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HSBC is poised to take on fintech companies such as Wise, PayPal and Remitly as part of its international remittance action. The bank’s new international payments app, Zing, is set to launch in the UK and expand to other countries early this year.
Zing will be coming to Apple’s App Store and Alphabet’s Google Play within the next few days, making it available to both HSBC and non-HSBC customers. Bank insiders say new users can sign up in just three minutes.
Nuno Matos, CEO of HSBC’s Global Wealth and Personal Banking business, highlights the bank’s strategic move to target the global retail payments market in an interview with Bloomberg did.
“Zing has global ambitions,” Matos told Bloomberg. “We want to position ourselves as the global platform for cross-border payments, and this aligns perfectly with HSBC’s cross-border payments strategy.”
The move by UK-based HSBC comes amid an explosion in fintech influence. A McKinsey report predicts that the fintech industry’s revenue will grow nearly three times faster than major banks’ revenue between 2022 and 2028. The fintech industry is expected to see annual revenue growth of 15% over the next five years, while traditional banks are expected to see annual revenue growth of 6%.
What does Zing offer customers?
Zing members can hold up to 10 currencies within the app. This feature allows users traveling to other countries to shop like locals without incurring POS conversion fees for their currency. Additionally, Zing enables international money transfers in over 30 currencies, allowing users to spend money around the world.
The money transfer app acts as an extension of the Global Money account that customers can access through HSBC’s mobile banking app. A depositor with an HSBC current or savings account can hold funds in up to eight different currencies and transfer funds to other her HSBC customers for free.
Will competition from Zing make it cheaper for customers to send money?
In the competitive landscape of cross-border money transfers, companies such as Wise (formerly TransferWise) and WorldRemit are establishing themselves as cost-effective alternatives to traditional banks.
HSBC has already taken the big step of offering fee-free transfers to existing customers through its Global Money Account. A Zing spokesperson said the new app’s transfer fees start at 0.6% and vary depending on the transaction amount.
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