OnPay international funds transfer services for SMEs
OnPay November 17, 2021
China is the world’s largest trading partner. The RMB trade settlement volume reached 6.77 trillion yuan in 2020. Despite this immense volume, international payments are riddled with issues such as long delays, high costs and considerable risks.
International payments, a thorny problem for international trade
International payments are under increasingly strict scrutiny from financial authorities around the world and several countries impose dire restrictions on international capital flow. Existing international payment and trade settlement solutions depend almost completely on the Swift system. Multiple institutions must cooperate to complete a payment settlement, the transfer takes up to 5 days, and the transaction fee costs up to 3% of the amount transferred, seriously impairing the efficient use of enterprise funds. Some enterprises use underground channels to exchange currencies and face the risk of having their bank accounts frozen and investigated.
Insufficient currency options
Only a few mainstream currencies can be transferred internationally. This increases the cost and complexity of trade payments for developing countries.
International SWIFT transfers involve multiple institutions and take up to 5 days.
International transfer fees cost up to 3% of the amount transferred.
Some enterprises use underground channels to exchange currency and face an accrued risk of having their bank accounts frozen and investigated by authorities.
Blockchain technology applied to international payments
The rapid development of the blockchain technology in the field of finance in the recent years allowed for a broader range of applications. The blockchain technology offers the clear advantage of peer-to-peer distributed shared ledgers, hence bypassing intermediaries to achieve reduced transaction costs and almost frictionless international funds transfers.
In China, the development of innovative applications of the blockchain technology, including international payments, is a declared government goal. On October 24, 2019, General Secretary Xi Jinping stressed at the 18th collective study of the Politburo of the Central Committee that “We must take the blockchain as an important breakthrough for independent innovation of core technologies[...] and accelerate the development of blockchain technology and industrial innovation.” Various government organizations at all levels also issued policies to promote the research, development and application of the blockchain technology.
OnPay helps enterprises to collect and exchange international payments
Thanks to the blockchain technology, OnPay users can do without intermediary banks and not only enjoy fast and convenient international payments, but also benefit from the security inherent to the blockchain data structure.
OnPay supports 150+ currencies and serves countries and regions not covered by traditional payment services.
OnPay fiat reserves are safeguarded in licensed trusts held by internationally renowned banks.
Lower foreign exchange cost
Direct exchange instead of a double exchange to and from US dollars allows OnPay users to slash down their currency exchange costs.
Same day settlement is the norm, transfers can be completed as fast as 1 hour.
The blockchain technology allows fast, convenient and secure international payments.
This new payment model offers a simpler process. Enterprises can receive payments and exchange currencies as soon as they have completed the verification process.
OnPay solutions are applied to the fields of international trade, cross-border advertising, payment of expatriate workers wages, international studies, tourism, e-commerce, and more.
To this day, OnPay helped hundreds of small and medium enterprises to complete over 10,000 international transfers, and will continue to develop its market share and influence by providing the best and most reliable payment solution for SMEs.