What The FinTech #141 - 22 May 2023
🚀 Welcome to What The Fintech - your weekly dose of electrifying insights, game-changing breakthroughs, and dazzling trends from the pulse-pounding world of fintech across Hong Kong, Singapore, China, and Asia! As your go-to source for top headlines and industry insights, we're here to keep you updated on the latest innovations revolutionizing the way we think about finance and technology in this dynamic region.
Prepare to embark on a thrilling adventure through the digital landscape as we explore the ground-breaking developments, visionary startups, and trailblazing trends that are shaping the future of finance in Asia and beyond. So buckle up, grab your favorite beverage, and get ready to ignite your curiosity with the latest and greatest from the fintech universe! Let's dive in! 🌊💡💸
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What The FinTech Episode 58 - Payoneer
Excited to share the latest episode of What The FinTech featuring Miguel Warren from Payoneer, the trailblazer in global digital commerce.
From empowering startups to partnering with digital titans like Airbnb and Google, Payoneer is rewriting the rules of global business. Miguel opens up about their journey and their vision to build a truly global ecosystem.
🎧 Tune in for a treasure trove of fintech insights!
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What was the FinTech this week in: 📰
HONG KONG & MACAU
HK to run e-HK CBDC trials with 16 firms
Macau Pass teams up with GCash, Touch ‘n Go e-Wallet, True Money
HK to run e-HK CBDC trials with 16 firms
The Hong Kong Monetary Authority has selected 16 firms to participate in trials of an e-HK CBDC pilot program. The first round of pilots will take deep dives into potential use cases in six categories, including full-fledged payments, programmable payments, offline payments, tokenized deposits, settlement of Web3 transactions and settlement of tokenized assets. Under the Pilot Program, the HKMA will work in close collaboration with selected stakeholders to examine the use cases, as well as implementation and design issues. Financial institutions involved in the trails include Bank of China, China Construction Bank, Industrial and Commercial Bank of China, Fubon Bank, HSBC and Standard Chartered. Ant Group‘s Alipay will also test the e-HKD‘s programmable payment uses cases through its Hong Kong unit. Other participants include Ripple Labs, Visa and Mastercard.
Macau Pass teams up with GCash, Touch ‘n Go e-Wallet, True Money
Macau Pass has been officially approved to provide acquiring services to Alipay+ market-leading partner e-wallets from the Philippines, Malaysia, and Thailand. This means that in addition to Alipay, AlipayHK, WeChat Pay, Simple Pay and other e-wallets launched by other banks in Macau, MacauPass payment devices ―can now also accept GCash, Touch ̳n Go eWallet and TrueMoney, following South Korea‘s Kakao Pay. Through the cooperation with Alipay+, the innovative one-stop payment solution will accelerate ―the digital transformation of local merchants in Macau, create a connected international digital payments ecosystem for Macau, solve the problem of cross-border payment for international tourists, and help enterprises find new marketing growth opportunities.
SINGAPORE
MAS and NY Fed reach new milestones in cross-border payments and settlement
S’pore startup Charge+ to build 5,000km EV charging highway in SEA –will be ready by end 2024
S'pore-based firm bolttech valued at $2.15 billion after latest fund-raising round
Meta teams with Vonage for messaging-based payments in Singapore
MAS and NY Fed reach new milestones in cross-border payments and settlement
Project Cedar Phase II and Project Ubin+ (Cedar x Ubin+) have made progress in cross-border real time settlements with central bank digital currencies (CBDC). Project Cedar undertaken by the New York Federal Reserve‘s New York Innovation Centre, and Project Ubin+ by the MAS, that they examined a cross-border multi-currency use case in which vehicle (or bridge) currencies are used as a bridge to exchange currency pairs that are not widely traded. The efficiency gained from the experiment enabled cross-border payments to be settled simultaneously (atomic settlement), near-real time, and enabled interoperability and autonomy across separate central bank currency ledgers. Specifically, Cedar x Ubin+ explored the ability of distributed ledger technology (DLT) to establish connectivity across at least three simulated currency ledgers, reduce settlement risk, and decrease settlement time. The Cedar x Ubin+ collaboration investigated potential solutions to bridge different types of networks implemented under separate governance and operating models, while maintaining the independence of the respective central bank infrastructures. The experiment solved the issues around interoperability, and validated the notion that costs, and settlement times could be reduced using DLT.
S’pore startup Charge+ to build 5,000km EV charging highway in SEA –will be ready by end 2024
Singapore-based electric vehicle (EV) charging provider Charge+ announced a groundbreaking plan to develop a 5,000km EV charging highway across five countries in the Southeast Asia region. This ambitious initiative aims to address the lack of charging infrastructure for EVs —particularly for long-distance travel —and facilitate cross-border convenience for EV drivers. The EV charging highway will span the countries of Singapore, Malaysia, Thailand, Cambodia, and Vietnam, with a total of 45 direct current (DC) fast charging locations to ensure a quick turnaround time for EV drivers. They will be able to conveniently access these charging stations using the Charge+ app. Currently, Charge+ operates approximately 1,000 charging points.
