Payment Solutions
OwlPay: Customized Payment Solution Designed for Hong Kong Importers/Exporters
Introduction
Hong Kong has thrived as a major trading hub for centuries, thanks to its strategic location and well-established financial system. Its prosperity in trade, finance, and commerce has positioned it as one of Asia’s most vibrant business centers. The smooth flow of capital, goods, and talent has contributed to its status as a global hub for import and export trade.
In the business dealings of importers and exporters, cross-border financial transactions play a crucial role. These transactions ensure the stability of partnerships between buyers and sellers and serve as the lifeblood of business operations. Historically, companies have relied on traditional financial institutions, such as banks, for cross-border remittances. However, this method often involves high transaction costs, lengthy processing times, and cumbersome procedures. In situations where no viable alternatives are available, businesses have had no choice but to accept the current state.
OwlPay: The New Generation Payment Service
Today, with the rapid advancements in technology, numerous innovative solutions have emerged. One solution that stands out is OwlPay, a comprehensive payment solution that offers numerous benefits to businesses, including enhanced efficiency, cost reduction, and practical features like reconciliation and order/vendor management. OwlPay was launched by the OwlTing Group, a Taiwan-based company that has ventured into various industries and developed a range of B2B and B2C platforms.
Among its B2B services, OwlTing Group offers OwlNest, a property management system tailored for hoteliers, and OwlTing Blockchain Service, a platform for blockchain applications. On the B2C front, OwlTing Market promotes high-quality Taiwanese produce; OwlTing Experiences offers unique travel experiences; OwlJourney allows travelers to book unique accommodations. These initiatives reflect OwlTing’s commitment to leveraging technology for a more prosperous and inclusive society.
In 2021, OwlTing Group introduced OwlPay, a payment service that collaborates with prominent Taiwanese financial institutions and international card organizations such as Visa. OwlPay focuses on providing secure and convenient payment methods, specifically cross-border remittance solutions, for businesses. In addition to its powerful features, OwlPay prioritizes transaction safety by partnering with industry leaders (such as Napier, Dow Jones Risk & Compliance, Chainalysis, and jumio) to ensure secure transactions and mitigate risks related to money laundering and financial crimes, and thus effectively safeguards user funds.
This article provides a detailed analysis of how OwlPay, an innovative cross-border remittance service, can enhance the operations of Hong Kong trading businesses. It highlights the advantages and convenience of leveraging cutting-edge technology.
Table of Contents
Introduction
。OwlPay: The New Generation Payment Service
Import-Export Trade
。Requirements of Trading Businesses
。Challenges of Cross-Border Remittances
Trading-Related Industries
。Food
。Clothing
OwlPay
。Affordable Fees
。Security & Compliance
。Multiple Payment Methods
。Collaboration across Industries
ConclusionImport-Export Trade
As a densely populated Asian financial center, Hong Kong boasts a thriving import-export trade sector that facilitates the exchange of products and creations from producers and manufacturers worldwide. Entrepreneurs in the import-export trade industry do not need to worry much about product development, design, or mass production. Instead, they must possess a keen eye for identifying promising commodities. Once a deal of purchasing these products is struck, it is crucial to arrange logistics and payments. Meanwhile, businesses also need to maintain strong relationships with suppliers. With the advanced finance system at this age, cash payments have become rare, significantly reducing the associated hassles and risks. However, when conducting payments through modern financial systems, there are still a few factors to consider.
Requirements of Trading Businesses
Throughout history, traders have played a vital role in connecting the world, and thanks to modern communication technology and advances in transportation and logistics, business owners in the trade industry no longer need to carry large sums of money for long-distance travel. The payment needs in trade are primarily fulfilled by various financial services provided by banks and the financial industry.
For decades, import-export trading businesses have relied on international wire transfers as their primary payment method. While it is crucial for trading businesses with worldwide vendors, there are significant drawbacks, particularly for those who frequently engage in cross-border transactions. The transaction fees are high; the process can be cumbersome and time-consuming. In addition, exchange rates are crucial in international funds transfer, especially when dealing with large sums of money. If a business can exchange currency at a more favorable rate, it can provide a beneficial boost to the company’s operations.
