Cross-Border Payment Stocks Soar Amid Market Attention
The cross-border payment industry is reshaping international market transaction models at an unprecedented speed, becoming an important link connecting the economies of various countries and facilitating global trade.
Recently, the Society for Worldwide Interbank Financial Telecommunication (SWIFT) held its International Banking Operations Seminar 2024 (hereinafter referred to as "Sibos2024") in Beijing. At the conference, Lu Lei, Deputy Governor of the People's Bank of China, stated his support for qualified banks from different jurisdictions to participate in the Cross-Border Interbank Payment System (CIPS) in Renminbi.
This news has attracted market attention, and at the same time, the concept stocks of cross-border payment in the A-share market have also been active.
Cross-border payment concept stocks benefit
Recently, the concept stocks of cross-border payment have continued to be active. Looking at yesterday's market performance, the cross-border payment sector index once rose by more than 2.5%, with a transaction volume of 25.061 billion yuan. As of the close, among the cross-border payment concept stocks, Rendong Holdings, Sichuan Changhong, Sunyard, and Qingdao Jinwang were all at the daily limit.
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At the aforementioned conference, Lu Lei also emphasized that the construction of the financial service system will continue to be deepened, and the environment for foreign capital entering China's financial market will continue to be optimized to further support high-quality Chinese companies to go public and invest abroad. Secondly, he will promote the facilitation of cross-border trade and investment, and promote the internationalization of the Renminbi. At the same time, he also said that he supports qualified banks from different jurisdictions to participate in the Renminbi cross-border payment system.
It is understood that CIPS is a wholesale payment system approved by the People's Bank of China, specializing in Renminbi cross-border payment and settlement business, committed to providing safe, efficient, convenient, and low-cost fund clearing and settlement services, and is an important financial market infrastructure in China.
Gu Wei, head of Global Corporate Payments for Greater China at JPMorgan Chase, and director of product management for Greater China, also recently stated that the increasing demand for Renminbi cross-border payment and settlement means that the requirements for financial infrastructure are getting higher and higher, including financial infrastructure such as cross-border clearing and settlement systems, which will be indispensable support in the process of Renminbi internationalization.
"We believe that with the further opening of China's financial market, more global investors will connect more closely with this important market through various international currencies including the Renminbi, and it is expected that the Renminbi will gradually transition from a payment and settlement currency to one of the world's main reserve asset currencies in the future," said Gu Wei.
Cross-border payment is booming in many placesAgainst the backdrop of accelerated global economic integration, the demand for cross-border payment and settlement has seen an explosive growth.
Domestically, the cross-border payment industry has achieved rapid growth under the support of policies and market drivers. Recently, the "2024 Renminbi Internationalization Report" released by the People's Bank of China showed that from January to August 2024, the total amount of cross-border receipts and payments in Renminbi handled by banks on behalf of their customers reached 41.6 trillion yuan, a year-on-year increase of 21.1%.
Globally, taking the Middle East as an example, the region has become a hotbed for cross-border payment platforms due to its high internet penetration rate, per capita consumption capacity, and a youthful population structure. Cross-border payment platform PayerMax, with its deep cultivation in the Middle East, has successfully obtained the Payment Technology Service Provider (PTSP) certification from the Saudi Arabian Monetary Authority (SAMA), becoming the first financial technology company in Asia to receive this certification.
XTransfer, a company headquartered in Shanghai, specializes in B2B cross-border payment services and has shown strong growth momentum globally. Since its establishment, XTransfer has been fully focused on B2B cross-border payment services. Currently, XTransfer has served more than 550,000 small and medium-sized foreign trade enterprises and is accelerating the expansion of its international business team, extending its services to small and medium-sized enterprises worldwide.
Digital currency boosts industry development
Globally, the pilot and promotion of digital Renminbi also bring new development opportunities for the cross-border payment industry. By the end of July 2024, the digital Renminbi App had cumulatively opened 180 million personal wallets, with a cumulative transaction amount of 7.3 trillion yuan in pilot areas.
Recently, Mu Changchun, the director of the Digital Currency Research Institute of the People's Bank of China, stated at the Sibos2024 conference that the central bank will further improve the top-level design, expanding the application scenarios of digital Renminbi from retail to wholesale, and from payment to a broader range of financial services including deposits, loans, remittances, and investments, to more effectively fulfill the functions of legal tender.
Industry analysts have indicated that the rapid development and widespread application of new technologies such as artificial intelligence and digital currencies are profoundly changing the landscape and user experience of the cross-border payment field. With continuous technological advancements and the expansion of application scenarios, the cross-border payment industry will usher in more development opportunities and innovative space.
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