A complete guide for cross-border trades: tools for overseas and Mainland China transfers

eCommerce is gaining rapid momentum in Hong Kong. However, due to the complications of cross-border logistics and international customs clearance procedures, many eCommerce businesses can only stay local. Today, with financial technology, and cross-border eCommerce reaching a level of maturity, it’s time for your eCommerce business to expand globally.

What is cross-border eCommerce?

Simply put, it’s a form of online shop, where product display, order placement, payment, and customer service all happen online. The difference is that the buyer and seller are in different countries or regions, involving various currencies, tariffs, and export procedures. Cross-border transactions and logistics are inevitable challenges, as most eCommerce businesses do not have overseas warehouses, 

What are the existing cross-border transaction tools?

You should be no stranger to cross-border payment tools such as PayPal and Alipay, if you have any online shopping experience. Yet, for cross-border eCommerce, you will need to consider tools that support B2B transactions, enabling payment to suppliers and collection from corporate clients. The most popular cross-border transaction tools are:

1. PayPal

2. Western Union

3. Alipay 

4. WeChat Pay 

5. Payoneer

6. Credit cards

Cross-border logistics

Cross-border logistics may sound like a headache, but when you look closer, you only need to consider one of two ways: arrange delivery by yourself, or sign up for a cross-border eCommerce platform with an integrated logistics system. 

If you decide to manage order fulfilment by yourself, you will first need to choose between international express, air freight, or sea freight. Any good business person will know that delivery speed is key to customer satisfaction. Nonetheless, the faster the delivery, the higher the cost. You will also need to be careful with export declaration and import customs clearance procedures, as even the slightest mistake may cost you the whole shipment. 

Cross-border eCommerce platforms with one-stop logistics management services may be a simpler and more cost-effective option. Platforms such as Amazon offer a hassle-free integrated solution, with warehousing, stock management, and delivery tracking all on auto-pilot. As an eCommerce owner, all you need to do is to ship sufficient stock to the designated third-party warehouse. When the system receives an order, your product will automatically be packed and shipped without you lifting a finger. 

Mainland China cross-border transaction tools: WeChat Pay vs. Alipay

WeChat Pay and AliPay are the two most popular payment tools in mainland China. They each have launched a Hong Kong version to facilitate cross-border payments.

The major difference between the two is that WeChat Pay is a function within the WeChat app, which also doubles as an instant messaging application used by most people in China; Alipay is solely a payment tool.

Because of this fundamental difference, generally speaking, WeChat Pay is mainly used for daily consumption, such as grocery shopping and dining, whereas Alipay is mostly used for cross-border online shopping. 

That said, for cross-border eCommerce owners, it’s best to sign up for both WeChat Pay and Alipay accounts to tap into the vast market.

Overseas cross-border transaction tools: PayPal vs. Western Union

PayPal is one of the most-used cross-border payment tools around the world. Users can register for an account for free with only their email address and basic personal information. With the PayPal Commerce Platform, cross-border eCommerce owners can offer a wide range of international payment options for their customers, including credit ‌and debit cards. By reaching global customers, PayPal can be a valuable tool for global business expansion. 

Western Union is an express money transfer company, offering online remittance, mobile app transfer, and “start online, pay in-store” services. For cross-border transactions, you will simply need the recipient’s bank details. No account with Western Union is required. Transfers can be credited within minutes, and recipients can collect cash at one of the Western Union outlets – a value-added option for eCommerce owners who need to pay suppliers in cash. You may also choose to use the “Start Online, Pay In-Store” option, where you can lock in the online exchange rate for 12 hours, within which you will need to visit an agent location to pay for the transfer in person.  

Cross-border transactions with PayPal and Western Union 

PayPal users can simply register for a PayPal account with an email address. Users can start cross-border transactions right away once they link a credit card or bank account to their PayPal account. Though, Western Union users can initiate cross-border transfers without an account. All you need is the recipient’s bank details, and you can track remittance progress until the transfer is completed – in as fast as a few minutes. 

For PayPal merchants, any commercial transactions, including online shopping, will incur 3 merchant charges: commercial transaction rate, fixed fee, and additional percentage-based fee for international commercial transactions. For Hong Kong eCommerce, the transaction fee is 3.9% + a fixed fee of HK$2.35, plus an additional 0.5% fee for foreign exchange. 

As for Western Union, the service fees and foreign exchange rates vary depending on the currency and location of the recipients. The best way to find out all related charges and exchange rates is to go to the official website of Western Union. Notably, the fee for online remittances is different from in-store transfers. 

*Fixed fees vary depending on the currency received. All fixed fees listed in this article are based on HKD.

*Information as of 4 January 2024. Please refer to the official websites for more details.

Advantages and risks of PayPal and Western Union

Cross-border eCommerce, like all business, involves risks. Although PayPal and Western Union are two of the most trusted international payment tools, there are a few important things to note:

*Transfer money via credit card or cash deposit to the merchant’s bank through Western Union can be completed in as fast as 24 hours. However, the remittee can cancel the transaction if the merchant has not accepted the payment; payment has not arrived, or if the transaction is held up due to technical issues. 

FAQ for cross-border payments

Can I use a Hong Kong offshore business account for cross-border payments?

Yes. In fact, if the transaction volume or amount is large, using a Hong Kong offshore business account for cross-border transactions is a wiser option, as you can bypass the transaction limits imposed by cross-border payment platforms. However, the downside is that you will need to bear the hefty transaction fees and long processing time.

Which one is the cost-effective cross-border transaction tool?

Airwallex is a remarkably cost-effective international payment tool for cross-border retailers and suppliers. With Airwallex multi-currency Global Account, international eCommerce owners can collect payments with like-for-like settlement in 11+ currencies. You can also seamlessly integrate Airwallex with a plethora of eCommerce platforms, and offer over 160 local online payment options for customers around the globe, including credit cards, Apple Pay, Google Pay, and Alipay, streamlining cross-border cash flow management. 

More importantly, Airwallex never charges hidden international transaction service fees or monthly fees. We only charge an additional fee of as low as 0.2%, on top of the interbank foreign exchange rate for cross-border transactions. Sign up today.

Sources:

Information was retrieved as of April 2025, from the sources below. Information provided is for reference only. Please refer to the official websites for the most up-to-date details

1. https://pay.wechat.com/en/index.shtml 

2. https://www.alipayhk.com/en/faq-shoppers/making-payment-bill-payment/ 

3. https://www.alipayhk.com/en/faq-shoppers/top-up/  

4. https://www.paypal.com/hk/webapps/mpp/merchant-fees?locale.x=en_HK 

5. https://www.westernunion.com/hk/en/frequently-asked-questions.html 

Disclaimer: The information was based on our own online research and we were not able to manually test each tool or provider. The information is provided for educational purposes only and a reader should consider the specific requirements of their business when evaluating providers. This research is reviewed every 6 months. If you would like to request an update, feel free to contact us at [email protected].