(Yicai) March 20 -- Chinese cross-border payment platforms have turned to acquiring overseas payment licenses and introducing artificial intelligence solutions to solve compliance, technology, and business operation issues in an effort to address fierce competition.

Several transborder payment firms have gone all in to secure foreign payment licenses through acquisitions and partnerships to quickly gain market access qualifications. For example, LianLian DigiTech, PingPong Global Solutions, and XTransfer recently obtained payment licenses in Luxembourg, Indonesia, and eight US states, respectively.

China's cross-border payment industry has developed rapidly in recent years. Among the competitors fighting for market shares are specialized firms, such as Airwallex, China UnionPay Merchant Services, Huifu Payment, LianLian, PingPong, and XTransfer, as well as financial giants Ant Group, CoGoLinks International, Helibao Payment Technology, Lakala Payment, Tencent's WeChat Pay, and YeePay.

Payment institutions under platform businesses and established payment firms with many overseas payment licenses have the upper hand in the cross-border payment market, said Su Xiaorui, a senior researcher at Shanghai Suxi Zhiyan Media Advertising.

The cross-border payment industry may experience a "get-together" in the future, but there will still be objective potential for small- and medium-sized enterprises in the cross-border business-to-business sector, Su noted.

In addition to expanding overseas, transborder payment platforms in China have also turned to AI to improve internal operational efficiency and customer service experiences to enhance market competitiveness. With the integration of Chinese AI startup DeepSeek's large language model, they have upgraded their intelligent operations to provide more precise services to cross-border merchants.

LianLian is actively exploring the application of generative AI to cut costs, improve efficiency, and empower customers. China UnionPay Merchant, PingPong, and others are increasing their investments in AI to improve intelligent operations, reduce transaction risks, and enhance operational efficiency to better serve merchants and consumers.

However, Su warned that advancements in AI can also bring new challenges to cross-border payment risk control.

"Companies need to plan their overseas expansion models and compliance work in advance, selecting business scenarios they excel in and have potential," Su explained. "Meanwhile, they should improve their technological capabilities, strengthen risk control defenses, and promote payment product service iterations to better serve merchants and consumers."

Editor: Futura Costaglione