Guangdong-Hong Kong Express Payment
Back to Digital BankingCross border payment now faster and more cost effective
With the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) now being a sizeable growth engine of China, efficient and low-cost fund transfer has become a success factor for corporates to tap into the unlimited business opportunities there. The newly-launched solution of Guangdong-Hong Kong Express Payment is now available to support payments in CNY, HKD and USD from HSBC China's branches and sub-branches in Guangdong Province to banks in Hong Kong (including HSBC Hong Kong and other banks), and able to keep track of payment status in real time to help clients with renewed business growth.
Highlights
- Support 3 main currencies: CNY, HKD and USD
- Faster, as fast as 2 minutes *
- Lower payment rates
*The payment instruction will arrive at beneficiary bank in 2 minutes the soonest.
The crediting time is subject to the speed of processing by the beneficiary bank.
Payment flow is clearer and more controllable
- Instant Payment Alerts
- Payment e Advice for account reconciliation
- Real time payment status tracking, including the statuses of intermediary bank and beneficiary bank processing USD and HKD payments
- Support payment status checking via HSBCnet , HSBCnet Mobile APP and HSBC China WeChat Enterprise Account
Cross border solution unlocks the unlimited opportunities
The newly-upgraded Guangdong-Hong Kong Express Payment offers a faster and more cost effective solution for businesses to tap into the growth potential of the Greater Bay Area (GBA).
Speed matters, "just-in-time"service facilitates business growth
Thanks to Hong Kong’s position as the world’s top trading hub, the Greater Bay Area offers a unique seedbed for the development of trade. Faster connectivity between Guangdong and Hong Kong is thus essential for trading companies to fully capitalise on the strength of the area in order to enhance their global competitiveness. A GBA-based trading company, in particular, has benefitted in a big way from this solution.
Three to four days a week, the company needs to exchange RMB for USD to purchase raw materials from its Hong Kong-based supplier. However, due to Covid-19, global commodity prices went through some wild swings and exchange rates were far more volatile than ever before. If the company fails to pay its supplier in USD on time, the cost of raw materials would be dramatically different. So it is critical for the company to lock in the best exchange rate and pay its supplier on time in order to secure continued business growth.
One of the highlights of the solution is that funds can arrive at the beneficiary bank in 2 minutes the soonest after the payment instruction is issued. With this innovative digital solution, the company has come to realize how "fast"cross-border payments can be and, as a result, how much easier it is to manage its business now. "It can help us locking in the import cost and the currency exchange rate, and enable same-day cross-border payments. It has delivered real operational efficiency gains and financial cost savings for us."said the company owner with a tinge of emotions.
For E-commerce, everything has to be fast
With China's economy taking the lead in post-COVID recovery, many cross-border e-commerce companies stand to benefit as the "new favourites"of our times. For a B2C cross-border e-commerce platform, every shipment represents a test to its logistic efficiency. But what worries the company’s finance team most is cross-border payment of delivery fees. As the payment processing fee varies depending upon the payment amount, there is often an embarrassing situation where the actual payment amount being credited to the beneficiary account is insufficient to cover the delivery fees. As a result, how to make an accurate forecast of the payment cost has become a "cause for concern"for the company.
This solution offers preferential rates for payment fees with single transfer transactions now more than 20% cheaper. "With full transparency of payment fee, it brings huge cost savings in aggregate. Now we are able to ship more goods within the same logistic budget so that overseas consumers can enjoy our products and services with greater speed and convenience."said the company’s finance leader.
A centralized cash management solution for cross-border entities
A brand can soon go viral across the globe with the power of marketing campaigns. Behind every creative advertisement are often painstaking efforts of an advertising agency. However, a world-leading online advertising platform, with its business network across a number of countries and territories, used to be troubled by cross-border payment matters. The company is headquartered in mainland China while its revenue management function is based in Hong Kong. In order to centralize the financial management, the group would use an NRA (non-resident account) for huge amounts of cross-border payment. But making payments to Hong Kong used to be slow, costly and devoid of status tracking. So how to gain real-time visibility of the payment progress for more efficient financial management has become a "pain point" for the group.
It provides a clear flow for payment status checking via HSBCnet, HSBCnet Mobile APP and WeChat Service Account. It also supports real-time payment status tracking, including the processing status of USD and HKD payments in intermediary bank and beneficiary bank and provides payment e-Advice for account reconciliation. "We feel very comfortable using this solution. It makes it easier and faster for us to handle and track payments to Hong Kong and brings significant efficiency gains to our financial management." said the senior management of the group.
"With the Guangdong-Hong Kong-Macao Greater Bay Area now being a sizeable growth engine of China, efficient and low-cost fund transfer has become a success factor for corporates to tap into the unlimited business opportunities there. Our solution is designed to empower clients with a digital solution for cross-border payment that can help them seize emerging opportunities in the area for renewed business growth."
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"Our solution can effectively address the diverse needs of corporates for cross-border payment in the GBA. The solution supports payments in CNY, HKD and USD. Payments can be done faster and cheaper in a clearer and more controllable process. HSBC will continue to launch more industry-leading payment solutions to help companies explore new opportunities for business growth in this area."
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