On October 15, the concept of cross-border payment strengthened against the trend in the morning, and the sector index once rose nearly 5% in a straight line, hitting a record high. The afternoon session fell back after fluctuating, closing down 0.21%. In terms of individual stock performance, Yuxin Technology, Huafeng Ultra-fine Fiber, Baolande and others ranked top.

It is understood that the BRICS countries are developing a new payment system that allows unilateral settlement without using the US dollar, which will play a vital role in the BRICS countries and participating countries. Looking ahead, China's cross-border payment business is expected to grow further.

Lanfu Finance has sorted out 57 core cross-border payment concept stocks. Judging from the market performance in the past month, nine concept stocks such as Airong Software, Runhe Software, Sifang Jingchuang, Kelan Software, Huafeng Ultra-fine Fiber, Runtong Dynamics, Yuxin Technology, Changliang Technology, and Tianyuandike have doubled.

The technology service track has broad prospects

With the acceleration of information technology innovation and the rapid development of new formats such as cross-border e-commerce, cross-border payment has increasingly become a key area of concern for all parties involved. The cross-border payment industry chain is a complex system that involves multiple links and participants and aims to ensure that cross-border transactions can proceed smoothly.

Among them, upstream is mainly card issuers, clearing institutions, and technology service providers, responsible for providing clearing, settlement, risk system management and other services to cross-border payment institutions; midstream is mainly cross-border payment institutions, including commercial banks, bank card switching and clearing institutions, and third-party institutions; downstream is mainly enterprises, cross-border e-commerce and individual users participating in international trade.

Analysts generally believe that although the cross-border payment industry chain covers many areas, the potential future development of the market is mainly concentrated in technology providers and software providers that provide technical support for banks and financial institutions. Some cross-border e-commerce companies can also be partially boosted, but banks and other financial institutions are currently relatively mature and may no longer speculate on hotspots. Banks and clearing institutions providing technology service providers will be the main focus in the future market.

Globally, cross-border payment still faces many problems such as slow speed, high cost, low transparency, and complex operations. The complexity of the cross-border payment system is first manifested in its account structure and capital flow method. Different accounts have different transaction scenarios and rely on the global clearing and settlement network. In addition, merchants and payment platforms must use multiple authentication and anti-fraud tools to ensure transaction security.

The role of technology service providers is to provide payment technology solutions, such as payment gateways, risk control, identity verification, and other services, to ensure payment security and efficiency. Technology integration plays a transformative role in cross-border payments, leveraging advancements in financial technology and innovations in digital infrastructure to improve the speed, efficiency, and accessibility of international transactions.

Today, many cross-border payment platforms have been created through collaboration between financial institutions, payment service providers, and technology companies. These platforms typically leverage shared infrastructure and technology to provide seamless, cost-effective solutions for international transactions.

According to the "2024-2029 Global and China Payment-as-a-Service Industry Development Status Research and Investment Prospect Analysis Report" released by the China Chamber of Commerce Industry Research Institute, the market size of China's cross-border digital payment service industry, measured by the total payment volume of China's cross-border digital payment service market, increased from 2.2 trillion yuan in 2019 to 5.9 trillion yuan in 2023, with a compound annual growth rate of 27.97% from 2019 to 2023. It is expected to continue double-digit growth in the next five years, with tremendous development potential.

Looking for core potential stocks

Recently, Lanfu Finance has sorted out 57 core cross-border payment concept stocks in an attempt to discover the next "dark horse" with value.

Divided by province, the 57 core cross-border payment concept stocks are distributed across 14 provinces and cities nationwide, with Beijing, Guangdong, and Shanghai ranking top three with 23, 9, and 6 companies, respectively.

Divided by the Shenwan Level 1 industry classification, it involves nine major industries: computer banking, non-bank finance, trade and retail media, basic chemicals, household appliances, beauty care, and automobiles. Among them, the computer industry leads with 33 companies.

It is worth noting that only 9 of the 57 core cross-border payment concept stocks are specialized, new, and high-tech enterprises, accounting for 15.8%.

According to Lanfu Finance's review, among the 57 core cross-border payment concept stocks, only a few listed companies, such as Baolande, Zhongyi Technology, and Digital Video Broadcasting, meet all three conditions: being located in Beijing, belonging to the computer industry, and being a specialized, new, and high-tech enterprise.

Since its inception, Baolande has been deeply rooted in the research of middleware and related underlying architecture evolution and transmission technology. Relying on a number of core technologies developed independently, the company's application server middleware, web server middleware, message middleware, and cache middleware excel in processing capabilities, high availability, stability, and security, ranking among the top domestically and internationally.

Recently, in the 2023 Excellent Financial Information and Innovation Solutions released by the Financial Information and Innovation Ecological Laboratory, a second-generation solution for the RMB cross-border receipt and payment information management pre-system from CEC-Chinatech was awarded as an excellent general business solution, with Baolande's middleware being used. The Financial Information and Innovation Ecological Laboratory is led by the People's Bank of China and led by China Financial Computerization Group Co., Ltd., focusing on important infrastructure and specialized experimental platforms for financial innovation.