Singapore-based payments firm FOMO Pay has been expanding internationally on several continents. The company, which is a partner of Ripple, recently received a Money Service Operator license for Hong Kong and last week announced its expansion into Africa. It also recently secured a partnership with Mastercard and Z Bank.
Singapore-based multicurrency wallet YouTrip announced on January 3 that its users can now hold up to S$20,000 (US$15,025) in their e-wallets and have an annual spending limit of S$100,000, up from S$5,000 and S$30,000, respectively. The new maximum limits are the same as those recently adjusted upward by the Monetary Authority of Singapore (MAS).
By several metrics, GCash is the most successful Philippine fintech. As of May, it claimed to have 81 million users (in a country of about 114 million) while the company said last year that it achieved profitability three years ahead of schedule. That said, GCash is not resting on its laurels and is stepping up both international expansion and a push into the B2B market.
It was not long ago that we were wondering if the Melborne-founded and Singapore-headquartered fintech unicorn Airwallex had scaled back its ambitions, which historically have been lofty. It is safe to say that is not the case. Indeed, Airwallex continues to push into new markets aggressively, including in the past six months both Israel and Mexico.
Singapore-based fintech startup YouTrip is a now officially an anomaly: It managed to raise US$50 million in what is a relatively challenging period for fintech funding given high interest rates, an uncertain global economy and persistent geopolitical tensions in different parts of the world. In an interview with Nikkei Asia, CEO Caecilia Chu said YouTrip, together with a local financial partner, would launch its multicurrency wallet in Malaysia in a few months’ time while simultaneously beefing up its presence in Singapore and Thailand.
In September 2021, Ascend Money became Thailand’s first fintech unicorn, achieving a US$1.5 billion following a US$150 million funding round. While we have learned to take fintech valuations with a few grains of salt, Ascend Money does have a strong ecosystem built on its TrueMoney wallet, which says it serves more than 50,000 users through its platform and 88,000 “agents.” The TrueMoney platform and the strategic investment that Ascend Money has from Ant Group could give it an edge as it expands internationally.
For an e-wallet competing against aggressive digital banks, GCash is more than holding its own. The Alibaba-backed company has achieved impressive scale in a competitive, fast-growing market: 81 million active users and 2.5 million merchants and social sellers as of May, and without burning an unacceptable amount of cash. What’s more, according to the company’s leadership, it became EBITDA profitable three years ahead of schedule. The company is now preparing for an IPO. It is just a question of when.
This commentary was written in collaboration with Banking Circle.
Taiwan’s e-commerce market has been growing steadily in recent years, buoyed by the pandemic-induced boom in online shopping but also due to rising trade ties between Taiwan and Southeast Asia. Per a research report commissioned by Amazon, the B2C segment is forecast estimated to grow 9% annually from 2021 to 2025, reaching NT$683 billion (US$23.2 billion). Companies including Taiwan’s own PChome and Momo as well as Shopee and Rakuten are all keen to tap into related market opportunities.
Southeast Asia’s largest platform companies all reported second quarter earnings recently. Some results were better than others, but Sea Group, Grab and GoTo all continue to struggle with the fundamentals. The latter two companies are not profitable, while Sea’s performance underwhelmed investors.
Japan’s megabanks are not the only Japanese financial services companies keen on growing their fintech footprint. The SoftBank spinoff SBI Holdings is a digital focused conglomerate with a securities division, a digital bank that is reportedly Japan’s largest by deposits, an asset management arm, an insurance business and a venture capital arm.
In a rapidly digitizing world, many Asian countries are going cashless in order to create better, faster, and cheaper payment infrastructure. But should 100% cashless be the goal?
While cashless transactions offer clear benefits, significant barriers exist to achieving a completely cashless society. Infrastructure limitations, inadequate digital literacy, and disparities in access to technology hinder the widespread adoption of digital payments in many Asian countries. In addition, cultural preferences and the role of cash in informal economies are tough to dislodge.
Asean has a cross-border payments dream that is slowly moving closer to coming true. Despite the very real interoperability challenges, Southeast Asian countries nonetheless seem determined to build a payments rail of their own that can boost the use of local currencies – perhaps at the dollar’s expense – while speeding up transaction time, lowering transaction costs and strengthening connectivity among their respective financial systems. The latest countries to sign onto this project are the Philippines, Vietnam and Brunei.
Just when it seemed Capital A had put aside its digital banking ambitions, the ever-ambitious airline/platform company announced its partnership with the Philippines’ ascendant online lender UnionDigital Bank. The tie-up between Capital A and UnionDigital Bank comes amid a growing travel recovery in Southeast Asia and strong demand for digital financial services in the Philippines.
Buy now, pay later (BNPL) has surged in Indonesia over the past few years, plugging a large lending gap and in many cases acting like a credit card in all but name. BNPL has grown so briskly in Indonesia that some analysts believe it will replace credit cards altogether.Perhaps not.