Cross-border remittance of cash and cash

Starting from the cross-border payment business model, this paper introduces the basic concepts and business logic of cash and cash, and appreciates it ~

With the rapid development of cross-border electronic commerce in recent years, people tend to shop on overseas e-commerce websites, and the demand for cross-border payment also increases. At the same time, with the continuous development of international business, the dependence of enterprises on cross-border payment has been further strengthened.

According to the data released by China Payment and Clearing Association, in 20 18, the scale of cross-border Internet transactions of domestic third-party payment institutions exceeded 490 billion yuan, an increase of 55% over 20 17. Because of the huge potential of the cross-border payment market, in recent years, there have been many companies serving cross-border payment solutions in the market. The services they provide mainly focus on customized services such as cross-border collection, cross-border payment, customs clearance and hotel tourism logistics.

Combined with these companies that carry out cross-border payment services internationally, we can roughly divide these companies into two categories: one is the payment institutions that can carry out cross-border payment services, such as Alipay, Licaitong, Lianlian Payment, Hushen Express Payment, UnionPay Electronic Payment, Oriental Electronic Payment, Remittance to the World, Tonglian, Kuaiqian, Shengfutong and Fu You Payment, and the other is the international payment companies PayPal, Payoneer and WorldFirst.

Whether it is cross-border collection or cross-border payment, there are always two basic concepts: cash and cash. Today, we mainly introduce the basic concepts and business logic of cash and cash from the cross-border payment business model.

Cross-border payment scenarios generally involve four main elements: merchant ownership, user (consumer) ownership, transaction currency and settlement currency. According to the different scene combinations of these four elements, there are mainly the following three scenarios, as shown in the following figure:

For the first scenario: the merchant is at home, the user is abroad, and the user uses foreign currency to conduct transactions, and the final settlement is RMB, which is the most common in export trade. Because users are abroad, they mainly use payment services provided by overseas payment companies or cross-border payment services provided by domestic payment companies, such as PayPal and Alipay.

For the second scenario: the merchant is abroad, the user is at home, the user trades in RMB, and finally it is settled in foreign currency to the overseas merchant, which is the most common in import trade, like the overseas purchase we often use.

For the third scenario: in fact, it is not a strict sense of cross-border payment. Because both merchants and users are abroad, it is actually an ordinary overseas local payment. Users may have to change RMB into foreign currency in advance before going abroad. For example, when we travel to a country, we exchange RMB for local currency in advance, and then use the local currency for local consumption.

After being familiar with the business model of cross-border payment, it is much easier for us to understand cash and cash remittance.

Cash, literally easy to understand, is money in hand. Similar to traveling to the United States, you can go to the bank in advance to exchange RMB for US dollars, so that you can spend directly in US dollars in the United States.

Cash is your foreign currency account. After you have this account, when you go to the local area, you can pay directly with the foreign currency in this account or withdraw money locally, and the foreign currency in the cash account becomes cash. In order to understand cash and cash more intuitively, we analyze it from actual cases.

Suppose the bank exchange rate on a certain day is as follows (RMB/100 foreign currency):

We are going to travel to Hong Kong. That day, we went to the bank and exchanged 6000 Hong Kong dollars. How much RMB do we have to pay?

We went to the bank to exchange 6,000 Hong Kong dollars, which is the selling price of the bank for cash, that is, 600,098.33/100 = 5,899.8 yuan.

We came back from a trip to England with 4000 pounds in our hands. If we deposit this 4000 pounds directly into the bank, we need to open a cash account in the bank, and the currency is pounds. The deposit can be directly used for the next trip to Britain. If we think we still need to change this 4000 pounds into RMB, how much RMB can we change?

Let's go to the bank and change this 4000 pounds into RMB, which is the buying price of cash to the bank, that is, 40001479.5/100 = 59.

If an export enterprise goes to this bank to settle foreign exchange 1 10,000 USD, how much RMB can it exchange?

Enterprises settle foreign exchange in banks at the spot exchange rate of USD 65,438+00,000, which is the spot foreign exchange buying price of banks, that is, 65,438+00000766.16/65,438+000 = 76,665,438+06 (RMB).

Understanding the basic cash and cash logic makes the basic functions of cross-border payment products relatively clear.

