JP Morgan is launching E-Customs Payment Solution, making it the first foreign bank to launch cross-border payments in China.
In particular, the solution fully digitises and automates cross-border payments of goods.
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According to JP Morgan its digital payment solution solves common pain points associated with the manual nature of such transactions.
Importers in China are required to provide supporting documents to their banks prior to making payments to overseas suppliers.
Moreover, the process is often labour-intensive and time-consuming.
Consequently, JP Morgan clients in China now require only to send the payment instructions with linked customs declaration number.
The JP Morgan E-Customs Payment Solution for cross-border payments in China uses API technology. The relevant customs declaration status is retrieved from the local authorities via the Shanghai International Trade Single Window. This is completed in real time and processes the payments automatically.
Cross-border payments in China: improving operational efficiency
Furthermore, clients will be able to keep track of their payments through JP Morgan Access at all times.
“JP Morgan’s E-Customs Payment Solution significantly improves our operational efficiency with time and resource savings. And it reduces manual inaccuracies while keeping our business fully compliant.
“We have been able to make comprehensive business decisions from a treasury perspective as a result,” says Jason Tan, head of Treasury & Credit Management, Asia, Continental AG.
The technology company is currently implementing E-Customs Payment Solution as it looks to fully digitise its cross-border payment processes.
Rani Gu, head of Treasury Services, China and head of Treasury Services Product, Greater China, JP Morgan adds: “We are pleased to roll out an innovative solution. This enables the full digitisation of cross-border payment. We view this as a milestone and one that addresses our clients’ specific needs amid a rapidly-evolving treasury landscape.
As a global leader in cash management, JP Morgan has been investing heavily in this space to better serve clients. We continue to invest and set a new benchmark for innovation in the banking industry,”
JP Morgan’s Treasury Services business processes up to $6trn in payments a day in over 100 currencies across 60+ countries.
