B2B Payments

HSBC Marks $100B In Mobile Corporate Payments


Mobile payments are typically viewed as a consumer solution, but new data from HSBC finds enterprise use of mobile payments is nothing to scoff at.

The bank revealed on Wednesday (Oct. 5) that more than $100 billion has now passed through its mobile corporate payments platform throughout the globe, just five years after the launch of the HSBCnet mobile corporate banking system.

In just the last 18 months alone, HSBC said, total transaction volume of mobile payments initiated by corporates has more than doubled.

"Business uptake of mobile payments is gathering significant pace, as the functionality and flexibility of this channel gains trust and acceptance in finance and treasury departments globally," said HSBC Global Head of eCommerce, Global Liquidity and Cash Management Nadya Hijazi.

Data also revealed what HSBC described as a "sharp increase" in mobile payments made by CFOs and corporate treasurers, with 1.2 million transactions made over the platform since its 2011 launch. The bank said 564,000 mobile corporate payments have been made so far this year, compared to 371,000 in the whole of 2015.

Reports said HSBC is adding new features to its corporate mobile payments solution as it gains traction. The bank has just added a new feature that notifies CFOs and treasurers of payments ready for authorization and now supports authorization of cross-border payments, as well as foreign exchange rate booking, reports said.

Last year, HSBC revamped its focus to push for mobile payment adoption within the enterprise after releasing a study that found B2B payments players were ready to integrate mobile payments solutions into their workflows.

"Mobile payments mean there is instant reconciliation," said Frances Howell, CMB head of payments and cash management, in an interview in response to HSBC's report. "Being paid faster improves a company's liquidity and cash flow performance by extending their ability to pay their own creditors faster."

Hijazi also pointed to the added benefits of mobile at the time of the report. "Digitizing payments also enhances visibility over the workings of a business," said the executive. "More comprehensive, accurate payments information can be captured and retained. Finance directors can, at a glance, better gauge the financial position of their subsidiaries, trading partners and contractors, enabling them to make more informed buying or credit decisions."



The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

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