“Yiwu Pay” is a new cross-border payment platform developed by Yiwu Small Commodity City, officially launched on February 20, 2023. This platform is significant in India-China trading as it will enable over 900,000 businesses and 2.1 million micro and small companies located in the city of Yiwu in southeastern Zhejiang province to conduct cross-border payments. YiwuPay has already partnered with over 400 banks worldwide, can perform transactions in 16 of the world’s biggest currencies, and can be used in more than 100 countries and regions.
Yiwu is a county-level city under the jurisdiction of Jinhua in Central Zhejiang Province, China. It is China’s number one producer of fashion jewelry, and the Yiwu market is the biggest wholesale mall in China, covering an area of 4 million square meters with 75,000 booths where 100,000 suppliers exhibit 400,000 kinds of products. The city also has a large number of unbranded jewelry factories, and there are many warehouses available to store the goods.
India has overtaken Iran as the biggest recipient of Yiwu’s exports. More than 2,000 Indian merchants live in Yiwu, and every year around 400,000 Indian businessmen descend on Yiwu, accounting for three out of every four foreign businessmen in the city. There are 250-odd Indian trading companies with permanent partnerships in Yiwu city, where around 1,000 Indians now reside permanently. In 2014, Yiwu shipped $750 million worth of goods to India.
The pandemic has affected the number of Indians doing business in Yiwu, with only 500 to 600 Indians residing and doing business in Yiwu due to travel restrictions. Before the pandemic, there were 3,000 Indians living and doing business in Yiwu. Despite this, Yiwu still has a dozen Indian restaurants and an Indian street.
With Yiwu Pay, businesses in Yiwu can conduct cross-border payments with ease, which will boost India-China trade relations. India and China have been working to improve their bilateral trade ties, and Yiwu Pay will be a useful tool in this effort. This platform will facilitate quicker and more secure transactions between Indian and Chinese businesses and will provide a convenient way to transfer money internationally.
Yiwu Pay is an upgraded version of third-party payment company Kuaijie Tong, which was used in the Yiwu market before the launch of Yiwu Pay. Yiwu Pay is more efficient, faster, and more secure than its predecessor, making it the preferred option for businesses in Yiwu.
Furthermore, Yiwu Pay’s first cross-border Renminbi payment transaction with a Saudi Arabian customer highlights the platform’s potential in promoting trade between China and other Arabic countries. Yiwu Pay’s contribution to the internationalization of the Renminbi presents a significant development for Chinese businesses seeking to expand their global reach. In 2022 alone, 176 countries and regions made cross-border RMB settlements worth 56.54 billion yuan ($8.24 billion) with Yiwu, marking a year-on-year increase of 56.23 percent. Yiwu Pay’s success in facilitating cross-border payments and increasing trade between China and other countries showcases the platform’s potential in promoting international business relationships and boosting global trade.
Yiwu Pay’s partnership with Yiwu goods online, a popular e-commerce platform for buyers and suppliers in Yiwu, further expands the platform’s reach and provides Indian merchants with a more accessible channel for conducting business with their Chinese counterparts.
In conclusion, Yiwu Pay presents a significant opportunity for Indian merchants to improve their cross-border payment experience and strengthen their business relationships with Chinese partners. With Yiwu Pay’s extensive network of global partners, ability to perform transactions in multiple currencies, and potential to promote international trade, the platform is poised to play a vital role in improving bilateral trade ties between India and China.
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- What is Yiwu Pay and how is it significant in India-China trading?
- How many businesses and micro/small companies in Yiwu can benefit from using Yiwu Pay for cross-border payments?
- Which countries has Yiwu Pay already partnered with and in how many currencies can transactions be performed?
- What is Yiwu’s position in China’s jewelry market and how does it relate to India-China trading?
- How many Indian merchants reside in Yiwu and what is their impact on Yiwu’s economy?
- How has the pandemic affected the number of Indians doing business in Yiwu and what is the current situation?
- How does Yiwu Pay compare to its predecessor, Kuaijie Tong, and what advantages does it offer for businesses in Yiwu?
- What benefits can Yiwu Pay provide for India-China trade relations?
- What is the potential for increased trade between India and China with the use of Yiwu Pay?
- How does Yiwu Pay fit into the larger picture of improving bilateral trade ties between India and China?