How to pay Chinese suppliers from Singapore (2026 guide)

Key Takeaways

• Knowing how to pay Chinese suppliers from Singapore matters more than most businesses realise. Your choice of method affects how much you pay in fees, how fast funds arrive, and how protected you are if something goes wrong.

• Paying your supplier in CNY (Chinese Yuan) rather than USD can cut costs by removing one round of currency conversion, but you need the right account to do it.

• Airwallex lets Singapore businesses hold, send, and convert CNY directly. There are no transfer fees when using local payment rails, and you get to save up to 80% on FX fees.

Wondering how to pay Chinese suppliers? This is a question many Singapore businesses face when sourcing products, materials, or inventory from China.

While sending money overseas might seem straightforward, the payment method you choose can have a significant impact on costs, settlement times, and the overall supplier relationship.

In this guide, we'll compare the main ways to pay Chinese suppliers from Singapore, explain when each method makes sense, and highlight the factors to consider before making a payment.

If you work with suppliers in other countries, and not China, check out our guide on paying overseas suppliers instead.

Which currency should you pay in: CNY, CNH, or USD?

China's currency exists in two forms, and understanding the difference matters for your costs:

• CNY (Chinese Yuan, also called Renminbi or RMB) is the onshore version used within mainland China.

• CNH is the offshore version used for cross-border transactions — including payments from Singapore.

Both represent the same currency, but they trade at slightly different rates because CNH floats more freely on international markets.

USD is widely accepted by Chinese suppliers and is the default for many international trade contracts. However, paying in USD when your supplier invoices in CNY adds an extra conversion step: once for you (SGD to USD) and once for your supplier (USD to CNY). That means two rounds of exchange rate markups.

Where possible, paying in CNY directly can reduce your total cost. To do this, you need an account that can hold and send CNY — which most traditional Singapore bank accounts cannot do without expensive conversion fees.

Want to pay your Chinese suppliers directly in CNY and save up to 80% on FX fees? Sign up for a free Airwallex account and make your first transfer.

What bank details do you need to pay a Chinese supplier?

The information you need depends on the type of transfer you're making.

For a SWIFT (international wire) transfer, you'll typically need:

• Your supplier's full legal business name

• Their bank name and branch address

• Their SWIFT or BIC code

• Their CNAPS code (China National Advanced Payment System number — similar to a sort code)

• A Purpose of Payment code, which Chinese banks use to classify the nature of the transaction

For a local CNY transfer (where you send CNY directly via local payment rails), you generally need:

• Your supplier's full legal name, exactly as it appears in their bank records

• Their bank account number

• Their CNAPS code

Always double-check the account name against any contracts or verified company documents before sending. Errors in the account name are one of the most common reasons payments are rejected or returned.

What payment terms should you expect with Chinese suppliers?

Chinese suppliers rarely offer invoice terms; you will almost always need to pay before or during production. The most common structure is a deposit before production begins, with the remaining balance due before the goods ship.

For first orders with a new supplier, keep your initial deposit as low as you can negotiate. This limits your exposure if a dispute arises. As your relationship with a supplier matures and trust builds, you may be able to negotiate more favourable terms over time.

Avoid paying 100% upfront to a new supplier unless you have independent verification of their legitimacy. If a supplier insists on full payment before production on a first order, treat it as a risk flag.

How to protect yourself when paying Chinese suppliers

Wire transfers to China are largely irreversible. Once the money leaves your account, recovering it in a dispute is difficult. Here is how to reduce your risk:

• Use structured payment methods on first orders. Alibaba Trade Assurance (covered below) holds payment until delivery or quality criteria are met — a meaningful safeguard when you don't yet know the supplier.

• Inspect before final payment. For orders with a deposit-and-balance structure, arrange a pre-shipment inspection before releasing the final payment.

• Only send to verified business accounts. Always confirm you are paying a registered company account, not a personal account. A request to pay a personal account is a common red flag for fraud.

• Verify payment details independently. If you receive updated bank details by email, call the supplier directly to confirm before sending. Invoice fraud — where scammers intercept email chains and substitute their own account details — is a known risk in cross-border trade.

8 ways to pay Chinese suppliers from Singapore

There is no single best way to pay a Chinese supplier. The right method depends on your order size, whether you're working with a new or established supplier, and how much buyer protection you need.

Here’s a quick overview, before we go into the details:

The information in this table has been reviewed to be accurate as of 3 June 2026.

1. Airwallex

Singapore businesses use Airwallex to hold, send, and convert CNY directly — without routing payments through USD or paying multiple rounds of conversion fees.

You can open a Global Account in CNY, which means you can receive funds, hold a balance, and pay Chinese suppliers in their local currency without converting back and forth from SGD every time.

When you send CNY to a mainland China bank account using local payment rails, there is no international wire fee, and transfers typically arrive the same day.

