Cross-border payments have traditionally faced issues like high costs, processing delays, and a lack of transparency due to the complex correspondent banking networks they rely on. HSBC and Dandelion, a payments platform under Euronet Worldwide, formed a partnership in 2023 to streamline and enhance cross-border payment services for HSBC’s clients. By leveraging Dandelion’s extensive network and technological capabilities, HSBC has been able to provide more efficient and cost-effective international payments, increasing the number of supported currencies and destinations while introducing additional features to improve the customer experience.

Nadeesha Senaratne, HSBC’s head of retail products and journeys, wealth and personal banking and Deepan Dagur, head of Asia Pacific and Middle East at Dandelion revealed how this collaboration is transforming the cross-border payment experience, offering seamless, real-time transactions, and addressing crucial industry challenges.

Enhancing cross-border payment efficiency

One of the primary goals of HSBC’s partnership with Dandelion is to expand the reach of its international payment service – Global Money Transfers, to over 100 destinations and more than 60 currencies, which makes it one of the largest ever networks with no transfer fees. Traditionally, international payments have required a series of bilateral agreements between banks, leading to multiple intermediaries and high costs for clients. This has posed significant challenges for financial institutions in delivering fast and transparent services to its global clientele.

Dagur explained that Dandelion’s platform provides a modern alternative to this traditional setup. “Our single API (application programming interface) integration with HSBC connects directly to our global payment rails, covering over 190 countries, with HSBC leveraging over 60 destinations.  This allows HSBC to offer quick, reliable, and cost-effective international payments to its clients without relying on a cumbersome correspondent network,” he said.

With Dandelion’s network, HSBC has significantly expanded its cross-border capabilities, tripling the number of currencies it offers and supporting over 100 destinations and more than 60 currencies. Senaratne highlighted the strategic advantage of this expansion, saying, “We have now enhanced our breadth of currencies and destinations, allowing clients to ‘send money like a local’ much faster, within 24 hours, without any additional fees. This enhances the convenience of our service and meets growing client expectations for fast and low-cost international payments”.

Customer impact and cost advantages

A central feature of HSBC’s partnership with Dandelion is the benefit of zero transfer fees for clients, a significant departure from typical cross-border payment services. This fee-free model not only reduces costs for clients but also addresses common frustrations in international payments, improving transparency, where hidden fees and  FX conversions at destinations can complicate transactions.

Senaratne explained, “Not only are we able to offer same-day processing of international payments, but by eliminating transfer fees, we are making cross-border payments far more accessible and transparent for our clients. Our loyalty-based FX discounts further add value, allowing frequent users to benefit from reduced FX charges over time.” With HSBC’s Everyday Global Account, clients can hold and send 10 foreign currencies, offering an affordable and seamless solution for international banking.

Dandelion’s infrastructure has allowed HSBC to improve transparency in FX transactions by offering real-time and competitive FX rates. Seneratne elaborated: “In addition, clients can take advantage of HSBC’s FX Order Watch to place a rate watch on their transactions, receiving instant alerts when their desired FX rate is available and helping clients make more informed decisions. It’s a feature that puts control in their hands, creating a more satisfying and personalised experience”.

HSBC clients benefit from a combination of cost savings and enhanced control over their cross-border transactions. The platform’s simplicity and low-cost structure have made HSBC’s cross-border offerings competitive in the market.

Challenges in the cross-border payments landscape

Cross-border transactions are inherently complex due to the diverse regulatory frameworks, varying financial networks, and the need for strict compliance across different countries. The HSBC-Dandelion partnership was formed with these challenges in mind, aiming to simplify the customer experience while ensuring regulatory compliance and security.

Senaratne pointed out that the partnership has addressed the issue of traceability—a significant challenge in international payments. “Clients expect predictability in their transactions and want assurance that their money will arrive in full, on time. Through Dandelion’s platform, our bank can trace transactions, offering clients peace of mind and building trust,” he noted. Additionally, HSBC’s clients benefit from the guarantee that the full transfer amount will reach its destination without unexpected deductions.

