easily monitor your Virtual Dollar Card transactions and view your remaining balance.

Getting Started with Wirewire's Virtual Dollar Card

To start using Wewire Africa's dollar cards, take the following steps.

  • Log in to your Wirewire account or create one if you don't have it.
  • Create wallets for your local currency and USD
  • Deposit your local currency and then swap to USD afterward
  • Locate the option to request a Virtual Dollar Card.
  • Follow the prompts to generate your card details.

Conclusion:

Planning your UK visit from Nigeria becomes a breeze with Wirewire's Virtual Dollar Card. This secure and flexible payment solution ensures you can enjoy your trip without worrying about financial hassles.

Say goodbye to excessive fees and unfavorable exchange rates and embrace the convenience of making payments in US dollars with Wirewire.

Make the smart choice today and experience a hassle-free UK visit with Wirewire's Virtual Dollar Card.

Stay connected to our blog for more insights and expert advice on international travel finance. We wish you a most memorable stay in the United Kingdom.


Cover Image for Wewire Africa -The magical solution for International Payments

Wewire Africa -The magical solution for International Payments

Once upon a time, in a small town called Payville lived a business owner named Alex. Alex's business was thriving, and as it grew, so did his connections worldwide. He had suppliers in different countries, and his customer base expanded rapidly.


One day, as he sat in his cozy office, Alex received a big order from a client on another continent. Excited about the opportunity, he realized he needed to make an international payment to his suppliers to secure the deal. However, the thought of navigating the complexities of international transactions left him feeling overwhelmed.


Just when Alex was starting to worry, he heard about a magical platform called "Wewire Africa" Intrigued, he decided to give it a try. As soon as he registered on the platform, he was astonished at how simple and user-friendly it was.


With Wewire Africa, Alex could easily send money to his overseas supplier with just a few clicks. No more complicated bank forms or tedious processes. The platform took care of everything, ensuring his payment reached its destination securely and on time.


But that was not all; another enchanting feature of Wewire Africa caught Alex's attention. His business often involved making multiple payments to various customers at once. In the past, this was a time-consuming task that required managing numerous accounts and records. But with Wewire’s beneficiary instant pay feature, Alex could now easily make all those payments simultaneously. He also could assign virtual payment cards to various departments in his company. The marketing dude doesn't chase after him anymore for marketing budget money.


He couldn't believe how much time and effort the platform saved him. With the burden of international payments lifted from his shoulders, Alex's business flourished even more. He had more time to focus on expanding his customer base, introducing new products, and nurturing valuable partnerships.


Alex's success story spread throughout Payville and beyond as the years passed. Other businesses in the town started using Wewire Africa, and they, too, experienced the same magic and convenience.


From that day on, whenever anyone in Payville needed to make international payments or send multiple payments quickly, they knew where to turn—the trusted and reliable platform that simplified the process, just like magic — Wewire Africa.

And so, Payville continued to prosper, thanks to the wonders of Wewire Africa, making dreams come true for entrepreneurs like Alex and building stronger connections worldwide.


Like Alex initially was, many business owners are currently struggling with figuring out how to connect to the rest of the world through International Payments. Wewire Africa was created to solve this challenge.
Sign up Now and join the train today.

Cover Image for  How to Send Money Within African Countries

How to Send Money Within African Countries

Outline:

  • Introduction
  • Current Money Transfer Methods Within Africa: Challenges
  • Understanding Wirewire Africa
  • Why Choose Wirewire Africa?
  • Getting Started with Wirewire Africa
  • Initiating Your Money Transfer
  • Confirming and Finalizing Your Transfer
  • Tracking Your Transfer
  • Conclusion

Introduction:

In today’s interconnected world, more than ever, sending money to other African countries is needed efficiently. Whether helping family members, supporting a business partner, or making payments. Unfortunately, different countries have different currencies because of how Africa is set up. Businesses operating across multiple African countries must determine how to obtain and maintain various bank accounts for foreign currencies and perform money transfers and cross-border payments that feature these different currencies in various countries. As you can tell, this can be a big hassle.

