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HSBC's Global Wallet Adds New Currencies to Expanded Platform

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HSBC Holdings plc’s (HSBC - Free Report) U.S. division, HSBC USA, recently announced enhancing the currency offerings on its multi-currency digital wallet — HSBC Global Wallet. The wallet will now also enable the existing and new Business Banking customers, especially the small- and medium-sized businesses, to transact and transfer funds of different currencies, all from the same FDIC-insured, U.S.-based business account. This will make international transactions for businesses fast, economical and convenient.

HSBC Global Wallet has now tacked on its currency offerings to include the Chinese yuan, Japanese yen, Swiss francs and Malaysian ringgit, with plans to accommodate more currencies over time.

The multi-currency digital wallet was rolled out in May 2021 with support for euros, American dollars, U.K. pound sterling, Hong Kong dollars, Canadian dollars, Singapore dollars and Australian dollars.

Notably, HSBC Global Wallet is consolidated with the bank’s current Business Banking platform and uses its secured global payments network. HSBC USA, thus, is the first bank in the country to offer small- and medium-sized businesses "receive and pay like a local" in foreign currencies. Moreover, with instant access to currencies, the wallet allows greater visibility of cash flow.

International funds transfer is generally an intricate and sluggish process, along with the dynamic foreign-exchange rates and high transaction fees. HSBC Global Wallet will, thus, enable the small- and medium-sized U.S. firms with international supply chains to engage in easier and cost-effective payment transactions globally, with a greater confidence.

Additionally, as per the prior press release, HSBC has plans to introduce the Wallet in other markets in 2022.

Drew Douglas, head of Liquidity & Cash Management, US and Canada, said, “This innovative solution is fully integrated with HSBC’s existing business banking platform, bringing the strength of the HSBC international network to our small and medium-sized business US customers, supporting a much more efficient expansion of their international businesses."

HSBC’s solid capital position, initiatives to strengthen digital capabilities, extensive network across the world and efforts to boost its operating efficiency through business restructuring are likely to continue aiding the bank’s financials in the quarters ahead.

Over the past year, shares of the company have gained 25.8% on the NYSE, underperforming the 42.6% rally of the industry.

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Currently, HSBC Holdings carries a Zacks Rank #3 (Hold).

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