The Chinese fintech unicorn XTransfer has recently expanded its business-to-business (B2B) cross-border trade payment platform in Thailand, targeting the global trade needs of small and medium-sized enterprises (SMEs).
In the future, the company plans to initiate its first public offering. After completing its Series D funding round in September 2021, the firm’s market value surpassed US$1.3 billion, affirming its unicorn status.
Jason Sun, the founder and CFO of XTransfer, announced, “We decided to expand outside China last year, aiming to become a global payment trade platform for SMEs.”
The company anticipates that within three to five years, half of XTransfer’s revenue will come from international markets, with the remainder from within China.
Since its inception seven years ago, XTransfer has assisted over 450,000 Chinese exporters in collecting payments globally, operating within China’s massive US$3 trillion B2B payment sector, which constitutes nearly 20% of the country’s GDP.
The company is strategically focusing on Southeast Asia, with particular emphasis on Thailand, and is also targeting expansion in South Asia, the Middle East, and Africa.
Data from China’s Commerce Ministry reveals that Thailand was China’s fourth-biggest ASEAN trade partner last year, with China being the top trading partner for Thailand.
In the first two months of 2024, there was a 32.5% increase in funds collected through China’s trade with Thai SMEs compared to the same period last year, according to XTransfer.
XTransfer aims to simplify and expedite the payment process for trade between Chinese sellers and Thai buyers.
Recently, XTransfer was recognized as a non-resident qualified company by the Bank of Thailand, a first for the country, facilitated by Deutsche Bank.
Together with Deutsche Bank, XTransfer is enhancing Sino-Thai trade by enabling direct payments to Chinese suppliers in baht through Thailand’s PromptPay system.
XTransfer has also released a global version of its mobile app, offering users worldwide the ability to manage and transfer funds anytime and anywhere.
XTransfer claims its cross-border payment service is more cost-effective than traditional banking services, offering better exchange rates and lower fees.
For instance, XTransfer charges a flat fee of $12 for each transaction, a more economical option for transactions over $5,000 compared to the traditional banking charge of 0.25% per transaction, as Mr. Sun explained.
Mr. Sun highlighted electronics, apparel, machinery, metals, and the burgeoning electric vehicle components as top export categories from China.
The company is seeking licenses to collaborate with Thai banks and payment services to support Thai SMEs exporting to China.
Mr. Sun emphasized the pivotal role of SMEs in global trade, noting that they contribute to 60% of China’s export volume.
XTransfer has developed a global multi-currency clearing network and an automated anti-money laundering risk control system, focused on SMEs and leveraging data and internet technologies.
Moreover, XTransfer incorporates artificial intelligence in managing cross-border risks and has begun utilizing generative AI for customer relationship management to facilitate communication between Chinese SMEs and their international clients.
