Abstract
China’s third-party payment industry has developed for less than 30 years, yet it has entered a period of rapid growth in terms of transaction volume, frequency, and diversity of payment methods, driven by the rise of e-commerce. As third-party payment becomes indispensable across a wide range of business scenarios, the industry is also facing increasing changes and challenges. In this evolving landscape, it is imperative for companies to respond to regulatory pressures and industry trends, assess internal and external resources, and formulate transformation strategies aligned with their long-term development to maintain sustainable competitive advantages. This paper takes Lakala as a case study to analyze its three strategic transformation stages—from convenient public services, to acquiring market expansion, to digital operational services. It reveals how Lakala enhances its competitiveness through product innovation, channel development, and ecosystem collaboration. The study explores the intrinsic relationship between strategic transformation and corporate competitiveness, offering insights for peer enterprises and contributing to both theoretical research and practical development in the industry.
Keywords
Strategic Transformation, Competitiveness, Third-Party Payment, Lakala
1. Introduction
1.1. Research Background
With the rapid development of the digital economy, the deep integration of technology and finance has continuously driven the innovation of financial services and payment methods. As an important component of financial technology (fintech), third-party payment has swiftly reshaped the traditional payment landscape with its advantages of convenience, efficiency, and low cost, becoming an essential part of the financial infrastructure. In China, the third-party payment industry has achieved remarkable success, fueled by a massive consumer market, supportive policies, and widespread mobile internet penetration. According to the China Payment & Clearing Association, the transaction volume of China’s third-party payment market exceeded several hundred trillion yuan in 2022, ranking among the top globally.
However, the rapid growth of the industry has also brought about deep-seated challenges, including market saturation, increasingly strict regulations, rising costs of customer acquisition and retention, and serious service homogeneity. Against this backdrop, third-party payment enterprises must move beyond single-channel payment services and pursue diversified, platform-based, and technology-driven transformations to sustain their core competitiveness and market position.
As one of the earliest third-party payment companies in China to obtain a payment license, Lakala has undergone three strategic transformations since its founding in 2005: starting with offline convenient payment services, evolving into a POS acquiring service provider for small and micro businesses, and eventually becoming a digital service platform catering to SMEs. This transformation process demonstrates Lakala’s dynamic capabilities in adapting to changing market conditions and its strategic flexibility under policy guidance, technological advancement, and market restructuring.
1.2. Theoretical Foundation
1.2.1. Enterprise Growth Theory
An enterprise's growth process is essentially a trend of dynamic evolution, embodying both qualitative deepening and quantitative expansion. Externally, enterprise growth is reflected in increased scale and improved operational performance; internally, the essence of growth lies in efficiency improvement, which ensures sustainability. Growth is not only a prerequisite for profit but also a fundamental foundation for enhancing enterprise value. Many business leaders believe that enterprise growth is closely linked to market value, profitability, and expansion speed. However, in practice, numerous companies that over-pursue rapid growth often fall into financial distress or even bankruptcy
.
Enterprise growth theory has been explored extensively. Adam Smith argued that economic self-regulation and division of labor create increasing returns and promote enterprise formation and expansion. In strategic transformation, enterprises must build dynamic capabilities to adapt to industry changes, technological innovations, and intensifying competition. They must seize opportunities, restructure internal and external resources, and continuously build competitive advantages. Penrose first introduced the concept of enterprise growth in 1959, emphasizing that resource concentration and deployment reflect growth comprehensively
.
Essentially, growth is a dynamic and continuous process that involves the accumulation of resources over time—both in quantity and quality. Enterprises must also flexibly adapt to their external environment, ensuring steady development in a volatile market. Penrose’s theory is categorized as “internal growth theory,” highlighting the importance of accumulating and leveraging internal resources and capabilities. External factors that influence growth include macroeconomic conditions, financial and legal frameworks, industrial structure, social culture, and market competition. The core of dynamic capability theory lies in analyzing the external environment, identifying innovation opportunities, formulating appropriate strategies, initiating timely transformations, and partnering effectively to realize innovation
.
