(23 October 2024 – United Kingdom) HSBC has introduced a new cross-border virtual account solution for banks globally, allowing e-commerce merchant clients to receive payments in EUR and GBP through their local bank accounts.
Previously, businesses in certain regions could only access EUR and GBP funds via cross-border payments, which imposed higher costs on e-marketplace platforms and merchants due to additional fees and foreign exchange rates.
With the introduction of the virtual account, Chinese businesses trading on e-commerce platforms can now receive EUR and GBP payments through their local clearing system and into their own bank accounts, without the need to establish foreign bank accounts in those regions.
Lewis Sun, Global Head of Domestic and Emerging Payments at HSBC, commented: “We are delighted to be leading the way in this space and building truly innovative solutions for our clients. HSBC is committed to unlocking the potential of our expertise and network for our clients to help them succeed in a digital age – the launch of virtual accounts solutions to banks is an important part of this vision, helping to empower clients in a digital economy.”
The virtual account assigns each business a unique account number, enabling the domestic bank to identify the corresponding merchant for each transaction and to reconcile payments seamlessly, ensuring merchants get paid faster.