A panoramic discussion of cross-border e-commerce financial services: innovations in payment, settlement and supply chain finance

The composition of cross-border e-commerce financial services mainly covers payment and settlement, foreign exchange risk management, supply chain finance and other aspects. With the rapid development of global e-commerce, these fields continue to evolve and innovate. This article will delve into the financial service structure and best practices of cross-border e-commerce.

1. Core business of cross-border payment and settlement

Financial services for cross-border e-commerce payment and settlement are mainly divided into three major businesses: cross-border acquiring, remittance, and foreign exchange settlement and sales.

1. Cross-border acquiring: Cross-border acquiring refers to services that assist merchants in collecting payments from international customers, including foreign card acquiring, overseas acquiring and international acquiring. Foreign card acquiring mainly serves the export business of Chinese merchants, involving the use of foreign credit cards; overseas acquiring is suitable for domestic consumers’ purchases through foreign merchants, such as overseas shopping; international acquiring involves the cooperation of credit cards in multiple countries, focusing on It is to simplify the payment process and improve the transaction success rate.

2. Cross-border remittance: Traditional remittance companies such as Western Union are being replaced by third-party payment institutions. These payment platforms are gradually becoming mainstream with their technological advantages. They provide convenient and efficient solutions for cross-border remittances and are gradually occupying market share.

3. Foreign exchange settlement and sale: Licensed payment institutions can conduct foreign exchange settlement and sales domestically, and have the advantage of determining the exchange rate. Due to the transaction characteristics of cross-border e-commerce, payment tools need to flexibly respond to various needs and enhance customer experience.

2. Application of financial derivatives in foreign exchange risk management

In order to reduce foreign exchange risks, companies can use a variety of financial derivatives, including foreign exchange option transactions, foreign exchange futures transactions and forward foreign exchange transactions.

1. Foreign exchange options trading: Provides the buyer with the right to conduct foreign exchange transactions at a specific exchange rate within a specific time. In this way, importers and exporters can conduct effective financial management based on market exchange rate changes to reduce risks.

2. Foreign Exchange Futures Trading: Requests for future exchanges at predetermined exchange rates. Through highly standardized contracts, companies can lock in exchange rates in advance to avoid losses caused by market fluctuations.

3. Forward foreign exchange transactions: After signing the contract, the enterprise can lock the exchange rate based on the bank’s forward quotation to ensure that it can conduct foreign exchange transactions at the predetermined exchange rate regardless of the market exchange rate during the settlement period.

3. Dunhuang.com’s online logistics and supply chain financial innovation

DHgate breaks the industry barriers of traditional foreign trade transactions through its online operation platform, and then integrates logistics, supply chain finance and data analysis services. The logistics services it provides are novel, such as DHLINK’s cooperation with a number of global logistics companies, which greatly improves the efficiency and reliability of transactions. At the same time, in response to the financing needs of small sellers, a variety of financial products have been launched through cooperation with multiple banks, effectively alleviating financing problems.

4. Multi-dimensional services of cross-border supply chain finance

Cross-border supply chain finance is not just simple capital turnover, it covers a variety of service forms, including logistics outsourcing, traders’ capital management, and high-level supply chain strategies. In this field, value-added services such as bill transfer, payment agency and factoring provide enterprises with diversified financial solutions and facilitate the smooth progress of transactions.

Conclusion

All aspects of cross-border e-commerce financial services are constantly evolving through technological innovation and strategic integration. The formation and improvement of these services is not only the development of the financial market, but also the inevitable result of meeting the needs of global business. According to current trends, the future of cross-border e-commerce offers unlimited possibilities in the innovation of financial services.

: Cross-border e-commerce payment and settlement finance
: Cleverly use financial derivatives to reduce foreign exchange risks
: Dunhuang.com’s online logistics, supply chain finance and platform data
: Cross-border supply chain finance