1.2.2. Competitiveness Theory
The term "competition" originated in biology and has been a focal concept in ecology and evolutionary studies since Darwin’s time. From an economic perspective, competition refers to the rivalry among entities within or across groups to achieve collective goals. Correspondingly, enterprise competitiveness refers to a company’s ability to perform in market competition
. Core competitiveness—also referred to as core capability or core competence—stems from the understanding and application of key technologies. Japanese management scholar Kenichi Imai proposed in 1987 that a firm’s core technologies form the foundation of long-term competitive advantage. While core technologies evolve slower than auxiliary technologies, they are vital for shaping unique advantages
.
Subsequently, economists Prahalad and Hamel introduced the concept of “core competence” in 1990, which sparked global scholarly interest. Since the 1990s, both domestic and international researchers have contributed extensively to the study of core competitiveness, making it a key topic in discussions of enterprise, industry, and national competitiveness. Core competitiveness refers to a firm’s ability to acquire and deploy key resources effectively, enabling sustained supernormal profit and reinforcing its market advantage. In short, it is a unique internal capability that creates consumer surplus and supports long-term competitive advantage
.
In the context of globalized market economies, competitiveness is the driving force behind enterprise development and determines a company’s industry position. The sustainability of enterprise competitiveness has long been a central concern in strategic management. Scholars often analyze this from both internal and external perspectives. External factors include macroeconomic trends, national policies, industrial structures, and cultural dynamics, while internal factors include technological innovation, customer base, distribution channels, and collaborative partnerships.
1.2.3. Strategic Transformation Theory
Strategic transformation refers to enterprises making fundamental changes in resource allocation, operational management, and business models in response to, or in anticipation of, changes in internal or external environments. The goal is to achieve long-term sustainability by aligning all organizational levels with the firm’s future-oriented strategy. When environmental shifts are expected to negatively impact current business models or organizational structures, enterprises proactively or reactively overhaul key areas such as strategic direction, management goals, and resource distribution to maintain or enhance core competitiveness and reestablish their market presence and societal value.
Strategic transformation is a complex and long-term process that permeates every level of the enterprise, inevitably introducing pressure and risk. Nonetheless, driven by internal and external demands—such as structural optimization, capability enhancement, and environmental change-companies pursue transformation resolutely. The essence lies in user-centered strategy formulation, designing new business models and corporate structures, developing new products, and shaping enterprise culture. As Peter Drucker stated, enterprise management hinges on three priorities: first, clarifying objectives and scope—knowing what to do and what not to do; second, choosing the right execution method and defining expected outcomes; and third, transforming products and services into value through effective sales and delivery. Strategic transformation involves reengineering all three aspects.
2. Analysis of the Third-Party Payment Industry
2.1. Industry Development Stages
Stage 1: Emergence and Initial Development (1998–2004).
In 1998, the Beijing municipal government launched a pilot project for online trading platforms. In March 1999, Shouxin Technology Co., Ltd. was established, becoming the first company in China to engage in third-party payment services. In 2003, driven by the growth of e-commerce, Alipay seized the opportunity and began offering third-party payment services, officially kicking off the development of the industry. However, during this period, regulatory bodies had not yet introduced relevant policies to guide and standardize development
.
Stage 2: Rapid Expansion (2005–2009).
With the rapid rise of online shopping and the success of Alipay’s business model, the third-party payment industry entered a golden era. Numerous third-party payment platforms such as Tenpay, MaiMaiTong, and ePaiTong emerged during this period
. These platforms not only provided basic transaction services but also developed new products and revenue models, helping popularize the concept of third-party payment.
Stage 3: Stabilization and Regulation (2010–2014).
