PanPay Raises Tens of Millions of RMB in Pre-A Round from Source Code Capital

源码资本·November 13, 2018·0·5

The Best Solution for Solving Global Payment Challenges for Foreign Trade Companies

Fintech company PanPay recently announced the completion of a Pre-A funding round worth tens of millions of RMB, led by Source Code Capital. The funds will be used for core digital banking product development and building out compliance infrastructure.

Jian Zhou, founder and CEO of PanPay and a veteran international clearing expert, said: "As the national Belt and Road Initiative continues to advance, small and medium-sized enterprises' demand for cross-border financial services has grown rapidly. However, with global anti-money laundering and counter-terrorism financing regulations becoming increasingly stringent, a large number of foreign trade companies have had their offshore accounts forcibly closed by banks. Fintech is becoming the optimal solution for transforming access to financial services and solving global payment challenges for foreign trade enterprises."

As a PanPay board member, Tong Sun of Source Code Capital said that the cross-border finance market is large, with numerous unmet pain points and significant room for optimization; PanPay possesses outstanding licensing capabilities and operational strength, and its innovative cross-border payment model is more competitive and closer to an end-state solution. As trade diversity and overseas financial needs increase, these advantages will ultimately become apparent. At the same time, the CEO has worked in cross-border finance for many years and has deep industry expertise — Source Code is glad to support such entrepreneurs and companies.

As the first fintech company in China to obtain a digital banking license, PanPay has secured financial service qualifications both domestically and abroad, including a digital banking license from the European Central Bank, a money services business license in the United States, a money service operator license in Hong Kong, and a financial information service license in China. It can open full-featured, multi-currency overseas bank accounts for foreign trade enterprises and individuals, providing comprehensive cross-border financial services including global collections and payments, currency exchange, and card services.

PanPay Founder & CEO Jian Zhou

PanPay founder Jian Zhou has over ten years of experience in cross-border financial services, having worked at McKinsey & Company, Microsoft, ICBC, and UnionPay International. He brings both international perspective and China-specific insight, with a deep understanding of the pain points facing foreign trade enterprises and the limitations of domestic and foreign commercial banks. On his motivation for starting the company, Zhou said: "Traditional banks focus more on large enterprises while neglecting the cross-border financial needs of SMEs and individuals." He founded PanPay hoping to help enterprises and individuals enjoy more convenient, professional, and cost-effective overseas banking services.

On security and compliance, PanPay's core banking system is certified by the European Central Bank and directly connected to the ECB clearing system. All customer funds are held in PanPay's reserve account with the ECB as required by regulators, under 100% ECB supervision. Meanwhile, PanPay has invested heavily in building its compliance team, with compliance staff based in Shanghai, Europe, the United States, and Hong Kong, ensuring that system security and compliance operations fully meet the regulatory requirements of major central banks worldwide.

Forward-looking products and technology, combined with rigorous security and compliance standards, have made PanPay a pioneer and practitioner of fintech best practices in both China and Europe. On November 6, 2018, witnessed by ECB Board Member Marius, PanPay was invited to participate in the China-Lithuania Government Fintech Summit and was selected as a best practice case for China-Europe fintech cooperation.

Following this funding round, PanPay will continue to invest heavily in core digital banking capabilities including core banking system construction, online banking development, and compliance team building. It is committed to connecting with global central bank clearing systems, reconstructing cross-border financial infrastructure, meeting the cross-border financial needs of enterprises and individuals in their global development, and providing accessible financial services to SMEs in China and around the world without their ever having to leave home.

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