Comparison and Choice of Mainstream Payment Methods for Small Amount Cross-border Trade
Download as PDF
Jingxia Wang, Shipeng Song and Pingjing Rao
The rise of Internet+ has brought a revolution to China’s traditional cross-border transactions under which we can witness more and more cross-border micropayments. Small amount cross-border trades have gradually become a new economic engine for China. However, payment methods commonly used in traditional foreign trade like collection and letter of credit has many inelasticity with micropayment transactions due to complex procedures and long money collection periods etc. This article introduces three current mainstream methods for cross-border micropayments by comparing them from operation procedures, costs and risks including Western Union, PayPal and T/T, aiming to provide implications for our small amount cross-border transactions in the choice and application of payment methods.
Small Amount Cross-border Trade; Cross-border Payment Methods Comparison; Comparison and choice