As more players entered the industry, regulators began issuing policies to manage non-financial institutions. In 2010, the People’s Bank of China issued the
Administrative Measures for Payment Services of Non-financial Institutions, the first regulation to define the scope and rules of third-party payment. In 2011, 27 institutions received the first batch of payment licenses, officially recognizing the legal status of non-financial institutions in the payment sector and marking the beginning of a regulated, license-based era for the industry
.
Stage 4: Maturity and Development (2015–present).
With the rollout of 4G and 5G, internet companies such as WeChat, Didi, and Meituan accelerated the diversification of the payment ecosystem. However, some companies also exhibited irregular practices. In 2015, Zhejiang Yisi became the first third-party payment company to have its license revoked due to regulatory violations. In August 2016, the central bank announced that no new payment institutions would be approved for the foreseeable future, and licenses of inactive institutions would be revoked—signaling the industry’s shift into a stock-oriented era. Since then, stricter regulation has become the norm.
2.2. Market Landscape and Competitive Dynamics
Slight Market Adjustment in Licensing.
Since the People's Bank of China began issuing licenses in 2011, a total of 270 payment licenses were issued. As of November 2023, due to regulatory violations, M&A activities, and business changes, 186 valid licenses remain. Supported by technologies such as AI and big data, third-party payment companies are now expanding into sectors like gaming, insurance, and credit services, driving innovation in China’s financial sector
.
Policy Pressure Squeezing Profit Margins.
Profit margins in the industry are declining due to policy changes. The 2016 fee reform—issued by the National Development and Reform Commission and the People’s Bank of China—transitioned acquirer fees from government-set to market-driven. However, most companies still rely on traditional fee-based revenue, with weak growth in value-added services. As a result, limited fee income has further shrunk profit margins and weakened their capacity for innovation
.
Digital Transformation Creates New Opportunities.
The boundaries of traditional payment services are dissolving. Merchants are integrating cashier and operations, while payment providers are extending from fund flow to data services. Payment solutions have evolved from simple cashier tools to comprehensive business platforms. In the digital economy era, providers offer merchants full-service solutions—marketing, orders, payment, and management—thus enhancing their digital capabilities and forming a core competitive advantage.
2.3. Key Players
The value chain of third-party payments includes:
1) Card-issuing banks
2) Clearing organizations (e.g., UnionPay, NetsUnion)
3) Digital wallets (consumer-facing)
4) Acquiring institutions (merchant-facing)
Among them, clearing organizations such as UnionPay and NetsUnion are responsible for clearing card and online payments.
Digital wallets and acquiring institutions are the core of the industry.
1) On the consumer side, the market is dominated by Alipay and WeChat Pay (Tenpay), forming a stable duopoly.
2) On the merchant side, the structure is “one dominant player with multiple strong competitors,” including UnionPay Commerce, AllinPay, Lakala, 99Bill, UMS, HaiKe RongTong, and JiFu
.
2.4. Business Models
1) Independent Third-Party Payment Platforms.
These platforms operate independently of the buyer and seller, with no guarantee obligations. They provide payment services as neutral intermediaries. Examples include UnionPay Commerce, Lakala, and 99Bill.
2) E-commerce Platform-Based Payments.
These models are built into large e-commerce ecosystems. Typical examples include Alipay and WeChat Pay, which leverage massive user bases to expand services and build end-to-end transaction systems.
3) Mobile-Device-Based Payments.
This model is derived from mobile terminal providers such as Apple and Huawei. These companies use proprietary platforms to enter the payment market, aiming to earn transaction fees and enhance brand loyalty through interactive user engagement.
2.5. Competitiveness Factors
Technological innovation has always been the driving force behind the industry’s development. With advances in blockchain, AR/VR, AI, and IoT, the industry is exploring new payment methods and higher-quality, safer services. For example, in May 2023, WeChat launched palm print payment; Alipay also holds multiple patents for biometric payment technologies and is exploring innovations in sound waves, veins, and iris recognition.
