With reference to the previous prediction, the emergence of ecommerce technology has put business-to-business and business-to-consumer behind bars as more and more ecommerce services are taking root. A Shanghai-based firm named XTransfer and founded in 2017 has taken Fintech firms’ responsibilities of assessing risk and processing payments, as the company is specialized in solving issues involving cross-border payment for importers and exporters because small-scale trading companies usually have difficulties in accessing banking services.
Bill Deng, the co-founder of the company said that the company has grown a customer base of up to 100,000 and has completed transactions of up to US$1 million a year charging $10 per transaction.
To access international financial services such as wire transfer, traders have to create an offshore account with a bank operating outside their region, however, this has become very difficult for some traders basically because banks ensure tight monitoring to avoid cases relating to money laundering and other financial crimes. Since money transferred out of the border is not easy to trace, cross-border payment has become the domain of money laundering and financial fraud, which is why XTransfer was established. The company helps in the movement of cash in and out of China legitimately, thereby providing risk-control services.
Customers are required to submit duplicates of licenses and identity information online to sign up for XTransfer account with is subject to scrutiny within a day until the registration is completed. Information such as logistics forms, contracts, customs declaration form forms and invoices are required to obtain a whole set of data relating to each transaction; this is to ensure that no taint of money laundering or financial fraud is found in each transaction.
