China’s big data conglomerate IZP Technologies Group has laid out plans that will support trade growth in the next decade under the One Belt One Road initiatives and the development of renminbi-led cross-border clearing, the China Daily reported.
"We aim to build Silk Road stations, a renminbi-led Visa-like cross-border payment system and a second 'Frankfurt airport' along the routes in Italy to help deliver growth," Luo Feng, CEO of IZP Technologies Group, told China Daily at the 15th Forum on Internet Media of China in Zhanjiang, Guangdong Province.
According to the report, IZP's e-commerce platforms Haixuan and Globebuy and online payment arm Globebill have already been licensed and authorized to set up a card organization in Europe.
Luo said that retailers overseas who buy Chinese goods using their home currency or exchange directly for renminbi would require the One Belt One Road initiative to have its own clearing infrastructure.
The Silk Road Economic Belt and the 21st Century Maritime Silk Road were initiatives proposed by President Xi Jinping in 2013, which creates a network that would pass through more than 60 countries and regions in Asia and Europe, covering a total population of 4.4 billion.
In the first five months of this year alone, Chinese enterprises have invested more than $4.86 billion along the routes, according to the Ministry of Commerce.
Luo said that they aim to set up a new Visa system along the Silk Road to help small- and medium-sized businesses and reduce transaction fees, which he said would improve cross-border clearing and settlement to spur trade growth.
"Cross-border transaction costs could be as high as 5 percent, even more than certain sector's profit margin. Small and micro companies sometimes can't get a letter of credit which constrains exports," Luo said.
According to Lou, customers from 104 countries are charged by IZP's Globebill with a transaction fee that is 40 to 80 percent cheaper than Visa. The platform was one of the pilot companies authorized and approved by the State Administration of Foreign Exchange for cross-border e-commerce foreign exchange and payment.
"Nigeria has a population of 140 million, and to buy Chinese goods they first had to exchange for U.S. dollars before then exchanging U.S. dollars for renminbi," Luo added. But under Globebill's network, consumers can make purchases using their home currency.
In June, IZP signed a partnership agreement with Belgian service provider Cnext to issue a Euro-RMB dual-currency credit card, which was part of the cooperation deal signed during Premier Li Keqiang's visit to Belgium.
IZP has also signed a bank card settlement agreement with Lithuania's central bank, while Globebill aims to set up a settlement network covering the whole of Europe, according to IZP.
"Our goal is to reach cooperation with regulators of 100 countries by 2017," said Luo, adding that IZP is now eligible to issue credit cards and deliver settlement with 30 of them along the "One Belt One Road."
IZP also plans to establish a center in Dubai to oversee its Middle East operations, as Globebill signed an agreement in April for the setting up of a payment system and bank card settlement system in Saudi Arabia.
In addition, IZP plans to set up stations along the modern Silk Road route, which would contain five key elements: an O2O exhibition center, a bonded export processing zone, cross-border financial infrastructures, a standardized electronic custom clearance system, and big data-based marketing network.
Luo added that it will establish exhibition center in Belarus, Eastern Europe, which is expected to open in October, and another center in Colombia, Latin America.
According to IZP, the initiative has won more than 26 ports worldwide, as well as plans to buy a second Italian airport, following acquisition of Parma airport last year.