In terms of security, third-party payment systems offer more layers of protection than traditional bank cards, including password input, SMS verification, and facial recognition. These platforms also monitor user behavior, issue risk alerts, and provide anti-fraud warnings in real time to protect users' funds.
Cybersecurity risks fall into three main categories:
1) Information leaks during transactions
2) System vulnerabilities prone to virus attacks
3) Hacker intrusions into network systems
These threats require stronger R&D and IT infrastructure to prevent attacks that exploit security loopholes. For instance, in 2015, a cybercrime gang infiltrated a third-party payment platform in Zhuhai, stealing more than 1 billion yuan—an event that sounded an alarm for the entire industry.
Data analysis is also becoming a key driver. Many companies enhance their services through data insights, improving customer experience. Lakala, for instance, provides technical support to over 300 financial institutions with its big data capabilities and processes millions of data points daily. Since 2014, Lakala shifted from a self-operated model to a hybrid self-operated + channel strategy, rapidly growing its merchant base, optimizing channel fees, and offering customized partner services. The company has formed a diversified network of partners, including financial institutions, merchants, cross-border traders, and other payment providers.
3. Case Study on Lakala’s Strategic Transformation
3.1. Basic Development of Lakala
Founded in 2005, Lakala is one of the earliest companies engaged in third-party payment services in China and holds one of the first payment licenses issued by the People’s Bank of China. Initially, Lakala focused on offline convenience payment services, deploying self-service terminals in convenience stores and community outlets to offer services such as mobile phone top-ups and utility payments. This approach quickly helped the company build a large user base. As the payment industry evolved and competition intensified, Lakala gradually transformed from a “terminal equipment provider” into a “financial technology platform,” undergoing three strategic transformations to become a comprehensive digital service platform for merchants.
3.2. First Strategic Transformation (2012-2015): From Convenience Services to Third-Party Acquiring Services
With the rapid expansion of Alipay and Tenpay in the consumer-side online payment market, Lakala’s original convenience service model came under significant pressure. In 2011, the company initiated its first strategic transformation—shifting from convenience payments to offline merchant POS acquiring services, primarily targeting small and micro enterprises. Collaborating with banks to build an acquiring network, Lakala launched card readers and Bluetooth POS devices to provide low-barrier, user-friendly aggregate payment solutions. This move successfully diversified the company’s revenue sources and established a competitive advantage in merchant acquisition. According to its annual reports, Lakala’s acquiring transaction volume surpassed hundreds of billions of RMB by 2014, making it a key player in offline payments.
3.3. Second Product Transformation (2015-2019): From Traditional Acquiring to Diversified Merchant Services
After 2015, as consumer payment habits became fixed and traffic dividends began to fade, relying solely on POS acquiring was no longer sustainable. Lakala timely launched its second transformation, building a digital operation service system centered on SMEs, shifting from a mere “payment tool” to a “business assistant.” The company introduced one-stop services such as account management, inventory systems, supply chain finance, membership management, and data analytics to enhance merchant stickiness and value. For instance, its "Merchant Pass" platform integrated payment, accounting, loan matchmaking, and marketing modules to help small and micro merchants achieve online-offline integrated operations and improve operational efficiency and customer management.
3.4. Third Digital Transformation (2019-Present): From Diversified Services to Digital Operations
In 2018, Lakala was successfully listed on the ChiNext board of the Shenzhen Stock Exchange, providing capital support for its third strategic upgrade. Facing stricter regulation and increasing homogeneity in the industry, Lakala accelerated its transformation from a payment service provider to a fintech platform. The company heavily invested in in-house R&D, developing infrastructure such as cloud services, risk control systems, and AI-based anti-fraud systems, while strengthening the integration of “payments + finance + technology” to build a closed-loop ecosystem of “payment entry—data accumulation—financial empowerment.” In terms of information security, Lakala obtained ISO27001 certification, enhancing system reliability. On the business side, the company expanded into SME financial services, supply chain financing, and government payment solutions, deepening its service scenarios.
