On June 22, the digital payments company Visa and the third-party payment institution Lakala Payment Co.,Ltd. formally signed a strategic cooperation memorandum of understanding (MoU) during the fourth China International Supply Chain Expo. The collaboration will focus on deepening cooperation in cross-border B2B payment scenarios, leveraging innovative commercial payment models to enhance the efficiency of corporate cross-border transactions and fund turnover capabilities, thereby assisting Chinese enterprises in integrating more efficiently and smoothly into the global supply chain system.
Currently, cross-border payments in the consumer sector have achieved a high degree of digitization. However, within B2B trade, a significant volume of transactions still relies on traditional telegraphic transfer methods. This model is commonly associated with issues such as lengthy settlement cycles, complex fee structures, and insufficient exchange rate transparency, posing ongoing challenges for the capital management and operational efficiency of small and medium-sized foreign trade enterprises.
Against this backdrop, how to enhance cross-border payment efficiency and optimize the fund flow experience within a compliant framework has become a key focus for the industry. Addressing this need, Visa and Lakala Payment Co.,Ltd. have defined a solution path centered on commercial payment capabilities in this partnership. The focus is on advancing the exploration of the Business Payment Solution Provider (BPSP) model, promoting the evolution of cross-border B2B payments—primarily reliant on bank transfers—towards more digital and scalable solutions. Under this model, corporate buyers can use commercial cards to complete payments to suppliers that were previously not set up to accept card payments, thereby gaining more flexible credit term management and fund arrangement options. Simultaneously, suppliers can receive payments through their existing preferred methods without altering their established business processes, achieving a more efficient and predictable fund settlement experience.
Leveraging this innovative model, Visa and its partner aim to build a more efficient fund connection and clearing system between all parties in a transaction. This will not only improve the corporate payment experience but also help financial institutions expand the boundaries of commercial payment applications, accelerating the transformation of cross-border B2B transactions from traditional transfers to digital payments. In terms of practical implementation, Lakala Payment Co.,Ltd. will utilize its deep experience in foreign trade merchant networks and industrial scenarios, combined with insights into transaction data and purchasing behaviors, to jointly identify cross-border payment needs. It will gradually coordinate resources from overseas card issuers and payment networks to promote the application and scalable replication of related solutions in real trade scenarios.
Lakala Payment Co.,Ltd. has long served domestic foreign trade enterprises and industrial cluster merchants, accumulating a rich merchant base and industrial scenario resources. Visa, relying on its payment network covering over 200 countries and regions, along with its mature security, compliance, and innovation systems in the commercial payments field, provides robust support for cross-border transactions. The cooperation between the two parties is expected to further streamline the payment chain from overseas buyers to Chinese suppliers, enhancing transaction transparency and predictability while improving fund flow efficiency.
The President of Visa China stated that in the context of the continuous evolution of the global trade landscape and the accelerated digitization of supply chains, the efficiency and stability of cross-border payments are increasingly becoming crucial supports for a company's international competitiveness. Currently, cross-border B2B payments are gradually upgrading from a model dominated by traditional transfers to more efficient and transparent digital payment methods. Through the cooperation with Lakala Payment Co.,Ltd., the aim is to explore innovative paths within a compliant framework to advance this transformation, helping more enterprises improve their fund flow efficiency and management capabilities to better support the development of their global operations.
The Director and General Manager of Lakala Payment Co.,Ltd. stated that this cooperation with Visa is a significant practice in deeply connecting global payment network capabilities with China's local industrial scenarios. Both parties will leverage their respective strengths to jointly promote the efficiency of cross-border B2B payments. Lakala Payment Co.,Ltd. will focus on typical foreign trade scenarios such as Guangzhou's professional wholesale markets, collaborating with more partners to streamline the entire service chain for cross-border transactions and payment settlements, helping more small and medium-sized merchants better connect with the global market.
As the global supply chain continues to reconfigure and Chinese enterprises accelerate their "going global"步伐, efficient and secure cross-border payment infrastructure is becoming increasingly critical. In the future, the two parties will continue to deepen their cooperation around cross-border payments, merchant digital services, and emerging trade scenarios, exploring payment solutions that more closely align with the real needs of trade, injecting sustained momentum into the high-quality development of foreign trade.
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