Digital Trade & E-Commerce
View ResourceBlockchain trade finance solutions
This website features explanatory videos, articles, online tools and services, blogs, reports, and explainers about the use of blockchain for trade finance.
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Blockchain and DLT in Trade: Where Do We Stand?
To examine the current landscape of blockchain and distributed ledger technology in trade projects, especially in the context of the COVID-19 crisis. It looks at over 40 trade projects that do so, analyzing their various features. It is an update of an earlier paper on the same subject.
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Blockchain for SMEs and Entrepreneurs in Italy
To explain the evolution and uptake of blockchain technology in the Italian context, including how legal and policy frameworks have changed, and what this has meant for small and medium-sized enterprises.
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Blockchain for SMEs and Entrepreneurs in Israel
To explain the evolution and uptake of blockchain technology in the Israeli context, including how legal and policy frameworks have changed, and what this has meant for small and medium-sized enterprises.
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Can Blockchain Revolutionize International Trade?
To set out the details of how blockchain/distributed ledger technology works, explain how to understand the implications of this technology for trade and trade policy, and describe what questions and challenges exist in increasing this technology's uptake in trade.
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Global Trade Helpdesk
This site provides market intelligence for MSMEs looking to trade abroad, both for importing and for exporting. It includes a host of integrated tools, tutorials, product finders by Harmonized System (HS) codes, data sources, and much more.
View GuideElectronic Cross-border Payments
What are e-payments? Electronic payments (e-payments) are digital transactions that users make to pay for goods and services on the internet. To execute payments electronically, businesses and individuals use a variety of e-payment methods that range from debit and card payments to bank transfers to mobile pay and automated clearing house (ACH) transactions. E-payments are basically financial operations enabled by electronic devices, such as computers, smartphones, or tablets. For more information on e-payment models and transaction types, see the International Chamber of Commerce’s (ICC) Electronic Payment Services and E-Commerce and the International Monetary Fund’s (IMF) fintech note 19/91 “The Rise of Digital Money.” Why do e-payments matter for MSMEs to trade? Technological developments in recent years have been enabling financial and non-financial institutions to modernize the payment methods they offer to users. Studies by the Bank for International Settlements (BIS) and the International Monetary Fund have documented the rapid growth that digital technologies are seeing relative to traditional instruments. As digital technologies offer more efficient and less expensive payment instruments, small businesses can benefit from using e-payment options to reduce uncertainty and costs, especially for international trade transactions. Other advantages that e-payments have for MSMEs when it comes to engaging in trade range from speeding up cross-border payment activities at customs to reducing fraud risks and burdensome administrative expenses. For more information on e-payments and online transactions, see the following articles and papers: The BIS article on trends in digital payments, “Payments go (even more) digital”; The IMF working paper WP/21/177 “Is Mobile Money Part of Money? Understanding the Trends and Measurement“; The United Nations Economic Commission for Europe’s (UNECE) Trade Facilitation Implementation Guide; and The Organisation for Economic Co-operation and Development’s (OECD) paper on “Trade finance for SMEs in the digital era.” Which challenges do MSMEs encounter in using e-payments? While digital technologies have contributed to the rapid expansion of financial services, e-payment markets face regulatory challenges that hinder the ability of small businesses to have greater access to cross-border payment options for trade. A recent World Trade Organization (WTO) study has shown that only a quarter of WTO Members have fully liberalized cross-border payments under the General Agreement on Trade in Services (GATS) commitments. The World Economic Forum (WEF) and International Chamber of Commerce (ICC) have identified four key areas where policymakers could engage to reduce frictions in e-payment markets: (a) market access and national treatment barriers; (b) technical standards; (c) security and trust; and (d) policy coordination and oversight. For more information, see the WEF’s Connecting Digital Economies page and their white paper on Addressing E-Payment Challenges in Global E-Commerce, as well as the ICC’s Issues Brief on Electronic payment services and e-commerce. Where can I access resources on frameworks and policy recommendations? Policy recommendations for cross-border payments: The WEF outlines key areas where policymakers can engage and cooperate to reduce complexity in e-payments markets. Visit Connecting Digital Economies: Policy Recommendations for Cross-Border Payments. Scope of existing commitments on e-payment services: The WEF describes the current state of multilateral commitments and plurilateral negotiations on trade-related aspects of e-payment services and e-commerce. Read the WEF paper. Consumer policy guidance on mobile and online payments: The Organisation for Economic Cooperation and Development (OECD) offers guidance that policymakers can use to address consumer protection issues when designing policies targeting mobile and online payment markets. Read the OECD guide. Analytical framework on fintech and payments regulations: The International Monetary Fund (IMF) documents recent international experiences in modernizing legal and regulatory frameworks for payments services. Link to IMF framework. Where can I find best practices and national examples? E-payments guide for developing countries: The International Trade Centre (ITC) developed a guide on legal and regulatory reforms and best practices that policymakers can use to address e-payment policy issues in developing countries. Visit the ITC guide. Electronic payments acceptance initiatives: The World Bank has documented a review of literature and country examples to guide policymakers in designing incentives to foster electronic payments acceptance. Access the World Bank review.
