SAN FRANCISCO (PRWEB) OCTOBER 29, 2020--OFX (ASX: OFX), one of the world's leading international payments providers, today announced the findings of a national study. The study, titled, the OFX US SMB Cross Border Confidence Survey, analyzes the confidence levels of U.S. small and medium businesses (SMBs) amid the pandemic and looks to understand business leaders’ pulse on global trade and the movement of money overseas.
Key findings from the report include:
Confidence in the U.S. Economy Remains Amid a Pandemic
Domestically, SMBs leaned towards confidence, with 45 percent saying they are confident in the U.S. economy and just 27 percent saying they are not. Despite nearly half of small businesses citing confidence, SMBs acknowledged they continue to face big challenges over the next twelve months. The largest of those being the ongoing COVID-19 pandemic. In fact, respondents were 2 times as likely to cite the ongoing pandemic as concerning than they were to cite the outcome of next week’s election.
SMBs are slightly less optimistic, in relation to the global economy, with 41 percent of respondents citing confidence in the global economy and 25 percent citing they are not confident. Higher confidence is equating to strong participation in the global economy with 75 percent believing the volume of cross-border trade and payments originating from U.S. SMBs will increase or stay the same, and 49 percent saying they are more confident about trading internationally now than they were six months ago.
This confidence comes as respondents cite strong support (78 percent) from the U.S. federal government for SMBs and notable optimism about trading in international markets, with 88 percent of respondents citing they believe U.S.-based SMBs are highly regarded in international markets, 47 percent citing there is greater opportunity than ever for international trade, and 40 percent agreeing they are seeing increased opportunities in markets with growth-focused governments.
The Opportunities of Cross-Border Trade
Within the study, 60 percent of SMBs cited already participating in foreign trade, with another 18 percent saying they plan to, and with good reason. Respondents not participating in foreign trade cited an average of nearly $1.5 million annual revenue missed opportunity by only thinking domestically.
“2020 has presented unique challenges, along with uncharted opportunities for small and medium-sized businesses,” said Alfred Nader, President of North America, OFX. “Our data shows that SMBs leave more than $1M in new revenue on the table per year by not engaging in international trade. Now more than ever, it’s important for the small businesses who are holding off on cross-border expansion to gain confidence, educate themselves, and make a plan for action.”
Lack of International Experience Burdens Small Businesses
Despite confidence in the global economy, many American SMBs say they lack complete confidence in participating in foreign trade. In fact, 77 percent of those who are not currently trading internationally said they would be more likely to begin if they felt more confident about their knowledge of foreign exchange markets. Experience managing exchange rates stopped 47 percent from trading internationally on more than one occasion. Lost opportunities resulted from several barriers to successful cross-border trade including a lack of international business experience (37 percent) and a lack of knowledge of local economies (27 percent). Their number one concern though is fear of being taken advantage of and paying too much when making foreign exchange transactions (44 percent).
In today’s economic climate, small businesses' ability to move money globally is both fundamental and high-stakes. OFX offers a leading solution that connects a seamless digital experience with high-touch, 24/7 support to ensure customers get their money where it needs to be around the world, day or night. The OFX US SMB Cross Border Confidence Survey comes on the heels of OFX’s recent release of its Global Currency Account for business, which has now helped hundreds of SMBs expand their international footprint by allowing them to pay and get paid in multiple currencies globally.
For additional findings and to download OFX’s full report, OFX US SMB Cross Border Confidence Survey, please visit here.
About OFX OFX grew from the idea that there had to be a better, fairer way to move money around the world. That was 20 years ago, and we’re still driven by the same mission today.
We believe real help from real people counts, and that’s why we offer our clients the best of both worlds – an easy to use digital platform, combined with 24/7 phone access to our currency experts. Foreign exchange is in our DNA. We help clients navigate the complexity of FX, making it simple and easy to understand. Because when it comes to money, informed decisions are the best decisions. Keeping our clients’ money secure is a top priority. We're monitored by over 50 regulators globally. To date, we have helped over 1 million customers worldwide and have transferred over US$100 billion. Our clients are all over the globe, so we are too. We operate in offices in London, Sydney, Auckland, Hong Kong, Singapore, Toronto, and San Francisco. It’s global expertise, delivered locally. The OFX Group Limited is a publicly listed entity on the Australian Securities Exchange ("ASX") under the code "OFX." CanadianForex Limited Trading as OFX. USForex Inc. dba OFX, a licensed money transmitter. NMLS #1021624.
For more information, visit OFX.com.
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Source: Company press release.