3.5. Summary and Comparison of the Three Transformations
Lakala’s transformation path demonstrates its strategic sensitivity and ability to adapt dynamically. Each of Lakala’s transformations aligned well with external trends and was accompanied by appropriate adjustments and improvements, enabling the company to maintain sustainable growth and a core competitive edge in a highly contested payment industry.
1) Initial Stage: Addressing pain points such as underdeveloped financial services, complex banking procedures, and long wait times, Lakala deployed offline convenience service terminals to help users handle utility payments and credit card repayments. This also brought traffic to over 100,000 supermarkets and convenience stores.
2) First Transformation: Leveraging the pain point of small merchants’ inability to support card payments and the opportunity provided by acquiring a payment license, Lakala introduced various POS products and services to assist brick-and-mortar businesses.
3) Second Transformation: In response to the mobile internet boom and merchants’ urgent need for omni-channel payment capabilities, Lakala launched intelligent POS terminals supporting bank cards, QR codes, NFC, and more.
4) Third Transformation: With shrinking profits in the acquiring market, customer resources becoming saturated, and intelligent POS terminals being phased out, Lakala stepped beyond the traditional payment business. Through mergers, acquisitions, and product planning, it entered the industrial internet space to support the digital transformation of millions of SMEs.
In the digital economy era, Lakala’s multiple successful transformations offer a valuable corporate growth model and strategic reference for third-party payment enterprises.
Table 1. Summary of Lakala’s Three Transformations.
Transformation Stage | Competitive Strategy | Core Competitiveness | Industry Impact |
1st Business Transformation (2012–2015) | Addressing the challenge that small merchants could not support bank card payments and leveraging Lakala’s new payment license, the company launched various POS products and services. | Fully entered the acquiring market, innovatively introducing products for merchants and individuals, becoming a leading offline payment service provider. | Merchants increasingly demanded smarter, more diverse acquiring devices, attracting capital and new players like Meituan and Alibaba with their own smart POS machines. |
2nd Product Innovation (2015–2019) | Responding to mobile internet growth and demand for full-channel payment solutions, Lakala launched intelligent POS terminals supporting bank cards, QR codes, and NFC. | To achieve differentiation, Lakala developed multiple mPOS terminals to address compatibility issues and offer more comprehensive services to SMEs. | A “one-dominant-many-strong” structure emerged in acquiring: UnionPay led, while Lakala focused on smaller cities, becoming the second-ranked player in third-party acquiring. |
3rd Digital Transformation (2019–Present) | Facing a saturated acquiring market, Lakala expanded into the industrial internet through acquisitions and product innovation, empowering SMEs in digital operations. | A full-scale digital transformation with SaaS products and integrated services for small businesses. | Competitors launched comprehensive tools like Shouqianba, Yi Wallet, and Wo Wallet. Lakala’s IPO positioned it as the first listed payment company, diverging from competition focused solely on acquiring. |
Source: Compiled from public information
4. Analysis of Lakala’s Transformation Strategy and Competitive Advantage
4.1. Enhancing Competitiveness through Business Model and Technological Innovation
Through continuous technological innovation and business upgrades, Lakala has steadily enhanced its competitive advantage in the third-party payment industry. In its early stages, the company established capabilities to serve small and micro-sized merchants by launching hardware products such as convenience payment terminals, smart POS devices, and Super Collection Treasures. Later, it gradually transformed into a SaaS platform, providing merchants across various industries with end-to-end digital solutions integrating “payment + finance.” These solutions include modules such as precision marketing, fund matchmaking, and risk control.
