Financial Technology Platform Global Expansion Case

A well-known payment platform is a Chinese financial technology enterprise established in 2023. Its core product is a cross-border payment platform, focusing on SME cross-border trade settlement and individual study abroad remittance services. Core markets cover Southeast Asia (Singapore, Indonesia, Malaysia) and Europe & America (USA, UK, Germany). After 8 months of launch, the cumulative transaction amount exceeds 320 million USD, with 1.2 million registered users, of which 35% are enterprise users. In Q4 2024, the platform faced four core operational pain points that directly affected transaction security and user trust:

• Verification Security Risks Prominent: Initially using regular SMS to send transaction verification codes, Southeast Asia frequently experienced fake base station attacks and SIM card hijacking incidents. More than 20 fraud complaints occurred monthly due to stolen verification codes, with single incident losses up to 50,000 USD, causing continuous decline in user trust.
• Inefficient Transaction Notification Delivery: Cross-border payment processes involve multiple nodes including initiation, approval, arrival, and refunds. Email notification open rates are less than 15%, causing some users to initiate transaction disputes due to untimely awareness of arrival information. Customer service ticket volume accounted for 42%, with transaction status inquiry tickets exceeding 60%.
• Risk Control Warning Response Lag: For overseas abnormal transactions (such as small test fraud, remote large transfers), the existing warning system had an average response delay of 10 minutes, unable to quickly intercept risky transactions. In Q4 2024, potential losses due to risk control delays accumulated to over 800,000 USD.
• High Multi-region Compliance Barriers: Financial SMS regulation is strict. The EU requires GDPR privacy authorization and data encryption compliance, the US requires completion of 10DLC qualification registration and transaction information traceability, and Singapore has clear Sender ID registration specifications (must be 3-11 alphanumeric combinations, no generic identifiers allowed). Initially, due to non-compliant template and Sender ID registration, SMS delivery success rate was below 62%, facing regulatory penalty risks.

To resolve security and compliance challenges, the well-known payment platform partnered with global communication service Yaning AI in November 2024 to build an "encrypted transmission + real-time risk control + compliance adaptation" international SMS system. Core objectives include reducing fraud risk, improving transaction notification delivery rate, achieving full market compliance operations, and ensuring secure and controllable cross-border payment processes.

1. Identity Verification and Transaction Authorization: Encrypted Protection, Eliminating Information Leakage

Addressing verification code security vulnerabilities, building a dual protection system suitable for financial-grade verification needs:

• Encrypted Verification Code SMS: Using TLS/SSL end-to-end encrypted channels to prevent fake base station hijacking and eavesdropping. When users initiate payments or modify bound phone numbers, SMS verification codes are triggered within 5 seconds, with built-in risk control logic (maximum 3 daily verifications per device, 60-second resending interval) to prevent malicious code harvesting. US market template: "Your Payment Platform verification code for transaction authorization is 7296. Valid for 5 mins. For security, do not share with others. Reply STOP to unsubscribe."
• Bidirectional Transaction Confirmation: For cross-border transfers exceeding 10,000 USD, in addition to verification codes, an extra transaction confirmation SMS is triggered. Users must reply "CONFIRM+transaction tail number" to complete authorization; failure to reply automatically intercepts the transaction, ensuring every large transaction is performed by the user themselves, reducing fraud risk from the source.

2. Full Transaction Process Notification: Real-time Delivery, Resolving Dispute Hazards

Integrating payment systems with SMS platforms, covering all cross-border payment nodes, simultaneously adapting to multilingual and localization needs:

• Transaction Initiation Reminder: Instantly sent after users submit cross-border transfer applications, including transaction amount, currency, recipient information, and estimated arrival time. Southeast Asian markets provide Indonesian and Malay bilingual templates.
• Arrival/Refund Notification: Triggered within 3 seconds after successful fund arrival or refund, including transaction serial numbers and exchange rate details, resolving user concerns about fund arrival status. German market German template: "Ihr Geldtransfer von 5000 Euro wurde erfolgreich an Empfänger XY überwiesen. Transaktions-ID: PL20241208009. Wechselkurs: 1 EUR = 7.82 CNY."
• Audit Exception Notification: When transactions are intercepted due to incomplete documentation or failed compliance review, SMS simultaneously informs reasons and supplementary material channels, guiding users for quick processing and reducing transaction delays.

