What The FinTech #100 - Newsletter Marks Two Years
Hello everyone, this month marks the two-year anniversary of the What The FinTech newsletter, as well as the 100th issue!
Thank you for your support over the last two years.
Thank you especially to Nick, Faye, and Michelle, who have been extremely helpful with this newsletter since its inception.
What you would have missed if you spent the entire week on Excel
-
Substack Newsletter
You can now find this newsletter on substack - click on subscribe to follow it.
What The FinTech Episode 3
Learn more about the Blockchain-based Service Network (BSN), the national blockchain infrastructure of China. BSN is a consortium including the State Information Center (SIC), China Mobile, China UnionPay, and Red Date Technology. Last week interview, I discussed with Neil Tan, CEO of Neptune Digital, about the Open Permissioned Ethereum (OPE) Blockchain on the BSN.
The previous interviews, and the next one, are available on podcast: Spotify, Apple Podcasts, Google Podcasts.
Dennis Shi - CEO of Mojodomo - Video on Linkedin / Youtube
Jessica Liu - Co-founder of Planto - Video on Linkedin / Youtube
Neil Tan - CEO of Neptune Digital - Video on Linkedin / Youtube
What The FinTech Episode 4
New interview already available on Podcast
Percy Hung and Brian Tsang, the co-founders of Choco Up
-
What was the FinTech this week in: 📰
HONG KONG
OneDegree Rolls Out LGBTQ+ Family-Friendly Home Insurance Product
HSBC shutters Hong Kong-based trade start-up Serai
Greenland Group-linked Green Link Digital Bank becomes first digital bank to launch in Singapore
Hong Kong still a regional tech hub for AI and big data but more work needed to provide solid regulatory framework: survey
Airwallex streamlines invoice payments with expanded Xero collaboration
OneDegree Rolls Out LGBTQ+ Family-Friendly Home Insurance Product
Hong Kong’s digital insurer OneDegree announced that it will expands its product offerings with the official launch of the “OneDegree Home Insurance”. OneDegree Home Insurance offers up to HKD 15 million coverage with a premium under HKD 100. The OneDegree Home Insurance also taps into the underserved market by extending its policy definition of “family” to cover both traditional and LGBTQ+ families with proof of cohabitation for at least 12 months.
HSBC shutters Hong Kong-based trade start-up Serai
HSBC has pulled the plug on Serai, the Hong Kong-based trade platform it launched three years ago, citing that the decision to wind down Serai was followed by a thorough business review, and it was purely a commercial decision. Serai a wholly owned subsidiary of HSBC launched in 2019 that connecting small-and-medium-sized apparel makers with component suppliers worldwide, was HSBC's first investment in a non-banking tech startup. Based in Hong Kong the political turmoil and Covid-19 has dealt a blow to their business, which saw Serai ending its services from 25 June and shutting down its operation.
Greenland Group-linked Green Link Digital Bank becomes first digital bank to launch in Singapore
Green Link Digital Bank (GLDB), owned by a consortium comprising Greenland Financial and Linklogis Hong Kong on Friday (Jun 3) began operations in Singapore, becoming among the first digital bank licensees to launch here. The consortium had received a digital wholesale bank licence from the Monetary Authority of Singapore in December 2020. The digital bank will serve micro, small and medium-sized enterprises (MSMEs) with banking and financial services. It also aims to expand its service coverage and create more supply chain financing products to cater to business demands from various areas, including high-growth potential industries.
Hong Kong is seen as a top regional hub for technology set for further expansion, according to a large number of local and global artificial intelligence and big data companies surveyed by the FinTech Association of Hong Kong (FTAHK), an industry advisory group. The city is considered an attractive location to build an AI or big data business because of its role as a financial hub and well-developed tech ecosystem, according to the Artificial Intelligence and Big Data report by the FTAHK, which surveyed 88 tech companies, including IBM, KPMG, and the Hong Kong Science and Technology Parks Corp.However, the city still needs to address regulatory challenges and provide more government support to bolster the sector’s development, according to the survey.
