Banking Circle, the cross border payments provider, has identified an issue affecting some financial institutions handling cross border transactions from the UK to the EU. It seems Brexit has caused a number of EU banks to increase their fees for receipt of SEPA local payments in EUR from GB IBANs.
Banking Circle Head of Sales, Nischa Us, believes that this is unhelpful for the financial institutions supporting businesses trying to continue to trade cross border. “We have had a number of our clients come to us since the start of the new year to ask for assistance with handling EUR payments from GB IBANs. Because the core ethos of Banking Circle is to make international payments feel like local payments, we can provide IBANs which cover both the UK and European market. And this means payments providers can offer their UK merchants & clients certainty of cost.”
Banking Circle can cut out the ‘Brexit-premium’ because it offers a solution that enables transparent, local payments and collections across borders, without the need for a physical presence or a relationship with a correspondent bank in that region. And that means there is no need for financial institutions’ customers to accept increased fees because of Brexit. This is an important added-value for Banks and Payments businesses to give their customers.