Fintech service platforms support cross-border trade

A manager (left) introduces cross-border payment services of XTransfer, a Shanghai-based platform, to an overseas buyer during the 137th China Import and Export Fair in Guangzhou, Guangdong province, on April 15. (QIU QUANLIN/CHINA DAILY)

Chinese fintech service platforms launched incentive policies during the recent 137th China Import and Export Fair, popularly known as the Canton Fair, to assist exporters in continuously expanding their businesses to the global market.

WorldFirst, an international payment service provider and a subsidiary of Ant International, used the fair to officially launch an initiative called "Guardian Plan", an all-in-one cross-border trade financial services solution that integrates the platform's core products.

By leveraging digital technology, the solution aims to enhance the operational capabilities of small and medium-sized enterprises in cross-border trade in terms of payments, order fulfillment, foreign exchange management and financial services.

The solution is expected to help improve the efficiency of cross-border merchants' fund circulation by up to 30 percent, according to the company.

"Safe, reliable and trustworthy high-quality cross-border payment services can effectively compensate for the localization shortcomings when Chinese businesses expand overseas," said Ma Qisheng, general manager of WorldFirst China's cross-border trade.

"Guardian Plan" will comprehensively enhance the competitiveness of domestic cross-border trade enterprises, further reduce costs, increase trust with buyers and overcome challenges in emerging markets, according to Ma.

In traditional operating modes, a cross-border trade payment may take around a week to be credited, with high intermediary bank fees, according to the company.

Through financial services such as global collections, fulfillment, currency exchange and payments under "Guardian Plan", the fastest turnaround time for fund transfers can be completed in just a few hours, allowing domestic sellers to truly achieve worry-free payments.

The company began operations of its digital and cross-border trade operation centers in Guangzhou, capital of Guangdong province, in April, marking a milestone in its efforts to promote the development of cross-border digital trade.

As of 2024, WorldFirst had served over one million micro-multinational enterprises globally, with transaction volumes exceeding $300 billion.

"We plan to use the digital cross-border payment service in expansion of the African market," said Zhang Haihan, founder of Guangzhou PrintFash Ltd.

By leveraging technological innovation such as AI design tools and flexible supply chains, the Guangzhou-based clothing company developed a print on demand platform in 2024, allowing overseas buyers to place orders more efficiently and offering more personalized small-batch T-shirts to the overseas market.

The POD platform has helped the company expand its partnerships in Ethiopia and other emerging regions, focusing on developing clothing brands locally.

"The digital payment plan helps us solve the difficulty of cross-border payments and allows us to use less capital to start business," said Zhang.

By using WorldFirst services for OEM children's clothing, the company saves 40 percent of payment costs each year, according to Zhang.

Deng Guobiao, founder and CEO of XTransfer, another leading cross-border trade payment platform based in Shanghai, said the company would launch a multi-market layout to support Chinese exporters in opening local accounts in more than 30 currencies to help reduce costs in cross-border trading.

"For example, settling directly in Mexican pesos can help reduce the cost of US dollar exchange rate fluctuations," said Deng.

The company will also provide financial services to reputable SMEs, including credit loans and order financing to help them improve fund turnover.

"On the matter of risk control in emerging markets in Asia, Africa and Latin America, we will assist small and medium-sized enterprises in effectively identifying and mitigating risks in their trades," said Deng.

Amid current uncertainties in global trade, Chinese foreign trade enterprises have demonstrated strong flexibility and resilience, as XTransfer's data indicate that many small and medium-sized foreign trade enterprises have shifted their businesses to emerging markets.

In targeting these emerging markets, apart from the local payment services and risk control services, the company has developed its own industry-leading foreign trade financial model, TradePilot, to cater to the actual needs of Chinese enterprises at the marketing and customer acquisition level.