Stripe, the fintech giant known for its payment processing software, is looking to expand its presence in Asia, where cross-border trade is expected to continue growing.
In China in particular, cross-border e-commerce represents a significant potential revenue stream for businesses of all sizes. In 2023, the total import and export volume of the country’s cross-border e-commerce reached RMB 2.38 trillion, a 15.6% increase from a year prior.
Stripe, too, has seen strong growth in recent years. Sarita Singh, regional head and managing director for Southeast Asia, India, and Greater China, said in Stripe’s annual regional event that the company’s growth reflects the expansion of the digital economy generally, which now accounts for 15% of global GDP.
Below are Singh’s comments on the surge of cross-border trade and Stripe’s role in Asia. The text has been condensed and edited for clarity.
Booming cross-border transactions
Stripe surpassed the $1 trillion milestone in total payment volume in 2023, and while we don’t break down our results by country, looking only at the aggregate level, I can tell that cross-border businesses in China are doing very well globally, expanding into new markets, adopting new technologies, and offering new products and solutions to consumers all around the world.
Last year, cross-border payment volume in Asia on Stripe grew more than 30%, and Stripe saw a 28% year-on-year increase in the number of Asian businesses that processed $1 million or more in payment volume on the platform.
What we are also seeing as a result is that Chinese businesses are innovative and creating whole new industries and whole new customer segments wherever they go.
Not just e-commerce
We’re seeing growth not just in e-commerce but across a number of different industries. E-commerce is just one of them. It’s the one that we’re probably most familiar with, but it is not limited to e-commerce. We’re seeing really strong innovation come out of China, whether it’s in software, gaming, all sorts of digital assets, or physical assets that Chinese businesses are looking to trade internationally.
For us, it’s less about industry, and more about business models and target markets. Because what we’re seeing is a lot of Chinese businesses are looking for new pockets of growth. There’s a lot of interest in going global.
Financial activities
Moving the money globally becomes very important for businesses expanding internationally. They need to be able to collect payments from customers worldwide, manage and optimize these funds, handle taxes, and report accordingly. The final step involves paying out to suppliers or partners.
Stripe can help those financial activities. We build in all the regulations from each of the countries that Chinese businesses want to play in. The regulations are changing all the time. It’s really hard for Chinese cross-border businesses to ensure they adhere to all of the right local regulations. We build it into our technology and infrastructure so that Chinese businesses can focus on what they do best – running their own businesses.
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