HSBC's Global Transaction Banking Services business today announced it will provide clients a centralized-secure payment service across Canada, the United States and Mexico.
The payment service from one of the world's largest financial institutions is geared toward clients that need to make payments to trading partners within North American Free Trade Agreement (NAFTA) countries. It especially benefits multinational companies in the automotive, pharmaceutical, technology, logistics, and consumer goods sectors that do business in any of these three markets.
"NAFTA has increased commerce across these important economic centers, and increased a client's need to expedite payments, reduce payment file formatting, and save money," said Michael Gallagher, head of global transaction banking for NAFTA countries at HSBC. "Before introducing this service, corporate treasurers were generally required to maintain multiple banking relationships. Clients now have the choice to use one bank to process payments in U.S. dollars, Canadian dollars, and Mexican pesos - reducing risk, errors and costs."
"HSBC is proud to launch a service that will streamline the payments and cash management process for many of our clients," said Martin Glynn, president and chief executive officer, HSBC Bank USA, N.A. "This is another example of how HSBC can use its global network to develop cross border services for its domestic and international client base."
HSBC's payment process is flexible and allows clients to send check, wire money transfers and Automated Clearing House (ACH) payments in one file-format whether those payables are in a single currency or in multiple currencies within North America. Through its presence across NAFTA countries, HSBC is able to facilitate all payment types into one consolidated file via HSBC Connect - a secure host-to-host file-based delivery channel.
"Corporate treasurers will no longer have to maintain a variety of in-country formats. They will have the ability to transmit data for high and low value payments across NAFTA countries with confidence and ease," added Michael Gallagher. "And the added benefit of keeping the payment flows within one institution."