How to Pay Suppliers in China from Anywhere in Africa
For African businesses looking to tap into China's vast manufacturing power and supplier base, making fast and affordable cross-border payments is crucial yet challenging. Delayed payments can bring supply chains and operations to a grinding halt, while excessive fees eat directly into profits.
Transferring funds from Africa to China has traditionally involved a painful mix of slow money transfers, opaque fees, unfavourable exchange rates, and limited currency options. Many African companies have had to go through multiple conversions - first converting local currency to US dollars, then converting those dollars to Chinese Yuan upon arrival. Each conversion step results in high fees and currency mark-ups from the banks involved.
Limited payment rails and a lack of direct correspondent banking relationships between African and Chinese banks compounds the issue. International wire transfers can take weeks to arrive, with a lack of transparency around the fees deducted along the way. This creates cash flow headaches and makes it difficult for African businesses to foster trusted supplier relationships in China.
For smaller enterprises, the challenges are even more daunting. Many have difficulties even opening US dollar accounts required for international payments. They end up having to use costly over-the-counter FX services and informal value transfer networks, driving up costs and risks. It has also left them asking: what is the best way to pay Chinese suppliers?
Fortunately, innovative fintech solutions from Verto are revolutionising how African businesses handle cross-border payments to China and other major trading partners. When deciding how to pay suppliers in China, there are two standout offerings - the International Payout and Wallet-to-Wallet transfers – which allow companies of all sizes to pay Chinese suppliers seamlessly from anywhere on the continent.
International Payout
With Verto's International Payout, you can make payments to suppliers, partners, and service providers in their local currency for up to 49+ currencies including the Chinese Yuan (CNY). This flexibility not only ensures a seamless payment process but also provides a cost-effective alternative to traditional bank transfers or wire transactions. It also allows you to avoid overpaying on currency conversions and excessive bank wire fees.
Other major benefits of using Verto's Global Payout include:
Build trust by offering Chinese suppliers their local RMB payment option
Reduce international payment costs by up to 85% compared to traditional methods
Seamlessly integrate with major Chinese online marketplaces
Hold funds in preferred currencies until you need to pay out
Learn more about Verto's Cross Border Payments Suite
Learn more2. Wallet-to-Wallet Transfers
Another powerful Verto solution for paying Chinese suppliers is Wallet-to-Wallet transfers. This allows you to send money instantly between digital multi-currency wallets on Verto's network with zero fees.
First, you load your Verto wallet by topping up funds via bank transfer, card payment or other options. You can then transfer money from your wallet to a Chinese supplier's wallet if they are also on Verto's network. Funds can even be converted between currencies within your own wallet using Verto's leading exchange rates.
When it's time to pay a Chinese partner, you initiate the transfer to their wallet. The CNY payment is received instantly, with full transparency on fees, rates and delivery time. The supplier can then withdraw the funds directly to their local Chinese bank account.
Key advantages of using Verto's Wallet-to-Wallet include:
Make instant cross-border CNY/RMB payments 24/7 with zero transfer fees
Hold and convert between multiple currencies in your digital wallet
Get real-time updates on payment status and delivery
No limits on transaction volumes or currency types
Hassle-free payments to Chinese suppliers
Both Verto's Global Payout and Wallet-to-Wallet solutions are transforming how African companies handle payments to international suppliers, and are the best ways to pay Chinese suppliers. By tapping into these cutting-edge platforms, businesses can build more resilient, cost-effective supply chains while strengthening partner relationships through faster settlement times.
The days of paying excessive bank fees, enduring weeks-long payment delays, and being limited by outdated currency options are over. Verto's solutions have made cross-border B2B payments not only possible but seamless for African enterprises sourcing from the world's second largest economy.
As barriers to the Chinese market continue to fall, early adopters of Verto's Global Payout and Wallet-to-Wallet capabilities will be well-positioned for growth and success. Businesses still relying on traditional international payment methods will be left behind by more nimble, cost-efficient competitors.
By leveraging Verto's innovative solutions, African companies can optimise their financial operations, reduce expenses, and focus on what really matters - scaling their businesses by taking full advantage of the opportunities in China's vast supplier marketplace.
Discover the efficiency of Verto's international business bank account or get started today.