3. Risk Control Warning and Emergency Response: Millisecond Response, Intercepting Risky Transactions

Linking platform risk control systems, triggering immediate warnings for abnormal transactions, opening SMS emergency response channels:

• Abnormal Transaction Warning: When the system detects abnormal behaviors such as overseas remote logins, small test fraud, or off-hours transfers, millisecond-level warning SMS is triggered with transaction location and amount information. Users can reply "LOCK" to immediately freeze accounts or reply "VERIFY" to confirm transactions. Risk control teams simultaneously intervene for verification. Example: "Alert: An unusual transaction of 1 USD was attempted from Singapore (IP: 202.138.XX.XX) on your platform account. Reply LOCK to freeze account, or VERIFY to confirm."
• Account Security Reminders: For sensitive operations such as password modification and device binding changes, security notifications are sent immediately to ensure users stay informed about account dynamics and prevent account theft.

4. Compliance and Technical Support: Adapting to Global Financial Regulatory Requirements

Service providers offer financial-grade compliance and technical support to clear cross-market operational barriers: First, assisting with full-scenario compliance registration, including EU GDPR user authorization agreement optimization, US 10DLC qualification registration, and Singapore SSIR Sender ID registration (registering exclusive alphanumeric identifier "PAYLINK88") to ensure SMS delivery compliance; Second, built-in financial-sensitive word filtering system blocking non-compliant statements, while retaining transaction SMS records for at least one year to meet various national financial audit requirements; Third, adopting banking-grade data encryption standards to achieve desensitization processing of sensitive data such as user phone numbers and transaction information, complying with PCI-DSS financial data security specifications; Fourth, establishing global financial dedicated channels with average SMS delivery time ≤1.2 seconds, core market delivery rate reaching above 98.8%, and data dashboards monitoring delivery rates, risk interception rates and other indicators in real-time for strategy optimization.

• ✓ Security Protection: Verification code fraud complaints decreased by 92%, monthly complaints reduced to fewer than 2 cases, abnormal transaction interception success rate improved to 95%, cumulative potential losses recovered exceeding 1.2 million USD, user account security satisfaction reaching 4.8 points (out of 5).
• ✓ Transaction Experience: Transaction notification delivery rate improved from 85% to 98.8%, transaction status inquiry tickets reduced by 75%, cross-border transaction dispute rate decreased from 5.2% to 1.1%, and enterprise user repurchase rate increased by 30%.
• ✓ Compliance Operations: Core market SMS delivery success rates all improved to over 98%, successfully passing EU GDPR, US 10DLC, and Singapore SSIR compliance audits with no regulatory penalties.
• ✓ Cost Control: International SMS single-delivery cost reduced to 0.18-0.35 USD (by market). Compared to traditional manual customer service dispute resolution, operating costs decreased by 68%, and risk control personnel costs decreased by 72% due to automated warnings.

Mr. Chen, Product Manager of a well-known payment platform stated: "The core of cross-border payments is security and trust, and international SMS is the key component building this foundation. XunAn Global's financial-grade SMS solution not only completely resolved fraud and verification security issues through encryption technology and bidirectional confirmation, but also achieved barrier-free operations in European, American, and Southeast Asian markets through professional compliance adaptation capabilities. Real-time transaction notifications and risk control warnings have significantly reduced dispute rates and losses. SMS has become core infrastructure safeguarding business compliance and enhancing user experience, providing solid support for platform global expansion."