The Essential Guide to International Payments for Hong Kong Businesses

What Are International Payments?

An international payment is simply the act of sending money across a country’s border. These transfers can be personal (sending money to a friend or family member), commercial (purchasing something in another country), or business-related (paying freelancers).

International payments should account for exchange rates, as currencies often differ between countries. However, this concern can be minimised—or even eliminated—when the transfer is made within a unified payment network, such as the Single Euro Payments Area (SEPA). SEPA covers most European Union (EU) countries and several non-EU countries that use or accept the euro. Since SEPA transactions are typically conducted in euros, there's no need to worry about exchange rate fluctuations between participating countries.

Types of International Payments

Various systems and networks have been developed to facilitate fast and secure international payments. Of these, there are two that are favoured by most banks and other financial institutions, as well as by governments across the globe. These are the SWIFT and SEPA systems.

SWIFT

SWIFT, or the Society for Worldwide Interbank Financial Telecommunication, is a global messaging service that allows financial institutions to quickly and securely receive information on international transfers. SWIFT operates in over 200 countries and can handle very high-value payments; however, this means it can be slower and include intermediary checks that will increase the overall transaction fees.

SEPA

SEPA is an initiative for payment integration within the EU. It is fast, secure, and low-cost (sometimes even free) due to its low transfer fees and lack of an exchange rate. However, it only operates in euros and across euro-based countries.

This makes SEPA less applicable to Hong Kong-based businesses. However, it’s still worth knowing about, as many truly international companies choose to open business accounts in EU countries to take advantage of SEPA’s low fees.

Things to Consider Before Making International Payments

International payments are essential for the vast majority of Hong Kong businesses since the Hong Kong Dollar (HKD) is only used in Hong Kong, and most companies in the region operate outside its borders. That’s true even for businesses that work solely with companies in mainland China that use the Chinese Yuan (CNY/RMB).

Some of the main points to consider are:

Understanding Foreign Currency

Currency values are constantly fluctuating, gaining or losing value against one another daily. These fluctuations are driven by various factors, including political developments, economic stability, and global market conditions.

For example, if a country elects a government that the global market thinks will make bad financial decisions, this will worry investors and businesses. This concern results in a lack of trust in the power of that country’s currency, which leads to a reduction in demand and value since people will not want to invest in that currency.

The opposite can also happen, and when one country’s currency reduces in value, and another country’s currency increases in value, we begin to see the importance of the exchange rate. 

Understanding Exchange Rate

Fluctuations in currency values mean that the amount you receive when exchanging one currency for another can vary from day to day.

For example, if you exchanged HKD 500 for US Dollars (USD) on 29 May 2025, you would have received approximately USD 63.80. But if you had made the same exchange on 1 April 2025, you would have received around USD 64.25. The difference between these two values may seem insignificant, but when making high-value transfers, this variance can result in a business gaining or losing thousands.

Additionally, currency fluctuation can be risky for businesses that operate within two countries continuously. For example, if you buy from a vendor in China and sell at a profit to clients in the US, but one day CNY becomes stronger than USD, your profits may be wiped out.

Payment Methods

International payment services can be accessed in a variety of ways, and the best one for you will depend on your individual needs. For example, you can send or receive international money transfers in the following ways:

• Via a bank transfer. Traditional banks use the SWIFT network to send international payments directly from your bank account to a recipient’s overseas bank account. While reliable, this method often comes with higher fees and less competitive exchange rates compared to digital alternatives.
• Via a digital payment platform. Digital platforms offer a convenient and cost-effective way to send money internationally. They usually provide better FX rates and lower service fees than banks. However, many platforms impose lower transfer limits, which may not be suitable for high-value business transactions.
• Via a money transfer service. Money transfer providers allow you to send cash or bank transfers globally, often enabling recipients to collect funds in minutes. These services are helpful for recipients without a bank account, but they can involve higher fees and less favourable rates.
• Via a multi-currency wallet or foreign currency account. These accounts allow you to hold, send, and receive money in multiple currencies, making them ideal for businesses that deal with international clients or suppliers. With a multi-currency account, you can transact in a specific currency—such as USD, EUR, or GBP—without incurring currency conversion fees, helping you save on foreign exchange costs and simplify cross-border payments.

Regardless of the option you choose, you must check the details and ensure they work for you. Consider the time needed for the transfer (do you have any time constraints?), the fees (do you need to take these into consideration for your margins and profits?), the exchange rate offered, and the currencies available.

