Challenge

When Luckin Coffee set out to expand internationally, it recognised the complexities of navigating diverse payment landscapes. In China, the company pioneered an online-to-offline (O2O) digital operating model, allowing customers to order via a mobile app and pick up the order at stores – reflecting customers’ habits reliant on mobile payments such as Alipay and WeChat Pay. In contrast, Singapore's market primarily uses credit cards but is open to various electronic payment methods. To capture this market, Luckin Coffee needed a flexible payment system that ensured a seamless mobile payment experience.

Confident in its business model, Luckin Coffee planned rapid expansion in Singapore and Malaysia, necessitating a stable and scalable payment solution that could accommodate swift growth while delivering a consistent user experience in both countries. For innovative companies such as Luckin Coffee, payment systems are not just transaction tools; they are key for strengthening customer relationships. Insights gathered from customer preferences within the app would play a significant role in refining the product portfolio and enhancing member engagement, underscoring the need for payment partners capable of providing robust data consolidation for precise market strategies.

Solution

By working closely with Stripe, Luckin Coffee has successfully developed a comprehensive payment solution. Stripe’s unified payment concept is a perfect fit for Luckin Coffee’s O2O business model, providing users with a seamless payment experience from ordering on their phones to picking up in store.

Thanks to Stripe’s detailed technical documentation and service support, Luckin Coffee integrated its payment system for two markets in just one month. This single integration model for global expansion significantly reduced development costs and established a strong technical foundation for future international growth. The same payment system architecture can be easily replicated for new stores and markets, enhancing business efficiency.

Stripe also provided key localisation support for Luckin Coffee's payment experience. Integrated through Payment Elements, the system intelligently personalises users’ preferred payment methods, including credit cards and digital wallets. Additionally, Link – Stripe’s accelerated checkout – offers a one-click payment feature, ensuring a fast and convenient experience for regular customers.

Stripe's expertise in the Singapore and Malaysia markets equipped Luckin Coffee with valuable insights into local payment environments, customer behaviour, and regulatory compliance. In particular, Stripe’s extensive experience in cross-border payments allowed Luckin Coffee to quickly understand and adapt to local regulations, ensuring business compliance. The Stripe team provided comprehensive advice and guidance on the company's go-to-market strategy, facilitating a smooth entry into the market. This strategic partnership has enabled Luckin Coffee to prioritise product innovation and enhance the overall user experience.

Results

The collaboration between Luckin Coffee and Stripe has been remarkable. Since entering the Singapore market in 2023, Luckin Coffee has opened over 30 stores. In 2025, Luckin Coffee also entered Malaysia with two stores. This is a rapid expansion facilitated by Stripe's scalable platform, outstanding technical support, and close partnership.

Luckin’s payment system now allows users to complete transactions in seconds, ensuring a smooth ordering process. Stripe’s localised payment solution integrates popular methods in Singapore – such as credit cards, Apple Pay, Google Pay, GrabPay, and PayNow – supporting diverse customer preferences, significantly increasing completed transactions, and reducing shopping basket abandonment rates.

For operational efficiency, the Stripe Dashboard offers an integrated data management solution that enables real-time transaction monitoring and detailed payment analysis reports. This unified financial management interface allows Luckin Coffee to automate reconciliation and manage funds effectively, enabling the company to accurately assess each store’s revenue. This data-driven system enhances internal processes and strongly supports business growth – from analysing store performance to gaining insight into member consumption patterns – therefore informing strategic decisions for future market expansions.