① In recent years, as the business of micro, small and medium-sized enterprises has expanded overseas, the demand for small-amount and high-frequency payments has been extended; ② More and more payment companies are deploying overseas, which is an inevitable process for cross-border payments to become compliant.
Financial Services Association, May 28 (Reporter Wang Hong) - Lianlian Digital Announcements have been issued that it has obtained an EMI (i.e. electronic money institution) license issued by the Luxembourg Financial Industry Supervisory Commission. Today, at the 2024 Tsinghua Wudaokou Global Finance Forum, Lianlian Digital Co-CEO Lu Weiyi was interviewed by a reporter from the Financial Federation.
According to Lu Weiyi, by the end of last year, it had 64 payment licenses around the world, covering all states in the US, as well as places such as Thailand, Singapore, and the United Kingdom. According to reports, European countries, including Luxembourg, mainly have two types of PI/EMI payment licenses. Among them, EMI is an electronic money institution license. Its main function is to issue electronic money (non-sovereign digital tokens), which can provide services such as payment, prepaid cards, and e-wallets in specific regions.
In recent years, as the business of micro, small and medium-sized enterprises has expanded overseas, the demand for small-amount and high-frequency payments has been extended. Traditional payment tools have problems such as high cost, low timeliness, complicated procedures, and complicated processes, and cannot fully meet the payment needs of cross-border merchants. This is also the reason for the rapid development of the domestic third-party cross-border payment industry.
According to a report released by the China Business Industry Research Institute, based on the total payment amount of China's cross-border digital payment service market, the market size of China's cross-border digital payment service industry increased from 2.2 trillion yuan in 2019 to 5.9 trillion yuan in 2023, with an overall compound annual growth rate of 27.97%, and it is predicted that the market size of China's cross-border digital payment service industry will reach 7.5 trillion yuan in 2024.
According to incomplete statistics, since 2021, more than 20 payment institutions have been licensed globally. In addition to consecutive numbers, many institutions including Xindu, Yeahka, Remittance World, and PingPong have increased their license and business layout speed.
“More and more payment companies are operating overseas, and this is an inevitable process for cross-border payments to become compliant. Capital is the core part of cross-border transactions, and payment companies need to have corresponding qualifications and licenses to provide corresponding services under compliance requirements. Furthermore, payment companies need to understand and understand overseas compliance and legal requirements, which is the foundation for payment companies,” said Lui Wai.
Lu Weiyi also pointed out that in recent years, the country has also encouraged payment companies to help enterprises facilitate cross-border trade. “On the one hand, we carry out digital upgrades through ourselves. In addition to providing basic digital payment services, we also add value-added services to provide technical support to enterprises. On the other hand, we also focus on building a cross-border trade ecosystem and using the power of ecology to serve customers.”