HSBC rolls out cross-border virtual account solution for banks

This new service enables merchants to receive payments in EUR and GBP directly through their local bank accounts. Previously, businesses in certain regions were limited to accessing EUR and GBP funds only through cross-border payment methods, which often involved higher fees and foreign exchange costs. These additional expenses posed challenges for e-marketplaces and merchants, impacting their operating costs.

With HSBC's virtual account solution, Chinese businesses trading on international ecommerce platforms can now receive EUR and GBP payments via their local clearing systems. This removes the need to establish separate bank accounts in foreign regions, simplifying payment flows and reducing associated costs.

Officials from HSBC cited by eastandpartners.com stated that the bank aims to advance its digital offerings to support clients' needs in an increasingly digital landscape. They emphasised that the bank’s virtual account solutions for banks mark a step forward in assisting clients as they operate in a digital economy.

The virtual account system assigns each business a unique account number, allowing the domestic bank to efficiently identify the appropriate merchant for each transaction. This system streamlines payment reconciliation, ensuring that merchants receive their funds with fewer delays.

Other developments from HSBC

In October 2024, HSBC partnered with Dowsure Technologies to improve trade financing solutions for businesses engaged in ecommerce in mainland China and Hong Kong. This collaboration integrated Dowsure’s ecommerce data solutions with HSBC’s banking services, aiming to assist SMEs that face challenges in obtaining trade finance.

In essence, the partnership simplified the credit assessment process for Amazon merchants applying for trade finance from HSBC. By leveraging transaction data, such as inventory, sales, and refund records, HSBC could better manage credit risks through real-time commercial data provided by Dowsure.