Another cross-border payment service provider launched its listing plan in Hong Kong.
Extransfer Limited – W (hereinafter referred to as “XTransfer”), which mainly provides cross-border payment services for small and medium-sized enterprises, recently officially submitted a prospectus to the Hong Kong Stock Exchange and plans to use 40% of the funds raised for global market penetration and local collection network construction.
The Hong Kong Stock Exchange website recently disclosed that XTransfer, a B2B (business-to-business) cross-border payment service provider, officially submitted a prospectus, with UBS Group and CICC as its joint sponsors.
The main operating entity of XTransfer is Shanghai Duohui Network Technology Co., Ltd., which is a wholly-owned subsidiary of Shanghai Duochang Network Technology Co., Ltd. (hereinafter referred to as “Shanghai Duochang”). It was established in 2017 and is a Hong Kong, Macao and Taiwan legal person-owned enterprise. It mainly provides payment services to small and medium-sized enterprises and assists them in carrying out efficient and safe cross-border payment settlements with overseas trading companies.
As of March 31, 2026, XTransfer served approximately 897,000 registered customers.
According to the information in the prospectus, XTransfer adopts the WVR structure allowed by the Hong Kong Stock Exchange to design its governance system. The founding team locks in long-term control rights through a dual-tier equity structure and concerted action agreement. Class A shares enjoy higher voting weights. This arrangement is intended to resist the interference of short-term capital games after listing and ensure the continued implementation of long-term strategies such as overseas expansion and technology research and development.
XTransfer’s prospectus released this time did not specify the specific scale of fundraising, but disclosed that 40% of the net raised funds will be used for global market penetration and local collection network construction, 30% will be invested in AI and blockchain technology research and development, 20% will enrich cross-border RMB settlement, supply chain finance and other product systems, and the remaining 10% will supplement working capital.
Wang Pengbo, chief analyst of Broadcom Consulting, told reporters that XTransfer’s product matrix is not rich enough, and there is still room for improvement in customer stickiness. The current core competitiveness is more reflected in price advantages and service response speed.
Judging from XTransfer’s fundraising plan, 40% of the funds will be used for global market penetration and 30% will be invested in AI and blockchain technology research and development. The direction is in line with industry development trends and is expected to further consolidate its advantages in vertical fields.
The prospectus also disclosed XTransfer’s operations over the past three years.
From 2023 to 2025 (hereinafter referred to as the “Reporting Period”), XTransfer payment transaction volume (TPV) was US$18.633 billion, US$32.618 billion, and US$60.516 billion respectively, with a compound annual growth rate of 80.2%, higher than the overall industry’s 34% compound annual growth rate during the same period.
XTransfer’s operating income during the reporting period was US$115 million, US$162 million and US$248 million respectively, with a compound annual growth rate of 47.5%.
Due to changes in the fair value of convertible and redeemable preferred shares, XTransfer’s losses during the reporting period were approximately US$153 million, US$353 million, and US$484 million respectively; calculated according to non-IFRS, XTransfer reported
Adjusted net profits during the reporting period were US$11.203 million, US$5.271 million and US$47.674 million respectively; gross profits during the same period were US$110 million, US$152 million and US$229 million respectively, and gross profit margins were 95.6%, 93.6% and 92.0% respectively.
“The profitability of small and medium-sized institutions is under pressure, and sustainability is questionable.” Wang Pengbo believes that the development of the cross-border payment industry still faces multiple constraints. Traditional banks continue to sink into the cross-border payment market of small, medium and micro enterprises. With capital costs and channel advantages, they still occupy more than 90% of the global B2B cross-border payment market.
Comprehensive payment institutions are also constantly expanding their B2B cross-border payment business. The problem of product homogeneity is more prominent, and industry price competition continues to intensify.
Wang Pengbo said that XTransfer will have a relatively high compound growth rate of payment transaction volume from 2023 to 2025, and core business operating profits will increase nearly 7 times in three years. The trend of profit improvement is clear. After listing, the change in fair value of convertible preferred shares will be automatically eliminated, and the release of book profits will be more flexible.
However, judging from the data, compared with comprehensive payment institutions that have achieved overall profitability, XTransfer’s transaction scale is still small, its business structure is highly single, and its ability to resist cycles and risks is obviously weak.
After listing, it needs to continue to invest in global network construction and technology research and development, and there is uncertainty in performance realization. At the same time, the intensity of global cross-border payment supervision continues to increase, and rising compliance costs will further compress its profit margins.
Wang Pengbo pointed out that the large-scale commercialization of AI and blockchain technology in the field of cross-border payments may take a long time to verify the effect.
In addition, the supply chain finance business that the company plans to expand will have higher requirements for the risk control system.
Moreover, price competition within the industry should continue in the short term, so for XTransfer, how to maintain rapid expansion of market share while steadily improving profitability and finding a balance between the two is the key to achieving sustainable development in the future.
