XTransfer Gains Payments License Approval in Malaysia
B2B cross-border payments platform XTransfer has received conditional approval from Bank Negara Malaysia for key payment licenses. The company plans to establish a regional operational hub in the country to support trade settlements for local small and medium-sized enterprises.
- The conditional approval from Bank Negara Malaysia covers two key licenses: electronic money issuance and a Class A Money Services Business license for remittance and currency exchange. Before officially launching, XTransfer must meet specific pre-issuance conditions set by the central bank. - Malaysia is set to become XTransfer's regional operational hub for Southeast Asia, overseeing compliance, risk management, and customer support for the region. This move is part of a broader strategy that includes strategic partnerships with regional banks like Maybank and OCBC to enhance their service offerings in key ASEAN markets. - XTransfer targets the underserved small and medium-sized enterprise (SME) sector, which accounts for 14.3% of Malaysia's total exports. The company aims to address common B2B payment challenges for these businesses, such as high fees, slow processing times, and lack of financing options. - A core component of XTransfer's platform is its AI-driven risk management and anti-money laundering (AML) infrastructure. The company has developed its own proprietary large language model named "TradePilot" to analyze unstructured data from transactions and detect potential fraud, which has been recognized for its innovation in financial crime detection. - By automating compliance processes through AI, XTransfer has stated it can reduce these costs to less than 5% of what traditional banks typically incur. This automation also significantly speeds up processes like customer onboarding, which can be completed within 24 hours. - The company's founder and CEO, Bill Deng, has emphasized a strategy of building licensed and compliant infrastructure in developed markets while addressing structural payment gaps in emerging economies. XTransfer has already secured payment licenses in the UK, Singapore, the Netherlands, and the US. - XTransfer's growth in the region is significant, with the average collection amount from ASEAN countries on its platform growing by 82% year-over-year in 2025. The company has over 800,000 enterprise clients globally and a monthly processing volume exceeding USD 12 billion.
