With a simple click of the mouse, you can easily transfer money from a Chinese bank account to a British one. There is no need to go to a physical bank counter to make cross-border payments, which is a benefit of using internet banking. When parents want to support their children with tuition fees and living expenses, or when a friend is asked to help with the purchase of luxury goods in the UK, how to transfer such a large sum seems like a difficult issue. Nowadays, as the world is becoming increasingly ‘flat’, the demand for financial services for personal payments is growing. Previously, people would have to go to a bank counter whenever cross-border payments were required, but now these large-scale cross-border remittances can easily be completed by online bank transfer. Let us look at how convenient internet banking is for cross-border payments.
Cross-border payments are transactions that involve the transfer of funds from one country to another. They would usually have taken place within financial institutions. Now, many banks offer online banking as a simpler cross-border payment tool. Technically, this is one of the best innovations in banking services because it is a convenient, low-cost tool, which meets people’s essential payment needs. Online banking is a virtual bank counter set up by banks on the internet. Banks use internet technology to provide customers with traditional services such as account opening, account cancellation, enquiries, reconciliations, intra-bank transfers, inter-bank transfers, credit, online security, and investment and wealth management, which enables customers to manage deposits, cheques, credit cards, personal investments, and especially cross-border payments, safely and conveniently without leaving their homes.
Currently, 18+ Chinese banks support cross-border payments via online banking, including the Bank of China, the Agricultural Bank of China, China Construction Bank, and China CITIC Bank. GlobePay specialises in cross-border payments between China and the EU. Our online payment supports both B2B and C2B. We accept payments from UnionPay cards as well as from all major digital wallets. Our service has the following advantages:
- 18+ participating banks in China
- Fast settlement cycle: T+1
- Unlimited transaction value
- Currency exchange and settlement services
- 24/7 technical support
In recent years, as increasing numbers of Chinese people live, travel, work and study abroad, the demand for cross-border payments is rapidly growing. Therefore, overseas remittances will become an important part of people’s lives. Finding the right cross-border payment tool and ensuring the funds arrive in a timely and low-cost way would be most people’s requirements.
There are two kinds of cross-border payment: one is small payments; the other is payments based on trade and transaction. For small payments, the main channels for Chinese people are third-party payment platforms, commercial banks and professional payment companies. Compared with the higher commission rates of commercial banks and the limited number of professional payment companies, third-party payment platforms can simultaneously meet the needs of users for cross-border payments while being convenient and charging low rates. For trade and transaction-related payments, the parties involve merchants, banks, international card organisations and platform companies with merchants and resources, third-party payment companies and consumers.
The three different kinds of payment method for tuition fees have their own advantages and disadvantages. For example, because the payment platform uses a real-time exchange rate and timely settlement method, which is suitable for some small cross-border payments, an instalment settlement is more suitable for paying tuition fees. For domestic collection (tuition fees collected in China), the benefit is that it can credit the account immediately, with the fastest period being T+0 day. Overseas collection is characterised by the timely settlement of funds and lower fees than the other two methods. Choosing GlobePay as the third-party payment company is a way to pay tuition fees that combines three modes. The payment process is as follows:
Our advantage is that GlobePay works directly with UK universities, charging students in China directly. Each tuition fee is settled according to the real-time exchange rate. There is no limit to the payment amount and the exchange rate is relatively low in comparison to other payment methods. The use of online banking for cross-border tuition payment has become a major trend. Compared with traditional bills of exchange or bank card payments, it not only saves time but also greatly reduces the intermediate handling fee. For details on using online banking for cross-border payment of tuition fees, please refer to the content on GlobePay’s official website.