The rapid growth of internet technology has created numerous new industries and unprecedented possibilities for existing ones, bringing forth new hope. For instance, in the payment-related services sector, new-generation payment services such as OwlPay leverage the advantages of the Internet.
Traditional bank wire transfers rely on outdated technologies such as paper-based processes and telegrams, whereas OwlPay offers a more efficient and modern solution. The all-in-one solution is committed to providing fast, affordable, and transparent cross-border remittance services, allowing users to enjoy more favorable transaction fees with ease.
OwlPay offers valuable features, including order/vendor management and reconciliation. By using OwlPay, business owners and employees can save time and money, invest in core business activities, and expand their business footprint.
Challenges of Cross-Border Remittances
Unlike domestic transfers, cross-border remittances involve a more complex process. Take the most common method, wire transfers, as an example; it typically requires using a traditional bank or financial institution’s online banking platform or even physically visiting a branch or institution to initiate the transaction.
During a wire transfer, the payer must provide detailed recipient account information to the bank, including the recipient’s name, bank account number, and sometimes a routing number (only required when sending money to the U.S.), among other details. Wire transfers can take two to five days to be completed; the exact duration varies based on the bank and the recipient’s country. Additionally, they often incur various fees.
While wire transfers provide a secure method for sending funds worldwide, they do have their downsides. One major drawback is the fees imposed by intermediary banks, which can accumulate into significant expenses over time. The extended waiting period can be challenging in today’s fast-paced business environment.
Furthermore, while banks typically offer both cross-border payment and currency exchange services, it does not guarantee that the same bank will provide favorable exchange rates and fee structures at the same time. This is why many businesses engaged in frequent cross-border remittances, such as import-export-trading businesses, are seeking alternatives.
Trading-Related Industries
According to data from the Hong Kong Census and Statistics Department (Link), the trading and logistics industry has emerged as the category with the highest GDP among the four key industries in 2021, accounting for 23.7% of the total. It has surpassed the financial services industry, which held the top position in 2020. Here, we will use examples such as food and clothing to illustrate the patterns and demands of import-export-trading businesses.
Food
Due to its mountainous terrain and limited flat land, Hong Kong heavily relies on imported products to meet its agricultural and food needs. It imports renowned products such as Thai rice, durian, Taiwanese mangoes, wax apples, and jujubes. Because of fruits’ seasonal and perishable nature, storing them for extended periods or purchasing them in large quantities in a single batch are not ideal practices. As a result, food importers often need to import these products in multiple batches and make cross-border payments more frequently, particularly during the fruiting season.
Under this business model, bank telegraphic transfers (bank TT), with transaction fees as high as $25 to $30 and exchange rate losses during currency conversion, pose a significant cost burden for enterprises specializing in food and fruit import and export. Bank wire transfers can also be inconvenient due to the time it takes for a transaction to be settled, typically ranging from two to five days.
Therefore, businesses can consider adopting innovative digital third-party payment tools as a worthwhile alternative. These tools can help save costs and improve efficiency.
Clothing
In addition to food products, fashion, skincare, and cosmetics from South Korea are also quite popular in Hong Kong. While these products do not face fresh food’s short shelf life and perishability issues, they contend with rapidly changing trends. The fashion industry is known for its fast-paced and highly market-sensitive nature. In the age of easily accessible online information, major events, news, or trends driven by KOLs can spread worldwide within a day, and so is the ever-changing fashion industry; therefore, its clientele consists of customers who seek the latest trends.
Traditionally, trading companies have relied on bank transfers for procurement. However, this process often involves multiple intermediary institutions, leading to high transaction fees and lengthy settlement times. When businesses need to make frequent payments, these costs can accumulate significantly over time. The risk of exchange rate fluctuations involved in cross-border remittances also makes bank transfers less appealing in terms of convenience and efficiency.
