Cross-border payment new tide, the new state to create a new benchmark for payment overseas: India three-way payment which platform payment

From mobile payments to digital currencies, every change in the global cross-border payment field brings numerous opportunities and challenges for service providers in the industry chain.

After a long period of exploration and integration, the global payment landscape is once again witnessing a new round of changes and leaps.

Recently, the BRICS countries have released a beta version of the BRICS Payments application system, which supports the use of various non-dollar currencies for transaction settlement. A number of countries have shown strong willingness to join the BRICS payment system. This means that the system is expected to become a substitute for the international funds settlement system SWIFT, with far-reaching implications for the internationalisation of the digital RMB, international trade and even globalisation.

It has been a great journey of "removing the rough from the smooth". Looking back at the history of global cross-border payments, from the "flying money" of the Tang Dynasty in China to the Medici family's private multinational bank, from the Bank for International Settlements (BIS) to the Society for Worldwide Interbank Financial Telecommunication (SWIFT), and from mobile payments to digital currencies, every change has brought countless opportunities and challenges to service providers along the industry chain.

As a benchmark for domestic digital payment technology companies going overseas, (Company Name) has seized the first-mover advantage and made full use of its three dimensions, namely product strength, service capability and compliance, to accelerate its entry into the cross-border payment market. With forward-looking insights, continuous technological innovation and strong localisation capabilities, Newland's overseas business has covered more than 100 countries around the world, successfully introducing China's advanced "Payment + Terminal" business model into the international arena. This has not only provided new impetus for the company's performance development, but also continued to promote the innovation and development of the global payment industry chain.

Product orientated and active worldwide

"The world is a wide world for 'Made in China'." Chinese enterprises' going to sea has become a vivid scene of sailing and competing.

According to data from the General Administration of Customs, in the first seven months of this year, the total value of China's imports and exports of goods exceeded 24.83 trillion yuan, an increase of 6.2%, a record high. Behind these figures is the accelerated overflow of China's industrial chain, which has played a gorgeous music of Chinese enterprises going overseas.

In the early days, most Chinese enterprises "opened their eyes to the world" through "processing with supplied materials, assembling with supplied parts, processing with samples and compensatory trade", thus making the first step of "going out" by branding themselves as "Made in China" in overseas markets. brand in overseas markets, thus taking the first step of "going out".

As a well-established manufacturing company, Newland's first step overseas also began with manufacturing. Since selling its first terminal equipment overseas in 2015, Newland has been operating under the traditional manufacturing trade model for nearly eight years. By the end of 2023, Newland's products had been sold to more than 100 countries and regions around the world. According to a Nielsen report, Newland's global shipments have remained in the top 10 for years.

It is worth mentioning that when Newland formulated its overseas strategy in 2018, its overseas revenue was only 130 million yuan, but during the 2020-2023 period, Newland's overseas revenue from payment hardware has achieved leapfrog growth, jumping from more than 200 million yuan to nearly 1 billion yuan. Currently, overseas hardware revenue accounts for more than $90% of the company's total payment hardware revenue, and overseas revenue accounts for about a quarter of the company's total revenue.

This is closely related to the global trend of non-cash payments. Shi Xiaodong, president of Newland, revealed that when they were developing payment modules in the UK last year, many merchants in the UK and other European regions had stopped accepting cash, driving demand for payment hardware.

According to the Nielsen report, in recent years, global POS shipments have grown at a compound annual growth rate of approximately 9%. This figure is particularly noteworthy for mature markets, and to some extent reflects the industry's innovative dynamism and growing market demand.

With the rise in demand for payment hardware, the evolution of payment methods has also opened up a vast market space for payment software development. With the advent of the mobile Internet era, the demand for traditional payment tools has decreased, and many new payment methods have emerged, such as QR code scanning, ApplePay and GooglePay, and other flash payment methods. The shift in payment methods has also triggered changes in intermediary software, reflecting the changing software needs of the industry as a whole.

Recognising this, New Continental has expanded its product line to provide related system software services in addition to selling hardware.In 2019, New Continental established New Continental Europe Ltd. to formally export its services to Europe, laying a solid foundation for the next phase of technology going overseas. At the time, New Continental reportedly used an agency system to conduct business in France, focusing mainly on routes involving Chinese tourists visiting France to meet their overseas needs.

In the current wave of technology going overseas, Newland continues to increase its R&D investment in the high-end market, achieving a major breakthrough in the certification of payment hardware and software products. Up to now, Newland Payment has obtained MPOC certification, PCI P2PE certification, PCI SLC certification, PCI PIN certification, etc., laying a foundation for competition in key overseas markets.

Deepening localised services and launching one-stop cross-border payment solutions

Over the past five years, the import and export value of cross-border e-commerce has grown rapidly, reaching $577.6bn in the first quarter of 2024 alone, a year-on-year increase of 9.6%. As the infrastructure for cross-border e-commerce, cross-border payments have directly benefited from the development of cross-border e-commerce.

