Cross-border CNY payment available through FTZ

Friday 21 February 2014 11:30 CET | News

Shanghai Head Office of the Peoples Bank of China (PBC), the countrys central bank, has made available the CNY cross-border payment in the newly established Shanghai free trade zone (FTZ) so that people may purchase items from online shops overseas.

PBC’s Head Office in Shanghai has stated that Allinpay, 99Bill, China Pay, Dongfang Electronics and Shengpay are now allowed to process cross-border payments in the Chinese currency for cross-border trade in the China (Shanghai) Pilot Free Trade Zone.

Based on the service, the five payment firms will open a cross-border CNY account at the Shanghai branches of Industrial and Commercial Bank of China, Bank of China, China Construction Bank, China Merchants Bank and China Minsheng Bank to park provisions for cross-border CNY payment. The service requires no currency exchange procedure, and makes online shopping possible from offshore websites for regular Chinese shoppers, according to Chinese media reports.

By taking into account the central banks guidelines, companies that have online payment service licenses and are either incorporated in Shanghai or run subsidiaries in the free trade zone are eligible to provide CNY settlement for cross-border commerce of products and services.

The Shanghai FTZ was launched in September 2013 to transform the CNY into an international currency and hence, providing financial liberalization.

Speaking in numbers, CNY’s market share in the traditional financial trade grew to 8.66 percent in October 2013 from 1.89 percent in January 2012, according to the global transaction services organization SWIFT. CNY only ranks behind the USD which remains the leading currency with a share of 81%. EUR has retreated to third place with a market share of 6.64 percent in October 2013.

Check out our Cross-border Ecommerce Research section here for more info on country-specific ecommerce facts & figures, preferred payment methods, risk and fraud, as well as ecommerce legislation & regulation for mature and emerging markets.

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: Free Trade Zone, cross-border, offshore, online payments, CNY, currency exchange
Categories: Payments & Commerce
Countries: World
This article is part of category

Payments & Commerce

Industry Events