First dollar payment is a reality09 December 2020
Step by step, we are also making our services available internationally, with the first dollar transactions and payments being made recently. This represents an important milestone in the implementation of our international strategy.
Royal FloraHolland's ambitions are not limited to our national borders. International trade, too, must also run smoothly and hassle-free through our marketplace. Particularly in international trade, we can offer benefits for our growers and their buyers, which is why, this year, we have created a solution to a specific need that a group of international members have: payment in dollars.
In November, we facilitated a first international order, with payment in dollars through Floriday, between a Kenyan grower and a buyer from Saudi Arabia. This is an important landmark and more orders are in the pipeline, says Azzam Shafi, international account manager at Royal FloraHolland. "The Saudi buyer is very enthusiastic about Floriday and has already worked with it. The first shipment for a second buyer has also recently been delivered and it looks like these are going to be regular orders. The larger the platform, the more attractive it is for the buyer and this not only attracts buyers from the Middle East, but buyers worldwide."
Dollar brings purchasing power
What makes this first payment in dollars so special? "Royal FloraHolland is in the process of developing a global trading platform and being able to settle in dollars is crucial for this to succeed," says Sebastiaan Hoogendoorn (MT International sales & Account management). "In many parts of the world, the dollar is the appropriate means of payment for doing international business. Suppying our growers' products in dollars will bring enhanced purchasing power to our platform and open up new markets. This is a major milestone for Royal FloraHolland, which is making the transition to a Floriday platform that will be accessible to current and new customers worldwide."
The effect of a second Corona wave on this process will be limited, Sebastiaan expects. "We are now seeing global markets such as the Middle East being cautious in their sourcing due to a drop in demand caused by corona. However, once markets reopen, demand for ornamental plants and flowers will increase once again."
Another important step that has been taken in order to facilitate international payments on our platform is the partnership with CitiBank, a financial institution with its own offices in many countries. Their global presence offers us benefits and was the decisive factor for us in deciding to work with them. Citibank has extensive experience in Africa and the Middle East. Together with Citibank, we want to and will be in a position to grow internationally.
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