With technological advancements and the diversification of payment methods, bank transfers are no longer the only choice. It is worth considering the utilization of advanced technology in third-party payment services as an alternative. This approach eliminates the need for physical trips to the bank and overcomes the constraints of banking hours. It enables teams to save time, effort, and money, allowing them to focus on expanding their business footprint.
OwlPay
So, what are the advantages of using a third-party payment service like OwlPay? The following sections will explain each aspect, including service fees, transaction security, payment methods, and more.
Affordable Fees
As mentioned earlier, businesses are typically charged with transaction fees for cross-border remittances through banks. These fees usually range between $25 and $30, depending on the type of payment and the countries involved. Banks have a limited number of countries to which they can directly transfer funds; in cases where direct transfers are not possible, intermediary bank services are utilized to ensure reliable worldwide service for sending money to those countries.
Cross-border remittances usually involve one intermediary bank. However, in certain cases, such as when the destination country is far away or has limited transactions, an additional intermediary bank, or even a third one, may be necessary. Each institution involved charges a service fee, leading to significant costs. These fees can accumulate rapidly, so it is advisable to have a clear understanding of all the fees associated with a transaction before proceeding. Alternatively, businesses can choose other payment systems or organizations that help reduce remittance fees significantly.
OwlPay provides Hong Kong trading businesses with favorable exchange rates when transferring funds to countries such as Thailand, South Korea, South Africa, and more. Businesses that engage in trade with suppliers from these countries may benefit from reaching out to OwlPay’s professional team. OwlPay can create a customized financial solution tailored to specific needs, potentially resulting in significant cost savings.
Security & Compliance
While technological advancements have undoubtedly brought many conveniences, the misuse of technology has led to various crimes and scams. That is why the general public often approaches new technologies with skepticism. In response to these problems, governments worldwide have established regulations that businesses must adhere to in their operations and fund transfers to prevent financial-related crimes and ensure compliance with the law. As a result, there is an increasing demand for measures to ensure compliance in the business sector.
To address these challenges, OwlPay prioritizes safeguarding user funds and ensuring legal compliance. OwlTing collaborates with licensed financial institutions worldwide to provide payment services and has a professional legal and compliance team actively working on obtaining financial licenses in the U.S., Japan, Singapore, the EU, and other regions.
When it comes to risk management in transaction security, OwlPay adheres to strict industry standards. It employs internationally renowned risk databases and implements measures such as Customer Due Diligence (CDD), Anti-Money Laundering (AML), and Combating the Financing of Terrorism (CFT). For example, OwlPay collaborates with leading compliance partners like Napier, Dow Jones Risk Database, Chainalysis, and jumio, among others, to ensure the security of both fiat and stablecoin transactions and prevent financial crimes.
OwlPay takes matters such as legal compliance and fund security very seriously. We prioritize these aspects to ensure that our users have a compliant, secure, and seamless financial experience.
Multiple Payment Methods
OwlPay has partnered with internationally renowned card issuer Visa, as well as prominent Taiwanese banks like Cathay United Bank and First Bank. This collaboration enables OwlPay to offer a range of payment channels, including fiat currencies, stablecoins, and the commercial card and account payables service.
Fiat currencies are the most commonly used method by businesses. OwlPay supports 41 local currencies, enabling enterprises to make payments to over 190 countries; the transaction fees and exchange rates offered are favorable, making it an excellent choice for import and export trading businesses working with vendors worldwide.
The Commercial Card and Account Payables service operates similarly to using credit cards for online shopping. Enterprises can make payments to over 200 countries worldwide, fulfilling the dual requirements of delayed payments by enterprises and early payments by vendors. This service significantly enhances the flexibility of fund utilization for both payers and recipients.
(Currently eligible for businesses in Taiwan only)
Stablecoins are a relatively new payment method that combines the advantages of fast digital currency transfers and low transaction fees with the stability of being pegged 1:1 to the US dollar. Unlike other types of cryptocurrency, the low volatility of stablecoins makes them especially suitable for businesses.
