NGO essentials: navigating cross-border payments

Inpay’s new guide reveals how non-governmental organizations can utilize cross-border payments to make international aid more efficient and effective.

Humanitarian needs are at an all-time high and rising. More than 400 million people worldwide needed humanitarian aid in 2023, double the number compared to five years ago.[1]

Forced displacement, a key driver of humanitarian need, is also at an historic high. 120 million people are fleeing persecution, conflict, violence and human rights violations. That’s equivalent to the population of Japan, the twelfth largest country in the world.[2]

At the same time, the gap between financial requirements and funding stood at more than $36 billion in July 2024.[3]

When humanitarian need outstrips available resources, the right payment partner can help NGOs make more efficient and effective use of aid, as well as increase the overall amount of aid available.

Money where it’s needed most

If NGOs improved their payment arrangements, they could potentially cut the time, admin and cost of international transfers. We’ve calculated the savings could be between €13,500 and €50,000 each year, depending on staff seniority and how much time they spend on payment admin.

These savings could translate directly into the work they do. For example, more children enrolled in vaccination programs, people given access to safe drinking water, sanitation or preventative malaria medicine.

Improved payment arrangements help NGOs set their organizations up for the future. Scaling operations across countries or regions is hard when the workarounds don’t work everywhere. Even the biggest companies don’t – and can’t – localize payment in every country where they’re active. So, why should NGOs?

It pays to consider the alternatives

Non-bank payment providers are emerging with the right connections to link NGO destination and origin countries. Such providers may already be accepted by governments as regulated entities. So, a robust compliance approach and anti-financial crime controls are prerequisites of their license.

These payment providers can supplement the service available from banks, especially when it comes to offering additional payout channels, if traditional ones are unavailable or inefficient. This helps increase NGO impact, both through supporting the growing needs of beneficiaries and increasing the overall aid available.

Download our guide

Building a Currency of Trust calculates the real cost of ‘broken’ payments. It considers how payments can power strategic business objectives for NGOs, unlocking their organizational potential. Plus, how NGOs can build support for payment change internally, choose and get the most from a payment partner.

Download your copy of Building a Currency of Trust.

[1] , Development Initiatives, June 2023

[2] , UNHCR, June 2024

[3] , 2024, June-July update, 31 July 2024