Cross-border money transfers: Speed, transparency key to customers

Sending money from Singapore to China can take up to five business days through traditional methods like account-to-account transfers. But with digital wallets, it can happen in seconds.

Since November 2024, OCBC customers have been able to transfer funds directly from their bank accounts to China residents through Weixin Pay (known as WeChat Pay outside China) and Alipay, the country’s top two digital wallets. The service, launched in partnership with Visa Direct, is free.

Customers have transferred more than S$50 million to the two wallets since the service was launched, said Ng Lee Peng, OCBC’s head of Digital Business in Singapore, with OCBC’s volume of cross-border transfers to China – a key market for the bank – growing 3.5 times.

The bank is the first in Asia-Pacific to offer this service to both Alipay and Weixin Pay wallets, she added. OCBC aims to enable customers to reach over 50 digital wallets globally to provide “the most comprehensive digital wallet access of any banking app” in APAC, she added.

Meeting customer needs

The pay-to-wallet service is an example of how the bank uses customer insights to meet evolving needs, said Ng. “Our customers conduct many transactions in and outside of Singapore, and expect speed and transparency.”

A 2024 analysis by Ernst & Young projected that the total value of global cross-border payments will rise from US$190.1 trillion (S$245.8 trillion) in 2023 to US$290 trillion by 2030.

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The goal is to create an ecosystem for customers, she added, making it easier for them to manage their money, from saving and investing to spending. The bank employs experts in these areas and tests its prototypes with customers to meet their needs.

Through partnerships with Chinese fintech giant Ant Group, which owns the Alipay+ payment platform, and Chinese financial services firm UnionPay International, OCBC customers can also pay merchants in over 40 destinations through their banking app. These include China, Malaysia, South Korea, Japan and the US.

Customers can pay by scanning the merchants’ QR codes or generating a QR code for merchants to scan.

This improves convenience and clarity, Ng explained, as customers don’t need to carry cash overseas, and the exchange rate is listed when you pay. There are no transaction fees. Scan-and-pay transactions by OCBC customers travelling overseas have doubled from a year ago, she said.

Payments evolution

Collaborations with fintech leaders are key to OCBC being able to quickly implement more effective cross-border payments solutions, Ng said. These partners already have sophisticated digital platforms and technologies, she said, and extensive networks that span many markets.

OCBC’s pay-to-wallet service, for example, was launched in six months.

To stay ahead, she said, OCBC is also tracking emerging technologies, including artificial intelligence breakthroughs and new digital assets.

“The payments space is very competitive and constantly evolving,” said Ng. “As technology advances, people will expect more.”

This was produced in partnership with the Monetary Authority of Singapore and the Global Finance & Technology Network.

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