On the technical front, Lakala has completed a full migration to a cloud-native architecture. Leveraging big data analytics, the company built a transaction tagging system and introduced AI-powered tools such as voice robots, intelligent customer service, product recommendation assistants, and image recognition tools—further supporting merchants in achieving operational automation and refined management. Lakala’s product ecosystem now spans retail, catering, transportation, and other sectors, increasing customer stickiness, improving conversion rates, and fully supporting the digital transformation of SMEs.
4.2. Market Performance and Strategic Positioning
Lakala’s recent market performance clearly reflects the effectiveness of its strategic adjustments. From 2015 to 2021, the company achieved a compound annual revenue growth rate of 26.9%. Although revenue fell to RMB 5.39 billion in 2022—a year-on-year decline of 18.5%—due to repeated COVID-19 outbreaks and regulatory tightening, the company maintained a leading level of profitability within the industry.
In the first three quarters of 2023, revenue rebounded to RMB 4.43 billion, a year-on-year increase of 1.1%, while net profit attributable to shareholders rose by over 50%. The acquiring business continued to be the main source of revenue, accounting for over 85% of total income. The number of active merchants grew from 2.6 million in 2016 to 14.38 million in 2021. Meanwhile, technology services have become a new growth engine, generating RMB 340 million in revenue in 2022 with a steadily increasing contribution—highlighting the forward-looking nature of Lakala’s “comprehensive merchant service provider” strategy.
4.3. Market Structure and Industry Influence
As of the end of 2022, the total online transaction volume processed by non-bank payment institutions nationwide reached RMB 337.87 trillion, marking the entry of the third-party payment industry into a stock competition phase. With an offline acquiring transaction volume of RMB 4.52 trillion, Lakala firmly held the top position in the industry, capturing a market share of 12.6%—significantly ahead of its competitors.
The company has actively integrated multiple resources, including payment, finance, logistics, and branding, transitioning from merely “helping merchants collect payments” to “helping merchants generate profits.” Through its innovative product portfolios and service systems, Lakala has built a differentiated competitive edge. Additionally, with years of deep cultivation in the SME market, the company has developed a strong localized service capability, forming a stable merchant base and a robust technological moat. Amid increasing industry consolidation, Lakala has emerged as a clear leader.
4.4. Brand Building and Channel Synergy
Brand and channel development are key levers for Lakala to enhance its overall competitiveness. The company has established over 400 service outlets nationwide, building a unified brand communication and service response system. In terms of channel strategy, it adopts a dual model of “self-operated + agency,” supplemented by differentiated tiered management and incentive mechanisms. This not only improves expansion efficiency but also enhances the stability of its partnerships.
In strategic cooperation, Lakala has established relationships with numerous financial and payment institutions, including Industrial and Commercial Bank of China, China Merchants Bank, WeChat Pay, VISA, and DISCOVER. Together, they promote initiatives such as cross-border payments, smart settlement systems, and digital yuan pilots. Moreover, Lakala is actively expanding into the international payment market, gradually building a global business structure. These efforts solidify its leadership in the industry and lay a solid foundation for sustainable long-term growth.
5. General Patterns of Strategic Transformation and Corporate Competitiveness
5.1. General Principles of Strategic Transformation
An in-depth analysis of Lakala’s transformation journey reveals several general principles that third-party payment enterprises should follow in the face of industry changes, heightened regulatory scrutiny, and rapid technological advancement.
First is the customer-centric guiding principle. Transformation efforts should be anchored in the core needs of merchants and consumers. Enterprises must expand from foundational payment services to integrated service systems encompassing digital marketing, supply chain finance, and data analytics, thereby enhancing customer stickiness.
Second is the technology-driven development as an intrinsic driving force. Third-party payment companies must maintain high sensitivity to emerging technologies, closely follow developments in cloud computing, artificial intelligence, and big data, and leverage technological iteration to drive product innovation and service upgrades.
Third is the principle of compliance first, with risk control at its core. With increasingly stringent industry regulations, companies are compelled to strengthen compliance frameworks, ensure payment security and data privacy, and build a sustainable and robust regulatory system.
