XTransfer Launched Local Currency Collection for ASEAN Trade
The new payment solution enables businesses to settle transactions in local currencies to bypass USD conversion costs.
Updated on Oct. 5, 2026 in International Trade
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In September 2026, XTransfer introduced a local payment collection service for cross-border trade at the 23rd China-ASEAN Expo in Nanning. The service allows exporters to accept payments in multiple regional currencies, simplifying settlement for transactions between China and Southeast Asian markets.
Why it matters
Exporters looking to reduce foreign exchange fees and improve cash flow are turning to local-currency settlement to meet buyer preferences in Southeast Asia. Bypassing USD-based clearing can lower overhead costs and accelerate payment cycles for businesses operating in high-volume trade corridors.
Bilateral trade between China and ASEAN reached USD 744.41 billion between January and July 2026, a 24.7% increase year-over-year. The region now accounts for 21.8% of China's total foreign trade.
The players
XTransfer
A financial services provider that specializes in cross-border payment and collection solutions for small and medium-sized enterprises engaged in international trade.
The details
The platform leverages a network of financial partnerships to allow buyers to pay via local clearing systems in IDR, MYR, THB, VND, PHP, and SGD. By enabling these local-currency collections in markets including Malaysia, Indonesia, Vietnam, and Thailand, XTransfer allows Chinese exporters to settle funds directly into RMB. This reduces reliance on USD settlement processes that often carry high currency conversion costs and longer processing times.
Timeline
2025: China-ASEAN bilateral trade reached USD 1.05 trillion.
January to July 2026: Trade between China and ASEAN totaled USD 744.41 billion.
September 2026: The 23rd China-ASEAN Expo was held in Nanning.
Market Landscape
This payment expansion follows the long-term trend of deepening economic integration established by the China-ASEAN Free Trade Area framework. The introduction of local-currency settlement aligns with broader efforts to increase regional trade efficiency and reduce reliance on global reserve currencies.
Exporters should evaluate whether current USD-based payment terms are creating unnecessary friction with their Southeast Asian buyers. Reviewing regional banking partnerships may provide opportunities to lower transaction costs and improve liquidity by settling in local currencies.
The takeaway
Direct settlement in local currencies is becoming a competitive necessity for firms expanding in the ASEAN market. Operators should track the growth of these payment corridors to identify potential savings on foreign exchange and settlement-related overhead.
Further reading
Learn more about evolving payment standards in International Trade.
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