Compensations and regulatory compliance can be daunting tasks for businesses when working with a high number of creatives regularly. This is where Merchants of Record (MoR) come into play, offering a streamlined solution for handling payments, taxes, and compliance on a global scale. But when is the right time to integrate an MoR, and what factors should you consider to ensure you choose the right partner?
Before we dive into the specifics, it's essential to understand what an MoR is.
Identifying the Right Time for Integration
1. You are currently working or expanding into new markets
Collaborating with international talent is fundamental when expanding into new markets. But complex local regulations come with that expansion.
MoRs possess in-depth knowledge of local regulations across various countries, making them invaluable for navigating international compliance and payment processing for payouts. If you are only working with a few creatives in your local market, paying for a Merchant of Record may not be the best financial decision at this point. However, if you are planning on expanding your business, or you currently work with international creatives, partnering with an MoR would be advisable.
2. You work with more than 60 creative professionals a month
Working with a large number of vendors also implies that the administrative and financial tasks increase exponentially. Processing a high volume of payouts, each with potentially different local payment preferences and compliance requirements can overwhelm your finance team.
Outsourcing the complexities of payment processing and compliance to an MoR can significantly ease the burden of mass payouts, allowing you to focus on scaling your operations. This can help enhance operational efficiency and reduce the risk of compliance issues, especially when working with a multitude of international vendors.
Choosing the Right MoR for Your Business
Selecting the right partner is crucial once you've determined the need for an MoR. Here are some considerations to guide your decision:
1. Assess Your Business Needs
Identify the specific requirements of your business, including crucial features, services, and markets you're operating. Ensure the MoR can support your current and future markets and offer the payment methods essential to your operations.
For example, if you work with creative professionals in Japan, is the MoR able to support you in that market? Are there local payout options for them provided by the MoR?
2. Evaluate Providers
Research and compare different MoRs based on their ability to meet your needs and fit within your budget. Consider factors such as integration capabilities, support, and data security.
3. Consider Integration Impacts
Understand how integrating an MoR will affect your current processes. Look for solutions that complement your operations without causing disruptions or technical challenges. Gauge the potential learning curve and operational impact post-integration. The right MoR should enhance your processes, not hinder them.
Gigapay is the first Merchant of Record for creative services, focused on payment processing, tax reporting, and regulatory compliance. With localized payment solutions, ensure that your business is well-supported in every market you enter. Gigapay's platform is designed to complement your operations seamlessly, minimizing disruptions and technical challenges. Moreover, we prioritize dedicated support to help resolve any issues from onboarding to payments, aiming to strengthen lasting relationships with creatives.
Integrating a Merchant of Record is a strategic decision that can streamline your operations and help you navigate the complex landscape of global payments and compliance. By carefully assessing your business's needs and choosing a provider that aligns with your goals, you can ensure a smooth integration process that supports your business's growth and expansion. Remember, the goal is to find a partnership that allows you to focus on your core business, whilst providing the best experience for your creatives.
