Mastercard

Mastercard To Improve Cross-Border Business Payments Into China 

Mastercard and the Bank of Shanghai announced businesses anywhere in the globe can now send payments to China more efficiently.

Under Mastercard Cross-Border Services, commercial customers will be able to transfer money to any bank in China, reduce transaction costs, and get real-time exchange rates for the Chinese Yuan, the financial services company said.

“China is a critical market for Mastercard’s customers, so we are delighted that Bank of Shanghai will help us advance the modernization of cross-border payments into China,” said Stephen Grainger, executive vice president of Mastercard’s New Payment Platforms, in a statement. “Our Cross-Border Services will enable our global partners to deliver a more convenient, cost-effective and certain payment experience for people and businesses everywhere.”

Bank of Shanghai is the latest worldwide financial institution to collaborate with Mastercard to offer people and businesses a more predictable way to pay and get paid across borders.

Mastercard Cross-Border Services connect 90 percent of the world’s population with credit cards, bank accounts, digital wallets and cash agents through a single and secure point of access, Mastercard added.

China is now the largest export economy in the world, according to the World Bank. In 2018, China exported $2.49 trillion to destinations including the U.S. ($479 billion), Japan ($147 billion), South Korea ($109 billion) and Vietnam ($84 billion).

“Cross-border financing has always been a core offering of Bank of Shanghai, and the current climate has led to a heightened customer demand for this service,” said Huang Tao, Bank of Shanghai’s vice chairman, in a statement.

Last month, PYMNTS’ Smarter Payments Tracker reported cross-border payments reached $29 trillion last year and are projected to rise to an estimated $39 trillion by 2022.

Still, the World Bank is anticipating a 20 percent drop in remittances this year due to the pandemic, and these so-called seamless remittances will need to make up the difference.

“The drop in remittance has [a] significant impact on world economies, especially for developing markets, which are highly dependent on remittances, as they are often seen as a source of spending power for recipients in [their] home countries,” Yogesh Sangle, global head of consumer business at the FinTech Nium, told PYMNTS. “A decline in spending power often has severe repercussions on [a] country’s economy as [funds] are frequently used to create a fiscal cushion for governments.”

 

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New PYMNTS Report: Preventing Financial Crimes Playbook – July 2020 

Call it the great tug-of-war. Fraudsters are teaming up to form elaborate rings that work in sync to launch account takeovers. Chris Tremont, EVP at Radius Bank, tells PYMNTS that financial institutions (FIs) can beat such highly organized fraudsters at their own game. In the July 2020 Preventing Financial Crimes Playbook, Tremont lays out how.

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