BNP Paribas picks PingPong for third-party merchant services

The partnership highlights growing collaboration between fintech and banks for open financing

by | May 27, 2022 | bobsguide

BNP Paribas has teamed with Chinese payments start-up, PingPong, to expand its third-party merchant services in Europe.

BNP Paribas will integrate with PingPong’s digital platform, risk control system and other fintech capabilities to enable merchants to execute cross-border transactions.

The latest collaboration expands the duo’s ongoing service agreements supporting accounts, collections, payments, foreign exchange, among others.

It also gives PingPong a firmer foothold in Europe, where the start-up has been making inroads by acquiring  a European EMI (Electronic Money Institution) license in Luxembourg.

The EMI classification allows PingPong to provide services such as payment, prepaid cards, acquiring, and e-wallets in the EU market.

“By establishing a more comprehensive partnership with BNP Paribas, PingPong Payments will be integrated into the mainstream European financial system, providing greater access to a variety of local payment methods, and helping merchants with acquiring needs in the EU to quickly expand to the local market,” said VP head of global institution group, Aaron Xu.

PingPong Payments claims to have processed over $90 billion in cross-border payments for e-commerce merchants to date, and to be transferring more than $150 million each day on-behalf of international e-commerce retailers.

The partnership is another boost to BNP Paribas’ payment processing capabilities, having recently completed the €258 million acquisition of French split payments group Floa.

In March last year, the bank partnered with open banking payments platform, Token, to launch Instanea, an instant payment initiation service.

BNP Paribas’ foray into open finance highlights the growing interest from traditional financial institutions into such capabilities to enable speedier and secured transfer of money.

According to payments consultant, Penser, the open banking market size is expected to reach $395 billion by 2026, growing at 46% between 2019 to 2026.

The figure underscores the series of investment in open banking platforms by banks as well as the financing raised in the funding rounds.

In April, US WaFD Bank partnered with opening banking platform, Plaid, to provide its customers with easier access to their financial data and accounts and enable fund transfer.

Plaid also scored another partnership with 1st Security Bank for its account verification capability.

That same month, French start-up Budget Insight, backed by Crédit Mutuel Arkéa, also raised $35 million in funding from growth equity firm PSG equity.

Egyptian paytech company, Paymob, also raised $50 million in Series B funding from a consortium of technology investors.

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