Concerns about international payments are putting many British companies off dealing with foreign suppliers or entering new markets, according to new research from HSBC UK.
The research, which surveyed more than 1,000 financial decision makers, found that 43% are hesitant to do business internationally due to uncertainty about hidden payment fees. Additional concerns include payment security (38%) and managing different currencies (37%).
In response, HSBC UK has launched the HSBC Global Wallet payments solution within its digital banking platform for small and medium businesses.
Tom Wood, Head of Global Payments Solutions at HSBC UK, said: “For smaller businesses, international payments can seem complicated and opaque. Because transactions often involve unexpected costs, it is not surprising that many companies are reluctant to look abroad for growth.
“HSBC Global Wallet, our multi-currency business account, offers a simple and transparent solution. By providing businesses with multiple currency portfolios and access to HSBC’s global payments network, it provides visibility, reach and control.
“The real-time access to currency rates ensures businesses have clarity on payment costs, allowing them to move forward with confidence and seize global opportunities.”
Age affects payment confidence
The HSBC UK research also found that age influences confidence in handling international payments. Among respondents under the age of 35, 60% are reluctant to do business internationally due to concerns about payment security, and 58% are put off by dealing with different currencies. Conversely, only 27% of respondents aged 55 or older share these concerns.
Wood added: “Interestingly, younger respondents appear to be more concerned about making international payments. This may be because they have not been involved in international transactions before and are unclear about the process.
“For those considering international expansion for the first time, Global Wallet offers a secure and simple solution.”
Pay and receive ‘Like a Local’
HSBC Global Wallet leverages the bank’s global network to integrate with local payment systems, reducing friction and eliminating the need for third-party vendors. This minimizes unexpected costs from intermediary and beneficiary banks.
Global Wallet is integrated into HSBC UK’s digital business banking platform, eliminating the need for multiple accounts and separate logins. Customers can manage, add or withdraw any individual currency wallet themselves in addition to their day-to-day bank accounts.