On June 22, during the Fourth China International Supply Chain Promotion Expo (Chain Expo), Visa and domestic third-party payment institution Lakala officially signed a strategic cooperation memorandum. The two parties will deepen cooperation around cross-border B2B payment scenarios, rely on innovative business payment models, improve the efficiency of cross-border transactions and capital turnover capabilities of enterprises, and help Chinese enterprises integrate into the global supply chain system more efficiently and smoothly.
Currently, cross-border payments have become highly digitalized in the C-end consumer sector, but in the larger B2B trade segment, a large number of transactions still rely on traditional wire transfers.
This model generally has problems such as long payment cycle, complex fee structure, and insufficient exchange rate transparency. It especially brings continuous challenges to the capital management and operating efficiency of small and medium-sized foreign trade companies with weak anti-risk capabilities. Many companies miss orders and bear additional exchange losses because funds are not received in time. The efficiency of cross-border payment has become one of the core bottlenecks that restricts many small and medium-sized merchants from going overseas.
This cooperation between the two parties has clarified the solution path with business payment capabilities as the core, focusing on promoting the exploration of the Business Payment Solution Provider (BPSP) model, and promoting the evolution of cross-border B2B payment methods based on bank transfers to more digital and scalable solutions.
Under this model, corporate buyers can use commercial cards to complete corporate payments that do not originally support bank card acceptance, thereby obtaining more flexible account period management and fund arrangements; at the same time, suppliers can receive payments in their existing preferred method without changing existing business processes, achieving a more efficient and more certain fund arrival experience. The entire process is traceable and the rates are transparent, which greatly reduces the company’s payment management costs.
The relevant person in charge of Visa China said that in the context of the continuous evolution of the global trade pattern and the accelerated digitization of the supply chain, the efficiency and stability of cross-border payments are increasingly becoming an important support for the international competitiveness of enterprises.
Currently, cross-border B2B payments are gradually upgrading from traditional transfer-based models to more efficient and transparent digital payment methods.
Through cooperation with Lakala, we hope to explore innovative paths under the compliance framework, promote this transformation process, help more companies improve their capital flow efficiency and management capabilities, and better support the development of global business.
The relevant person in charge of Lakala also revealed that this cooperation with Visa is an important practice in deeply connecting the global payment network capabilities with China’s local industrial scene.
Both parties will leverage their respective advantages to jointly promote the efficiency of cross-border B2B payments.
Lakala will next focus on typical foreign trade scenarios such as Guangzhou’s professional wholesale market, and work with more partners to open up full-process service links for cross-border transactions and payment settlements, helping more small and medium-sized merchants better connect to the global market and lower the threshold for going overseas.
