As one of the leading international financial centres, Hong Kong thrives on its well‑established legal system, diversified financial products, free flow of capital and many other strengths. XTransfer Limited, a company engaging in cross‑border financial business, leverages the city’s strengths and extensive international network to connect large‑scale global financial institutions with the help of technology, providing secure, efficient, legitimate and cost‑effective cross‑border payment services to micro, small and medium‑sized enterprises (MSMEs).

Cross-border payment services

Low-cost solutions to help MSMEs comply with anti-money-laundering requirements

Founded in Hong Kong in 2017, XTransfer has quickly developed into one of China’s leading platforms for financial services and risk management in foreign trade. The company has about 300,000 registered clients from the export trading sector, most of which are in the Yangtze River Delta and Pearl River Delta regions. It provides cross‑border B2B forex receipt and payment services for actual goods trading, mainly offering cross‑border payment and other financial services to export‑related MSMEs in mainland China.

In an interview with HKTDC Research, one executive of XTransfer [1] explained that it is not uncommon for MSMEs to encounter receipt and payment issues when making international transactions. The most irksome problems include strict account opening requirements set by large‑scale conventional banks and complicated bank account opening procedures in Hong Kong. For international transactions, enterprises also need to comply with governments’ anti‑money‑laundering regulations and requirements. Moreover, because of higher operational costs in Hong Kong, local banks seldom offer cost‑effective services to MSMEs.

Against this backdrop, XTransfer can provide export‑related MSMEs with comprehensive solutions covering foreign trade receipt collections, multicurrency cash management, remittances, risk control, customer‑relations management and so on, while also helping MSMEs to comply with anti‑money‑laundering requirements in a cost‑effective manner.  

XTransfer values clients' rights on asset distribution and carries out funding allocation strictly in accordance with its clients’ authorisations and directions. With its own extensive payment network and the convenient financial services available in Hong Kong, the company can provide cost‑effective cross‑border payment services according to clients’ instructions. Such services are also well supported by its risk‑management system.

Extensive Hong Kong network helps reduce clients’ cross-border receipt and payment costs

Leveraging its established relationship with well‑known financial institutions and banks in various countries, XTransfer has built a unified multicurrency settlement platform through its extensive network in Hong Kong. The company serves as a receipt and payment bridge between foreign banks and its clients, helping traders from the mainland and Hong Kong to complete cross‑border receipts and payments at a lower cost, significantly reducing their expenditure for overseas expansion and enhancing their global competitiveness.

Banks attach great importance to compliance with anti‑money‑laundering requirements for cross‑border transactions. Taking advantage of the free and convenient flow of capital in Hong Kong, XTransfer has established an artificial intelligence‑based risk‑management system, while also working closely with the dedicated risk‑management team in its Shanghai headquarters.

XTransfer is a company under Shanghai Duochang Network Technology Co, which handles its R&D and operational activities in its Shanghai headquarters. The company has set up branches in Guangzhou, Shenzhen, Xiamen and other mainland cities, as well as in Singapore, the UK, the US, Canada, Japan, Australia and the Netherlands. It has obtained money service operator licences in various countries and regions, such as Hong Kong, the UK, the US, Canada and Australia.

Expanding RCEP markets 

In addition to serving MSME sellers from the mainland, XTransfer also handles international payment collection through its Hong Kong network. Going forward, it aims to achieve global expansion, and has chosen Hong Kong as the first destination. Apart from providing services to existing mainland clients, XTransfer is also looking to reach out to more buyers in Hong Kong, with a focus on resolving obstacles they commonly face when making payments to mainland suppliers.

When local buyers use XTransfer’s service to make account‑to‑account payments to mainland suppliers, the entire procedure could be as easy as local remittance, enabling a 24/7 payment process and fast trade collection. It is expected that with XTransfer’s service, clients could save 95% of the remittance‑processing fee and 20% of the exchange cost, significantly improving their operational cost efficiency. The company aims to continue its platform development in Hong Kong, with the aim of turning it into an international B2B cross‑border payment platform to connect global trading companies.

Many uncertainties remain due to global economic slowdown and geopolitical developments around the world. Nevertheless, XTransfer mainly engages in the provision of one‑stop cross‑border financial and risk‑management services for foreign trade companies. As the export of Chinese products to overseas markets continues to grow, there is indeed a similar upward trend for the demand of cross‑border payment collection and remittance services from clients engaging in international trade.

In response to the risks brought by global economic and regional geopolitical developments, the XTransfer executive pointed out that it will keep leveraging the strengths of its Hong Kong operation to develop its local market presence and raise brand awareness. It also hopes to use Hong Kong as a springboard to further expand into ASEAN and RCEP markets.

[1] HKTDC Research and the China Business Adviser seconded from the Shanghai Municipal Commission of Commerce interviewed XTransfer Limited and Shanghai Duochang Network Technology Co Ltd in Q4 2022 and Q1 2023.