Pain Points and Changes in the Cross-Border Remittance Market

 

Amid globalization, demand for cross-border capital flows continues to grow. World Bank data indicates that global cross-border remittances exceeded US$800 billion in 2024, but traditional service models still face significant shortcomings: the industry average handling fee rate is 6.26%, funds typically arrive in 2-5 days, and hidden exchange rate differences are prominent. For overseas Chinese users, remittances to China often face a triple loss of "explicit handling fees, hidden exchange rate differences, and time costs."

 

Panda Remit, an online cross-border remittance platform established in 2018, addresses these structural market issues. The platform's core team, with backgrounds in payment institutions such as Alipay and American Express, advocates for reconstructing the remittance process through a digital network. According to publicly available data as of 2025, its services cover over 40 countries and regions worldwide, with nearly 3 million users.

 

The Founders' Journey of Breaking Through the Wall

 

Panda Remit was born out of a typical "pain point" experience. Co-founder Ken Zheng publicly shared that while working in the United States, he encountered high fees, two-hour offline queues, and a five-day processing time when sending remittances to China. These experiences prompted him to question: Why is cross-border remittance so inefficient?

 

The team's research revealed that the core bottlenecks of the traditional model lie in: banks' reliance on the SWIFT system leads to high transit costs, while some institutions' offline agent networks increase operating expenses, which are ultimately passed on to users. Furthermore, Chinese users generally face unique pain points such as language barriers, complex processes, and lack of exchange rate transparency.

 

In 2018, Ken Zheng and Eric Zeng co-founded Panda Remit, headquartered in Singapore. They pioneered an "Internet + Local Clearing" model: After users complete identity verification through the APP, funds are directly transferred to Panda Remit local pool and then cleared to the recipient in real time by a local partner bank. This model eliminates the need for cross-border funds transfers, reduces fees by 80%, and shortens processing time from days to minutes.

 

 "Dimensionality Reduction" of the Business Model

 

1. Panda Remit business model is differentiated primarily in three dimensions:

 

l Cost Restructuring: Abandoning the offline branches of traditional institutions, Panda Remit adopts a purely online approach, reducing customer acquisition costs. Through API integration with multiple banks and e-wallets worldwide, Panda Remit builds a decentralized clearing network.

 

l Technology-Driven: A proprietary intelligent risk control engine enables automated review, reducing Know Your Customer(KYC) processing time from the industry average of 24 hours to minutes. Bank-grade SSL encryption and PCI DSS certification ensure the security of every transaction and enable full traceability of fund flows.

 

l Ecosystem Integration: In addition to strategic partnerships with Alipay and Weixin Pay in China, Panda Remit has also integrated with major international e-wallet platforms (including PayPal in the US, Paytm in India, Touch'n Go in Malaysia, and GCash in the Philippines), forming a "global local payment network" that covers the local needs of cross-border payments.

 

Operational data under this model shows that remittance fees are reportedly as low as 1/10 of those at traditional banks, exchange rates closely follow the mid-market rate, and funds can be transferred in as little as 2 minutes.

 

 

2. Triple Competitive Advantages

 

In the cross-border payment market, where giants abound, Panda Remit has built competitive advantages difficult to be replicated:

l Compliance Qualifications: Panda Remit has obtained financial licenses from multiple countries and regions, including the Hong Kong MSO, Australian ABN, and Singapore MAS. In 2020, it was selected for Mastercard's "Start Path" program, becoming the only remittance company globally to receive this honor.

 

l Localized Operations: Panda Remit demonstrates adaptability in its regional service strategies, such as supporting the Japanese proof of fund delivery and integrating local e-wallets such as GCash as payment channels in Southeast Asia.

 

l Capital Support: Public information indicates that Panda Remit has completed multiple rounds of financing from leading institutions such as Sequoia Capital and Lightspeed, totaling tens of millions of US dollars. Its partnership network covers numerous banks and major e-wallet platforms worldwide.