“Compliance and fraud prevention are critical in real-time payments,” said Dagur. “At Dandelion, we integrate real-time transaction monitoring and fraud detection directly into our platform to ensure a secure transaction environment for every cross-border payment. Our robust models, combined with HSBC’s in-house surveillance, provide continuous risk monitoring, delivering a secure and trusted experience for our clients.”

Competitive differentiation in a growing market

The cross-border payments landscape has become increasingly competitive with the proliferation of new providers and platforms. HSBC’s decision to collaborate with Dandelion reflects a strategic move to differentiate its offerings from other financial institutions by providing a faster, more reliable, and cost-effective solution.

Dagur emphasised Dandelion’s unique position in the market, noting, “We have the largest real-time cross-border money movement network globally, and HSBC’s clients can directly benefit from this scale and reach”. HSBC clients can now send payments to both established and emerging markets—an essential feature, as payments to frontier markets are often challenging due to limited infrastructure. Dagur explained, “Our network enables HSBC to reach some of the key ASEAN markets, as well as traditionally hard-to-access regions, supporting cross-border payment needs in both mainstream and exotic currencies.”

Senaratne also pointed out that Dandelion’s infrastructure is well-tested, having handled a large volume of transactions over several decades. “This partnership brings a level of operational resilience that assures clients their transactions are not only efficient but also reliable, even during peak volumes,” he said. With a consistently high success rate, the platform minimises transaction delays and provides a streamlined experience for HSBC’s clients.

This differentiation is further bolstered by Dandelion’s capability for “end-to-end integration,” which allows HSBC to maintain traceability for each transaction. Dagur highlighted that even in cases where an error occurs, the platform’s architecture allows for quick, transparent problem resolution, ensuring customers are kept informed throughout the process.

Future development and potential for expansion

As cross-border payment demand grows, HSBC and Dandelion are actively exploring ways to expand and enhance their partnership to meet evolving customer needs. Currently, the partnership supports over 100 destinations and 60 currencies, but both Senaratne and Dagur recognise that this scope will likely expand as digital transformation in the financial sector accelerates and customer demographics shift.

“We are closely monitoring our clients’ needs and watching trends in the payment landscape,” Senaratne explained. “Dandelion’s expertise gives us the agility to evolve and scale, offering solutions that are relevant to clients’ international lifestyles. Our goal is to expand our services to new markets, ultimately incorporating more currencies and payment endpoints such as digital wallets.” This approach allows HSBC to remain competitive while providing clients with comprehensive, integrated solutions tailored to their global financial needs.

Dagur added that while the current focus is on retail payments, Dandelion’s infrastructure is flexible enough to support other types of payments, such as business-to-business (B2B) and business-to-consumer (B2C) transactions. 

The partnership’s expansion also aligns with HSBC’s broader goals to incorporate advanced features, such as loyalty-based FX rewards and rate alerts, into its cross-border offerings. Senaratne noted, “This is about building a complete ecosystem for international clients. From multi-currency accounts, international account opening, internationally portable credit history to our global insights of FX and currencies, we want to offer clients a seamless, loyalty-driven experience that rewards their relationship with HSBC.”

A vision for the future

The HSBC-Dandelion partnership represents a significant step forward in cross-border payment solutions. By combining HSBC’s extensive banking network with Dandelion’s innovative technology and geographical reach, the partnership has brought efficiency, transparency, and cost savings to international payments, benefiting HSBC’s diverse, globally-minded clientele. Looking ahead, both Senaratne and Dagur are enthusiastic about further developments, with potential expansions to cover additional currencies and endpoints, including digital wallets in emerging markets.

Senaratne summed up their vision: “Our clients’ needs are evolving, and as they continue to lead international lifestyles, we’re committed to offering scalable and affordable solutions. With Dandelion as our partner, we are excited to keep innovating and expanding the options available to our clients across the globe”.