Alibaba, WeChat deals open China’s doors
Monday, 16 May 2016
CEO Leigh Flounders with Latipay's marketing and operations manager Jill Jin.
Agreements between New Zealand online payments provider Latipay and China’s two largest online payment platforms open the doors to Kiwis wanting to sell to Chinese buyers.
New Zealand-based Latipay is the only financial technology company allowing purchases of Kiwi products to be paid for in Chinese currency, yet allowing the New Zealand business to be paid in Kiwi dollars, all within a safe and legal framework. Previously these purchases involved time-consuming and expensive currency exchange, bank to bank transactions or wire transfers.
The agreements with Alibaba and WeChat will open China’s doors to more businesses while enabling them to be paid in NZ dollars, whilst allowing Chinese customers pay for New Zealand products in renminbi, at home and in NZ.
They are a boon to New Zealand exporters, particularly the tourism and education sectors, and e-commerce providers.
“With exports to China worth $11.3 billion last year, every Kiwi knows about the importance of China as a trading partner,” say Latipay Chief Executive Leigh Flounders. “Less known is how difficult it is for Chinese consumers to pay for our products in their own currency.”
“Only a quarter of China’s population has a credit card and credit cards are used for just 12 percent of online purchases in China. In contrast, 40 percent of China’s online purchases are paid for via mobile payment functions.
“The agreements Latipay has signed with China’s two major online payment providers allow us to plug into their platforms so Chinese consumers can buy Kiwi products seamlessly and in renminbi.”
Flounders says Latipay’s payment system is also available via China’s major traditional banks including the Industrial and Commercial Bank of China and the China Construction Bank Corporation.
Backed by US businessman Jim Rogers, Latipay is a bi-lingual platform addressing Chinese and New Zealand payer and merchant dissatisfaction within the education, export, insurance, software and travel markets.
The company meets the requirements of China’s regulatory system and has numerous accreditations to ensure its services are safe and compliant. It is cost competitive, offering a favourable exchange rate to Chinese purchasers and does not charge fees to merchants. It services are also quick; in most cases transactions can be completed in two business days. Importantly, payments made with Latipay are not subject to the $US50,000 limit Chinese consumers are allowed to convert into other currencies.
“We’re proud to have built a product that makes trading with China easier for all New Zealand businesses regardless of their size,” says Flounders.