Where to open a corporate account in 2020: bank or electronic payment system?
Sooner or later, every business owner who has reached the international level faces the need to make non-cash payments with counterparties. Recently, a good alternative to a classic corporate bank account has emerged in the form of the possibility to open an account in the payment system in 2020.
Payment systems: types, functions, advantages and disadvantages
International electronic payment systems fall into two large categories, PSP (Payment Service Provider) and EMI (Electronic Money Institution). PSP is not exactly suitable for business operations, and in fact, it resembles a system of electronic money transfers; money on its platform can be stored for no more than two days.
EMI functionality is as close as possible to that of a bank. On its platform, it is possible to store money for a long time and issue payment cards; that is why modern entrepreneurs choose it more often. The main advantages of EMI payment systems are as follows:
- the ability to open an account online and in an accelerated mode;
- low commissions and advantageous currency conversion rates on multi-currency accounts;
- 24/7 access to the account;
- simplified procedure of account holder identification;
- no minimum account balance requirement;
- convenient and accessible Internet-banking.
The main disadvantage of electronic payment systems is considered to be the possibility of unjustified blocking of the account for an indefinite period of time, that deal with security issues related to counter-financing of terrorism and economic fraud. However, in reality such difficulties are solved quickly if the company does not violate the law, is ready for productive communication with managers and promptly provides the requested documents confirming account transactions.
Account opening in the payment system in 2020 can be performed remotely. It is important to choose a reliable and fully compliant platform. The most popular platforms are Payoneer, Skrill, FONDY, PaySera, and Epayments.
Advantages of foreign banks
Opening an account in a classic foreign bank in 2020 is much more complicated than in an electronic payment system. Customers need to provide many more documents, meet a number of requirements, and the verification procedure can take a considerable amount of time. Not all large banks are ready to accept international payments and meet the needs of their ordinary customers. Nevertheless, corporate banking still has advantages, and first of all they are:
- stability (since the bank, when opening an account, carefully identifies the client, blocking is possible only in extreme cases);
- possibility to use additional products (crediting, placement of deposits and letters of credit, rent of bank cells).
Choosing a bank, first of all, you should pay attention to the area of its presence. In Europe and America the best are considered to be the Bank of America, HSBC Holdings, BNP Paribas; in Asia - Industrial & Commercial Bank of China and Mitsubishi UFJ Financial Group.
Entrepreneurs wishing to develop business non-stop should think about opening several corporate accounts at once, both in a classic bank and in a payment system. This will allow to access the account at any time, and even in case of temporary difficulties, it will not block the work of the firm. IT-OFFSHORE experts will help you decide upon a financial institution and implement the opening procedure as soon as possible.