Overseas cross-border payment platform Thunes is making its entry into the Chinese market and currently applying for a domestic third-party payment license in China. The company recently opened its branch, Thunes China, in Beijing, aiming to tap into the rapidly expanding cross-border e-commerce market.
In 2022, China’s import and export trade reached a record high of 40 trillion yuan, with cross-border e-commerce surpassing 2.1 trillion yuan for the first time, representing a 7.1% growth compared to the previous year. Capitalizing on this market potential, Thunes CEO Peter De Caluwe stated that China’s economy offers tremendous potential and the demand for efficient payment solutions continues to rise.
Thunes, headquartered in Singapore, boasts the world’s largest e-wallet network and operates in 130 countries, supporting over 80 different currencies and more than 4,700 payment channels. Its transaction volume in 2022 reached $16 billion. Thunes China’s Senior Vice President for the Greater China region, Huang Meilun, highlighted the company’s commitment to facilitating seamless connections between China and other international markets through innovative payment infrastructure.
Huang Meilun acknowledged three pain points in global cross-border fund flows: lack of cost transparency, uncertain timeliness, and untraceable processes. These challenges result in fragmented markets with disparate infrastructure and standards. Thunes CEO Peter De Caluwe emphasized the need for a paradigm shift in cross-border payments, stating that while communication has evolved from fax to messaging apps like WeChat, cross-border payments are still akin to faxing, leaving room for errors when the recipient is offline or not connected.
Thunes aims to expedite the flow of funds, ensuring timely settlements and crossing the boundaries from the “fax era” to the WeChat era. This approach has gained traction in emerging markets.
Regarding Thunes’ localization strategy, Peter De Caluwe emphasized the company’s focus on building local teams and adapting to the specific requirements of each country they enter. Thunes plans to establish a comprehensive service team in Beijing, expecting to double its workforce in the region over the next 12 months. This expansion will enable licensed institutions in China, including banks, third-party payment providers, and e-commerce platforms, to leverage Thunes’ payment network for smoother cross-border payment and receipt services.
In terms of business model, Huang Meilun differentiated Thunes from third-party payment companies like PayPal and LianLian Pay, stating that Thunes primarily offers infrastructure services to the B2B market, positioning itself as a complement to traditional payment networks similar to SWIFT.
Obtaining a payment license is a crucial challenge for foreign institutions entering the Chinese market, as it demonstrates their compliance capabilities. Thunes China has actively applied for a domestic third-party payment license, following the footsteps of PayPal and Airwallex, who acquired licenses through acquisitions.
While Thunes China’s positioning as an infrastructure service provider may facilitate partnerships within the country, it is worth noting that Chinese giants like Alipay and WeChat Pay are also expanding their cross-border payment networks in overseas markets, including Southeast Asia, which overlaps with Thunes’ regional integration endeavors. Source