NewPay participated in a high-level seminar hosted by Mrs. Southani Sisouvong, Deputy Director of the Payment Department of the Lao Central Bank, focused on combating unauthorized payment activities among Chinese merchants across the country. The event, themed “Strengthening Supervision, Maintaining Financial Order, and Promoting Economic Stability”, brought together government officials, technical experts, payment institutions, and industry representatives to discuss regulatory strategies and enforcement measures.

As a benchmark for third-party payment services in Laos, NewPay was represented by Risk Director Silen, Vice President Somlith Nammanininh, and LADT CEO Richard Ma. They reported the company’s progress in operating compliant cross-border payment services via WeChat Pay and Alipay+, highlighting both operational successes and the role NewPay plays in supporting regulated payment ecosystems.

Unauthorized Payments Pose National Economic Risks

During the seminar, the Deputy Director emphasized that many merchants at the Boten border were using unauthorized payment tools such as personal Alipay and WeChat QR codes for commercial transactions. These practices prevent foreign currency from entering the Lao fiscal system, raising concerns over financial stability at the national level. Non-compliant merchants risk disrupting market order and could potentially facilitate money laundering or illegal fund flows, impacting tax revenues, foreign exchange reserves, and overall economic stability.

To address these risks, the Lao Central Bank, in collaboration with the Ministry of Public Security, plans to launch a large-scale enforcement campaign in northern Laos. A specialized team, including NewPay personnel, will conduct on-site inspections in Boten from January 15–18, 2025, with subsequent plans to expand supervision to Vientiane and eventually nationwide.

NewPay Supports Compliance with Practical Recommendations

As the first and only third-party payment provider approved by the Lao Central Bank, NewPay showcased its commitment to the compliant development of Laos’ payment market. CEO Richard Ma highlighted the company’s dedication to supporting regulatory efforts and proposed four practical measures for effective enforcement:

1. Merchant Education Period – Introduce a transitional education phase to help Chinese merchants understand cross-border payment regulations, minimizing unintentional violations.

2. Authorize NewPay for Education and Supervision – Leverage NewPay’s established presence and network among Chinese merchants to assist authorities in compliance education and monitoring, reducing enforcement costs.

3. Establish a Joint Task Force – Form a cross-departmental team led by the Central Bank and involving the Ministry of Public Security, NewPay, and payment providers such as WeChat and Alipay+, creating a coordinated effort to tackle complex cross-border payment challenges.

4. Recognize Compliant Merchants – Reward merchants who demonstrate compliance and high transaction volumes, setting industry benchmarks and encouraging healthy competition.

The seminar concluded with strong recognition from the Central Bank, endorsing the proposals for their practicality and effectiveness. Officials also indicated plans to strengthen support for Renminbi cross-border payments via NewPay, enabling Chinese merchants in Laos to operate efficiently within a compliant framework.

With the progressive implementation of enforcement measures, NewPay continues to advance compliance-driven ecosystem development, working alongside Lao government authorities and quality industry partners to create a safer, regulated environment for cross-border merchants, while safeguarding Laos’ financial security and promoting sustainable growth in the cross-border payment sector.