Airwallex streamlines invoice payments with expanded Xero collaboration
Payments platform Airwallex is moving forward with business invoice finance innovation by expanding and extending its long-term partnership with accounting software firm Xero through payment link integration for Xero invoices, which aims to streamline how Australian businesses get paid. The broadened collaboration also includes Airwallex’s multi-currency capabilities, meaning customers can issue and settle invoices in multiple currencies. Through the partnership, Airwallex’s Australia-based customers using Xero’s invoicing service can embed an Airwallex payment link in their invoice. The link allows clients to collect funds from invoice recipients straight into their Airwallex account in over 170 currencies. The Xero invoice will then be marked as reconciled, and a payment receipt will be emailed to the payer.
SINGAPORE
Ant soft launches SME-focused ANEXT digital bank in Singapore
Ant expands mobile payments in Singapore in partnership with overseas peers
Razer fintech acquires Indonesian digital payments company E2Pay
MaxiPAY e-wallet for migrant workers launches in Singapore
Ant soft launches SME-focused ANEXT digital bank in Singapore
Chinese fintech giant Ant Group on Monday (Jun 6) soft launched its digital wholesale bank in Singapore, called ANEXT Bank, to focus on serving regional micro, small and medium enterprises – especially those with cross-border operations. This marks the latest digital bank to be unveiled in Singapore, following the launch of Green Link Digital Bank, by Greenland Financial and Linklogis Hong Kong, on Jun 3. Both Ant and the Greenland consortium were awarded digital wholesale bank licences in December 2020. ANEXT Bank received approval from the Monetary Authority of Singapore (MAS) to commence business on Jun 2.
Ant expands mobile payments in Singapore in partnership with overseas peers
ComfortDelGro, a Singaporean taxi operator, announced its partnership with Alipay+, enabling tourists from Malaysia and South Korea to use their mobile wallet apps Touch ‘n Go eWallet and Kakao Pay to pay the cab fare in Singapore. The partnership will offer convenient payment options without the need to exchange local currency as customers are able to pay the taxi fares upfront on their own mobile apps – Touch ‘n Go eWallet or Kakao Pay. Malaysia’s Touch ‘n Go is now available in Taxis, while South Korea’s Kakao Pay will be available soon. Singapore’s largest taxi operator, which owns a fleet of about 9,000 Comfort and City Cab taxis in the country, currently supports more than 20 different cashless payment options, while Alipay+ supports e-wallets across the globe, including the Philippines-based GCash, Thailand’s TrueMoney, Alipay Hong Kong and more.
Razer fintech acquires Indonesian digital payments company E2Pay
Razer Fintech has acquired E2Pay Global Utama, a business-to-business-to-consumer (B2B2C) digital payment facilitator and e-money player in Indonesia. The acquisition will help to facilitate cross-border payments for its 60,000 merchants in Indonesia. E2Pay provides payment solutions to merchants and financial institutions. These solutions include payment gateway, e-money and remittance services licences. Indonesian e-commerce companies Tokopedia and Bukalapak as well as online travel startup Traveloka count among some of E2Pay’s most notable merchants. The company’s e-money platform MBayar serves over 500,000 registered users and supports payments for credit or data plans, bill payments, QR payments, cash withdrawals and fund transfer services. Through the acquisition, both Razer Fintech and E2Pay will contribute to Indonesia’s targeted gross merchandise volume of US$124 billion by 2025 at a 23 per cent compound annual growth rate – making it one of the largest growing digital economies in South-east Asia.
MaxiPAY e-wallet for migrant workers launches in Singapore
Pawnbroker Maxi-Cash has released its first e-wallet MaxiPAY partnerering with banking platform MatchMove. The new offering is specifically tailored for the local customer base of migrant workers in Singapore, providing them with digital remittances and prepaid Mastercard virtual and physical cards, powered by MatchMove tech. MatchMove is deeply committed to advancing financial inclusion across the region, for individuals and businesses, and we are excited to partner with Maxi-Cash in taking this vision forward. The provision of digital finance services, also known as neobanking, is pivotal for introducing convenience and meeting short-term financial needs, painting the company as a bearer of these values for people in Singapore.