For day-to-day supplier spend, the Airwallex Corporate Card lets your team pay for supplier-related expenses directly, with transactions settled in the relevant currency. And for recurring transfers, you can set up scheduled payments from your Airwallex account without logging into your bank and initiating each wire manually.

The information in this table has been reviewed to be accurate as of 3 June 2026.

2. Bank wire transfer (SWIFT/telegraphic transfer)

A bank wire transfer — also called a telegraphic transfer (T/T) in Singapore — is the most traditional way to pay a Chinese supplier.

You instruct your bank to send a set amount to your supplier's Chinese bank account. The transfer travels through the SWIFT network, passing through one or more intermediary banks before arriving at your supplier's account. For large orders where both parties want a paper trail, this is the most trusted method.

The trade-off is cost. A standard outward telegraphic transfer at DBS, for example, carries a cable charge of S$20 per transfer for non-DBS accounts⁴. Handling commissions on transfers with FX conversion are currently waived, but FX markups and agent bank charges may apply.

The information in this table has been reviewed to be accurate as of 3 June 2026.

3. Wise

Wise is one of the most cost-transparent ways to pay Chinese suppliers. It converts your SGD to CNY using the mid-market exchange rate (the rate you see on Google) and adds a percentage-based fee starting from 0.23%¹ of the transfer amount.

Opening a Wise Business account is free. If you also want to receive payments in multiple currencies, Wise charges a one-time S$99 fee to unlock local account details in up to 22 currencies.

Wise does not offer buyer protection. Like a bank wire, once the payment is sent, recalling it in a dispute is difficult.

The information in this table has been reviewed to be accurate as of 3 June 2026.

4. Alipay and WeChat Pay

Alipay and WeChat Pay are China's dominant digital payment platforms. Most Chinese consumers and many small businesses use them daily. For suppliers, receiving a payment via these apps can feel familiar and convenient, especially for smaller orders.

However, both platforms are primarily designed for individual account holders, not businesses. Cross-border payments for trade purposes come with restrictions, and the process for a Singapore business to send money directly via Alipay or WeChat Pay is not straightforward.

Most businesses that use this route do so through a third-party payment service provider that supports these payment rails, rather than sending directly from a personal app.

The information in this table has been reviewed to be accurate as of 3 June 2026.

5. PayPal

PayPal is widely recognised and accepted by many Chinese suppliers who sell internationally, particularly those already experienced with overseas buyers. It offers a buyer protection scheme that gives it an edge over a bank wire for smaller or first-time orders.

However, the cost is significantly higher than what you’d pay on other platforms. For a standard commercial transaction from Singapore, PayPal charges 4.40% + S$0.50 per transaction². On top of that, PayPal applies a 4% markup above the base exchange rate when converting SGD to CNY².

PayPal's Buyer Protection programme applies to eligible purchases. If your supplier fails to deliver or the item is significantly different from what was agreed, you can file a dispute. Note that not all transactions qualify.

The information in this table has been reviewed to be accurate as of 3 June 2026.

6. Alibaba Trade Assurance

If you source goods through Alibaba, Trade Assurance is one of the strongest buyer protection tools available.

It works as an escrow-style system: you pay through Alibaba's platform, and the funds are only released to the supplier once you confirm the order has been fulfilled to the agreed standard — or once a set time period has passed without a dispute.

For Singapore businesses placing a first order with a supplier they haven't worked with before, this is often the lowest-risk payment method available. You get a formal recourse mechanism that a bank wire cannot offer: if a dispute arises, Alibaba reviews the evidence and can order a full or partial refund.

The caveat is that Trade Assurance is only available for purchases made through Alibaba.com. You cannot use Trade Assurance for purchases outside of Alibaba. Fees depend on the payment method you choose within Alibaba's platform.

The information in this table has been reviewed to be accurate as of 3 June 2026.

7. Letter of Credit (L/C)

A Letter of Credit is a bank-issued payment guarantee used in international trade. Your bank commits to paying your supplier a set amount once the supplier presents the agreed shipping documents — proof that the goods have been dispatched as contracted. The supplier's bank then releases the funds.

This method offers the strongest buyer protection on this list. Payment only moves when the documented conditions are met. For large, high-value orders with a supplier you have not worked with before, a Letter of Credit can provide confidence on both sides of the transaction.

The trade-off is complexity and time. Setting up a Letter of Credit involves your bank, the supplier's bank, and a detailed set of agreed terms and documentation requirements. Bank fees apply on both sides.

For most small and medium-sized businesses making regular repeat orders, the administrative overhead makes this method impractical. It is best reserved for large one-off or high-value orders.

The information in this table has been reviewed to be accurate as of 3 June 2026.