5.2. Steps and Pathways of Transformation
Based on the three strategic transformation phases of Lakala, the transformation process for third-party payment enterprises can typically be divided into four key steps:
1) Identifying Pain Points and Market Shifts: Enterprises must conduct data-driven insights and analyze industry trends to identify bottlenecks and future opportunities.
2) Strategic Repositioning: Transition from a single-function payment provider to a diversified integrated service provider. This includes clearly defining the corporate vision and customer value proposition.
3) Organizational and Product Restructuring: Establish an organizational structure, R&D system, and performance evaluation mechanism aligned with the new strategy.
4) Resource Integration and Ecosystem Building: Unify upstream and downstream resources and construct a collaborative network that includes financial institutions, channel agents, and technology platforms to achieve synergistic development.
5.3. Safeguard Mechanisms for Transformation
Successful corporate transformation relies heavily on solid safeguard mechanisms.
First is the strategic vision and execution capability of the leadership team. Senior management must possess foresight and adhere to strategic consistency across business cycles to ensure long-term direction and coherence.
Second is the development of organizational culture and talent pipeline. Enterprises need to cultivate a cohesive organizational culture and establish training and incentive mechanisms to attract and retain innovative and execution-capable talent, providing the human capital foundation for transformation.
Additionally, a comprehensive risk control system and compliance mechanism is indispensable to ensure regulatory alignment during rapid growth and business innovation.
Lakala’s transformation was strongly supported by its institutionalized brand-building efforts, agile service response mechanisms, and a nationwide channel network, making it a representative model with demonstrative value for the industry.
6. Conclusion and Future Outlook
Through a systematic analysis of Lakala’s transformation case, this study reveals how third-party payment enterprises can enhance their competitiveness through strategic transformation in the context of digital disruption and regulatory restructuring. Using payment services as an entry point, Lakala has built an integrated service ecosystem of “Payment + Technology + Finance” around the diverse needs of small and micro-sized merchants, thereby achieving a differentiated competitive edge. Its transformation pathway reflects not only an expansion from acquiring services to fintech solutions, but also a comprehensive development pattern involving strategic alignment, technological innovation, organizational culture, and ecosystem coordination.
This study arrives at the following key conclusions:
1) Competitiveness in third-party payment enterprises no longer resides solely in payment channel capabilities, but in the ability to provide end-to-end digital solutions throughout the merchant lifecycle.
2) Technological innovation serves as the core driving force behind transformation and upgrading. Enterprises must continue investing in cloud computing, big data, and artificial intelligence to build both technical and service moats.
3) Brand influence and organizational execution capability form the foundational safeguard for transformation. A strong corporate culture and robust partner networks help facilitate strategic implementation and ecosystem development.
4) Lakala’s successful transformation path exhibits a degree of general applicability, offering a reference model and practical insights for other industry players.
Looking ahead, the third-party payment industry will continue to evolve rapidly. Regulatory policies will deepen, technological revolutions will persist, and emerging fields such as digital yuan, cross-border payments, and virtual asset transactions will further reshape the industry landscape. The vast demand for digital transformation among small merchants remains a key driver of growth. Enterprises should focus more on professionalizing services, verticalizing products, and refining operations.
For third-party payment companies, the core challenge lies in how to unlock the value of data, enhance service experience, and expand ecosystem boundaries while maintaining regulatory compliance, thereby achieving sustainable growth in an increasingly competitive and saturated market. Especially under the global trend of payment industry integration, enterprises with independent innovation capabilities and cross-border service advantages will stand out in international expansion.
In summary, transformation in the third-party payment industry is not merely a strategic option, but a necessary path for enterprise survival and development. The case study of Lakala provides the industry with a systematic summary of experience and theoretical support, promoting healthier, more compliant, and more innovative development across the entire sector.
Conflicts of Interest
The authors declare no conflicts of interest.
