Southeast Asia’s E-Commerce Boom Drives WorldFirst’s 1688 Cross-border Transactions by 50% in 2023.
In a recent announcement, WorldFirst, a renowned platform specializing in global payment and financial services, revealed that its integration with China’s top wholesale marketplace, 1688, has achieved a substantial 50% uptick in transaction volumes during the first eight months of 2023.
Singapore has emerged as the leading growth driver in the region, doubling the number of new customers adopting the WorldFirst Cross-border Pay solution for 1688. SMEs, particularly from Southeast Asia, are flocking to this platform to seek more cost-effective sourcing options to maintain a competitive edge in the market.
By August 2023, transactions conducted by WorldFirst SME clients through 1688’s Cross-border Pay witnessed an increase of over 50%, translating to an impressive figure of more than 22 billion yuan, or approximately 3.03 billion US dollars. Notably, the goods that attracted the most attention ranged from stationery, petting products, gardening equipment, and toys to storage containers.
Designed to simplify the sourcing process, WorldFirst’s Cross-border Pay integration with 1688 allows international buyers to conveniently pay 1688 sellers without needing an onshore bank account in China. Plus, with the advantage of competitive foreign exchange rates based on the offshore yuan rate, buyers are promised a more economical transaction process.
Daniel Chua, WorldFirst’s Head of Commercial for Southeast Asia, expressed, “This integration exemplifies our dedication to SMEs around the world. By collaborating with 1688, we’re enabling businesses, irrespective of their size and location, to tap into one of the globe’s most expansive wholesale markets.”
Singapore and Malaysia have notably stood out, with new sign-ups for the Cross-border Pay service skyrocketing. Specifically, new registrations from Singapore saw an over 100% increment, while Malaysia observed a 69% year-on-year growth. Transactions in Singapore, Malaysia, and Thailand also witnessed a growth rate of 21%, 11%, and 11%, respectively, compared to the previous year.
The rise of e-commerce has seen SMEs diversifying their sourcing strategies, with many turning to platforms such as 1688. Yet, international transactions often come with their own set of challenges, primarily around currency exchanges. Recognizing these hurdles, WorldFirst partnered with 1688 in 2019 to introduce Cross-border Pay, aiming to simplify the transaction experience for SMEs.
Highlighting the increasing popularity of 1688 among Singaporean SMEs, Chua stated, “There’s a growing trend of larger SMEs in Singapore using 1688 for cross-border e-commerce. This not only augments Singapore’s international trade spectrum but also broadens the horizons for the country’s SMEs.”
With this trajectory, WorldFirst aims to expand the Cross-border Pay service to more markets, helping SMEs worldwide to harness growth and expand their offerings in an increasingly globalized world.
Written by: My Thanh Pham
