UK businesses have been paying well over the odds for international payments, hampering their abilities to expand in a post-Brexit world, according to a study.
Traditional banks have a stranglehold of 95 per cent of the business payments market, according to a study by Covercy.
One company making 20 transactions of £30,000 could overpay an average of £4,400 monthly or £52,800 a year in completely unnecessary fees, the survey finds.
For a company making 20 transactions of £10,000 this equates to £2,120 a month or £25,440 a year, and for a firm conducting 20 transactions of £1,000 this will total £1,100 a month or £13,200 a year.
Meanwhile, importers have also been hit with unprecedented slides in the value of sterling due to Brexit (16 per cent year on year against the dollar; £1/$1.31 and 18 per cent year on year against the euro; £1/€1.18), while also facing these needless cross-border fees.
With more than two thirds (69 per cent) of the UK’s 53,000 SME exporters making at least 20 transactions a month, paying over the odds for these transactions can really add up, according to Covercy CEO Doron Cohen.
He says that Brexit has brought huge uncertainty to UK SMEs, with 96 per cent of exporters selling to the European Union. And now…