Desiree Sainthrope is a legal expert with extensive experience in drafting and analyzing trade agreements. She is a recognized authority in global compliance and possesses a broad range of interests within the legal field, including intellectual property and the evolving implications of technologies such as AI.
Can you provide us with a brief history of Corpay Cross-Border and its evolution? Why did the company transition from Fleetcor to Corpay Cross-Border? What were the benefits of joining Fleetcor (now Corpay Inc.)?We are a cross-border payments and FX risk management firm based in Toronto. We were privately held and operated until we were acquired by Fleetcor, now Corpay Inc., in 2017. Joining Fleetcor was an exciting opportunity for us. Our founders saw the value of their equity investment grow, and the existing executive team was committed to continuing to grow our business in line with our vision. I believe many businesses are looking for a partner who can help them achieve several goals: realizing the business’s value, granting the executive team autonomy to manage day-to-day operations, executing business strategies, and investing in future growth, such as pursuing M&A strategies to consolidate their industry position. Joining Fleetcor in 2017 allowed us to achieve these goals. Over the past seven years, we’ve focused on executing our strategy, achieving consistent annual organic growth of more than 20 percent, and building a highly profitable business. With Fleetcor’s (now Corpay Inc.) expertise, we’ve grown not only in size but also in profitability. This has uniquely positioned us in the market as a financially robust and client-centric team, delivering innovative solutions and redefining the cross-border payment industry.
What strategic goals did Corpay Cross-Border achieve after the acquisition by Fleetcor? How did the acquisition support the executive team and the company’s growth? Can you elaborate on your strategy for organic growth and profitability?The acquisition by Fleetcor allowed us to achieve several strategic goals. Our founders were able to realize the value of their investment while providing the existing executive team with the autonomy to continue managing day-to-day operations and execute our business strategy. This support has fueled our pursuit of consistent annual organic growth of over 20 percent, resulting in a highly profitable business. Additionally, Fleetcor’s resources and expertise have enabled us to pursue M&A strategies, consolidate our position in the industry, and continue innovation. This backing has been instrumental in our growth, positioning us as a leading and client-centric player in the cross-border payment space.
What major trends are you currently observing in the payments space? How are streamlined virtual accounts becoming popular among corporate customers? Can you explain the trend towards localized global payments? What is the impact of instant or near-instant payment expectations on the B2B sector?We’ve noticed that streamlined virtual accounts are gaining popularity among corporate customers who operate beyond their domestic borders. These customers seek simplified platforms that allow them to access multiple currencies and jurisdictions without maintaining numerous bank accounts globally. Localized global payments using in-country payment rails are also trending, making cross-border transactions cost-efficient and reducing reliance on SWIFT. Furthermore, the expectation for instant or near-instant payments, especially in the gig economy and marketplaces, is becoming prominent in the B2B sector. Organizations now demand expedited fund delivery, impacting how we approach payment solutions.
How has technology transformed the landscape of cross-border payments? What kind of technological integrations do your corporate clients seek? How does Corpay ensure seamless payment integration for its clients?Technology has revolutionized the payments landscape, driving most transactions through direct, real-time integration. Our corporate clients increasingly seek seamless integration with their ERP systems, allowing them to make payments without logging into separate platforms. To achieve this, we embed payment capabilities directly into their user experience via API integrations, leading to a significant increase in the number of processed payments. This technological integration enhances efficiency and convenience, ensuring that our clients experience seamless payment processes.
What advancements in payment technology have enhanced transparency and efficiency? How has real-time payment tracking benefited your customers? What developments have you made beyond SWIFT GPI?Real-time payment tracking has significantly enhanced transparency and efficiency, allowing our customers to monitor payment statuses globally, similar to tracking a package. Historically, SWIFT GPI provided some level of tracking, but we’ve expanded this capability to cover in-country payment rails, ensuring comprehensive tracking for all processed payments. These advancements improve customer experience, offering greater visibility and control over their transactions.
What do you foresee for the future of the cross-border payments space? How do you plan to leverage technology for more localized and instant payments? What additional services are you looking to expand to facilitate local bank access for businesses?The future of cross-border payments will likely feature increased localization and instant payment solutions, driven by technological advancements. Our goal is to provide businesses with local bank access across different countries, enabling them to offer convenient local payment options to their customers. This approach will streamline global commerce, lower operational costs, and simplify the payment process. We aim to continue leveraging technology to address pain points and provide innovative solutions in the cross-border payments space.
Where are you seeing growth opportunities for Corpay Cross-Border? Which new territories are you expanding into? How do segment-specific solutions contribute to your growth strategy?We see growth opportunities in geographic expansion and vertical-specific solutions. Recently, we have moved into territories such as New Zealand, Luxembourg, and France, with plans to expand into Mexico, India, and Hong Kong. Our technology solutions cater to specific segments, including intellectual property firms, charities, NGOs, and financial institutions. For example, we act as an international treasury for smaller banks and provide access to emerging markets for larger institutions. These tailored solutions contribute significantly to our growth strategy.
Can you highlight some of the verticals or customer segments where Corpay Cross-Border has developed technology solutions? What solutions do you provide for intellectual property and law firms? How are you supporting charities, NGOs, and smaller financial institutions?We have developed specialized technology solutions for various verticals, including intellectual property and law firms, charities, NGOs, and financial institutions. For law firms, we facilitate international transactions and manage currency risks. Our solutions enable charities and NGOs to move money internationally for aid efficiently. Smaller financial institutions utilize our services as their outsourced international treasury, while larger banks rely on us for access to emerging markets. These tailored solutions address unique needs and contribute to our clients’ success.
How is Corpay Cross-Border addressing the needs of the education market? What role does your service play in facilitating payments for international students? How does this support universities in Canada and elsewhere?In the education market, we facilitate payments for international students, covering tuition, room, board, and other expenses. Our services simplify the payment process, accommodating various currencies and local payment methods. This support is crucial for universities, particularly in Canada, which rely heavily on international students for funding. By streamlining tuition payments, we help educational institutions attract and manage international students more effectively.
Are there any new products or initiatives you are particularly excited about? Can you explain the functionality and benefits of your balance sheet hedging tool? How does your intercompany netting solution benefit multinational firms?We are excited about two new products: the balance sheet hedging tool and the intercompany netting solution. The balance sheet hedging tool helps corporate customers mitigate currency risk by automating accounting processes for forward contracts, netting inbound and outbound flows, and managing currency risks on their balance sheets. The intercompany netting solution is designed for multinational firms, aggregating and netting intercompany transactions, reducing the number of FX transactions, and streamlining payments for subsidiaries. Both tools enhance efficiency and reduce financial risks for our clients.
Do you have any advice for our readers?For readers navigating the complexities of cross-border payments and FX risk management, it is essential to stay informed about technological advancements and emerging trends. Leveraging innovative solutions and partnering with a reliable service provider can significantly enhance operational efficiency. Always prioritize transparency and efficiency in your payment processes to successfully manage global transactions.
