Featured: Why More Businesses Are Opting for Local FX Transfers Over Traditional Cross-Border Payments

A Report by CYS Global Remit Digital Media Marketing Team    When it comes to paying overseas suppliers or service providers, many envision a typical cross-border transfer—sending money via SWIFT, waiting several days, and hoping for a smooth landing. However, more businesses are discovering a smarter alternative.

Enter local FX transfers: a faster, more cost-effective, and efficient payment method, increasingly favoured by businesses that frequently transact in foreign currencies. At CYS Global Remit, we've noticed a significant shift among our clients towards this method, and here’s why it's becoming the preferred choice. 

Understanding the Difference 

Cross-border payments involve transferring funds from one country to another, typically passing through multiple banks. 

 In contrast, local FX transfers allow you to send foreign currency directly to your payee’s local bank account, without crossing borders. Yes, you can send USD, CNY, JPY, or IDR from Singapore, funded in SGD, and have it reach your supplier’s account locally or overseas, bypassing the traditional SWIFT route. 

Why Local FX Transfers Are Gaining Popularity 

1. Faster Processing 

Cross-border payments can take 2–4 days. Local FX transfers often happen the same day. 

2. Lower Fees 

Traditional wire transfers involve intermediary banks, each taking a fee. Local transfers move directly with no unexpected deductions. 

3. Transparent FX Rates 

With CYS, you lock in your exchange rate before the transfer, eliminating uncertainties about the amount your vendor will receive. 

4. Simplified Accounting 

Paying in the invoice’s currency (e.g., JPY to JPY) streamlines reconciliation and avoids mismatched records. 

5. Stronger Vendor Relationships 

When suppliers receive the exact amount they expect in their preferred currency, trust is built, and future pricing discrepancies are avoided.  A Practical Example 

Imagine you owe a supplier in Japan JPY 500,000. Sending SGD via SWIFT might result in deductions, delaying your shipment. 

With a local FX transfer through CYS, you fund in SGD, we convert it to JPY, and the supplier promptly receives the full amount. It’s a win-win. 

Who Should Consider Local FX Transfers? 

• SMEs importing goods from China, Europe, US, or Japan 

• Companies working with overseas freelancers or agencies 

• Logistics and manufacturing businesses paying regional vendors 

• Payment platforms disbursing to local sellers in Asia 

Final Thought 

In today’s dynamic world, efficiency is crucial. If your business frequently handles foreign currencies, local FX transfers can streamline operations, cut costs, and enhance vendor relationships. 

At CYS Global Remit, we're here to help you make smarter money movements. Contact us today to start using local FX transfers and leave behind delays, deductions, and confusion.