Pawel Stosik and Pingpong are getting to grips with the difficulties some entities have in accessing banking accounts and services by offering a technology-based solution. Photo: JeffShotThat/ Pingpong

Pawel Stosik and Pingpong are getting to grips with the difficulties some entities have in accessing banking accounts and services by offering a technology-based solution. Photo: JeffShotThat/ Pingpong

Present in Luxembourg since 2017, PingPong is taking a new strategic step with the launch of InvestXB, a platform designed to open an account in 24 hours, enable rapid capital raising and offer bespoke local support within a strictly compliant framework for alternative investment managers, fund administrators and corporate solution providers.

The name evokes a quick bounce, and that’s no coincidence. PingPong, a global player in cross-border payments founded in New York and now with a strong presence in China, intends to shake up established practices in the world of hedge funds in Luxembourg with its new platform, InvestXB. Pawel Stosik, the structured finance and fintech specialist who heads PingPong Europe at the House of startups, moved to the grand duchy two years ago. He immediately noticed the complexity of opening a bank account, even for legitimate companies. “People still think, wrongly, that only banks can open accounts. But the user experience leaves something to be desired, especially for sub-threshold vehicles, which are often ignored by the major institutions,” he says.

That’s where InvestXB comes in, a response to the poorly covered needs of sub-threshold vehicles. The target market for Pingpong, which has been licensed as an electronic money institution since 2020, is alternative investment managers, fund administrators and corporate solution providers. According to estimates, this segment is worth nearly €1.2trn today, with a projection of €2trn by 2029. Pingpong hopes to capture 2%-5% of this market in Luxembourg, or up to 1,000 entities over the next three to four years.

A modern, globally connected infrastructure

InvestXB enables the opening of multi-currency accounts with Luxembourg IBAN, capable of managing 23 currencies and making payments to more than 200 countries and regions. A rarity for a non-banking player.

The solution is designed for fund managers, administrators and corporate service providers who want to operate quickly, while ensuring maximum compliance (KYC/AML). Added to this is an internal system called 5KY, which goes further than the standards: Know Your Partner, Know Your Asset, Know Your Investor, etc.

This regulatory sophistication is made possible by the latest generation technology, which is far more flexible and responsive than traditional banking systems. “We developed a technology three or four years ago, while some banks are still running on systems that are several decades old,” says Stosik.

With an experienced team based in Luxembourg, PingPong is also banking on proximity: local expertise, personalised support and a detailed understanding of the country’s legal and regulatory structures. “It’s like having a concierge service to manage your funds,” he says.

Already present in 15 countries with 32 offices and more than 1,500 employees, PingPong has processed more than $250bn in payments. Hitherto a low-profile player in the local financial ecosystem, PingPong now intends to raise its profile. InvestXB will be presented at major professional events, including those organised by Alfi or Nexus.

The ambition is clear, to become the benchmark solution for any investment vehicle in Luxembourg within three years.

This article in French.

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