The barriers in companies for transactions involving forex hinder internal processes and the productivity of areas.
International software solutions are extremely necessary and used in the daily routines of Brazilian companies, such as cloud data storage services, e-mail servers, CRM, graphics design, logistics and financial control software, among others. But the vast majority of companies, especially small and midsized ones, face many difficulties in the process of acquiring these SaaS solutions.
Many of these SaaS companies have no offices in Brazil and hence they offer international credit cards or invoice payments as the payment methods for their services, which is a major obstacle for many companies. Most of these purchases involve recurring payments, in the subscription model and, although very often the monthly cost seems relatively low, due to the sharp foreign exchange variation and all the taxes and charges, such as IOF (6.38%), the purchase ends up more expensive after currency conversion. Besides the higher amount involved, there is still apprehension and complexity surrounding the rules of Compliance for carrying out foreign exchange transactions in Brazil, which affects the approval time of purchases. The result is inordinate delay in completing the purchase, delaying productivity and processes in the areas that would use international SaaS.
For all the reasons mentioned, the financial departments at Brazilian companies are reluctant to using these types of transactions involving international cards and invoices due to the additional costs and bureaucracy they entail. B2B transactions are mostly carried out through local bank transfers and bank payment slips (boletos). International cards are a minority and only used as a last resort.
It is important that international SaaS companies pay attention to the realities of potential clients and adapt themselves if they want to increase their market share. Adapting themselves to the payment methods most used in Brazil makes a big difference for the B2B client’s experience and, consequently, international SaaS sales tend to increase.
Bexs Bank has a customized end-to-end solution that enables Brazilian B2B clients to carry out transactions in local currency using local payment methods, as follows:
According to the above workflow, Bexs generates a payment order for the Brazilian client, with all taxes automatically included and, after payment is made in local currency and payment method, the international SaaS company receives the full amount of the agreement converted into its currency. All transactions are simple and automated via API integration, or just by using a payment link (URL) without the need for integration, making the tool’s onboarding process faster.
This solution is extremely advantageous for those selling without any hindrance in payments, gaining market share and receiving the full amount of the agreement without any deductions. B2B clients, on the other hand, can speed up the local payment process coupled with the reliability of it being in accordance with all tax and compliance standards.
Brazil is a giant market, which represents a tremendous opportunity for international SaaS, with companies that spend more than US$20 billion a year on IT. With a population hungry for new technologies and software, Brazil is a market that can be better explored by new players that understand the behavior of this consumer and their needs, such as local payment options.