HKPay
Cross-border payment logic

I. Core essence: Cross-border fund transfer

The core of cross-border payment is to facilitate the transfer of funds from one country to another. This process involves multiple parties, including remitters, recipients, banks or financial institutions of both countries, and sometimes even intermediary banks. Payments are usually initiated in one currency and then converted into the target currency. This currency conversion step adds additional complexity to the transaction.

II. Economic dimension: Promoting global trade and investment

From an economic perspective, cross-border payments have significantly facilitated international trade and investment. Through this mechanism, enterprises can purchase goods and sell services globally, and individuals can also remit money to their relatives and friends abroad. This cross-border flow of funds provides crucial support for global economic growth and development.

III. Central role

Financial institutions play a central role in cross-border payments. Banks, as key players, provide the necessary infrastructure and services for transactions, undertaking tasks such as currency exchange, fund transfer, and payment settlement. Behind this lies a complex network of correspondent banking relationships and the utilization of international payment systems like SWIFT, which together ensure the smooth flow of funds between different national financial systems.

IIII. Technology-driven: Rebuilding the Underlying Logic

Technology is continuously transforming the way cross-border payments are conducted. New technologies such as blockchain and digital currencies are complementing the traditional systems. Leveraging its decentralized and immutable characteristics, blockchain has the potential to enable faster, more cost-effective and transparent transactions, reduce reliance on intermediaries, achieve real-time settlements, and fundamentally change the underlying logic of cross-border payments.