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More and more payment companies in China are looking to expand into international markets as a key part of their growth strategy, especially as domestic payment rates remain under pressure and the market edges toward saturation.
A primary motivation for these firms to pursue overseas licenses is to boost profitability. Industry insiders explain that, due to stiff competition at home, service fees have stayed low—ranging from 0.3% to 0.6%. In contrast, cross-border payment fees are generally between 1.5% and 3%.
Recently, a Shanghai-based payment platform secured a Category 3D license from Dubai’s financial authority on May 19. This license permits the company to manage payment accounts, process transactions, issue payment tools, and offer account info and payment initiation services within Dubai’s International Financial Center.
Experts also note that the global payments landscape is rapidly evolving, and companies venturing abroad need to tailor their infrastructure to meet the unique habits of each local market.
A source in the cross-border payments industry notes that initially, Chinese payment companies expanded overseas mainly to help domestic firms collect funds internationally. “Now, they aim to become part of the local payment framework itself, operating in foreign markets to better serve international merchants and local consumers,” they explained.
For instance, Tencent Financial Technology’s cross-border platform, TenPay Global, has launched a WeChat mini program in Singapore, allowing users overseas to make payments using local tools. This move helps boost transaction volumes and improve conversion rates among local customers.
Industry insiders say that Chinese payment firms are shifting their focus from merely replicating their domestic models overseas to building infrastructure aligned with local payment preferences. “Previously, the emphasis was on copying the domestic approach, but increasingly, companies are adopting localized strategies.”
This expansion is also broadening geographically. In addition to major regions like Europe, the U.S., and Southeast Asia, firms are increasingly targeting emerging markets such as the Middle East and Latin America. Coupled with services in regional hubs like Hong Kong, mainland China, and Singapore, this forms a layered, global compliance network.
### Overcoming Challenges Beyond Licensing
Despite obtaining licenses, Chinese payment companies face substantial operational hurdles when entering international markets. Regulatory variations around anti-money laundering, Know Your Customer protocols, data privacy, and capital settlement require tailored approaches unique to each country.
One payment industry insider highlights that the real challenge isn’t just securing a license but maintaining compliant operations over the long term. “A license represents the foundation—the full infrastructure of local risk control, AML systems, customer service, and data management must be in place,” they said.
Looking ahead, the core competition among payment providers will increasingly revolve around comprehensive capabilities that include advanced technology, regulatory compliance, and the ability to offer localized services globally. Experts stress the importance of considering geopolitical risks and the potential challenges posed by artificial intelligence applications as part of this evolving landscape.
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