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Digital Economy
What is the digital economy? According to the Organisation for Economic Co-operation (OECD), "the Digital Economy incorporates all economic activity reliant on, ...
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Cross-Border Paperless Trade
What is cross-border paperless trade? Paperless trade refers to the digitalization of information flows required to support goods and services crossing borders.
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AI Tools for Trade
What Should I Know Before Exporting My Service? Several trends, including digital innovations, have resulted in the rapid growth in the export of services.
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Services Trade
What Should I Know Before Exporting My Service? Several trends, including digital innovations, have resulted in the rapid growth in the export of services.
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Business Identification and the Legal Entity Identifier
What is a legal entity identifier (LEI)? An LEI is a 20-character, alphanumeric code that provides a clear and unique identification to businesses and other entities participating in financial transactions (for a detailed description of the code itself, please see the Global Legal Entity Identifier Foundation website). It contains information on business ownership structures that regulators require to assess financial risks and promote market integrity. LEIs are part of global standards that rely on high data quality for enhancing transparency in marketplaces. More information on what an LEI is can be found at the Global Legal Entity Identifier Foundation’s website and at LEI Worldwide. Following the 2008 financial crisis, there was an acknowledgement by regulators of the difficulty in identifying the parties to a transaction across markets, products, and regions (see the Financial Stability Board’s article on the LEI). The LEI became a regulatory response to this issue, allowing for the incorporation of key information for legal entities in a financial transaction (including digital) on “who is who” and “who owns whom.” Although the LEI was initially adopted for use in trade of financial derivatives, it has a host of other applications, including for loan issuance and business identification. For more information on the history of the LEI, see the Financial Stability Board’s website, along with SWIFT and this McKinsey report. Why does an LEI matter for MSMEs and trade? Although an LEI is not a legal requirement, there are several benefits for small businesses. For one, the LEI reduces the cost of onboarding clients, which are sometimes prohibitively high for bringing in new MSME clients. For trade finance, LEIs can speed up access to finance through better identification and can enable faster processing of letters of credit. LEIs also help with KYC (Know Your Customer) requirements, which are financial services guidelines requiring that identity is verified. Working with others that have an LEI number can also provide MSMEs with security in knowing about suppliers and partners and doing business overseas. Finally, LEIs can help MSMEs to comply with international regulations, secure their brand identity, and enhance their compliance reporting requirements. More information can be found in LEI Worldwide. How can policymakers help? Governments and policymakers have a role to play in encouraging the adoption of the LEI, namely by raising awareness that this tool exists and has particular uses. Not only is it important to understand that an identity solution such as the LEI has been developed, it is also important to raise awareness of the ways it can benefit MSMEs by reducing their transaction costs and increasing their access to financial markets. Where can policymakers learn more about policy frameworks and guidelines? Why a Trusted Identity is the First Step to Financial Inclusion for SMEs: This publication underscores the role that trusted digital identities can play for increasing financial inclusion for small businesses. Access this page at the GLEIF website. The LEI in Digital Certificates: The Global Legal Entity Identifier Foundation provides a variety of resources that policymakers and regulatory authorities could use to embed LEIs into certificates and seals, when they are issued in a business context. Visit the GLEIF website. Thematic Review on Implementation of the Legal Entity Identifier: This publication presents a peer review on cross-country and cross-sector LEI implementation progress conducted by the Financial Stability Board (FSB). Visit the FSB website. Where can policymakers access best practices and national examples? Recommendation on the Use of Legal Entity Identifier (LEI) in EU countries: This recommendation outlines information items required under EU regulations to obtain a pre-LEI code for reporting purposes. Visit the European Banking Authority (EBA) for more. The LEI: The Key to Unlocking Financial Inclusion in Developing Countries: This resource identifies ways in which financial institutions in developing countries can increase financial inclusion by providing capacity to small businesses to adopt LEIs. It provides Africa-specific examples. Access this resource at the GLEIF website. How Legal Entity Identifiers Will Transform Small Business in Asia: This resource provides insights on the role that LEIs could have to help small businesses to increase their access to finance and participation in supply chains. Visit the Asian Development Bank (ADB) website.