Fees

The fees are one of the most important details to consider when you send money internationally. When working with international payments, there are three main fee types:

• The transfer fee: Usually a fixed percentage or fee; this is the amount you pay to process a payment to a foreign country.
• The currency conversion fee: The amount you pay to convert one currency to another.
• The receiving fee: Sometimes applied by the recipient’s bank or payment provider when they receive the funds. This fee is not always applicable, so it’s best to confirm with your chosen service.

It is important to note that the fees you pay will vary depending on the transfer method you choose. For example, SWIFT transfers often come with multiple charges, including intermediary bank fees, currency conversion fees, and network fees. In contrast, digital payment platforms or multi-currency accounts may offer more transparent and cost-effective fee structures.

How to Make International Payments from Hong Kong

Sending International Payments from Hong Kong around the world is simple. The main steps to take are to choose a payment method, provide the details of your international transfer, and complete the payment. 

Let’s go through these in a little more detail:

Choose a Payment Method

Begin by choosing the payment method (as listed earlier in the article) that works best for you. Consider the transaction times, transaction fees, supported currencies, and whether the method includes a receiving fee.

You may also want to consider the levels of customer support (check the reviews) since money-related issues can be very stressful.

Provide Details

When sending International Payments, it is important to check every detail. If you fill in the wrong information and accidentally send the wrong amount or send money to the wrong person, it can be very hard to recover. So, make sure you provide and double-check the following details:

• Full name of the payee or business being paid
• Address of the payee/business
• Bank details (bank name and address)
• Account information (IBAN or account number)
• BIC/SWIFT code (if applicable)
• National clearing code (if applicable)
• The amount to be sent (select the correct currency and write out the amount to be sent in that currency)
• Any reference information, such as an invoice number

Complete Payment

The final step is to complete the payment. This is usually a simple process that requires the validation of the transaction via security questions, your password, or your biometric information (such as fingerprints or facial recognition). You’ll be informed when the transaction has been completed, with some international payment services providing real-time updates.

How Long Does it Take to Send Money Abroad?

How long it takes to send an international transfer depends on a few key aspects, such as the currency chosen, the countries of origin and destination, the payment method, and the verification requirements. Digital platforms often provide instant transfers, while SWIFT can take between 1-5 business days, and SEPA can take 1-2 business days (remember not to count weekends or public holidays).

Tips for Sending Money Abroad Cost-Efficiently

Let’s look at a few tips for sending money abroad in a cost-effective way:

Look for Bank Alternatives

When choosing your payment system, consider online solutions such as digital platforms and fintech solutions.

Use a Multi-Currency Account

Multi-currency accounts allow you to hold more than one currency. This can benefit you as you can exchange money at a time that is favourable to you and then send it at any time, regardless of the exchange rate. Additionally, if you can receive money in a different currency, you can then send that currency abroad and avoid the currency exchange fees.

Monitor the Exchange Rate

As mentioned earlier, exchange rates fluctuate based on market conditions. To maximise the value of your international payments, it’s important to monitor currency trends and make transfers at a time when the exchange rate is most favourable.

Enjoy Low-Cost International Payments with Aspire

If your business frequently makes international payments and you’re looking for a more cost-effective alternative to traditional banks, consider Aspire’s Business Account.

With Aspire’s Global Payment Services, you can send funds in over 30 currencies across more than 130 countries—all with low, transparent fees and market-leading exchange rates up to three times better than traditional banks.

To further streamline your international transactions, you can open multi-currency accounts in HKD, USD, CNY, EUR, and GBP, enabling you to send and receive payments directly in these currencies and avoid unnecessary conversion fees.

Start using Aspire today and take your international payment operations to the next level.

Frequently Asked Questions

What is needed for an international payment?

For an international payment, you should provide:

• Full name and address
• Bank details
• Account information
• BIC/SWIFT code (if applicable)
• National clearing code (if applicable)
• The amount
• Reference information

Do I need an IBAN for International Payments?

The International Bank Account Number (IBAN) is the preferred choice when making International Payments as it is the most accurate way of locating an account.

Do you need both SWIFT and IBAN for international transfers?

Some countries require both an IBAN and SWIFT code to locate the correct bank account. The need for both codes varies from payment system to payment system.

Which countries do not use IBAN?

Countries such as the US, Canada, Australia, and New Zealand do not use the IBAN system. So, it is important to check the requirements for each country. For example, to send money to the US or Canada, you need a routing code and bank account number.