HSBC Bank has recently launched its first multi-currency digital wallet that helps small and medium-sized enterprises (SMEs) speed up international payments for their businesses in a cost-efficient manner.
HSBC Global Wallet is the first multi-currency wallet that does not involve the need for third-party providers for international payments. This eliminates comparable fees and beneficiary bank charges, allowing SMEs to make cheaper and faster payments.
HSBC clients in the United States can send money in various currencies and can manage and hold them in their wallets as well. The service is available on HSBCnet, which is the bank’s existing business platform. HSBC Global Wallet was also launched in the United Kingdom and Singapore and the bank plans to introduce it in more markets by 2022. Buyers can pay via domestic payment networks.
HSBC Research revealed that 87% of SMEs plan to expand their international business. Customers can send and hold payments in currencies namely, the Hong Kong dollar (HKD), euros, the US dollar (USD), Canadian dollar (CAD), Singapore dollars (SGD), British pound sterling (GBP), Australian dollar (AUD), and Malaysian ringgit (MYR). However, they can only receive payments in three currencies, HKD, USD, and GBP for now. More currencies will be made available progressively.
Customers can also view the exchange rate of currencies before they initiate a payment and can make changes if necessary.
Global Wallet removes third-party providers and unnecessary fees
Winnie Yap, head of global liquidity and cash management, HSBC Singapore said, "Making international payments can be complex for SMEs, weighing on cost and precious resources".
"Global Wallet removes the pain points by enabling our customers to virtually, speedily, and securely transact with their suppliers and clients around the world, just as they would within Singapore," she added.
Li Lian Ng, head of business banking, HSBC Singapore said, “The launch of HSBC Global Wallet cements our commitment to scale up our SME banking capabilities in the Republic. Drawing on HSBC’s deep digital expertise and wide global network, we are helping SMEs to build resilience and trust within their global supply chains while making everyday banking easier”.
“We are excited that the US is one of the first markets in which we are launching HSBC Global Wallet,” said Drew Douglas, head of liquidity and cash management, US and Canada.
“As we continue to focus on making international business easier and more efficient, this innovative solution will allow our commercial US clients to effectively manage their foreign currency balances locally and to pay internationally like a local. We are excited about the launch and we’re looking to expand the breadth of currencies as we move forward and introduce received ‘like a local’ functionality in the future.”
HSBC customers benefit from managing foreign exchange (FX) upfront and it ensures that the correct amount settles in the accounts of their international suppliers and vendors. HSBC Global Wallet allows businesses in the US to operate globally with considerable reliance.
The launch of the new digital wallet is a win for HSBC in today’s economy. The part that is notably missing is the introduction of cryptocurrency in its wallet. The multi-currency accounts offered by various fintech such as Revolut and PayPal that allows users to buy, sell and hold multiple cryptocurrencies are taking over the market rapidly. While HSBC has “a pipeline of new currencies and enhancements,” the bank didn’t mention any plans to introduce cryptocurrency into its business.