Payment fears putting businesses off overseas growth

Concerns over international payments are putting many UK businesses off using overseas suppliers or selling to other markets, according to a new HSBC UK survey.

The survey of more than 1,000 financial decision-makers reveals 43% are discouraged from doing business internationally because of uncertainty over hidden payment costs.

Other concerns include payment security (38%) and having to deal with different currencies (37%).

HSBC UK has today launched its integrated HSBC Global Wallet payment solution within its digital banking platform for small and medium businesses.

Tom Wood, Head of Global Payments Solutions at HSBC UK, said: “For smaller businesses, international payments can appear complicated and opaque. With transactions often attracting unexpected fees, it’s unsurprising that many businesses are reluctant to look overseas for growth.

“HSBC Global Wallet, our multi-currency business account, offers a simple and transparent solution. By giving businesses different currency wallets and access to HSBC’s global payments network, it provides visibility, reach and control.

“Its real-time access to FX rates ensures businesses have clarity of payment costs and can proceed with confidence, seizing the vast opportunities available around the world.”

Age influencing attitudes to payments

HSBC UK’s survey also reveals that age is a factor in confidence levels when it comes to international payments.

Of respondents aged under-35, 60% are reluctant to do business internationally because of payment security concerns and 58% are put off by dealing with different currencies.

In contrast, of those 55 or older, just 27% share the same concerns over payment security and the same proportion were put off by dealing with different currencies.

Tom Wood, added: “It’s interesting that a greater number of younger respondents appear to have concerns around making international payments. It could be a case that they haven’t previously been involved in buying or selling their products or services abroad and are simply unclear on what’s involved.”

“For those thinking of growing their business internationally for the first time, Global Wallet provides a safe and simple solution.”

Pay and receive ‘like a local’

HSBC Global Wallet uses the bank’s global network to tap into local payment systems, cutting out friction as it sends and receives like a local.

This removes the need to use third-party providers, reducing the likelihood of unexpected fees from intermediary and beneficiary banks.

It’s integrated within HSBC UK’s digital business banking platform, so our customers don’t require multiple accounts and separate logins.

Instead they are able to self-serve, adding or withdrawing from each distinct currency wallet, alongside their everyday bank accounts.

Media enquiries to:

Robert Cox, Media Relations, HSBC UK, robert.cox@hsbc.com