OwlPay offers compliant and convenient stablecoin payment services, allowing merchants to deposit funds in either USD or USDC stablecoins, which will be automatically converted into USDC for transactions. Enterprises have the option to make payments in either USD or USDC to the recipient’s bank account or digital wallet. By using USDC for payments, one can avoid traditional transaction fees, resulting in a significant reduction in the cost of international transfers.
(Currently eligible for US businesses only)
Collaboration across Industries
OwlTing Group offers a diverse range of services across multiple industries. These include food e-commerce, travel itineraries, a hotel booking platform, a property management system, blockchain applications, and more. In addition to its proprietary e-commerce platforms, the company has extensive experience in multiple sectors and collaborates with government initiatives and private partners.
For instance, OwlTing Market is a business-to-consumer (B2C) fresh food e-commerce platform that primarily caters to consumers. It specializes in selling Taiwanese organic fruits and local products. On this platform, consumers can easily purchase fresh, high-quality organic food, thereby supporting the sustainable growth of local small-scale farmers.
On the other hand, OwlTing Experiences is a platform that offers a wide range of travel experiences. It goes beyond the popular tourist attractions and aims to provide travelers with profound and unique local experiences. OwlJourney, the hotel booking platform, allows travelers to book unique and distinctive accommodations.
In the realm of B2B services, the OwlTing Group utilizes cutting-edge technology to develop blockchain applications. OwlTing has partnered with the Forestry and Nature Conservation Agency (formerly Taiwan Forestry Bureau) to leverage blockchain technology for tracking forestry products. This collaboration supports the government in certifying legitimate operators and combating illegal logging.
OwlTing offers excellent SaaS products as well. OwlNest, OwlTing’s property management system, primarily caters to hoteliers. It has attracted clients such as the UNESCO World Cultural Heritage site Shirakawa Village in Japan; its customer base extends to various countries, including Taiwan, the U.S., Japan, Malaysia, Thailand, the Philippines, Cambodia, and more.
With its extensive industry experience and diverse collaborative projects, OwlTing is well-positioned to customize the most suitable financial solutions to meet the needs of its customers. The OwlTing Group aims to assist Hong Kong businesses in enhancing their cash flow and operational efficiency, fostering innovative collaboration opportunities.
Conclusion
Import and export trading companies, due to the nature of their business, often require frequent cross-border payments. Therefore, they are well-suited to utilizing advanced technology-driven financial integration solutions, which can help them save both time and money.
For example, by using OwlPay, cross-border payments can be made easy and affordable. OwlPay reduces transaction-related expenses, provides favorable exchange rates, and enhances transaction transparency and security. What’s even better are its practical features, which include order management, vendor management, and single-platform reconciliation. Additionally, the solution ensures that all data is automatically digitized, making record-keeping efficient and tracking easy.
Would you like to give it a try? Don’t hesitate to contact the professional team at OwlPay to customize a solution that suits your business needs. Whether you are familiar with technology products, the team will happily explain the details and guide you or your team through the process!
Contact the OwlPay team & learn more about the special offers and solutions tailored to your needs: https://bit.ly/3R7QbRX
*Certain services may have additional eligibility requirements. Please contact OwlPay’s sales team for more information.
【About OwlTing Group】
Founded in 2010, OwlTing Group covers B2B, B2B2C, and B2C services. As a Taiwan-based company, OwlTing has branch offices in the U.S., Japan, Thailand, Malaysia, Hong Kong, and Singapore, and seeks to expand globally. In 2018, OwlTing announced an eight-figure USD investment from the Japanese financial giant SBI Group. In recent years, OwlTing has formed partnerships with government agencies, industry, and academia globally and applied blockchain technology to the FinTech industry, medical industry, automotive industry, defense industry, food industry, forestry, agriculture, etc. OwlTing aims to build blockchain services for various industries to solve pain points and improve industry ecosystems.
OwlTing Group: https://bit.ly/3Za1Ul1
OwlPay®: https://bit.ly/3EAqpOt
Contact Us: owlpaysupport@owlting.com
