HSBC has launched a new cross-border virtual account proposition for banks globally, allowing merchant business customers trading on e-commerce platforms to receive EUR and GBP payments through their local bank accounts.
Before the introduction of this virtual account, businesses in certain regions could only access EUR and GBP funds via cross-border payments, which involved higher costs for e-marketplace platforms and merchants due to additional fees and foreign exchange rates.
The virtual account also allows Chinese businesses participating in platforms to receive EUR and GBP payments through their local clearing systems and bank accounts, eliminating the need to establish foreign bank accounts.
Lewis Sun, HSBC’s global head of domestic and emerging payments, expressed enthusiasm about leading the way in this area and developing innovative solutions for clients. He emphasized HSBC’s commitment to harnessing its expertise and network to help clients thrive in a digital economy, noting that the launch of virtual account solutions to banks is a key component of this vision.
The new virtual account, uniquely provided by HSBC, assigns each business a dedicated account number. This feature allows the domestic bank to accurately identify the corresponding merchant for each payment and streamline the reconciliation process, enabling merchants to receive their funds more quickly.