Lianlian DigiTech Co., Ltd., listed on the Hong Kong Stock Exchange, is a prominent Chinese digital payment solutions provider operating globally in over 100 countries. Last year, the company processed RMB 3.3 trillion ($459 billion USD) from 5.9 million customers worldwide. It offers various FinTech services, including B2B, cross-border payments, merchant acquiring, e-wallets, and money services licensed in all 50 US states, as well as an education payment platform for international students.
Let us explain.
Lianlian DigiTech operates four primary business segments: Global Payment, Domestic Payment, Value-Added Services, and Others. The Global Payment division specializes in pay-in, pay-out, acquiring, and multi-currency exchange services, thereby facilitating cross-border transactions. The Domestic Payment segment offers payment aggregation, acquiring, and pay-out services within China. The Value-Added Services segment includes account and e-wallet management, as well as software development. The Others segment encompasses ancillary services such as property rental and management. Collectively, these segments support Lianlian DigiTech’s mission to enhance its revenue, minimize transaction costs, and navigate global regulatory challenges for its clients.
Lianlian DigiTech’s global outreach is based on its licensing strategy, with 65 established payment licenses and qualifications as of December 2024. These include Visa and MasterCard and a virtual asset trading platform (VATP) license from Hong Kong’s Securities and Futures Commission. The company holds all state-level money transmitter licenses in the United States, a unique achievement among China-based digital payment providers. It supports transactions in over 130 currencies and serves clients in industries ranging from cross-border e-commerce to foreign trade and overseas education.
Working together.
A key milestone for Lianlian DigiTech is its joint venture with American Express, Express (Hangzhou) Technology Services Company Limited (“LianTong”), established as the first Sino-foreign bankcard clearing institution in China. Granted a bankcard clearing license by the People’s Bank of China in June 2020, LianTong provides settlement and clearing services for American Express-branded cards issued in China, offering benefits to cardholders both domestically and globally. There are a few other strategic partnerships and innovative licensing agreements which adds value to Lianlian’s service offering (please visit their website for more information).
The world is not enough.
The company’s focus on cross-border e-commerce and its interconnected domestic and international business model enable it to capitalize on the growing digitalization of global trade. Lianlian DigiTech aims to expand its presence in high-growth markets like Southeast Asia, the Middle East, and Latin America, leveraging the increasing digitalization of global commerce. The company plans to further integrate advanced technologies, including AI and blockchain, to enhance its service offerings and support clients’ digital transformation.
Financials.
Lianlian’s IPO in March 2024 raised HKD 550 million ($70 million USD), bolstering its capital structure for future expansion. Also last year, the company reported total revenue of RMB 1.32 billion ($180 Mil USD), a 27.9% Y/Y increase. Gross profit reached RMB 683 million ($93.6 Mil USD), maintaining a 51.9% margin, while adjusted net income was RMB 78.7 million ($10.8 Mil USD), a significant turnaround from a loss in 2023.
Something to look forward to.
Lianlian DigiTech stands out as a dynamic player in the global digital payment landscape, driven by its unique solutions, licensing, and strategic partnerships. Its technological footprint makes it a key enabler of global commerce digitalization, with significant potential for future expansion.
