How to choose your cross-border payment collection tool?

Kirstie Lau4 minutes
Finance
How to choose your cross-border payment collection tool?
In this article

Cross-border merchants often face operational challenges involving multiple currency exchanges, various payment methods, and unpredictable remittance times. These can all be avoided if they know how to choose the most suitable cross-border payment collection tool. In this article, Airwallex introduces four of the most popular cross-border payment tools to help you make the best decision.

Why do you need a cross-border payment collection tool?

In most cases, cross-border merchants conduct international transactions via overseas platforms. As the settlement currency on these platforms differs from the merchant’s local currency, funds cannot be directly deposited into the merchant’s bank account. This gap is bridged by cross-border payment collection tools, which first collect funds from the overseas platform, perform currency exchange, and then deposit the converted funds into the merchant’s bank account. 

What are the functions of cross-border payment collection tools?

Basic cross-border payment collection tools typically support payment collection and remittance in multiple currencies across various countries. They are often compatible with a wide range of cross-border commerce platforms, allowing merchants to seamlessly integrate the payment tool into their many online sales channels. More advanced cross-border payment tools offer one-stop cross-border trading solutions, including online payment, financial management, and data analysis. 

What are the available options?

Below are the popular cross-border payment collection tools*:

Paypal

Paypal is one of the earliest players in the world of cross-border payment collection. It is now available in over 200 countries, supporting 20+ currencies. The threshold of usage is relatively low — merchants can get started by registering a PayPal account using their email address and linking it to their bank account.

Payoneer

The operational model of Payoneer is quite similar to that of Paypal. Significantly, Payoneer has established a sub-brand designed specifically for the Chinese market, and has partnered with MasterCard to introduce a prepaid card product (also known as P card). Merchants need to first open an account with Payoneer, before conducting global transactions in various major currencies. 

HSBC Merchant Box

HSBC has launched a cross-border payment collection service called “HSBC Merchant Box”, allowing existing bank customers to directly connect their HSBC Integrated Business Account to the service for seamless cross-border payment collections, foreign exchange, international payment, and cash withdrawals. Merchants can choose to open payment collection accounts in various locations and receive major currencies, such as USD, GBP, and EUR directly. They can then transfer necessary funds to their HSBC Business Account based on real-time exchange rates. 

*Information as of 16 October 2023. Please refer to the respective official websites for details. 

How do you choose the best cross-border payment collection platform?

Before signing up for a cross-border payment collection platform, it is essential to consider these four major factors: 

  1. Coverage: Make sure the platform supports all regions and currencies relevant to your business, including your future growth plans.

  2. Compatibility: The payment collection platform must be able to seamlessly integrate with your commerce platform to avoid unnecessary operational complications.

  3. Security: Verify that the cross-border payment collection platform holds necessary licenses and complies with international security standards to safeguard your funds.

  4. Cost-efficiency: Pay close attention to hidden fees, such as transaction fees, foreign exchange fees, and withdrawal fees. 

Problems you may encounter with cross-border payment collection tools

With a majority of cross-border payment collection platforms being overseas entities, it is common for merchants to bear the cost of double conversion. For example, when your customers pay in GBP, the overseas payment collection platform will first convert GBP to USD, and convert again to HKD when you initiate a withdrawal. You will be charged double for the foreign exchange services, and suffer losses from exchange rate differences. 

Airwallex – characteristics of a cross-border payment collection platform

Accept payments from around the globe

Airwallex supports over 150 countries/regions and offers multiple local transfer options, ensuring the fastest and most cost-efficient way of payment collection.

Cross-border payment

Direct payout to global suppliers and employees using the receiving currency, while enjoying market-beating exchange rates, to further minimize the cost of cross-border remittance.

40+ major currencies

Cross-border merchants can conduct international transfers in 46 currencies with Airwallex. Transactions can be completed as fast as one working day.

API Integration

Utilize API to automate remittances and streamline complex business needs with large-volume global transfers, FX risk management, and more. 

Local customer support

Our professional customer support team is here to help you troubleshoot cross-border payment and fund collection issues in your preferred language anytime, anywhere. 

Support e-commerce platforms

Seamlessly integrate the Airwallex cross-border payment collection platform with popular e-commerce platforms, including Shopify and Woocommerce. 

Pricing model of Airwallex 

We offer flexible pricing based on the amount per transaction, with no account opening fee, service charges, or monthly subscription fee. If you’re ready to grow beyond borders, our powerful cross-border payment collection platform is here to support you.

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Kirstie Lau
Senior Associate, Growth Marketing

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