Dealing with PSP liquidity mismatches on cross-border flows
Anyone here managing significant cross-border payment flows, especially from less conventional corridors? We're running into persistent issues with our PSP's effective liquidity for payout in certain local currencies. On paper, they offer a wide range of FX pairs and payout methods, but the real-world settlement times and available depth for anything beyond $EURUSD or $USDJPY is a joke. It's not a KYC/AML issue; that's all buttoned up. It's purely operational. We're seeing spreads widen significantly when we hit any meaningful size, and what's worse, payout requests get stuck in 'pending' for days while they evidently go out to market for the underlying. It's impacting our own working capital and client satisfaction. Are we just hitting the limits of what a single PSP can provide for non-tier-1 corridors, or is there a better model out there? Thinking of splitting flow across multiple providers but that comes with its own integration overhead.
This is a common headache. Most PSPs are great for major corridors, but as soon as you step outside those, their "global network" starts looking very thin. Have you considered exploring local banking partnerships directly in those challenging regions instead of relying solely on your PSP's reach?