B2B cross-border trade payment platform XTransfer has secured conditional approval from Bank Negara Malaysia (BNM) for the issuance of electronic money and a Money Services Business Licence (Class A), which includes remittance and currency exchange services.

This approval is a crucial advancement in XTransfer’s expansion plans within Southeast Asia. Upon fulfilling pre-issuance conditions, the company aims to introduce digital payment solutions tailored for businesses, especially small and medium-sized enterprises (SMEs) engaged in international trade. The services will encompass streamlined onboarding, foreign exchange, remittance, and settlement functionalities, emphasizing compliance, security, and operational reliability.

Malaysia as a regional hub

Beyond launching the product, Malaysia is central to XTransfer’s broader strategy. The company plans to make it its primary base for operations in Southeast Asia, managing compliance, risk control, customer support, and overall group activities from within the country.

Bill Deng, Founder and CEO of XTransfer, views the BNM approval as a pivotal milestone. He believes that this move will bring Malaysia-based businesses efficient payment solutions, facilitating trade by making it faster, especially with growing intra-Asia and South-South trade routes. Deng highlights that Malaysia provides an ideal environment due to its skilled workforce, favorable regulatory framework, and geographical proximity for scaling operations across the region.

Company background

Founded in 2017, XTransfer specializes in cross-border trade payment and fund collection services for SMEs, facilitating connections between these businesses and major financial institutions. Currently, it serves over 800,000 enterprise clients across numerous international markets.

It is important to note that while the BNM approval provides a green light, XTransfer’s commercial operations in Malaysia are contingent upon meeting the regulator’s pre-issuance conditions.