At the same time, the growth of emerging forms of foreign trade, the increase in outbound travel and the introduction of favourable policies at home and abroad have created good prospects for Chinese payment companies to expand overseas. With China's mobile payment penetration rate ranking first in the world, (company name) Payments is not only leading the way globally, but also introducing various "Chinese solutions" to the wave of payment system upgrades in emerging market countries.

For Chinese payment companies, their advantages in going overseas lie in strong digital infrastructure capabilities, technological innovation, rich experience in digital payments and policy support, which endow them with competitiveness and influence in the international market. However, against the backdrop of intensifying competition in the industry, the ability to provide localised services has become a key factor affecting the success of Chinese payment companies going overseas, due to the asynchronous development of mobile internet infrastructure in different countries and regions, as well as cultural differences and consumption habits.

"Once a payment company has the ability to provide localised services, it can become a core competitive barrier." As one of the first Chinese payment companies to go overseas, Newland has a head start in localised operations. Among other things, Newland's hardware products have built a solid foundation among merchants, and its international business unit has constructed an extensive business network, providing the company with localised layout capabilities and in-depth integration. Expanding payment services and other value-added services has also become an easy choice.

In 2023, Newland's cross-border payment brand Paykka was launched. At the same time, Newland launched its B2B cross-border payment products and overseas local payment products, aiming to provide cross-border e-commerce and cross-border trade enterprise customers with efficient and secure payment solutions through its payment products and services.

Newland's 2024 half-yearly report showed that in the first half of the year, the Company further optimised its overseas licence layout and continued to strengthen the product, team and channel construction of its cross-border payment and overseas collection business, making significant progress.2024 In April, the Company successfully obtained the MSO licence in Hong Kong, which further perfected its global payment licence map. The Company's cross-border payment brand Paykka has successfully launched a series of innovative products such as overseas local collection and B2B foreign trade collection, which have been fully commercialised. In terms of overseas local collection business, the EU region has seen rapid growth in merchant coverage and transaction volume since the first transaction was settled last year. In terms of cross-border payment business, the Company successfully won the bidding of a bank's cross-border remittance business service project in the first half of the year, and has entered into strategic business co-operation with a number of platform companies to jointly provide one-stop payment solutions for cross-border enterprises.

Strengthening the Compliance Foundation for a Trusted Business Ecosystem

The global cross-border payments market has shown significant growth in recent years, driving the rapid development of cross-border payment service providers.

From products going to sea to services going to sea, and now technology going to sea, Newland has seized every opportunity to win the first-mover advantage and formed a comprehensive layout of POS machine, collection, value-added services and technology industry chain.

Shi Xiaodong, president of New Continental, said the most crucial point of technology going overseas is to make other people's cultures believe in our technology, which is the most difficult step in the three-step process of Chinese companies going overseas, including cultural differences, understanding differences and institutional differences.

Newland adheres to high standards and strict requirements in this regard, focusing on consolidating the foundation of compliance and endeavouring to build a trustworthy business ecosystem.

"In Europe, compliance is a top priority. We spent a year and a half working on compliance and not doing any business before we started applying for licences and expanding our user base. For information-related industries, if they operate in Europe and the US, the first step is to ensure compliance; otherwise, even if the company has matured, it may be challenged by regulators over issues of personal privacy or information compliance, resulting in wasted efforts."

Shi Xiaodong, president of New World, noted that the company is spending a lot on GDPR (General Data Protection Regulation) and must use the best team to protect individual user privacy and ensure that all GDPR requirements are met before technical information goes overseas.

Obtaining licences is another important initiative for Newland.2022 Newland was awarded a Luxembourg PI licence, which allows it to conduct collections business throughout the EU market. Subsequently, Newland also obtained a US MSB licence and a Hong Kong MSO licence, enabling it to solve cross-border payment and collection issues for overseas companies.

Take the Luxembourg PI licence as an example, anti-money laundering regulation in Europe is very strict and the PI licence is a full payment licence in the European market. Currently there are very few Chinese companies with payment licences in EU member states, including giants such as Alipay and WeChat Pay, as well as cross-border payment service providers such as PingPong and Lianlian Digital. It can be said that obtaining a PI licence is not only a necessary condition for Newland to operate in the European market, but also one of its core barriers.

Currently, Chinese payment companies' going overseas has become a common choice. In August this year, The Brainy Insights released a research report that the global cross-border payment market size of $190.2 billion in 2023 is expected to grow at a CAGR of 7.5% from 2024 to 2033, and will reach $392.01 billion by 2033.

With its first-mover advantage, Newland is making every effort to accelerate its progress and set a new benchmark in the field of payment going overseas, while accelerating its entry into the trillion-dollar cross-border payment market.