Stripe, the financial infrastructure platform for businesses, has partnered with China-based coffee chain Luckin Coffee to support its international expansion plans.
Leveraging scalable infrastructure, technical support, and localisation capabilities from Stripe, Luckin Coffee has established a robust cross-border payment system to power its growth in Singapore and Malaysia.
Recognising the operational complexities of entering new markets, Luckin Coffee says it prioritised a streamlined payments strategy. Having built an online-to-offline (O2O) model in China’s mobile-first payment environment, Luckin Coffee needed to adapt to new consumer habits in Southeast Asia, where credit cards and a variety of digital wallets dominate.
As of 2023, Southeast Asia’s specialist coffee market was valued at approximately $4.4billion, with projections to grow further to eight per cent by 2028. For Luckin Coffee’s success, the company required a flexible, reliable, and localised payment system. Leveraging Stripe infrastructure, Luckin Coffee completed its payment integration in just one month while delivering a consistent user experience across Singapore and Malaysia, successfully accelerating its international rollout.
Zhang Jiangxiang, general manager of Luckin Coffee Singapore, commented: “Our global strategy is anchored in technology and innovation. We chose Stripe not just for its payment leadership, but for a shared mindset around speed, scale, and seamless user experience. This partnership allows us to focus on delivering great coffee to more customers around the world.”
Stripe’s technical documentation and support enabled Luckin Coffee to complete a full payment system integration in just one month. This single integration model helped reduce ongoing development costs, setting a strong foundation and easy replication for further expansion in other markets, driving operational efficiency at scale.
Utilising payment localisation to support growth
Stripe’s localisation support also ensures Luckin Coffee’s ability to support a full suite of local payment methods, including credit cards, Apple Pay, Google Pay, GrabPay, PayNow, and FPX. With Stripe’s checkout optimisation tools, its Payment Elements system surfaces each user’s preferred payment method, while Link offers a fast one-click checkout experience for returning customers. This ensures a frictionless payment flow that complements the fast-paced nature of coffee consumption.
Stripe also provided Luckin Coffee with critical insights into local payment ecosystems, consumer behavior, and regulatory requirements. With deep experience in cross-border payments and compliance, Stripe guided Luckin Coffee’s go-to-market strategy in both Singapore and Malaysia, helping the brand navigate and adhere to local regulatory frameworks from day one, facilitating a seamless entrance.
Sarita Singh, regional head and managing director, Southeast Asia, India, Greater China at Stripe, also added: “We’re proud to support Luckin Coffee’s global expansion. Their growth reflects the power of combining product innovation with efficient operations. Stripe’s mission is to enable forward-looking businesses like Luckin to scale globally through modern, localised payments.”
This collaboration hopes to set a benchmark for how Chinese companies can scale internationally with the right infrastructure and local expertise in place.
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