XTransfer pushes new trade payment model at 2025 summit

To coincide with the flagship annual event, the company released its July 2025 XTransfer Purchasing Managers’ Index (PMI) for SME exports, which came in at 52.4 per cent, above the 50 per cent threshold that separates expansion from contraction.

“African countries posted the highest export PMI with 53.7 per cent, with Ghana and Nigeria as major drivers of export growth. This indicates that despite weakening US demand, SMEs are finding new growth in emerging economies elsewhere,” he said.

Lithium batteries, new energy vehicles and solar cells were identified as the fastest-growing exports, with Southeast Asia and Africa emerging as key destinations.

Deng described them as “the new backbone of China’s export competitiveness driven by the country’s industrial capacity and rising global demand for green technologies.”

Addressing the pain point

Deng identified local collection accounts as the most practical solution to exporters’ biggest problem, which is getting paid on time.

“The hardest part for many SMEs… is collecting the payment,” he said. “In markets with foreign exchange restrictions, buyers often can’t pay in US dollars.”

“With local currency accounts now available in Nigeria, Ghana, Brazil and South Africa, as well as in nearly 80 per cent of emerging markets, buyers can pay in their own currency while sellers receive funds quickly, securely and at lower cost.”

Now supporting more than 30 currencies, these accounts cut out middlemen and reduce FX losses and according to Deng, their rollout has been a key driver behind XTransfer’s rapid expansion from a China-focused platform to one that now serves SMEs worldwide.

“We used to serve only Chinese exporters, but today, Vietnamese, Pakistani and even European-owned trading companies are our clients, thanks to our global payment licenses and infrastructure.”

From licenses to local solutions

XTransfer’s expansion is based on a strategy that builds licensed, compliant infrastructure in developed markets while addressing structural gaps in emerging ones.

“In developed markets such as the UK and Singapore, we focus on payment licenses, data localisation and strict compliance,” Deng explained.

“In emerging markets, where infrastructure is weak, we provide solutions where previously only underground banks filled the gap. The difference is that we do it safely and with regulatory approval.”

He added that governments in Africa, Southeast Asia and Latin America increasingly see XTransfer’s model as beneficial.

“Our infrastructure not only improves efficiency but also strengthens anti-money laundering oversight. Over time, regulators realise that we add stability and transparency to their economies,” he said.

Building a new settlement standard

The summit also marked the release of XTransfer’s X-Net Whitepaper, which Deng described as “a blueprint for the future of B2B trade settlement”.

New industry standards for digital settlement infrastructure are proposed in the whitepaper, covering API integration, data-sharing and compliance protocols.

“After connecting with more than 100 institutions in developing markets, we’ve distilled the process into a set of clear API requirements covering every stage of a transaction, from account opening and payment flows to refunds and compliance checks,” he explained.

Deng added that this standardisation allows XTransfer to expand faster and with more consistency, while also giving partner banks confidence that the platform’s operations are secure and commercially viable.

On the other hand, the company also pledges that 90 per cent of the value created through the network will be shared with SMEs to ensure inclusivity.

“We want to build the world’s new global settlement infrastructure – one that connects banks, regulators and SMEs in a single network,” said Deng.

Stablecoins: the next frontier

Perhaps the most forward-looking part of Deng’s keynote came when he addressed the role of stablecoins in cross-border payments.

He envisions a future in which settling an international invoice would be “as easy as scanning a QR code on WeChat Pay”.

“Within three years, I believe more than half of global SME trade payments will involve stablecoins.”

“Dual wallets, holding both fiat and stablecoins, will become the norm. That will mean 24/7 settlement, no intermediaries, no hidden costs.”

Although XTransfer will not issue its own stablecoin, Deng said the company would integrate with major issuers.

The promise and pressure of AI

As CEO of a fintech company, Deng sees artificial intelligence as both an opportunity and challenge.

From risk control to customer onboarding, XTransfer has embedded AI tools, including large language models trained on trade data, into its systems.

“Our pass rate for compliance checks has risen from 96 per cent to 99.5 per cent, and most customers don’t even notice the checks are happening,” he said, yet admitting that there are challenges as well.

“AI talent is scarce and expensive. The key is applying AI to real-world cases, such as helping SMEs research markets, detect fraud and get paid.”

Far from shying away from rivals, competition has sharpened XTransfer’s edge.

“For four and a half years, we had no competition. But more recently with new competitors emerging, we have been encouraged to listen our clients better, move faster and deliver more value,” he said.

Long-term vision

When asked about his greatest challenge as CEO, Deng was candid.

“My job is to make the right big picture calls. If I get the strategic judgment wrong, the company suffers. And during rapid expansion, aligning all departments to move as one team is always hard.”

Nonetheless he remains committed to what he called “long-termism”. Short-term gains, he argued, are fleeting.

“Some choose short-term wins. But to build something truly large and that lasts, you must choose the long term, even if it’s painful.”

And it’s just the beginning

XTransfer is positioning itself not merely as a payment provider but as the architect of a new global trade payment infrastructure.

Not only are China’s exporters exploring new markets, but they are also moving up the value chain, with Chinese brands no longer confined to low-end segments.

A case in point, he said, is the global craze around LaBuBu, a Chinese toy brand that has become a cultural export.

For Deng, the journey is still in its early stages. “All the milestones we’ve hit, including reaching 700,000 customers, are just the beginning,” he said.

“The globalisation of SMEs is irreversible, and our mission is to give them the same financial tools once reserved only for multi-nationals.”

"In three years’ time, paying an overseas supplier will be as easy as sending a WeChat red packet. That’s the revolution we’re building for SMEs worldwide."