In the past, the payment link of China’s cross-border e-commerce was almost monopolized by foreign payment institutions that did not obtain domestic payment business licenses. Although some domestic third-party payment services have long been involved in cross-border payment services, most of them were through banks and international payment services. The card organization or an overseas third-party payment institution cooperates with the currency exchange and payment process to be completed by its custodian bank. This payment process is complex and takes a long time.
Compared with the circulation of goods, international capital circulation is subject to stricter domestic control. However, with the loosening of cross-border e-commerce policies, the cross-border payment market has also been loosened. Since 2013, a number of third-party payment institutions have successively obtained pilot qualifications for cross-border payment business. It is stipulated that third-party cross-border payment institutions participating in the pilot can centrally handle cross-border collection and payment and foreign exchange settlement and sales business for e-commerce enterprises. In terms of policy, For the first time, non-financial institutions are allowed to conduct online currency exchange and international funds clearing and settlement.
In 2015, the pilot scope of the cross-border foreign exchange payment business of payment institutions was expanded from five regions including Shanghai and Beijing to the whole country. In terms of fund limit, the single transaction limit for online shopping was increased from the equivalent of 10,000 US dollars. Raised to $50,000.
The scale of the cross-border payment market is directly linked to the entire import and export trade volume. The profit model is mainly handling fees and exchange fees. Earning the difference in foreign exchange settlement and sales is not allowed for the time being. Based on the average rate of 1% to 1.5% for third-party cross-border payment institutions and the proportion of scenarios suitable for third-party cross-border payment, it is expected to reach 65 billion yuan in 2020.
In fact, the fee rate of payment giant PayPal can reach 3% to 4%. With the development of the e-commerce market, the scale should be more than this. The “Guiding Opinions of the People’s Bank of China on the Pilot Cross-border Foreign Exchange Payment Business of Payment Institutions” allows payment institutions to provide foreign exchange fund collection and payment and foreign exchange settlement and sales services for both parties to cross-border e-commerce transactions. The payment institutions shall register in the “Directory of Enterprises for Trade Foreign Exchange Receipts and Payments”; no Goods and service trade that comply with national import and export management regulations are not allowed to provide payment services; open a foreign exchange reserve account in a bank; mark prices according to the exchange rate provided by the bank, and are not allowed to change the exchange rate price on their own; regularly submit to foreign exchange The bureau shall report transaction information, and report the transactions of customers whose monthly cumulative collection and payment exceeds the equivalent of US$200,000, and report abnormal or high-risk transactions at any time. Cross-border payment institutions must strictly perform their duties of verifying the authenticity of transactions. Domestic institutions and individuals are not allowed to obtain or transfer foreign exchange funds through fictitious transactions, and are not allowed to evade foreign exchange supervision through spin-offs and other methods. For the country, it ensures tax revenue and makes data monitoring easier.
In addition to the introduction of a series of systems, the RMB cross-border payment system CIPS led by the People’s Bank of China was put into operation in 2015, reducing the number of cross-border payment and clearing nodes, realizing high-speed settlement channels, and supporting cross-border goods. Offshore businesses such as trade and service trade settlement, cross-border investment and financing, and cross-border personal remittances. In terms of policy, it is also necessary to cancel the classified management of enterprises, clarify the valid electronic documents necessary for foreign exchange settlement, and allow enterprises to apply for foreign exchange settlement on demand.
Lianlian International Platform Business focuses on providing professional, convenient and cost-effective cross-border full-link collection and payment solutions for platform business customers with cross-border scenario needs, and effectively embedding financial services into customers’ cross-border business In the scenario, the convergence of enterprise business flow, capital flow and information flow can be achieved, while reducing costs and improving efficiency, it can also effectively avoid capital flow risks.
Platform business customers include not only platforms or institutions in various vertical fields that carry cross-border business, but also cross-border e-commerce sellers in complex sectors such as independent websites.
Compared with traditional e-commerce platform sellers, platform business customers have more complex transaction scenarios and require more personalized, comprehensive and in-depth fund management solutions. In response to the diversified cross-border fund management needs of such platform business customers, Lianlian International relies on its global payment network, complete license qualifications and strong product technical capabilities to tailor a set of global credit card and local payment acquiring, Customized account system, transparent and efficient remittance services and end-to-end fund solutions with global diversified distribution paths. Targetedly helping such business customers break the shackles of traditional capital transactions and efficiently expand their global business territory.