CHINA
Wisecard Ties up With Zwipe to Offer Biometric Payment Cards
Wisecard Ties up With Zwipe to Offer Biometric Payment Cards
Wisecard Technology, a Chinese solution provider for smart card issuance and innovative payment platforms, has partnered with Zwipe to bring biometric payment cards to consumers in the Asia Pacific (APAC) region. Through the partnership, Wisecard will deliver pre-built personalisation scripts for Zwipe Pay biometric payment cards ensuring a much faster and smoother implementation for banks and card personalisation bureaus. Wisecard supplies turnkey personalisation solutions serving more than 150 financial institutions and 50 card personalisation bureaus in more than 60 countries worldwide.
ASIA
Grab launches GrabMaps as a new enterprise service
Chubb and JA Assure Launch Cyber Insurance Portal for SMEs in Asia
BPI and Alipay+ collaborate to enable digital banking customers to shop global
BRI and Tokopedia join forces to increase digital access in Indonesia
Grab launches GrabMaps as a new enterprise service
Grab is launching a new enterprise service, GrabMaps, as it seeks to tap the US$1 billion mapping and location-based services market in South-east Asia. The mapping and location services GrabMaps provide include routing, estimated time of arrival, distance, points of interest, road and traffic imagery data. Toll gantries, speed limits, turn restrictions and high-resolution street level imagery are also part of the offering as a service to enterprises. Companies can also build their own maps using Kartacam, a proprietary map-making camera by Grab. Application programming interface, or a protocol to pull data, and mobile software development kits are planned for launch later in 2022 and 2023 respectively. Grab claims that its location offering is for developers looking for flexibility that current providers lack and companies needing hyperlocal maps.
Chubb and JA Assure Launch Cyber Insurance Portal for SMEs in Asia
Chubb and insurtech firm JA Assure announced the launch of HaxsafeTM, a cyber insurance portal targeting SMEs looking for accessible insurance solution. Underwritten by Chubb, the cyber insurance product offered on the platform is a risk management solution providing clients with pre-loss risk mitigation and incident response services. Currently available in Hong Kong SAR, Malaysia and Singapore, Haxsafe offers instant quotes and policy issuance capabilities. The pre-loss mitigation services include complimentary access to a password management tool and regular spam tests designed to help keep organisations cyber safe.
BPI and Alipay+ collaborate to enable digital banking customers to shop global
The Bank of the Philippine Islands (BPI) recently sealed a pioneering partnership with Alipay+, a suite of global cross-border mobile payments and marketing solutions operated by Ant Group, to enable digital banking customers to shop global. This makes BPI the first bank partnering Alipay+ as a mobile payment provider to extend its payments service beyond local merchants. Through this collaboration, BPI is now available as a payment option at regional and global online merchants supported by Alipay+, while users of BPI can make payments in these merchants with their preferred and familiar payment method. With innovative technologies and products, Alipay+ has seen strong adoptions since its launch in 2020 among regional and global online merchants across e-commerce, digital entertainment and O2O, including leading brands such as Agoda, Apple, Foodpanda, Google, and SHEIN. More than 1 million offline merchants in major European and Asian markets have also partnered with Alipay+ since.
BRI and Tokopedia join forces to increase digital access in Indonesia
PT Bank Rakyat Indonesia (BRI), in collaboration with Tokopedia (part of GoTo Group), has launched Tokopedia Card, a new credit-card catering to payments for marketplace purchases. Designed for convenience, the card has a feature where users can immediately find various interesting promos, check and manage card transactions via the marketplace application by simply scanning a QR. It is hoped that the presence of the Tokopedia Card can provide assistance not only for Tokopedia purchases, but also in submitting credit card applications and monitoring the use of the credit card. Users can also do transactions with credit cards at home and abroad throughout the Visa network, both online and offline, at more than 70 million merchant locations worldwide. the card also allows users to access services such as card activation, transaction details, billing history and even to block cards when necessary. Moreover, card holders can also convert transactions into 0 percent installments for up to 12 months directly from the Tokopedia application as an incentive.
BLOCKCHAIN - CRYPTO - DIGITAL ASSETS - DE FI
PayPal allows transfer of crypto to external wallets
Durian orchards, supermarkets and hospitals enter metaverse in Thailand
Tron modifies USDD stablecoin to avoid woes of TerraUSD
SoftBank messaging giant to launch NFT marketplace in Japan
Japan passes bill that defines Stablecoins as digital money
PayPal allows transfer of crypto to external wallets
Paypal Holdings said on Tuesday (Jun 7) it will now allow users to transfer cryptocurrencies including bitcoin to external wallets, nearly 2 years after the fintech giant opened up its platform to digital currencies. The feature will be available to select US users starting on Tuesday and will be rolled out to all eligible US customers in the coming months. PayPal started allowing customers to buy, sell and hold bitcoin, ethereum, bitcoin cash and litecoin in October 2020. But users were not allowed to move crypto holdings off its platform earlier.
