by HE Liuying, FENG Lijun

Chinese cross-border payment providers are stepping up their expansion into emerging markets as trade and supply chains shift beyond traditional Western destinations.

Recent moves underscore the trend. In April, XTransfer filed for a Hong Kong IPO, saying it would step up efforts in Southeast Asia, Africa, Latin America and the Middle East through licensing and local partnerships. Around the same time, PingPong rolled out an upgraded global payments solution at the Canton Fair, including local account services in Africa that allow Chinese exporters to collect funds directly in local currencies.

In March, CoGoLinks secured a Major Payment Institution license in Singapore. The license allows it to provide services ranging from remittances to merchant acquiring and e-money issuance.

As Chinese companies expand into Southeast Asia, the Middle East, Latin America and Africa, payment firms are following, seeking to embed themselves in markets where demand is growing but infrastructure remains uneven.

Emerging markets are becoming central to China's trade. In the first quarter, China's trade with Belt and Road countries reached 6.06 trillion yuan, up 14.2 percent year on year and accounting for more than half of total trade. Trade with ASEAN and Latin America both rose 15.4 percent, while trade with Africa jumped 23.7 percent.

"Europe and the US are still the core consumption markets, but Southeast Asia and the Middle East are growing much faster," said Sean Huang, China chief commercial officer at Airwallex.

Latin America is also drawing attention. Data from PPRO, a payments infrastructure provider, shows China's exports to the region approached US$110 billion in the first half of 2025. The region's e-commerce market is expected to exceed US$1 trillion by 2027. Africa, meanwhile, offers scale but also complexity, with rapid trade growth accompanied by weaker financial infrastructure.

The focus is shifting from rapid market entry to deeper localization, with companies building licenses, local teams and closer integration with domestic financial systems.

PingPong has secured approvals in Malaysia and the United Arab Emirates, and set up regional hubs in Singapore and London, while preparing to expand into the Middle East and Latin America.

"Our focus is not only serving Chinese companies going global, but also supporting local businesses to expand into global markets," PingPong co-founder Aaron Shuai Lu told Jiemian News.

XTransfer and CoGoLinks have taken similar approaches, expanding local collection capabilities and regulatory coverage across multiple jurisdictions.

The growth opportunity comes with significant risks, particularly in currency volatility and regulation. In Nigeria, sharp swings in the naira have forced exporters to convert funds immediately, often incurring losses, while in Argentina large devaluations can wipe out margins after settlement.

Payment fragmentation adds another layer of complexity. "In Latin America's six major markets, you may be dealing with around 15 different local payment methods," said Tristan Chiappini, senior vice president at PPRO. Consumers also show strong loyalty to local payment options, making local adaptation essential.

Frequent policy changes and foreign exchange controls further complicate operations, delaying payments and straining cash flow. Compliance risks are also elevated, with informal financial channels in some regions increasing the likelihood of account freezes even for legitimate businesses.

Hannah Qiu, China chief executive of PayPal, said differences in regulation, culture and payment habits across markets require tailored strategies.

To navigate these challenges, firms are relying more on partnerships. PingPong has teamed up with regional banks such as CIMB to combine global payment capabilities with local infrastructure, while PayPal has expanded cooperation with Chinese partners to extend its network. Such arrangements allow merchants to access multiple local payment methods through a single integration, reducing complexity.

"In payments, cooperation is often more important than competition," Lu said.

For Chinese payment firms, emerging markets offer both growth and uncertainty. Expansion is giving way to a more demanding phase, where success depends on compliance, localization and the ability to manage risk. As more players enter the field, the challenge is no longer how to enter these markets, but how to stay.