What cross-border payment needs to do is: conversion, reconciliation and settlement between local currency and foreign currency, but all these actions are completed by computers through system docking, rather than people going to the bank to handle business. In the future, the development of cross-border payment companies with single business will be restricted. After deep cultivation in a field, the original field will have marginal effect, so the company's business needs diversification, and cross-border payment products also need diversification. Based on the basic functions of cash and cash, you can invest in some foreign exchange wealth management products.

If the option price becomes 1.5% before the option expires, what is the return on investment after we sell this USD/JPY call option?

We sell USD/JPY call options at an option fee of 51.5% = USD 750.

Total profit: 750-500=250 USD.

Return on investment: 250/500 100%=50%

If we choose to hold this option and the real-time exchange rate of USD/JPY becomes 120 when it expires, what is the return on investment if we exercise this option?

The real-time exchange rate of USD/JPY becomes 120. When we exercise options, every dollar can make a profit: 120- 1 15=5 (yen).

With a face value of $50,000, you can get a total profit of 250,000 yen. In the case of differential delivery, the amount deposited by the bank into our account at the real-time exchange rate on the maturity date is: 250,000/120 = 2083.33 USD.

Return on investment: (2083.33-500)/500=3 17%

Based on the basic business model of cross-border payment products, this paper introduces the basic concepts and operations of cash and cash, and compares cross-border payment products.

This model introduces foreign exchange options business and expands the original cross-border payment products.

When designing cross-border payment products, we should be clear about what is cash, what is cash and the direction of buying and selling.

Spot buying price, spot selling price, cash buying price and cash selling price are different in reality. If the direction is wrong, the whole cross-border payment will be all wrong.

On the basis of satisfying these functions, cross-border payment products can provide value-added products and services such as accounts, wallets, credit, financial information and financial derivatives investment, and help us find more business opportunities in basic cross-border trade modes such as B2B (business-to-business), B2C (business-to-consumer) and B2B2C (seller's platform consumer), so as to enhance the competitiveness of cross-border payment products and enhance the comprehensive strength of enterprises.

With the acceleration of globalization, cross-border payment will become the next trillion-dollar "blue ocean", reshaping business models and bringing new business opportunities to enterprises. Let's call it a day. Welcome to communicate with us. Thank you~

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Related Questions and Answers: Related Questions and Answers: What's the difference between bank cash purchase and cash purchase? I analyze that you sell foreign currency cash, not cash. So the bank insisted on checking the cash.

The price of cash purchase is different from that of cash purchase. When banks do foreign exchange business with customers, prices are divided into cash buying price, cash buying price, middle price and selling price. The subject here refers to banks, which means "bank buying" and "bank selling", not our customers.

If the customer wants to buy foreign currency, the bank sells foreign currency. At this time, the bank will use the selling price. There is only one selling price, whether customers buy cash or cash, it is the same price for banks. In other words, when banks sell foreign exchange, no matter what customers buy, the price is uniform and there is no bargaining.

Bank purchases are different. Banks buy foreign currency and customers sell foreign currency, which is divided into two prices: cash purchase and cash purchase. The buying price of cash in many banks is lower than the buying price of cash (maybe your bank is not).

The reason why banks set the cash purchase price lower than the cash purchase price is because after cash purchase, there is no need to do anything, while after foreign currency cash purchase, banks have to take inventory, which is time-consuming and laborious. If they have more cash, they have to hand it over to their interbank accounts, because they don't earn interest in their own hands, but they don't pay it for nothing, and they have to give others a handling fee, because the banks that save money also have to take stock. No one wants to work for nothing. In this case, if the bank's cash purchase price for customers is high, it will worry about losses and increase operating costs.

Foreign currency accounts are divided into cash accounts and cash accounts. The reason why banks must choose paper money or remittance is because in the internal system of banks, cash accounts and cash accounts are distinguished when opening foreign currency accounts. When foreign currency cash is deposited in a bank account, its cash identity will not change. Your cash will not turn into cash just because it is in your account, and it will not turn into cash when the bank repurchases it. This is also the reason why the customer service said that the card is also cash. In short, cash is always cash, and it will not change whether it is taken away or stored.

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