Reap has partnered with TerraPay to expand its cross-border payout network using domestic clearing systems.
The integration connects Reap’s treasury platform with TerraPay’s single API for local payment rails.
The companies aim to reduce costs and processing times for B2B payments across the Asia Pacific, North America, Europe, and the Middle East.
Traditional cross-border corporate payments typically take several business days to settle and can cost 1 to 1.5% of the transaction value.
The new infrastructure aims to reduce reliance on multi-hop correspondent banking networks. It does this by using intelligent routing and enabling direct settlement via local clearing systems with lower fixed fees.
According to a JP Morgan report cited by the companies, inefficiencies in corporate cross-border payments generate US$120 billion annually in transaction fees.
The same report noted that slow processing is the top pain point for nearly 62% of corporate bank clients.
“Reap’s platform allows businesses to deploy liquidity efficiently, while TerraPay provides the domestic rail connectivity required for compliant local settlement,”
said Daren Guo, Co-Founder of Reap.
The collaboration is designed to help corporate finance teams manage liquidity across markets where traditional settlement times are often unpredictable.
“Our partnership with Reap solves for this by combining their programmable treasury capabilities with TerraPay’s global network,”
said Ani Sane, Chief Business Officer and Co-Founder of TerraPay.
“It is a more operationally efficient way to move funds cross-border, and it gives finance teams the confidence of consistent settlement across multiple regions.”
Reap and TerraPay plan to continue expanding their payment corridors while collaborating on foreign exchange optimisation and operational improvements.
Featured image credit: Edited by Fintech News Hong Kong, based on image by lifeforstock via Magnific