 

 

3. Product Portfolio

As user needs diverge, Panda Remit product portfolio is diversifying. Core features include:

 

 

Small-Amount Remittances:

Panda Remit supports over 20 currency exchanges, covering over 100 countries and regions. To address the pain points of exchange rate fluctuations, the system features an "Exchange Rate Alert" feature. Users can preset a target exchange rate range. When the market exchange rate reaches a threshold, the APP will send a notification to assist users in selecting the right time to remit. Furthermore, the platform provides full remittance status tracking (from "pending payment" to "money received"), providing high transparency.

 

 

Large-Amount Remittances:

The newly launched large-value transfer service supports transactions up to SGD 100,000 per transaction, reportedly reducing fees by approximately 70% compared to traditional channels. The process requires online submission of documents (including ID and proof of funds), with a security waiting period. Currently, the service covers major markets including Hong Kong SAR, Singapore, Australia, and Europe.

 

 

Study Abroad Tuition Payment:

This platform provides targeted services for international students, connecting with over 37,000 institutions worldwide (including higher education, general education, and language schools). Funds can be directly transferred to designated accounts at the institution, theoretically reducing delays caused by intermediaries. Official information indicates that the service charges an 80 RMB per transaction fee. The platform claims to offer "real-time remittance" to ensure timely delivery.

 

 

Global Money Receiving:

Recipients can specify an amount and initiate a remittance request, function covering over 100 countries and regions. This could reduce the risk of fraud.

 

 

Multi-Currency Balance Account (Launched in Singapore by now):

This feature, launched in 2025 for Singaporean users, is positioned as a "one-stop cross-border fund management tool." Key features include:

- Online account opening, with KYC verification reportedly completed in just 3 minutes;

- Daily interest accrues on balances, with advertised annualized returns of up to 2%. Users with average daily deposit exceeding SGD 10,000 in a month will receive a remittance fee waiver coupon;

- Instant exchange of 10 major currencies, with discounted fees when using account balances for remittances.

 

4. "Differentiated Survival" in the Competitive Landscape

 

In the face of competition from traditional institutions and emerging players, Panda Remit has found a unique niche:

Compared to traditional banks, Panda Remit differentiates itself in terms of cost, efficiency, and operational processes. For example, in the Hong Kong market, HSBC charges approximately HKD 100-150 for cross-border remittances, while Panda Remit adopts a fixed fee model (HKD 30 per transaction). New users enjoy a 100% fee waiver on their first order.

 

Compared to MTOs (such as Western Union and MoneyGram): traditional remittance companies rely on thousands of offline branches worldwide, with 70% of their business coming from cash remittances (e.g., cash remittances by migrant workers in Southeast Asia). This heavily offline model leads to high operating costs, while Panda Remit's purely online model offers structural advantages in cost control.

 

Compared to emerging digital remittance platforms (such as Wise): Panda Remit's market positioning is more focused on the needs of Chinese users, supporting Alipay and Weixin payment channels, offering a Chinese user interface, and providing targeted services for international students and migrant workers. According to public data, Wise's average processing time is approximately two hours, while Panda Remit claims that 90% of transactions can be completed within one hour, with a significantly lower fee structure.

 

This differentiated strategy has enabled it to become a leading player in the global cross-border remittance market within seven years of its founding.

 

An Innovative Example of Inclusive Finance

 

In terms of service coverage, Panda Remit is using technology to reshape the cross-border money flow experience for millions of Chinese. Its success demonstrates a simple business logic: in a seemingly saturated financial market, truly addressing user pain points can create immense value.

 

While traditional institutions still rely on the SWIFT system and charge high fees, Panda Remit, with its brand philosophy of "Love without Borders" embodies the humanistic warmth of fintech. Combining technological innovation with optimized user experience, this approach may provide a differentiating factor for its market expansion.

 

In the future, with the growing number of overseas Chinese and the improvement of cross-border payment infrastructure, Panda Remit may be able to move beyond its "Chinese-focused" market and expand into the broader global market—but it remains to be seen whether its core advantages of "fast speed and high transaction volume" can be sustained. After all, in the fintech world, once user trust is established, it becomes the strongest advantage.