Wirewire Africa is the ultimate solution for hassle-free money transfers within the continent. In this comprehensive guide, we’ll take you through the simple steps of sending money using this trusted payment platform, all while sharing valuable tips to ensure a smooth and secure experience.

Current Money Transfer Methods Within Africa and Challenges

Before delving into the details of using Wirewire Africa, let’s examine the challenges of existing money transfer methods within African countries:

  • High Fees: Many traditional methods have exorbitant fees that eat into your funds.
  • Lengthy Processing Times: Some transfers can take days or weeks to reach their destination.
  • Unfavorable Exchange Rates: Converting your money through traditional channels often results in poor exchange rates.
  • Limited Accessibility: Not all regions can access reliable banking services, making transfers difficult.

Understanding Wirewire Africa

What is Wirewire Africa? Wirewire Africa is a trusted B2B payment processing platform specializing in using technology to solve the hassle of cross-border payments for businesses. With Wewire Africa, businesses can easily make international and domestic money transfers within African countries. The customer dashboard has an intuitive interface, competitive exchange rates, and robust security features, making it the preferred choice for sending money across borders or within your own country.


Why Choose Wirewire Africa?

  • Competitive Exchange Rates: Wirewire Africa provides competitive exchange rates, ensuring you get the most value for your money.
  • Speed and Reliability: Transfers are processed swiftly, ensuring your recipient receives the funds promptly.
  • User-Friendly Interface: Wirewire Africa’s platform is designed for easy use, making it accessible to everyone.
  • Top-Notch Security: Your financial data is protected with state-of-the-art security measures such as two-factor authentification, guaranteeing your peace of mind.

Getting Started with Wirewire Africa

Creating Your Account

  • Begin by visiting the Wirewire Africa website.
  • “Click on the "Sign Up” button.
  • Provide essential details such as your name, email address, country you’re in, and account password you’d like to use.
  • Verify your email address and complete the registration process.

Identity Verification

Wirewire Africa requires everyone who signs up to complete the identity verification process to comply with regulatory standards. This typically involves submitting identification and proof of address documents.

Initiating Your Money Transfer

Logging In

  • Sign in to your Wirewire Africa account using your registered email and password.
  • Once logged in, you’ll be directed to your personalized dashboard.

Currency Swap

To transfer money from your country to another country using Wewire Africa, you need to perform a conversion from your currency to the receiver’s currency. Currency swaps are free on Wewire Africa.

To complete a currency swap, click on the quick conversion tab on the right-hand side of your customer dashboard, choose the currencies you’re converting from and to, input the amount, and then click on the convert button.

Initiating a Transfer

After swapping to the receiver’s currency, you can initiate a payout to send the money to the recipient’s bank account.

  • Open the wallet containing the currency you want to send
  • Select the payout option
  • Select between making a one-time payment or payment to an already saved beneficiary.
  • Enter the recipient’s information, including their name and banking particulars.
  • Input the desired transfer amount.
  • Review the transaction details for accuracy.

Confirming and Finalizing Your Transfer

After reviewing the transaction details, click the Initiate Payout button to send money to your recipient.

Wirewire Africa will provide you with a reference number or transaction ID. Keep this information for tracking purposes.

Tracking Your Transfer

Use the reference number or transaction ID to monitor the status of your transfer from your customer Dashboard.

Wirewire Africa also provides updates on the transfer’s progress, including when it is sent and received by the recipient via email.

Conclusion:

Wirewire Africa makes sending money within African countries a breeze. Whether you’re supporting loved ones, conducting business, or managing personal finances, Wirewire Africa offers a secure, efficient, and cost-effective solution. Say goodbye to excessive fees, long processing times, and unfavorable exchange rates. Embrace the convenience of digital money transfers within Africa with Wirewire Africa. Sign up today.

Make the smart choice today and experience a seamless domestic money transfer process with Wirewire Africa. Stay connected to our blog for more financial insights and expert advice.