Pingpong is reportedly going to make an investment of more than €100 million in the European country of Luxembourg for the next couple of years.
Luxembourg has been a popular landing point for firms that are looking to enter the European market, given political and economic stability prevailing in the country for a long time.
Pingpong was the first Chinese fintech company to begin operations in the country.
Chinese fintech company Pingpong is reportedly going to make an investment of more than €100 million in the European country of Luxembourg for the next couple of years. Luxembourg has been a popular landing point for firms that are looking to enter the European market given political and economic stability prevailing in the country for a long time. The country also offers a favourable regulatory environment.
This isn’t the first time that Pingpong is tying up with Luxembourg. In 2017, the fintech giant had received a payments license in the country that gave them a means of facilitating transactions between the European consumers and Chinese merchants. The license was issued to Pingpong Europe SA, its Luxembourg entity by Pierre Gramegna, the minister of finance. Pingpong was also the first Chinese fintech company to begin operations in the country.
Pingpong announced the proposed infusion at an event that had taken place for the Belt and road initiative of the Chinese government. Luxembourg is a member of the same. This initiative made clear the role that can be played by private business players to bring on more countries on-board for the BRI. This partnership is a timely boost for the association between the two countries as it has arrived merely 3 months after China’s global infrastructure program was joined by Luxembourg. Also, this alliance has been made during a delicate time when Trade tension with the US run high for China.
However, Pingpong certainly does plan to stop its European expansion plans at Luxembourg. The company’s investment in the continent will exceed $7.21 billion in a mere 3 years, according to LuoYouglong who is a partner at Pingpong.
The company claims to be actively following China’s belt and road program so as to empower businesses in China by making innovations in the cross-border ecosystems. This will be beneficial to Chinese companies to be completely digitalized and become more competitive overseas.
Along with this huge funding, there are many other collaborations between Pingpong and Luxembourg. These include Chinese exports to Europe, virtual banking projects and Pingpong’s local payment projects. The company is also planning on setting up a digital payments bank soon after securing a digital banking license from the EU.
What is Pingpong?
Pingpong was founded in 2015 in New York. The company makes collecting cross border payments for manufactures, SBIs and global brands more efficient and smooth. These payments are collected from e-commerce giants such as Wish, Amazon and Newegg. The fintech company has been growing leaps and bounds recently with making a revenue of more than $1 billion in processed volume solely in the US last year. It has also been praised as being a pioneer in the Chinese cross border e-commerce market. Historically, Chinese fintech firms have been hesitant about overseas expansion, but Pingpong has proven that these firms can operate smoothly in the regulatory environment of the EU. The company has its offices in various countries such as Hong Kong, China, Japan, The US and now Luxembourg
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