Durian orchards, supermarkets and hospitals enter metaverse in Thailand
Organisations in Thailand, both public and private, have ventured into the metaverse, with some creating their own virtual platforms, in the hopes of giving users a more immersive experience. In April, the Tourism Authority of Thailand launched the Amazing Thailand Metaverse which enables tourists to explore virtual durian orchards based on actual durian orchards in provinces such as Chanthaburi and Rayong. Tourists can also collect NFTs and vouchers that can be used for accommodation or services in the real world. Thammasat University, too, will be opening its fifth campus, the Thammasat Metaverse Campus, in the virtual world. Property developer Magnolia Quality Development Corp is developing a metaverse with its own utility token to be used in its ecosystem. Other metaverse experiences in the works include Central Retail's plan of a blockchain-powered supermarket as well as virtual hospitals that allows healthcare workers and patients to interact using avatars, called Heathverse.
Tron modifies USDD stablecoin to avoid woes of TerraUSD
Tron, which debuted the USDD algorithmic stablecoin last month, is looking to avoid the trouble TerraUSD ran into by boosting transparency and adding collateral. Total USDD supply stands at about US$668 million and USDD had a collateralization ratio of 218 per cent as of Monday (Jun 6), according to the Tron DAO Reserve (TDR) website, and said a guaranteed minimum collateral ratio of 130 per cent will be maintained. TDR's site shows reserves in Bitcoin, Tether and Tron's TRX of US$787 million, helping comprise a total of about US$1.4 billion of assets backing USDD in circulation. The moves come just a few weeks after the Luna and TerraUSD ecosystem collapsed, all but erasing a combined market value that had once exceeded US$60 billion.
SoftBank messaging giant to launch NFT marketplace in Japan
Japanese messaging giant Line Corp. announced the launch of its forthcoming NFT marketplace. The marketplace, which is slated to go live on April 13, will run on the LINE blockchain — the company’s proprietary network. Users can hold their digital collectibles in the company’s LINE BITMAX wallet. The platform, called Line NFT, will sell over 100 kinds of NFTs (non-fungible tokens), per a Coinpost report. NFTs will be integrated as avatars for Line’s messaging services in the future. The marketplace will partner with various Japanese companies including video game developer Square Enix, entertainment franchise Yoshimoto Kogyo and Patlabor. Z Holdings, another subsidiary of SoftBank, will reportedly build a similar marketplace, DOSI, in 180 countries. Line’s platform, however, is separate from Z Holdings’ NFT plans.
Japan passes bill that defines Stablecoins as digital money
Japan passed a bill that defines stablecoins as digital money. The new law, which is expected to take effect in a year, follows last month's Terra-Luna crash which shook the cryptocurrency world. The Japanese financial markets regulator initiated discussions and debates on new crypto laws to bring new regulations around risky digital assets this year. With the new law, Japan has become one of the major economies to introduce a legal framework around stablecoins. A stablecoin is a type of cryptocurrency whose value is fixed to another asset, such as the US dollar or Euro. In addition, the new law demands that stablecoins must be linked to the Japanese yen or another legal currency. Moreover, such stablecoins must have been designed to guarantee holders the right to redeem them at face value. Also, the new regulation means that only licensed banks, registered money transfer agents and trust companies can issue stablecoins.
-
Please contact me if you’re interested in sponsoring the newsletter.
I hope you find the information provided in this newsletter to be informative and helpful.
To ensure that I am addressing the topics that are most important to you, I would welcome your feedback and suggestions.
Follow me on Twitter @medhy_souidi & Telegram to get the annotated edition of this newsletter on Monday or Tuesday. Plus I tweet most of what makes it into the newsletter.
=> Follow me on LinkedIn / Instagram / Twitter / YouTube / Telegram
Podcast now available on Spotify, Apple Podcast and Google Podcast