BEA China unveils cross-border RMB e-payment in Shanghai FTZ

It claims to be the first foreign bank to provide this service.

The Bank of East Asia, Limited announced that its wholly-owned subsidiary in Mainland China, The Bank of East Asia (China) Limited has signed a Co-operation Agreement on Cross-border Electronic RMB Payment Business with Shanghai Shengpay e-payment Service Company Limited. With the signing of this agreement, BEA China has become the first foreign bank to provide cross-border electronic Renminbi payment service in the China (Shanghai) Pilot Free Trade Zone.

In February 2014, the Shanghai Office of the People's Bank of China introduced Cross-border Electronic RMB Payment Business for institutions that provide payment services. This new initiative was rolled out in response to increasing demand for more cross-border RMB payment services.

Capitalising on this opportunity, BEA China has signed a co-operation agreement with SDP whereby BEA China will provide Electronic RMB Payment Service to the company’s customers. BEA China is the first foreign bank to join hands with a third-party payment institution to launch Electronic RMB Payment Service in Shanghai FTZ.

Banks authorised to provide Electronic RMB Payment Service will manage clients’ reserve accounts for third-party payment institutions, and provide fund settlement services. BEA China’s collaboration with SDP will enable the bank to further develop its international trade payment business as well as cross-border RMB settlement business under other current account items.

BEA China’s personal customers can also use the new Electronic RMB Payment Service to pay for goods purchased from overseas via the internet, overseas tuition fees, and flight tickets and hotel reservations in RMB.

Meanwhile, BEA China’s corporate customers can receive payments for goods in RMB directly, and settle payments in RMB through the bank’s Electronic RMB Payment Service channel.

In addition, the Shanghai Office of the China Banking Regulatory Commission has recently granted approval to BEA China’s Shanghai FTZ sub-branch to conduct personal banking business. With this approval, the bank’s Shanghai FTZ Sub-branch will focus on expanding its customer base including both domestic and international customers.