8. Credit and debit cards

Some Chinese suppliers — particularly those selling through international platforms or running their own online stores — accept credit or debit card payments. Cards are fast, familiar, and come with chargeback protection if goods are not delivered or are significantly not as described.

The main drawback is cost. Card payments to China typically involve a foreign transaction fee from your card issuer, a currency conversion markup, and sometimes a card surcharge from the supplier. These can combine to make card payments among the most expensive options on a per-transaction basis.

Cards also carry lower transaction limits than wire transfers, which makes them unsuitable for large manufacturing orders. They work best for small or platform-based purchases where buyer protection matters more than cost efficiency.

The information in this table has been reviewed to be accurate as of 3 June 2026.

Why Singapore businesses choose Airwallex

For Singapore businesses that pay Chinese suppliers regularly, Airwallex is the most cost-effective and straightforward option.

You can hold CNY in your account, pay suppliers directly in their local currency, and save up to 80% on FX fees compared to traditional banks. Here’s what you get with Airwallex:

Hold and send CNY directly

With an Airwallex Global Account, you can hold a CNY balance in your own name. When a supplier invoice comes in, you pay from that balance directly. No conversions take place, so you don’t incur any FX fees.

No international wire fees on local CNY transfers

When you send CNY via local payment rails, Airwallex does not charge an international wire fee. 93% of transactions arrive on the same working day. You get faster settlement at a lower cost — without the cable charges and handling fees that come with a standard bank wire.

Save up to 80% on FX fees

When you convert SGD to CNY, Airwallex uses a rate built on the interbank rate with a low, transparent markup. Our rates are competitive, letting you save up to 80% on FX fees.

Frequently asked questions (FAQs)

What is the safest way to pay Chinese suppliers from Singapore?

The safest method depends on where you are in the relationship. For first orders through Alibaba, Trade Assurance gives you the strongest protection — funds are only released when delivery conditions are met and Alibaba can mediate disputes. For off-platform payments, a Letter of Credit provides a formal bank guarantee, though it is more complex to arrange. For established supplier relationships, a direct bank wire or Airwallex transfer is standard practice.

What bank details do I need to pay a Chinese supplier?

For a SWIFT wire transfer, you typically need your supplier's full legal name, their bank name and branch, their SWIFT or BIC code, their CNAPS code (China National Advanced Payment System number), and a Purpose of Payment code. For a local CNY transfer, you generally need the supplier's full legal name, their bank account number, and their CNAPS code. Always verify the account name against a signed contract before sending.

Should I pay Chinese suppliers in CNY, CNH, or USD?

Paying in CNY (or CNH for cross-border transactions) is often cheaper than paying in USD, because it removes one round of currency conversion. When you pay in USD, both you and your supplier incur conversion costs — you convert SGD to USD, and your supplier converts USD to CNY. If you have an account that can hold and send CNY directly, paying in CNY typically reduces the total cost of the transaction.

What is the cheapest way to pay Chinese suppliers from Singapore?

For businesses that pay Chinese suppliers regularly, using a multi-currency account that can send CNY via local payment rails — like Airwallex — typically offers the lowest combined cost. When you pay Chinese suppliers through local rails via Airwallex, there’s no transfer fee, and you get to save up to 80% on FX fees.

How do I avoid getting scammed when paying Chinese suppliers?

Use Trade Assurance for first orders through Alibaba: it holds funds until delivery conditions are met and gives you a formal dispute mechanism. For off-platform payments, only send to verified business bank accounts and never pay 100% upfront to a supplier you haven't worked with before. If you receive updated bank details by email, always call your supplier directly to confirm before sending.

What is a CNAPS code and do I need one?

A CNAPS code (China National Advanced Payment System code) is a 12-digit number that identifies a specific bank branch in China, similar to a sort code in the UK or a BSB in Australia. You need it when sending a bank wire or local CNY transfer to a Chinese supplier. Without it, your payment may be delayed or rejected. Ask your supplier for their CNAPS code before initiating any transfer.

Sources:

1. wise.com/sg/pricing/business

2. paypal.com/sg/business/paypal-business-fees

3. https://helpcenter.alibaba.com/s/buyer/knowledge?questionId=cd071785253a4d8b8b128c1ed4a7a7eb&categoryId=9207651&categoryId=9207651&questionId2=21382365&pageId=128&category=9207651&knowledge=21382365

4. dbs.com.sg/personal/support/bank-overseas-funds-transfer-fees-and-charges.html

This publication does not constitute legal, tax, or professional advice from Airwallex, nor does it substitute seeking such advice, and makes no express or implied representations / warranties / guarantees regarding content accuracy, completeness, or currency. If you would like to request an update, feel free to contact us at [[email protected]]. Airwallex (Singapore) Pte. Ltd. (201626561Z) is licensed as a Major Payment Institution and regulated by the Monetary Authority of Singapore.