Discussion with Saujin Yi, Founder and CEO of LiquidTrust, on Establishing Confidence in International Transactions
In a bid to address the challenges faced by Small and Medium-Sized Businesses (SMBs) in cross-border payments, LiquidTrust, a Los Angeles-based fintech firm, has launched two innovative global payment methods. These solutions aim to provide SMBs with the flexibility they need while minimizing the risk associated with unpredictable policies and the fear of fraud, a significant barrier for many SMBs in making or receiving online cross-border payments.
The first solution, Simple Pay, enables fast, verified global payments without hassles. Ideal for repeat transactions or ongoing vendor relationships where a baseline of trust exists, Simple Pay allows small businesses to wire payments quickly to 175 countries, usually settling within 1-2 days. It includes counterparty verification to enhance security compared to traditional wire transfers.
The second solution, Protected Pay, also known as Micro Escrow Pay or Pay by Trust, is an escrow-style payment method. Funds are held and only released when pre-defined milestones or conditions are met using LiquidTrust’s proprietary Micro Escrow technology. This solution is suitable for first-time, high-value, or higher-risk transactions where there is delivery risk or a need for conditional payment release, such as cross-border deals, custom orders, or situations necessitating prepayment protection. Protected Pay provides fraud protection without the complexity and high costs associated with traditional letters of credit or conventional escrow services.
LiquidTrust's recent $4 million seed funding from Anthemis Female Innovators Lab Fund, Resolute Ventures, Motivate Ventures, BMO, and JP Morgan will be used to accelerate onboarding, strengthen compliance infrastructure, and build more partnerships. The company is partnering with more financial institutions and B2B platforms to expand its footprint and enhance its Micro Escrow technology to offer more configurability, broader use-case support, and simpler integrations.
These fintech solutions can help SMBs by building payment systems with features like conditional release, milestone-based payments, and dispute protection. By doing so, they can empower SMBs to transact confidently and safely on a global scale, thereby enabling more than a quarter of SMBs who are currently held back from global expansion due to the complexity and risks tied to current systems.
Saujin Yi, the founder and CEO of LiquidTrust, emphasizes the company's focus on providing trusted payments without requiring extensive rebuilding for partners. "Our technology aims to solve the issue of trust being a barrier to growth for SMBs when working with new partners, especially across borders," Yi said.
[1] LiquidTrust partners with financial institutions, banks, credit unions, and B2B platforms to provide modern B2B payment solutions for SMBs. [2] LiquidTrust's funding came at the same time as the launch of Micro Escrow, LiquidTrust's instant escrow payment solution for SMBs. [3] LiquidTrust is partnering with more financial institutions and B2B platforms to expand its footprint. [4] More than a quarter of SMBs say they're directly held back from global expansion because of the complexity and risks tied to current systems. [5] LiquidTrust's technology aims to solve the issue of trust being a barrier to growth for SMBs when working with new partners, especially across borders. [6] LiquidTrust is enhancing its Micro Escrow technology to offer more configurability, broader use-case support, and simpler integrations. [7] LiquidTrust continues to develop its technology based on feedback from business owners and bank partners. [8] SMBs in the US source goods and services from an average of nine different countries, but 75% are dissatisfied with current cross-border payment options. [9] Tariff uncertainty can lead to payment timing issues and supply chain diversification problems for SMBs. [10] LiquidTrust's latest solution enables businesses to hold payments in third-party micro escrow accounts to guard against delays, defaults, and fraud. [11] Simple Pay is ideal for repeat relationships where there's already a baseline of trust, while Protected Pay is for first-time, high-value, or higher-risk transactions. [12] The fear of fraud is the number one reason over a quarter of SMBs have avoided trying to make or receive online cross-border payments altogether. [13] Fintechs can help SMBs by building payment systems with features like conditional release, milestone-based payments, and dispute protection.
- LiquidTrust's partnership with various financial institutions, banks, credit unions, and B2B platforms is aimed at providing advanced business-to-business payment solutions for Small and Medium-Sized Businesses (SMBs), leveraging technology to create trust in cross-border transactions.
- The introduction of LiquidTrust's Micro Escrow, an instant escrow payment solution, comes at a time when they have secured $4 million in seed funding, with the aim of improving the flexibility, usability, and security of their technology in the global business and technology landscape.