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APA Style
Shuaina, C., Ke, G. (2025). Research on the Relationship Between Strategic Transformation and Competitiveness in the Third-Party Payment Enterprise. International Journal of Economics, Finance and Management Sciences, 13(5), 345-352. https://doi.org/10.11648/j.ijefm.20251305.20
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Shuaina, C.; Ke, G. Research on the Relationship Between Strategic Transformation and Competitiveness in the Third-Party Payment Enterprise. Int. J. Econ. Finance Manag. Sci. 2025, 13(5), 345-352. doi: 10.11648/j.ijefm.20251305.20
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Shuaina C, Ke G. Research on the Relationship Between Strategic Transformation and Competitiveness in the Third-Party Payment Enterprise. Int J Econ Finance Manag Sci. 2025;13(5):345-352. doi: 10.11648/j.ijefm.20251305.20
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@article{10.11648/j.ijefm.20251305.20,
author = {Chi Shuaina and Gao Ke},
title = {Research on the Relationship Between Strategic Transformation and Competitiveness in the Third-Party Payment Enterprise
},
journal = {International Journal of Economics, Finance and Management Sciences},
volume = {13},
number = {5},
pages = {345-352},
doi = {10.11648/j.ijefm.20251305.20},
url = {https://doi.org/10.11648/j.ijefm.20251305.20},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20251305.20},
abstract = {China’s third-party payment industry has developed for less than 30 years, yet it has entered a period of rapid growth in terms of transaction volume, frequency, and diversity of payment methods, driven by the rise of e-commerce. As third-party payment becomes indispensable across a wide range of business scenarios, the industry is also facing increasing changes and challenges. In this evolving landscape, it is imperative for companies to respond to regulatory pressures and industry trends, assess internal and external resources, and formulate transformation strategies aligned with their long-term development to maintain sustainable competitive advantages. This paper takes Lakala as a case study to analyze its three strategic transformation stages—from convenient public services, to acquiring market expansion, to digital operational services. It reveals how Lakala enhances its competitiveness through product innovation, channel development, and ecosystem collaboration. The study explores the intrinsic relationship between strategic transformation and corporate competitiveness, offering insights for peer enterprises and contributing to both theoretical research and practical development in the industry.
},
year = {2025}
}
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TY - JOUR
T1 - Research on the Relationship Between Strategic Transformation and Competitiveness in the Third-Party Payment Enterprise
AU - Chi Shuaina
AU - Gao Ke
Y1 - 2025/10/22
PY - 2025
N1 - https://doi.org/10.11648/j.ijefm.20251305.20
DO - 10.11648/j.ijefm.20251305.20
T2 - International Journal of Economics, Finance and Management Sciences
JF - International Journal of Economics, Finance and Management Sciences
JO - International Journal of Economics, Finance and Management Sciences
SP - 345
EP - 352
PB - Science Publishing Group
SN - 2326-9561
UR - https://doi.org/10.11648/j.ijefm.20251305.20
AB - China’s third-party payment industry has developed for less than 30 years, yet it has entered a period of rapid growth in terms of transaction volume, frequency, and diversity of payment methods, driven by the rise of e-commerce. As third-party payment becomes indispensable across a wide range of business scenarios, the industry is also facing increasing changes and challenges. In this evolving landscape, it is imperative for companies to respond to regulatory pressures and industry trends, assess internal and external resources, and formulate transformation strategies aligned with their long-term development to maintain sustainable competitive advantages. This paper takes Lakala as a case study to analyze its three strategic transformation stages—from convenient public services, to acquiring market expansion, to digital operational services. It reveals how Lakala enhances its competitiveness through product innovation, channel development, and ecosystem collaboration. The study explores the intrinsic relationship between strategic transformation and corporate competitiveness, offering insights for peer enterprises and contributing to both theoretical research and practical development in the industry.
VL - 13
IS - 5
ER -
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