UK Finance Directors Reveal Barriers to Trading Overseas

LONDON, May 28 /PRNewswire/ --

- 20 Per Cent of UK Businesses Spend at Least Four Days a Month Managing
International Payments (1)

A staggering 52 per cent of UK businesses have encountered problems with
foreign payments in the last 12 months causing them to spend as much as a
month a year managing and reconciling funds, according to a new report
released today by Travelex Global Business Payments (GBP).

The study, which was carried out amongst Finance Directors of UK
businesses that trade internationally, reveals that some of the biggest
barriers to international trade are caused by current banking payment
systems.

The biggest barrier to trading overseas is the time payments take to
clear, with nearly half of businesses (44 per cent) citing this as a priority
problem and as having a major impact on cash flow which is one of the top
business imperatives for over a third (37 per cent) of companies.

The lack of clarity over the true cost of international transactions was
also highlighted as a key aggravation. Over one in three (35 per cent) cited
hidden fees as a frustration and more than fifth of those questioned (21 per
cent) expressed irritation that every intermediary bank involved in a payment
using the SWIFT network takes a cut to process the payment so that the amount
sent isn't the amount received. This practice, known as 'beneficiary
deduction', makes reconciling payments hugely time consuming.

Other top payments gripes include: having to physically call their bank
to track overseas payments (24 per cent); being left to negotiate a
resolution by contacting their bank when a payment goes missing (51 per
cent); the time required to investigate missing payments (24 per cent); and
uncertainty over how long payments should take to be handled - nearly one in
ten finance directors claimed to have no idea how long an international
payment takes.

But these issues could soon be a thing of the past. Travelex GBP has
today launched GlobalPay, a revolutionary online payments platform which
provides businesses with a single secure point of entry enabling them to
manage payments and reconcile balances in most traded currencies quickly and
easily. The new system can deliver payments faster and could reduce the cost
of international payments by up to 60 per cent by avoiding the fees
associated with routing payments through multiple intermediary banks to reach
the end beneficiary.

(1) UK businesses of 100 employees or more

Notes to editors

The research: 201 interviews were conducted with finance directors from
UK businesses who undertake international trade. Interviewing took place
between 9th and 14th April 2008. The research was conducted by Harris
Interactive.

GlobalPay

- For more information on GlobalPay visit http://www.travelexbusiness.com/uk
or call +44(0)800-096-0172

- It is launched and available to businesses from Wednesday 28th May 2008

Travelex Global Business Payments (GBP)