HSBC sees boom in use of mobile among corporate customers
Corporate users are increasingly adopting mobile payments, according to figures from HSBC, which expects usage of its HSBCnet Mobile corporate banking platform to double over the next 18 months, reaching $100 billion in payments – it has already seen one mobile transaction valued at $1.17 billion.
Kee Joo Wong, regional head of global payments and cash management in Asia Pacific, said: “The world is on the brink of a new era in mobile payments which will revolutionise the way businesses operate. We’ve seen a marked increase in the use of smartphones and tablets by our corporate customers. At the current rate of growth, we expect to reach $100 billion in global payments in the next 18 months.”
Corporate usage of mobile has a way to go to catch up with consumers – the bank says that 12% of HSBCnet customers globally are active users – some 26,000. In comparison, 34% of UK adults are estimated to use mobile banking, – a recent study says it is now the primary means of banking.
“Mobile payments can improve the financial health of a business. Being paid faster improves a company’s liquidity and cash-flow by extending their ability to pay their own creditors faster. Improving cash-flow enables opportunities to improve credit ratings, improve credit terms and elevate a company’s reputation, all of which enable growth,” said Diane Reyes, group general manager and global head of payments and cash management at HSBC. “Digitising payments also enhances visibility over the workings of a business. More comprehensive, accurate payments information can be captured and retained. Finance Directors can, at a glance, better gauge the financial position of their subsidiaries, trading partners and contractors, enabling them to make more informed buying or credit decisions.”
The bank says that mobile business-to-business payments could have a particularly big impact on doing business internationally, overcoming the disadvantages of other payments messages such as cheques.
