1. Traditional modes and problems of cross-border payment.
The traditional cross-border payment model mainly relies on banks and third-party institutions, and there are problems such as cumbersome processes, high handling fees, large exchange rate fluctuations, and long arrival times. In addition, due to the different financial regulatory systems in different countries and regions, cross-border payments may be restricted by laws and regulations, increasing the uncertainty and risk of payment. However, with the development and innovation of technology, some new cross-border payment models and technologies are gradually emerging, bringing more convenience and efficiency to cross-border payments.
2. Innovative models of cross-border payment.
Blockchain technology: This technology can ensure the security and transparency of transactions in cross-border payments, while eliminating middlemen, reducing transaction costs and speeding up transactions.
Digital wallets: provide consumers with a more convenient way to make cross-border payments. They can be connected with different payment channels and monetary systems, making it easy for consumers to transact globally.
Artificial intelligence and big data analytics can help payment service providers identify and prevent fraud and enhance the security of cross-border payments.
Policy and regulatory reforms: Some countries and regions are beginning to recognize the importance of cross-border payments and are undertaking policy and regulatory reforms to promote a more convenient and secure cross-border payment environment.
3. Case study of innovative cross-border payment models.
Take Pingpong as an example to analyze its cross-border payment innovation model:
Background of Pingpong's birth: Due to various factors such as language barriers, lack of understanding of overseas legal systems, consumer payment habits, cultural differences, and cross-border settlement, China's cross-border e-commerce has long faced problems such as high payment platform fees, slow capital repatriation, and unstable accounts, and there has been no good solution. In order to solve these pain points in the cross-border e-commerce industry, Pingpong Finance was founded in 2015.
Pingpong's development status: Provide low-cost cross-border collection business for China's 300,000 cross-border e-commerce enterprises to "go overseas", as well as other customized financial services, to solve the cost and timeliness of small cross-border payments, as well as the problem of cross-border merchants' overseas capital collection. Pingpong cross-border collection service rates are no more than 1% and there are no hidden fees and exchange losses.
Pingpong Innovation Model: Pingpong has taken the lead in reconstructing the entire cross-border payment system from the bottom, actively promoting major innovations at the bottom of the industry, and providing a basis for credit investigation, rating and pricing for comprehensive cross-border financial services. Pingpong's business solutions have undergone multiple compliance inspections by cooperative commercial banks from overseas to China, and its customers' overseas funds are deposited in the reserve accounts of international primary clearing banks, which are protected by the financial regulatory authorities and banks of various countries. 100% of the domestic funds are handled by payment institutions holding third-party payment licenses and cross-border payment licenses. All fund operations are carried out in strict accordance with the client's instructions. Only after receiving the customer's authorization and direct instructions can the bank operate the account** and transfer it to the bank account designated by the customer. Any tampering and account irregularities will not be accepted by Pingpong and partner financial institutions.
Overall, Pingpong provides a low-cost, high-efficiency, safe and reliable cross-border payment solution for China's cross-border e-commerce through technological innovation and compliance operations.