Corpay and AbbeyCross Launch Foreign Exchange Partnership

Corpay has announced a cross-border payments partnership with foreign exchange (FX) marketplace AbbeyCross.

The collaboration is designed to provide FX payment services to emerging markets via the new AbbeyCross ABX platform, with Corpay Cross-Border becoming one of the first non-bank providers of global payments to join the platform, according to a Tuesday (Oct. 1) press release.

“Through the ABX Platform, Corpay Cross-Border will provide competitive emerging markets foreign exchange rates, and efficient access to its vast global network and innovative cross-border payments solutions and emerging markets capabilities, for fast, flexible and efficient local currency alternatives and settlement,” the companies said in the release.

According to the release, Corpay Cross-Border is one of the world’s largest non-bank providers of global payment solutions, managing payments to 200 countries in more than 145 currencies, including more than 100 exotic currencies.

For its part, AbbeyCross connects banks and non-bank financial institutions through a single integration to multiple partners for outsourced FX payments, allowing for “dynamic payment partner choice” and market transparency, and therefore removing the need and cost of building multiple bilateral integrations.

“Unlike today’s typical cross-border payments model, the ABX Platform enables users to access a range of transparent and competitive rates and settlement rails from multiple payment providers, supporting more efficient FX payments price discovery and ‘best execution,’ enhancing our clients’ FX payments capabilities and in turn, their own customer service offerings,” the release added.

Making cross-border payments can be a challenge, as PYMNTS noted earlier this year, so much so that American merchants suffered at least $3.8 billion in lost revenue in 2023 from failed cross-border payments.

“Merchants focused on cross-border sales report an average cross-border payment failure rate of 11%, notably higher than their less internationally focused counterpart,” PYMNTS wrote.

This pain point is felt more sharply by medium-sized firms in the $250 million to $500 million revenue range. In addition, 82% of merchants reported that they struggle to diagnose the causes of failed payments, underlining the need for robust solutions.

“Cross-border payments inherently have more points of failure compared to domestic payments,” Citi Global Co-head of Payments and Receivables, Treasury and Trade Solutions (TTS) Amit Agarwal told PYMNTS in an interview.

To offset these higher failed-payment rates, merchants that wish to expand internationally should bolster their collaboration with their payment service providers (PSPs). Research by PYMNTS Intelligence and Nuvei has shown that these partnerships can deliver access to advanced tools and expertise that allow for efficient and reliable cross-border transactions.

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