In the trillion-dollar track of cross-border payment, the basic base of the leading players has been stabilized.
Wanlihui is backed by the ecosystem of Ant and Alibaba, and has a natural entrance to the e-commerce scene; Lianlian International has built a moat with scale effect thanks to its years of deep cultivation in the cross-border seller network; Airwallex is product-driven and has built a global financial operating system for enterprises; PingPong has achieved the ultimate in execution efficiency and cost control;
Competition in the industry is fierce. PayKKa, a cross-border payment brand owned by the A-share listed company Shenzhen Xinguodu Co., Ltd., has entered the market only two years ago. In just over two years, it has shown another competitiveness in the payment segment and has become a new cross-border payment that cannot be ignored.
1. How to get started?
Three differentiated paths
The refined operation of enterprises going overseas will accelerate the transformation of cross-border payments.
As a one-stop comprehensive cross-border payment solution service provider, PayKKA has jumped out of the single capital channel model and accelerated its development in the direction of serving multiple links, diversifying scenarios, and globalizing its layout.
The cross-border payment industry has been upgraded from a “fund conversion intermediary” to an “enterprise overseas partner”. This is essentially an inevitable choice for the industry to cope with the diversification of trade scenarios, refinement of compliance, and in-depth consumer demand.
Unlike the mature payment platforms on the market, PayKKa is more like a robust cross-border payment service entity.
The starting point is bright. It will be officially launched by Xinguodu in 2023. The parent company Xinguodu has been deeply involved in the payment track for 25 years. The obvious group background and relatively complete capability accumulation in the payment field have given PayKKa strong support to ride on the cross-border payment track.
In terms of the existing payment system, PayKKa has deployed compliance entities in Hong Kong, Luxembourg, the United States and other places.
This means that its globalization capabilities have covered the three key economic regions of North America, the European Union, and the Asia-Pacific.
At the same time, the global offices/covered areas cover Shenzhen (headquarters), Hong Kong, China, Luxembourg in Europe, Shanghai, Guangzhou, Hangzhou, Shijiazhuang, Chengdu, Qingdao, etc.
In terms of compliance, account and service network, PayKKa has industrial base strength.
Looking horizontally, PayKKa’s core business capabilities are mainly concentrated in four lines.
The first is foreign trade collection and cross-border platform collection. For platform collection, PayKKA actually provides a set of multi-platform fund collection and management capabilities; the second is independent station international card organization acquisition and local payment, such as supporting Visa, Mastercard, etc., local payment methods include Southeast Asia G
Mainstream local e-wallets such as rabPay and Boost; the third one is multi-currency exchange, settlement and payment. PayKKA provides 20+ mainstream currency collection, payment and settlement in the world and direct collection of 10 overseas local currencies; the fourth one is payment + services, such as supply chain finance, foreign exchange settlement declaration and other value-added services to empower merchants.
Enterprises can complete the entire process of collection, foreign exchange exchange, payment and fund management on the PayKKa account.
Vertically, with the escalation of cross-border consumer demand, PayKKa is promoting payment services to penetrate into subdivided areas such as small and medium-sized foreign trade and digital trade, and provides precise services based on specific overseas scenarios.
Faced with the payment characteristics of high fragmentation and high chargeback rates of game companies, PayKKa provides a unified aggregated payment solution that can be connected to mainstream bank cards and e-wallets in various countries at one time, greatly improving the payment success rate and realizing visual management of funds, supporting the brand’s local expansion.
2. The payment track is highly mature, how to break the situation?
The cross-border payment industry has developed so far and has entered the highly mature Red Ocean stage.
Leading institutions have acquired overseas payment licenses through intensive mergers and acquisitions or independent applications, and the global network has become denser and denser; while established players with many years of experience have built high walls by relying on their first-mover advantage to accumulate a user base and scenario coverage.
The cake left for latecomers is not big.
But “maturity” does not mean “finality”.
While leading institutions are busy accelerating their efforts to grab payment licenses and expand market size, gaps are growing in corners that are not satisfied by standardized products.
The highly fragmented payment ecosystem adaptation needs in emerging markets, the special needs of segmented merchants such as small and medium-sized overseas enterprises, and the pain points of capital turnover in specific scenarios…these are exactly the openings for new players to break through.
As a new player in cross-border payment, PayKKa’s capabilities are actually very clear.
It provides not just a single payment channel, but an integrated, safe and robust cross-border fund management solution.
We do not blindly pursue being very deep in every region of the world, but we want to achieve local payment depth in selected markets as needed.
Taking the African market as an example, PayKKa has launched a local collection service in Nigeria, Africa, to support merchants to collect payments directly in local currencies and achieve the fastest T+0 payment. It also provides multi-site centralized fund management, exchange rate inquiry, and supports merchants to directly perform NGN-CNH exchange/settlement operations without the need to convert to USD and then settle, helping merchants stabilize costs and improve the flexibility of fund scheduling.
3. From scale confrontation to value cultivation
From scale to value, the core lies in upgrading the payment channel to a business empowerment platform.
The relevant person in charge of PayKKa said that in addition to realizing the closed loop of “payment + value-added services” at the service level, at the technical level, AI deeply empowers risk control and efficiency, and is applied to payment risk control to improve anti-money laundering and anti-fraud transaction capabilities and accuracy, while integrating intelligent risk control and data decision-making capabilities into capital flows.
In the entire process of transfer, we use technology to improve capital efficiency, optimize exchange rate costs, and strengthen transaction security; at the compliance level, we lay out global licenses and permits, and actively build a cross-border payment ecosystem, including working with international banks, cross-border channel providers, etc. to build ecological hyperlinks to solve the compliance pain points of enterprises going overseas.
It is understood that its parent company Xinguodu is planning to be listed on the Hong Kong stock market.
If successful, it will open up broader financing channels and international capital operation space for PayKKa, and accelerate global license layout and ecological construction.
