Trading businesses in Hong Kong are embracing financial technology (fintech) solutions for their lower transaction costs, faster processing time, and easier bank account opening, according to a survey released by payment startup Airwallex on Wednesday.

Out of the 105 cross-border trading companies interviewed, 3 out of 4 respondents already use financial technology regularly for payments, with 92 percent expressing satisfaction with fintech-powered services. That compared with a 75 percent satisfaction rate for traditional banking services.

Meanwhile, 90 percent of the respondents “are open to” integrating digital payment platforms for foreign exchange and international transfers within the next six months, the survey revealed.

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As a global transshipment hub, Hong Kong’s trade sector is a traditional economic pillar that underpins the city’s growth. The city’s GDP beat expectations in the second quarter as strong exports outperformed lackluster local consumption. Government data showed that exports jumped 13.1 percent to HK$390.4 billion ($50.06 billion) in July from a year ago, the fifth month in a row with an increase.

However, traders are grappling with an increasingly complex landscape defined by tight margins and heightened financial pressures, said Arnold Chan, Airwallex’s Asia general manager.

More than half the respondents cited increasing operational expenses, particularly in relation to supply chain and logistics, as a pressing issue. These headwinds have been exacerbated by disruptions in global supply chains and inflationary pressures, leading to rising costs across various areas.

In addition, 51 percent of those surveyed said that handling cash flow has become more challenging, in particular in the context of cross-border transactions with diverse regulatory demands. In the survey, 2 out of 5 respondents identified foreign-exchange fluctuations and growing transaction expenses as notable worries.

Digital payment platforms are emerging as a solution to these inefficiencies, by, for instance, providing local payment rails as an alternative to costly international systems. Airwallex said companies can potentially reduce currency conversion costs by up to 80 percent with “competitive foreign exchange rates and transparent fee structures”.

Established in 2015 in Melbourne, Australia, Airwallex offers cross-border payment solutions. Chan said the startup has raised $902 million from investors, including Chinese technology giant Tencent, and is valued at $5.6 billion.

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Its inaugural trade survey included 105 cross-border trading companies involved in selling products that include fashion and beauty, devices and electronics, food and beverages, and health.

Participants have also cited various factors that contribute to Hong Kong’s status as a global trade hub. Key elements highlighted its tax-friendly environment, proximity to the Chinese mainland, and the strength of its financial markets.

“As global trade evolves, Hong Kong remains a critical gateway for businesses looking to expand into new markets, whether they are sourcing from international suppliers or selling to customers across borders,” Chan said.