XTransfer, which facilitates cross-border payments for small businesses in China, said it is moving into wealth management and lending for clients underserved by traditional banking, reports Reuters. The fintech firm’s founder and CEO Bill Deng said that XTransfer—which competes in China with PayPal and PingPong—is starting to offer short-term investment products to small Chinese exporters with cash temporarily held in their accounts.
Such exporters get paid by overseas buyers but do not have to immediately pay suppliers, allowing them to generate returns with this spare money, Deng, who previously worked at Ant Group, Alibaba’s fintech affiliate, told Reuters.
Five-year-old XTransfer also plans to use data generated through cross-border transactions to begin lending services for small- and medium-sized enterprises later this year in partnership with banks, Deng said.
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