This week WorldFirst, a digital payment and financial services platform for global businesses, launched WorldTrade, a payment solution for global sourcing to bolster the security and speed of cross-border payment for international SMEs that procure goods from suppliers based in China.
WorldTrade employs smart contract-fulfillment technologies. It protects SME buyer funds by scrutinizing sellers’ reliability and enforcing contractual commitments. Once the trading parties enter into a contract, the system can initiate payment and delivery of goods based on the payment conditions and timing stipulated in the contract.
The service also facilitates immediate payment directly into the accounts of the sellers while offering international buyers the ability to pay their suppliers using a credit card, a debit card, or the WorldFirst platform World Account. Current channels usually process an international B2B trade payment within a span of one hour to seven days.
When both the buyer and seller use World Account, they can save more on transaction fees and currency exchange costs. WorldFirst said an SME conducting annual trade worth $10 million through WorldFirst could realize an estimated savings of at least $10,000 in transaction costs each year.
WorldTrade said it is able to facilitate smart contract fulfillment because of its collaborations with banks, customs offices, and logistics providers. That allows it to consolidate and validate crucial trade transaction information, including payments, customs clearance, and delivery.
“The launch of WorldTrade aims to build trust in B2B trade through digital means,” said Ma Qisheng, head of global B2B business at WorldFirst. “WorldTrade facilitates intelligent payment processing aligned with agreed trade terms, minimizing trade barriers and streamlining global business interactions.”
In addition to WorldTrade, WorldFirst also supports international buyers in sourcing from China with the cross-border pay solution in partnership with 1688, a Chinese wholesale marketplace. The solution gives international SME buyers an option to make payments to 1688 sellers without the need to set up an onshore bank account in China, and to benefit from competitive foreign exchange rates.
