SMBs may be interested in entering new markets, but they have different priorities. These include increasing revenue growth (53%) and profitability (39%), and improving customer satisfaction (43%). Expanding their customer base (30%) rounded out the list of top concerns.

This data was gathered by Payoneer in its inaugural SMB Ambitions Barometer report. The leading cross-border payments platform surveyed 3,575 businesses across 15 international markets to find out their thoughts on global expansion, their ambitions, and how they plan to achieve them. 

“Going beyond borders presents a world of growth opportunities, untapped markets, and diverse talent. Those who dare to leave their comfort zones create a better future for themselves, their community, and the economy,” says Monique Avila, Payoneer’s Country Manager for the Philippines & Other SEA.

The potential for global expansion

SMBs in APAC are on track for global expansion. Their customers (57% domestic vs. 43% international) and vendors (60% domestic vs. 40% international) are mostly local, but this split is expected to even out in the next two years.

Those who are already operating internationally have reaped the benefits of today’s global economy.

Payoneer found that revenue earned from exports grew from an average of 52% in 2021 to 61% in 2022. This is expected to continue growing to an average of 69% in 2023. In the Philippines, SMBs are expected to enjoy a 16% increase in revenue growth from exports. They are also one of the most optimistic about their business outlook.

Challenges and disruptions

SMBs know the benefits of global expansion but they face barriers. Businesses in APAC are more likely than others to have been hurt by global events in the past two years. This is particularly true for the Philippines, which is among the most negatively impacted by these events.

Global supply chain disruptions remain a top concern. Cross-border trade is another challenge with issues related to foreign exchange rates, slow transaction times, international trade compliance requirements, lack of choice in payment options, regulatory and compliance costs, fraud and weak security practices, and more.

SMBs in APAC also face problems breaking into geographic markets due to external events and disruptions, legal compliance, securing capital, and talent acquisition. There is also an increase in freelance and gig work due to COVID-19, which has increased competition for their company.

Due to these experiences, 64% of SMBs in APAC are more likely than others to agree that most payment solutions are tailored to large corporations. It is difficult to find a payment solution that meets the unique needs of their company (51%).

The world’s go-to partner for digital commerce, everywhere

The SMB Ambitions Barometer report notes that there is great potential for businesses around the world to develop. Although SMBs face challenges and external economic forces, they must be supported to thrive in the cross-border economy.

“We remain committed to empowering SMBs in the Philippines. Our products, services, and expertise are tailored to meet their unique needs so they can unlock their full potential on the global stage. Together, we can create a future where every business owner can succeed internationally, achieve tremendous growth, and make a lasting impact,” ends Avila.

From online retailers doing live selling on social media to entrepreneurs launching their business on e-commerce platforms, we’ve seen how the ingenuity and resilience of Filipinos led businesses that enabled them not just to survive but in fact, thrive in the new normal.  Despite the economic challenges brought by the pandemic, Filipino entrepreneurs and freelancers have succeeded in building and sustaining their businesses and their participation in the digital economy has been a major factor in this success.

Despite bearing the brunt of the economic slowdown brought on by the global health crisis, Micro, Small and Medium Enterprises (MSMEs) have contributed to the economic recovery of the Philippines. MSMEs accounted for 99.51% of all businesses and generated a total of 5,380,815 jobs, or 62.66% of the country’s total employment in 2020, according to the Department of Trade and Industry (DTI).

“Empowering the small and medium businesses is an important part of supporting the overall economic recovery in the country.  By simplifying international business transactions through our innovative solutions, we aim to help more and more Filipinos participate and succeed in the global digital economy,” said Miguel Warren, Vice President, Payoneer Southeast Asia.

As the country transitions to the post-pandemic new normal, entrepreneurs continue to strengthen their businesses by embracing digital transformation. From ensuring secure online payment transactions, to promoting their products and services and growing internationally, Filipinos now depend on digital technologies to turn their businesses into small and medium-sized businesses (SMBs) that can compete in the global market.

Providing convenient payment options for customers

Businesses that offer a range of convenient, secure, and digital payment options using their preferred local method are often more preferred by global customers and clients. To help Filipinos participate and succeed in the global digital economy, financial services company Payoneer provides businesses with an easy, quick, secure, and affordable payment platform with no hidden fees. 

Among the clients that benefit from Payoneer’s payment platform are business process outsourcing (BPO) companies in the Philippines.  According to the Information Technology and Business Process Association of the Philippines (iBPAP), the BPO industry grew 1.8 percent in terms of headcount and 1.4 percent in terms of revenue in 2021. To sustain this growth and remain competitive globally, local BPOs need to make financial transactions with their clients, suppliers, and the government more secure and convenient.

With an easy-to-navigate digital platform, Payoneer enables not only BPOs but also online merchants and freelancers to be in full control of payment setups. It allows them to bill their global clients, get paid in multiple currencies, pay overseas business expenses at a lower cost, transfer funds to their local bank accounts, and make purchases online.

Securing financial transactions

Today, selling goods and services internationally requires trust and with Payoneer, there are over 5 million businesses across the world that use the platform. To ensure the security of the financial transactions of all SMBs customers and partners it serves, Payoneer makes sure that all payments processed are made through fully compliant, secure, and tightly audited payments that are regulated financial entities across the globe. Payoneer also operates under a robust, risk-based compliance program that addresses the regulatory requirements of each country that is involved in a cross-border payment.

In addition, Payoneer secures business transactions with its best-in-class fraud protection. It deploys multiple layers of risk technology alongside various procedures to protect businesses against different fraud scenarios such as registration fraud, account takeover, and other activities.  Likewise, Payoneer provides a local team of customer care experts who can assist SMBs across all stages when it comes to chargeback claims and other concerns.

Think global, Act Local

More than just a payment platform, Payoneer is the world’s go-to partner for digital commerce.  By simplifying payment for cross-border and managing the complexities of moving money, Payoneer allows SMBs to focus on their business and growth.

“At Payoneer, we believe in the potential of our SMBs to go global. Through our solutions, we aim to help as many entrepreneurs and freelancers in the Philippines grow and expand across the globe,” added Warren.

SMBs of all stages can utilize Payoneer’s innovative tools, integrations, and customer service to do business transactions and grow their businesses anywhere in the world.  Aside from providing mechanisms for cross-border payments, Payoneer offers a range of services including digital business management, working capital access, merchant services, tax solutions, and risk management. These digital commerce services streamline operations of businesses from 200 countries and territories, allowing them to focus on growing the business