How HSBC and Dandelion are Reshaping Cross-Border Payments

In a move to modernise international payment infrastructure, HSBC has joined forces with Dandelion, a cross-border payments platform under Nasdaq-listed Euronet Worldwide's umbrella. 

This collaboration marks a decisive shift away from traditional banking intermediaries, bypassing the Swift network - a messaging system that has dominated cross-border banking since the 1970s despite ongoing criticism over its complexity and cost.

Drawing on Dandelion's direct-to-local connections, clients of the global banking group can now send funds to more than 100 destinations across 60 currencies. 

At the heart of this transformation lies a technical integration powered by real-time foreign exchange tracking and fraud monitoring systems. 

Through Dandelion's API (Application Programming Interface), the bank has established direct connections with local payment rails, streamlining what was once a complex chain of transactions.

“Our single API integration with HSBC connects directly to our global payment rails, covering over 190 countries, with HSBC leveraging over 60 destinations,” says Deepan Dagur, Head of Asia Pacific and Middle East at Dandelion, in an interview with The Asian Banker.

Market Impact

A suite of new features includes FX Order Watch, which alerts clients when their preferred exchange rates become available. 

Where traditional correspondent banking often required days to process transfers, transactions are now complete within 24 hours. 

Security remains paramount, with Dandelion's real-time monitoring and fraud detection working in concert with HSBC's in-house surveillance systems.

HSBC's enhanced Everyday Global Account now handles ten foreign currencies, rewarding frequent users with loyalty-based FX discounts. 

This development signals a significant departure from conventional international banking models, where multiple intermediaries traditionally drove up both costs and complexity.

Nadeesha Senaratne, HSBC's Head of Retail Products and Journeys, Wealth and Personal Banking, tells The Asian Banker: “We have enhanced our breadth of currencies and destinations, allowing clients to send money like a local much faster, within 24 hours, without any additional fees.”

As banks increasingly seek alternatives to established practices, this streamlined approach could reshape the competitive landscape. 

Future Expansion

The initiative has particular significance for markets where traditional banking infrastructure remains limited. Deepan points to ASEAN regions as key beneficiaries, where Dandelion's network enables reliable transactions in previously underserved areas.

Looking ahead, HSBC and Dandelion are preparing to incorporate additional currencies and payment endpoints, including digital wallets. 

While retail payments currently form the core offering, Deepan notes mounting interest from corporate clients seeking similar efficiencies in business-to-business transactions.

The roadmap extends beyond standard transfers, encompassing loyalty-based FX rewards and rate alerts. 

Market analysts predict this direct-to-local model could gain widespread adoption as banks move to reduce their reliance on traditional correspondent banking relationships.

“This is about building a complete ecosystem for international clients. From multi-currency accounts, international account opening and 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,” Nadeesha concludes.

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