Chinese payment company Helipay is currently in talks with Russian banks to establish cross-border transactions, according to the company’s development director, Rustem Zakirzyanov. Speaking at the International Banking Forum in Sochi, Zakirzyanov revealed that Helipay is seeking a bank that can facilitate instant payments by Russian customers for Chinese goods. Presently, this process is problematic, with payments from Russian clients for Chinese cars taking several months to process.
Zakirzyanov stated that once Helipay secures this opportunity, it will quickly attract numerous small and medium-sized businesses, as well as other Chinese enterprises, to collaborate with Russia. However, Helipay is currently engaged in negotiations with three Russian credit institutions, one of which is considered systemically important. Zakirzyanov declined to divulge the names of the banks, citing the confidentiality of the ongoing negotiations.
For Helipay to begin operations in Russia, legislative amendments will be required to allow a payment service company to enter into a correspondent agreement with a credit institution. Zakirzyanov highlighted that this is at odds with current Russian legislation, which only permits interbank correspondent relations. Consequently, any such transactions necessitate approval from the Russian central bank.
Helipay, which obtained a payment business license from the People’s Bank of China in 2013, specializes in transfers and payments, including cross-border payments for small and medium-sized businesses. The company’s official website states their expertise in providing secure and efficient payment solutions.
The potential collaboration between Helipay and Russian banks could significantly streamline cross-border transactions and pave the way for increased trade between the two nations. By enabling instant payments for Chinese goods, the partnership would eliminate the lengthy processing times that Russian clients currently face when purchasing Chinese cars. This development has the potential to benefit both Russian consumers and Chinese businesses looking to expand their reach in the Russian market.
However, the successful realization of this collaboration hinges on obtaining legislative amendments to align with the current business requirements. Helipay’s negotiation efforts with the Russian credit institutions and the central bank will play a crucial role in determining the feasibility and potential timeline for implementation.
This news comes amidst the growing presence of Chinese banks in the Russian market. According to a report by the Financial Times, Chinese banks have been steadily increasing their market share in Russia. This trend further highlights the importance of facilitating efficient cross-border transactions and economic cooperation between the two countries.
In conclusion, Helipay’s discussions with Russian banks to establish cross-border transactions have the potential to revolutionize payment processes for Russian customers purchasing Chinese goods. By addressing the current challenges faced in the process, this collaboration could attract more Chinese enterprises and foster increased trade between China and Russia. However, the successful implementation of this initiative relies on obtaining necessary legislative amendments and securing approval from the Russian central bank.
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