Convenient ways to make payments from India to China and what to look out for: India's three-way payment channel

In the era of accelerated globalisation, trade activities between India and China are becoming more and more frequent, thereby increasing the demand for payment transactions. This paper examines the various convenient ways of making payments from India to China and highlights the key factors that need to be looked at during the payment process.

In recent years, the use of digital currencies in cross-border payments has been gaining attention. Customers in India can use certain international wallets to scan QR codes such as Alipay and UnionPay in mainland China, facilitating payment and consumption. The introduction of the "top-up and use" function for overseas bank cards using digital RMB has further lowered the threshold for cross-border payments.

Customers in India can utilise cross-border payment platforms such as PayPal, Payoneer and Skrill to transfer funds from credit cards to Chinese merchants or personal accounts. These platforms are favoured by many customers for their ease of use, security and efficiency.

India can also send fast and easy money transfers to China through Western Union. Western Union is a well-known international money transfer company known for its speed and no special requirements. The sender can process the transaction at a nearby Western Union branch and get a remittance control number. The recipient does not need to open an account to receive the funds.

Customers in India can also transfer funds to their Bank of China account through Bank of India. The process involves entering the Bank of China account in the Service Features area to check the balance, selecting the Transfer and Payment option, entering the transfer amount, and confirming the location to complete the transaction in one step.

When making cross-border payments, fluctuations in exchange rates may affect the amount of payment. Customers in India should keep an eye on exchange rate movements before making payments in order to plan their payment strategy effectively.

Fees vary by payment method. Usually, if the remitter pays the fee abroad, the domestic recipient does not have to pay. Customers in India should consider the cost factor when choosing a payment method and select the less costly one.

Cross-border payments must comply with regulatory principles. Customers in India must ensure compliance with relevant laws and regulations during the payment process to avoid non-compliance issues.

Cross-border payments carry certain risks such as fraud and information leakage. Customers in India should choose reputable payment platforms and banks to ensure payment security during transactions.

To prevent future disputes, customers in India should keep proper records of payment transactions such as bank transfer records and payment platform transaction records at the time of payment.

Clients in India should also keep a close eye on policy changes in China and familiarise themselves with the latest cross-border payment policies so that they can adjust their payment strategies in a timely manner.

Indian customers have a variety of convenient payment methods to make payments to China, but in practice, it is vital to pay attention to the relevant matters. Only through compliant operation and risk prevention can cross-border payment ensure safety and success. We hope this article can provide some help to Indian customers in the process of cross-border payment.