International trade requires cross-border payment. What are the channels?

International trade payment method is a method of settling claims and debts with loans as the main content due to international commodity exchange. Different payment methods include different payment times, places and methods.

Generally, international trade payment will involve the concept of cross-border payment, and cross-border payment will involve a third-party collection and payment platform. Currently, the well-known cross-border payment platform on the market is Paypal. In China, our Alipay is also doing cross-border payment business. However, these large cross-border payment platforms are all for the European and American markets, and are used by relatively large e-commerce platforms. For small trading platforms, it is difficult for some small trading companies in my country to connect with these large third-party payment platforms. One is that the cost is extremely high, and the other is that the overseas destinations may not support transactions on these payment platforms.

Take Southeast Asia and Latin America as an example. In these places, it is very difficult to use PayPal for settlement. Coupled with policy issues in various countries, it is difficult to complete payment settlement in a short time. Credit card payments in these regions account for about 70% of all payment markets, but among them, only 20% of people have international credit cards. Therefore, the most important payment method is credit cards that support local currency transactions in these regions. Choosing a payment channel that supports local currency credit card transactions is an important step in opening up the Latin American market.

Taking an example from Brazil, the issuing organizations of Brazilian local currency credit cards are divided into international credit card organizations such as VISA and MASTERCARD, as well as local credit card organizations such as ELO and HYPERCARD. Currently, from the perspective of the entire market, there are only Cloud Wanwei's Pagsmile cross-border payment platform supports all credit card types in Brazilian local currencies, as well as credit cards issued by major Brazilian banks.

If you are doing overseas business, choosing the right third-party payment method is very important.