HSBC to offer Paypal as global disbursement option for corporate clients

HSBC to offer Paypal as global disbursement option for corporate clients

PayPal's strategy of making deals with big banks is bearing fruit, as HSBC becomes the latest to add the payment method to its global disbursement service for corporate customers.

The HSBC disbursements business already allows customers to reach beneficiaries globally in 136 currencies through domestic and international payment schemes while also enabling the status of payments to be tracked online.

The addition of PayPal will make life easier for customers dealing with suppliers who prefer doing business through their PayPal accounts.

Tom Halpin, global head of payments in global liquidity and cash management at HSBC, says: “Our collaboration with PayPal will significantly expand the payments network accessible to our clients through HSBC, allowing them to send payments to a much wider range of counterparties in a fast and efficient manner."

PayPal has been busy building ties with the big banks in the last year, inking a range of agreements across a full spectrum of payment channels with the likes of Bank of America, Citi and JPMorgan Chase, among others.

"Our agreement with HSBC demonstrates how PayPal’s strategy of partnership with global banking institutions is delivering significant benefits for businesses and consumers around the world,” says Jim Magats, VP, head of payments, product & engineering at PayPal. “PayPal and HSBC share a common vision of making payments simpler, secure and more convenient for merchants and consumers who want to manage and move their money digitally around the globe."

Comments: (2)

A Finextra member
A Finextra member 29 March, 2018, 10:50Be the first to give this comment the thumbs up 0 likes

"PayPal and HSBC share a coomon vision of making payments simpler, secure and more convenient for merchants and consumers who want to manage and move their money digitally around the globe".

What happened to cheaper or more cost effective?

Merchants are looking for three key things (1) more competition in the payments arena so as to break up the duopoly that exists with the major card schemes today (2) Better access to the faster payments systems in a B2C environment (linked to (1) above), and (3) Lower cost of payment acceptance. Given they've now got into bed with the major card schemes PayPal only partly fulfill points (1). Point (2) may be achievable through mobile payments, but then they don't meet the criteria for point (3).

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 04 April, 2018, 15:18Be the first to give this comment the thumbs up 0 likes

Yo Fintechs, are you listening?

HSBC is a traditional bank, PayPal is a traditional fincumbent, they'll always be self-centered. By "making payments simpler, secure and more convenient", they obviously expect merchants to pay a premium.

Why don't you fulfill Anonymous Finextra Member's wish? You're supposed to change the world and be highly customer-centric, so this should be right up your alley.

Can we finally hope to come across some Fintechs That Will Sell What Consumers Want To Buy?

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