Consumer Discretionary Author：Zhisheng Wang , Yiran Xing Editor：Yiran Xing Jul 10, 2023 10:58 AM (GMT+8)

With the development of information technology and the continuous improvement of Internet infrastructure, the transformation of global trade to digitalization is accelerating, forcing merchants and enterprises in the value chain to transform from cross-border offline commerce to cross-border e-commerce, guiding global commerce in the direction of digital growth.

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On June 30, 2023, Lianlian DigiTech Co., Ltd. (hereinafter referred to as "LianLian DigiTech", Chinese: 连连数字) formally submitted a prospectus to the Hong Kong Stock Exchange for listing on the Main Board, with CICC (Chinese: 中金公司) and JPMorgan Chase (Chinese: 摩根大通) as joint sponsors and overall coordinators. In the prospectus, LianLian DigiTech disclosed that the money will be used mainly to improve its technological capabilities, expand its global business layout, potential strategic investments and mergers and acquisitions.

Founded in 2009, LianLian DigiTech is one of the first digital technology companies in China to provide comprehensive payment solutions globally. It now provides integrated digital solutions including digital payment services and value-added services to empower global trade activities and improve the efficiency of the flow of funds and information. Digital payment services mainly include collection, payment, acquiring, remittance, virtual bank cards and aggregated payments. Value-added services include business services, which include digital marketing, operational support and attraction services; as well as technology services, which include account and e-wallet and software development services.

As of December 31, 2022, LianLian DigiTech have provided services to over 1.8 million merchants and businesses in various industries worldwide, including e-commerce, retail, travel, logistics, education, real estate and manufacturing, including total payment volume (TPV) of CNY 115.3 billion for digital payment services in 2022. According to Frost & Sullivan, LianLian DigiTech is the largest independent digital payment solution provider in China by TPV in 2022, with a 9.1% market share.

In terms of industry size, according to Frost & Sullivan, the market size of China's digital payment services market increased from CNY 181.2 trillion in 2022 to CNY 353.6 trillion in 2027, at a CAGR of 14.3% from 2022 to 2027, based on the TPV of China's cross-border and domestic digital payment services market.

In terms of overseas business, LianLian DigiTech has 13 overseas offices in 8 countries and regions, including the United States, the United Kingdom, Ireland and Brazil, with key members of the management team having operations working for leading international business organizations. The company has obtained 64 payment licenses and related qualifications in several countries and regions, and is able to serve customers through a global payment network that covers over 100 countries and regions and supports transactions in over 130 currencies.

In this field, the major competitors of LianLian DigiTech include Chinese companies such as PingPong, Payoneer (Chinese: 派安盈) and Alipay, as well as international players such as PayPal from the US and Adyen from the Netherlands.