Core Viewpoint - To effectively address the payment challenges faced by Chinese enterprises expanding into Latin America and Africa, cross-border payment service providers must offer tailored payment services that align with the unique payment needs of these enterprises, as well as the local payment habits and regulatory changes in the region [1][4]. Group 1: Market Trends - The trade volume between China and Latin America reached $518.47 billion last year, marking a 6.0% year-on-year increase, while trade with Africa reached $295.6 billion, up 4.8% [11]. - An increasing number of Chinese enterprises are entering the Latin American and African markets, viewing them as new growth points for global business expansion [12]. Group 2: Payment Challenges - Localized payment and sales collection have become significant challenges for Chinese enterprises in these regions due to the low credit card penetration and the emergence of numerous fragmented local payment methods [3][5]. - Many Chinese enterprises have found that without integrating local payment methods, they struggle to reach local consumers, while integrating multiple payment options can be complex and costly [3][7]. Group 3: Payment Solutions - Cross-border payment institutions are seizing the opportunity to provide solutions, such as EBANX's integration of around 200 local payment methods through a unified payment platform [4][8]. - The adoption of local aggregation payment solutions is becoming increasingly popular among Chinese enterprises, allowing them to efficiently access various mainstream payment methods in Latin America and Africa [7][9]. Group 4: Specific Payment Methods - In Mexico, OXXO Pay is a popular offline payment method, while in Kenya, mobile money is gaining traction. In Brazil, the Pix payment method is expected to surpass credit cards in e-commerce transactions this year [7][9]. - The Pix payment method allows for faster fund settlement, which can alleviate cash flow pressures for Chinese enterprises, with transactions typically settled the next day compared to the 30-day period for credit card payments [14][15]. Group 5: Customization and Service Requirements - Different types of Chinese enterprises have varying payment requirements, with e-commerce firms focusing on payment success rates, while gaming companies prioritize reaching local gaming audiences [13][15]. - There is a growing demand for customized payment solutions, with enterprises seeking to enhance payment success rates and streamline payment processes [15][16]. Group 6: Fraud Risks - Payment fraud is emerging as a significant challenge for Chinese enterprises, with global e-commerce fraud losses reaching approximately $48 billion last year [17]. - Cross-border payment service providers are implementing multiple anti-fraud measures, including real-time transaction scanning and AI machine learning technologies to enhance security [18][19].

Core Insights - The increasing economic and trade interactions between China and Latin America/Africa have led to a rise in Chinese companies entering these markets, particularly in sectors like B2B trade, gaming, social media, and SaaS services [1][10] - A significant challenge for these companies is localizing payment methods and managing sales collections due to the low credit card penetration and fragmented payment landscape in Latin America and Africa [1][3] Group 1: Payment Solutions and Market Dynamics - Cross-border payment institutions are seizing opportunities, with companies like Airwallex acquiring local payment providers and obtaining licenses to address payment issues for Chinese enterprises in Latin America [2] - EBANX offers a one-stop aggregated payment solution that integrates around 200 local payment methods across Latin America and Africa, addressing the complexities of local payment systems [2][6] - The fragmented nature of local payment methods in Latin America and Africa complicates the process for Chinese companies to establish their own payment networks, leading many to adopt aggregated payment solutions [6][12] Group 2: Local Payment Preferences - In Mexico, OXXO Pay is a popular offline payment method, while in Kenya, mobile money is increasingly favored, and in Brazil, Pix is expected to surpass credit cards in e-commerce transactions [4][5] - The average settlement period for credit card payments in Brazil is 30 days, while Pix allows for next-day settlements, easing cash flow pressures for Chinese exporters [12] Group 3: Customization and Service Requirements - Different Chinese enterprises have varying payment requirements; for instance, cross-border e-commerce firms prioritize payment success rates, while gaming companies focus on reaching local audiences [11][13] - EBANX has established a local team to provide tailored payment solutions and maintain communication with headquarters to address challenges faced by Chinese companies in cross-border payments [13] Group 4: Fraud Risks and Mitigation - Payment fraud is emerging as a significant challenge for Chinese enterprises, with global e-commerce fraud losses reaching approximately $48 billion in 2023 [14] - EBANX employs multiple anti-fraud measures, including a self-developed fraud detection engine and AI technology to identify suspicious transactions [15] Group 5: Future Prospects - The evolving alternative payment systems and accompanying risk management measures in Latin America and Africa are expected to enhance the economic trade cooperation between China and these regions [16]