Concerns about international payments are discouraging many UK businesses from dealing with suppliers abroad or entering new markets, according to a new study by HSBC UK.
The survey of more than 1,000 financial decision makers found that 43% are reluctant to conduct international business due to uncertainty about hidden payment costs. Additional concerns include payment security (38%) and managing different currencies (37%).
In response, HSBC UK has launched the HSBC Global Wallet payment solution as part of its digital banking platform for SMEs.
“For small businesses, international payments can seem complex and unclear. With unexpected transaction fees, it’s no wonder many businesses are reluctant to look abroad for growth,” said Tom Wood, Head of Global Payments Solutions at HSBC UK.
“HSBC Global Wallet, our multi-currency business account, offers a simple and transparent solution. By providing businesses with multi-currency wallets and access to HSBC’s global payments network, it provides visibility, access and control.
“Real-time access to foreign exchange 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 survey also highlighted that age impacts confidence in international payments. Of respondents under 35, 60% are reluctant to engage in international business due to concerns about payment security, and 58% are reluctant to deal in different currencies. In contrast, only 27% of respondents aged 55 or over share these concerns.
“It is interesting that younger participants are more interested in making international payments,” Wood added. “This may be because they have not previously been involved in international transactions and do not have a clear understanding of the process.
“For those considering international expansion for the first time, Global Wallet provides a secure and straightforward solution.”
Pay and collect “like a local”
HSBC’s global portfolio leverages the bank’s global network to integrate with local payment systems, reducing friction and eliminating the need for third-party service providers. This reduces unexpected fees from intermediary and beneficiary banks.
Integrated into HSBC UK’s digital business banking platform, the Global Wallet app eliminates the need for multiple accounts and separate logins. Customers can manage their own currency wallets, adding or withdrawing funds from them alongside their everyday bank accounts.
The post Payment fears deter UK businesses from pursuing overseas growth first appeared on Investorempires.com.