Chinese exporters should encourage payment in the yuan, or renminbi, to cut costs, improve efficiency and act as "first movers" for internationalization of the currency, according to a new survey.

Although nine out of 10 Chinese exporters prefer to pay in the national currency, more than 40 percent of them are reluctant to ask their overseas customers to do so, according to the report released by Western Union Business Solutions, part of Western Union Co, on Tuesday.

The convenience of currency conversion and lower exposure to exchange-rate fluctuations are the main reasons why payment in yuan is a better option, said the survey, which was based on telephone interviews with more than 1,000 Chinese exporters.

In early 2011, the People's Bank of China announced a list of exporters to allow them to settle trade in yuan with counterparties globally and enjoy tax rebates.

The list included 67,000 companies, both local Chinese and multinational corporations.

However, "Chinese exporters are afraid to offer such an option, even though it's an easier and less expensive way to settle transactions than using the US dollar or the euro, because they think they will be rebuffed," according to Alfred Nader, vice-president of corporate strategy at WUBS.

The companies surveyed said they have to pay an average of 3 percent in extra fees in order to insure against the exchange-rate risks associated with settling in currencies other than yuan.

The exporters' conservatism isn't groundless. The survey also found that 42 percent of customers in the United States and 23 percent in the European market, two of China's largest trade partners, are unwilling to provide trade settlement in yuan.

In contrast, only 8 percent of Japanese companies and 2 percent of Australian companies are against yuan payments.

The reason behind that division is that companies in Australia and Japan are exposed to the Asian market where multiple currencies are in daily use, whereas in the US and Europe, the US dollar and euro are the dominant currencies.

That being the case, great opportunities are available in emerging markets such as Brazil and India where the local currencies are not fully convertible either, Nader said.

"Chinese exporters need to begin conversations (about payment in yuan) as early as possible when entering those markets," he added.

However, he warned that in the emerging markets local importers may not have sufficient yuan to settle their transactions.

Still, the yuan's gradual liberalization and transformation into a global reserve currency present opportunities for Chinese exporters to advise their customers to settle in yuan, because "it's a win-win for both sides", he added.

Some overseas clients have already started to invoice using the yuan, but this is still "the tip of the iceberg", the Financial Times reported, citing David Pavitt, head of emerging markets foreign-exchange trading at HSBC Holdings PLC.

Many Chinese companies have increased the dollar-pricing of the goods they sell overseas to compensate for the widely expected yuan appreciation, according to Pavitt, adding that some of them will offer a discount of as much as 8 percent if they are paid in yuan.