Streamlining global disbursements for alternative lenders through integrated payments

Reducing FX costs, fraud risk and manual workload with automated, API-based processes.

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Alternative lending platforms aim to simplify and accelerate traditional lending by connecting borrowers directly with investors.

Using technology-driven models, they can rapidly assess credit risk and determine loan pricing, terms and amounts, creating a more agile and accessible lending process.

However, while the model is efficient by design, it comes with its own operational challenges. Alternative lenders must balance regulatory compliance, secure funding, and maintain lean cost structures, all while managing global payments and cross-border transactions that can be unpredictable and complex.

In the current economic climate, currency volatility adds further strain. For instance, the EUR/USD pair saw its first major 30-day volatility spike in March 2025, driven by shifts in US economic data and trade tensions, leading to sustained depreciation of the US Dollar through the year to date. Such fluctuations make it difficult for lenders to price loans consistently and maintain stable margins on cross-border disbursements.

At the same time, fraud remains a growing concern. Some financing payment methods experienced a 5.15% fraud attack rate in Q1 2025, contributing to income losses and increased pressure on profitability. Combined with the inefficiencies of manual reconciliation, these issues make outdated payment methods increasingly unsustainable for lenders operating across multiple markets.

This article explores how integrated payment solutions for alternative lenders can help address these challenges through automation, enhanced fraud prevention, and improved operational efficiency.

Operational bottlenecks in global disbursements for alternative lenders

For alternative lenders, global disbursements often sit at the centre of operational challenges. Managing payments across multiple markets, currencies, and payment systems adds complexity and cost, increasing pressure on efficiency and margins.

Multiple currencies and FX risk

Alternative lenders operating across jurisdictions are exposed to foreign exchange (FX) risk through cross-border loan repayments and international invoice payments. During periods of heightened market volatility, even minor currency fluctuations can quickly erode or completely eliminate the margin on an underlying transaction. Managing this exposure manually or through fragmented systems can compound operational complexity and administrative overhead.

Fraud risk from unverified payees

International payment networks are evolving rapidly, driven by regulatory changes and technological innovation. In this environment, the need for strong payee verification mechanisms has become critical. Unverified or mismatched account details can expose alternative lenders to significant fraud risk, particularly during loan repayments or supplier disbursements, resulting in loss of funds and reputational damage.

Time lost in manual reconciliation

Even when FX and fraud controls are in place, manual reconciliation remains a major source of inefficiency. For alternative lenders, matching cross-border loan repayments, FX conversions and invoice payments across multiple systems can consume valuable time and increase the risk of human error. These manual processes often divert resources away from high-value tasks and make scaling operations more difficult.

Automating key processes like FX management, payee verification, and reconciliation is becoming essential for lenders seeking to operate efficiently across borders. Integrated payments for alternative lenders can help address these challenges, reducing costs and complexity while protecting margins.

Why automation improves financials

Manual payment processes often come with high operational costs, slow turnaround times, and exposure to FX fluctuations. API-driven, integrated payments for alternative lenders introduce control and predictability at every stage of the payment workflow, helping businesses operate more efficiently across borders.

Automated workflows enable lenders to manage currency risk proactively. By setting rate thresholds and automating trade execution, favourable exchange rates can be secured and losses from market volatility can be avoided. This approach turns automation into a tool for margin protection, helping lenders maintain profitability even when operating within tight spreads.

Eliminating manual intervention reduces costs tied to repetitive administrative work, approval processes, and reconciliations. Payment files can be generated and executed automatically, lowering per-transaction costs and freeing operational teams to focus on higher-value activities such as underwriting and customer service.

Automation also accelerates disbursements. Once predefined conditions are met, payments can be executed instantly, for example, using webhooks to release a batch of 500 loan disbursements across multiple countries in one click. As more lenders adopt AI to make real-time lending decisions, fast and reliable funding has become crucial to support those instant outcomes. Automation accelerates settlement, improves the borrower experience, and enables lenders to scale without proportionally increasing headcount.

How Fire enables integrated payments for alternative lenders

Fire delivers a comprehensive, integrated payments solution that embeds automation across FX management, payee verification, and reconciliation. By reducing operational friction, mitigating fraud risk, and providing visibility, businesses can focus on growth and efficiency.

FX automation

Fire’s FX tools provide competitive rates, multi-currency support, and the ability to lock rates at payment initiation. Lenders gain better control over international invoices and cross-border payments, reducing exposure to currency fluctuations while supporting improved margins.

Payee verification

Automated account name-checking through the UK’s Confirmation of Payee (CoP) and EU’s Verification of Payee (VoP) ensures payments are sent only to verified recipients. Fully integrated into Fire’s platform, these checks minimise fraud risk and prevent misdirected payments.

API-based reconciliation

The Fire Payments API enables multi-currency payouts with batch automation. Transactions can be automatically matched to loan IDs or invoices, simplifying high-volume disbursements and reducing administrative burden while providing full operational visibility.

A real-world example

Consider a lender disbursing microloans to SMEs in the UK and Ireland. Managing repayments in multiple currencies requires navigating FX volatility, manual reconciliation, and verification checks. Using Fire’s integrated payments solution, this lender can automate the full workflow: locking FX rates at payment initiation, verifying recipients in real time, and reconciling transactions through the API. This approach reduces manual processing time by several hours weekly, lowers FX-related costs, and minimises errors and fraud risk, resulting in a more efficient, scalable, and resilient disbursement process.

How integrated payments translate into better performance

Integrated payments solutions help alternative lenders streamline operations and protect profitability:

• Faster settlement times: Automated disbursements and reconciliation ensure payments are executed and matched instantly once predefined conditions are met.
• Lower FX costs: Automation and rate-locking minimise exposure to market fluctuations and prevent costly delays.
• Reduced fraud losses: Embedded CoP and VoP checks ensure payments are directed to verified beneficiaries.
• Scalable disbursement infrastructure: API-driven automation supports growing transaction volumes without increasing operational overhead.

From operational pain to competitive advantage

As alternative lenders diversify and expand across borders, managing disbursements efficiently becomes essential to protecting margins and scaling sustainably. Integrated payment solutions can transform payments from an operational burden into a strategic advantage.

Fire partners with lenders to deliver tailored solutions that streamline disbursements, reduce risk, and protect margins through built-in FX and payee verification.

Learn more about Fire’s FX and international transfers offering, or contact us to discuss how automation can streamline your disbursement processes.