[This is a sponsored article with HSBC.]
Disclaimer: This article is for educational and informational purposes only. It is not intended to be a substitute for financial advice. Readers are encouraged to do their own research before arriving at any conclusions based solely on this content. Vulcan Post disclaims any reward or responsibility for any gains or losses arising from direct and indirect use and application of any contents of the written material.
While some Malaysian businesses have just caught up with local e-commerce trends, established SMEs may already be looking to expand into global markets.
If done right, international e-commerce brings lots of opportunities, including but not limited to: better brand visibility, the ability to take advantage of seasonal sales in different countries to avoid downtime, and to be the first-mover for your product/service in untapped markets.
But some of the biggest challenges involved in transacting across borders include the need to track multiple currencies, dealing with slow payment processing, being charged exorbitant transaction fees, and more.
In their 150+ years of serving Malaysians, HSBC has come up with relevant solutions for our banking needs. As Malaysia digitalised, so too have the bank’s products.
They include HSBC Receivables Financing, where SMEs get access to cash as soon as they invoice their customers, and HSBC Evolve that allows SMEs to lock foreign exchange (FX) rates today for a future transaction.
Now, with the rise of global e-commerce, they’ve launched HSBC Global Wallet (and HSBC Global Wallet-i) that’s geared to help entrepreneurs scale efficiently with proper management of international payments.
HSBC is a member of Perbadanan Insurans Deposit Malaysia (PIDM), allowing each depositor to be protected for up to RM250,000.
As of February 2022, HSBC Global Wallet is Malaysia’s only multi-currency digital wallet that will allow SMEs to hold, manage, send, and receive payments from multiple currencies, all of which can be done easily and securely from a single platform.
To break it down, here’s how HSBC Global Wallet simplifies international payments for growing SMEs.
1) Pay and receive* like a local
SMEs who are making international transactions might stress over exorbitant costs, and they’re not to blame. Not only are there fluctuating currency exchange rates to worry about, but there’s a chance that the third-party service might charge hidden or surprise fees.
By being able to transact in a range of up to 10 currencies currently, SMEs have better control and transparency over the costs of their international payments.
HBSC also states only flat fees are charged per transaction, and not based on the transaction value. To add, there are minimised correspondence bank fees for the “Pay Like a Local” feature.
Another worry is that cross-border payments may take up to few business days, but with HSBC Global Wallet, payments that SMEs make to overseas beneficiaries can be cleared within the same day or next day. HSBC Global Wallet payments use the respective countries local clearing rails, hence SMEs will be able to receive the funds fast and efficiently.
*Note: For now, users can receive CNY and HKD. Coming soon will be USD, GBP, SGD, AUD, EUR, JPY, CHF, and CAD.
2) Get more done in one place
Using HSBC Global Wallet, SMEs do not need third-party providers for international transactions.
Since the digital wallet is fully integrated within HSBC’s existing business banking platform, HSBCnet, entrepreneurs can benefit from having all of their banking solutions in one place.
This means that they can keep their focus on one platform and reduce the chance for errors to be made, saving SMEs time. And as we know it, time is money.
For those who prefer using their mobile phone, almost all the same services are available on the HSBCnet mobile app, barring the ability to create payments (viewing and authorising them is possible).
3) Exercise better visibility and control of overseas payments
By establishing just a single banking relationship with HSBC Malaysia, users are able to access a variety of financial relationships in other markets.
Not only does this quicken the entire transaction process, but it streamlines the payment flows an SME needs to keep track of.
Again, instead of having to track multiple payment channels, SMEs can save time while exercising better control and money management, which is critical for efficient cash flow forecasting.
4) Receive personalised FX rates
It’s a hassle for SMEs to keep up with currency conversion rates every time they need to make transactions at a high frequency, especially since the rates fluctuate and can be costly.
Thus, HSBC Global Wallet wants to empower SMEs to make faster decisions by providing them an immediate exchange rate before the payment is even executed.
Tailor-made for the ease of business
For companies that transact in large amounts, do note that if your incoming or outgoing transactions via your HSBC Global Wallet require an FX rate to be applied, there is a US$1 million limit applied per transaction. Otherwise, there would be no transaction limits.
HSBC’s suite of products is already trusted by more than 1.3 million commercial banking customers in 53 countries and territories, and their Global Wallet will further help SMEs go global.
HSBC Malaysia was recently awarded for the second year in a row the “Digital Bank of the Year” award by The Asset Triple A Digital Awards, a recognition of the bank’s continuous support to its clients during the pandemic using digital solutions, its commitment to help clients to transition to digital channels and the its efforts to digitise at scale to reimagine banking.
- Learn more about HSBC Global Wallet here.