The evolution of payment instruments in international trade

Authors

  • Cyrill Dmitrievich Krivonozhkin Russian Foreign Trade Academy
  • Tatyana Dmitriyevna Masykova Russian Foreign Trade Academy
  • Yuri Anatolievich Savinov Russian Foreign Trade Academy

Keywords:

Payment instruments in international trade, SWIFT, credit, open account, reversible (procurement) factoring, factoring without regression, exporter, importer, bank payment obligation

Abstract

The authors consider the evolution of the use of payment instruments in international sales transactions after implementation of the paperless submission of documents. In this regard, the role of the LC have been distinctively decreasing with the increase of the use of open account terms. Reverse (procurement) factoring has been used more widely in business practice. The development and widespread use of a new payment instrument - bank payment obligation- was a breakthrough in the transaction processing. The authors assess the possibility of using the bank
payment obligation in Russia.

Author Biographies

Cyrill Dmitrievich Krivonozhkin, Russian Foreign Trade Academy

Place of work, post: Russian Foreign Trade Academy, Academic Department of Finance and Monetary and Credit Relations, post-graduate student

Tatyana Dmitriyevna Masykova, Russian Foreign Trade Academy

Candidate of Economic Sciences, Assistant Professor
Place of work, post: Russian Foreign Trade Academy, Department of Finance, Monetary and Credit Relations, Professor

Yuri Anatolievich Savinov, Russian Foreign Trade Academy

Doctor of Economic Sciences, Professor
Place of work, post: Russian Foreign Trade Academy, Department of foreign trade and international transactions, Professor

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Published

2024-02-08

How to Cite

Krivonozhkin, C. D., Masykova, T. D., & Savinov, Y. A. (2024). The evolution of payment instruments in international trade. Russian Foreign Economic Journal, (8), 29–44. Retrieved from https://journal.vavt.ru/rfej/article/view/872

Issue

No. 8 (2014)

Section

Foreign trade