NEWS WRAP: Lianlian DigiTech’s revenue surges on payment network expansion

The digital payment service provider’s revenue rose 28% last year as its global payment network and customer base continue to expand

By Teri Yu

Lianlian DigiTech Co. Ltd. (2598.HK) reported 28% revenue growth and an adjusted annual profit last year, driven by strong adoption of its digital payment services both in China and abroad. The company further expanded its global payment network and customer base during the year as the growing popularity of domestic and cross-border e-commerce led more customers to adopt its digital payment solutions and services.

Lianlian reported its revenue rose to 1.32 billion yuan ($182 million) in 2024 from 1.03 billion yuan a year earlier, as revenue from its digital payment services surged 31.6% to 1.15 billion yuan, accounting for about 87.5% of its total, according to its annual results released last week. Its global payment business generated 808 million yuan in revenue, up 23.1% year-on-year, while its domestic business jumped 57.1% to 343 million yuan.

The company achieved total payment volume (TPV) of 3.3 trillion yuan last year, jumping 64.7% from 2023. Global TPV rose by 63.1%, while the domestic figure was up 64.9%.

“Following our listing, we continued to expand our global licensing network, strengthen our compliance capabilities, enhance our product and service offerings, and grow our customer base. These efforts have fueled the further expansion of our global footprint and driven significant growth in our performance,” said CEO Xin Jie.

The strong gains propelled the company into the black on an adjusted basis, as it recorded a non-IFRS annual profit of 78.7 million yuan, reversing its loss of over 400 million yuan a year earlier. The swing to the black came on continued scaling for its payment platform and integration of AI technologies that helped it offer better and more efficient intelligent solutions to meet its clients’ needs.

On an as-reported basis, which includes non-operating items like share-based compensation and listing expenses, the company’s loss also narrowed sharply to 167 million yuan from 654 million yuan in 2023.

Founded in 2009, Lianlian operates a global payment infrastructure to serve its customers, mostly e-commerce merchants. Leveraging the synergies between its domestic and global payments, Lianlian offers a powerful suite of services to overcome traditional payment limitations globally, while at home, it offers innovative products like corporate wallets to empower domestic clients’ digital transformation and globalization efforts.

As cross-border e-commerce continues to expand, Lianlian’s innovative platform and extensive payment licensing layout position it as a key enabler of growth in the booming sector.

Lianlian said it had 65 payment licenses globally at the end of last year, serving over 5.9 million merchants in over 100 countries and regions, and supporting over 130 currencies. Adding to this wide global reach, Lianlian secured a “virtual asset trading platform” license in Hong Kong last December that will enable it to serve clients using blockchain technology. It also received an electronic money institution license in Luxembourg last May, allowing it to provide digital payment services to local businesses in Europe, as part of its continued effort to expand its global footprint.

Lianlian’s stock has traded mostly in a narrow range since the company raised about HK$550 million ($71 million) in its IPO a year ago.

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