Introduction to the Global Trade Payment Platform (GTPP)

  What is the Global Trade Payment Platform (GTPP)?

The Global Trade Payment Platform (GTPP) is a collaborative initiative between KOTRA, Visa Inc., and NHN KCP designed to streamline and enhance cross-border payments for international trade. The platform provides a dedicated website for processing trade transactions using credit cards, offering a more efficient and secure way for businesses to complete payments globally.

 What is the purpose of GTPP?

The primary purpose of the GTPP is to offer a cost-effective, faster, and more reliable payment solution for exporters and buyers. The platform aims to gradually replace traditional payment methods such as T/T (telegraphic transfer) by offering a simpler and more efficient alternative for international trade transactions.

 How does GTPP work?

 Step 1: Card Issuance - The local card issuer releases a new credit card specifically designed for GTPP transactions.

 Step 2: Registration Process 

Step 2-1: The buyer registers on the GTPP site and applies for a new credit card.

Step 2-2: The exporter joins the GTPP site by providing their bank information.

Step 2-3: The local card issuer issues a credit card to the buyer.

 Step 3: Agreement on Payment Terms - The buyer and exporter agree on payment conditions. It’s important to note that actual trade activities (such as shipping and order fulfillment) occur outside of the GTPP platform; the platform is used only for payment processing. The payment can be made at any time according to both parties' agreement (e.g., before shipment, after shipment, or 30 days after arrival).

 Step 4: Payment Request - The exporter sends a payment request to the buyer through the GTPP system.

 Step 5: Payment Notification - The buyer receives a payment notice via email.

 Step 6: Making the Payment - The buyer proceeds to make the payment on the GTPP site using their credit card details.

 Step 7: Payment Settlement - Once the payment is made, the Payment Gateway (PG) transfers the funds to the exporter’s account within 5 business days.

 What are the benefits of GTPP?

For Buyers:

 Extended Payment Terms: Buyers can enjoy 1 month’s financing, as the payment is made immediately, but the actual withdrawal from the card occurs a month later.

 Reliable Sellers: The Payment Gateway (PG) checks the credibility of exporters before they are allowed to join the GTPP platform, ensuring that buyers are dealing with trustworthy partners.

For Exporters:

 Quick Payment Retrieval: Exporters can receive payments within 5 days after the buyer makes payment through GTPP.

 Reliable Buyers: Card issuers assess the buyer's creditworthiness before issuing the card, ensuring that exporters are dealing with financially responsible buyers.

For Both Parties:

 Low Transaction Costs: The platform charges a transaction fee of only 1.5%, significantly lower than some other international payment solutions

 Reduced Administrative Costs: The process is simple and efficient, with only 15 minutes required to send an invoice and make a payment.

 Secure Transactions: There is no need to worry about the risks of email hacking or other security issues, as all payments are processed securely through the platform.

 Who pays the transaction fee (1.5%)?

The fee is negotiable between the buyer and the exporter. For example, the cost can be split equally, with 0.75% charged to each party.

 Join GTPP

To use the GTPP service, you must sign up on the GTPP website and obtain a dedicated credit card from your local credit card issuer. As of January 2025, card issuance is only available in Taiwan (by Far Eastern International Bank). The service is planned to expand to eight countries, including Japan, the USA, Mongolia, Singapore, and Mexico, in 2025.