S'pore-based firm bolttech valued at $2.15 billion after latest fund-raising round
Insurance technology firm bolttech has raised US$196 million (S$264 million) in its Series B round, bringing the Singapore-based start-up‘s valuation to US$1.6 billion (S$2.15 billion). Bolttech is a global business-to-business-to-consumer insurance technology, or insurtech, firm that connects insurers with distributors and their customers. With licenses to operate across Asia, Europe and the United States, it quotes approximately US$55 billion worth of annualized premiums. Bolttech will use the funding to invest in proprietary technology, as well as digital capabilities and talent to fuel international growth.
Meta teams with Vonage for messaging-based payments in Singapore
Meta is continuing its expansion in Singapore via a partnership with Vonage. The collaboration lets WhatsApp users in the Asian country make payments using Meta‘s WhatsApp service. Conversational Commerce, according to the release, lets brands create ―omnichannel, messaging-first buying experiences for customers across a range of platforms, including WhatsApp, Messenger, Apple Business Chat, Instagram, Twitter and SMS. The partnership follows last week‘s announcement that WhatsApp had teamed with Stripe to help businesses in Singapore accept payments in WhatsApp chats without having to go to another website, open an app or pay in person.
CHINA
MODIFI and Airwallex create cross-border payment tool for Chinese exporters
Baidu’s AI-powered smartphone from smart speaker unit Xiaodu includes a ‘tutor’ to help children study English
XPENG partners with leading insurers to boost smart insurance services
MODIFI and Airwallex create cross-border payment tool for Chinese exporters
MODIFI and Airwallex have partnered to facilitate cross-border payments and financing for Chinese exporters. This collaboration brings together MODIFI‘s global commerce platform for business payments and Airwallex‘s global payments and financial platform to create Global Account Solutions, a payment tool that helps both B2B exporters and eCommerce marketplace vendors and large buyers around the world. The new partnership of MODIFI and Airwallex aims to offer a solution to emerging small and medium-sized businesses (SMBs) that are often underserved by banks and struggle to find cross-border payment and financing solutions that are affordable and flexible. The product they have launched, Global Accounts Solutions, optimizes cash flow, bridges financing gaps, and supports Chinese exporters.
Baidu’s AI-powered smartphone from smart speaker unit Xiaodu includes a ‘tutor’ to help children study English
Baidu‘s smart speaker subsidiary has announced a new smartphone for sale next week that includes an interactive English ―tutor for children, as China‘s internet search giant seeks to reap low-hanging fruit from its existing artificial intelligence (AI) technology. Its new phone will include an AI tutor that can help with a variety of tasks such as working on school assignments and English-speaking practice.
XPENG partners with leading insurers to boost smart insurance services
XPENG Motors, a prominent Chinese smart electric vehicle company, has recently announced strategic partnerships with eight top insurance companies in China. The collaboration aims to introduce a revolutionary smart insurance service program and related products, offering enhanced insurance coverage for car owners. The partnerships with renowned insurers, including PICC Property and Casualty Co Ltd, Ping An Property & Casualty Insurance Co of China Ltd, and China Pacific Property Insurance Co Ltd, will enable XPENG to develop specialized insurance programs tailored for smart vehicles equipped with Advanced Driver Assistance System (ADAS) capabilities. This initiative is a significant step towards supporting the advancement of autonomous driving technology and expediting its commercial application, ultimately making autonomous driving accessible to a wider audience.
ASIA
Australian "Big 4" bank begins trial for cryptocurrency payment blocks
ICICI Lombard partners with Singapore-based actyv. ai to introduce revolutionary insurance solutions for SMEs
Google Wallet in Malaysia now supports Standard Chartered
60% of APAC online shoppers bail at checkout without local payments options
Revolut launches Oz business account; wants banking license
Apple launches Tap to Pay in Australia
Cashfree payments and Tazapay to offer cross border payments to Indian exporters
Moomoo announces expansion into Malaysia
Emirates NBD opens Digital Asset Lab
Standard Chartered expands digital collections gateway reach with Worldpay
UBS maintains investment flows in Taiwan as tensions mount
Australian "Big 4" bank begins trial for cryptocurrency payment blocks
Westpac, one of Australia‘s ‘Big Four‘ banks, is launching its first trial of scam protection measures designed to combat fraudulent activities related to cryptocurrencies. The protection measures aim to mitigate losses from scams and reduce potential risks. investment scams account for approximately 50% of all customer losses linked to scams, while around one-third of all scams involve direct transfers to cryptocurrency exchanges, making them extremely difficult to trace. The Westpac ban comes on the same day Binance customers were told they could no longer use PayID to transfer Australian dollars to their accounts. A ―third-party provider had placed restrictions on the exchange, affecting bank transfer withdrawals for now.
ICICI Lombard partners with Singapore-based actyv. ai to introduce revolutionary insurance solutions for SMEs
ICICI Lombard, India's leading private general insurance company, has announced a strategic partnership with actyv. ai, a Singapore-based enterprise SaaS platform with embedded B2B, BNPL (Buy Now Pay Later) and insurance. This collaboration aims to co-create innovative insurance products specifically tailored for enterprises and their supply chain partners, empowering sustainable growth and mitigating business risks in the evolving market landscape. Under this partnership, ICICI Lombard will collaborate with actyv. ai to design comprehensive insurance offerings for the entire supply chain ecosystem, encompassing distributors, retailers, and suppliers. By providing group insurance options to supply chain partners, enterprises can foster continuous growth, while simultaneously ensuring the wellbeing and security of all stakeholders. Leveraging actyv. ai's technological capabilities, ICICI Lombard will embed bite-sized insurance products within the actyv. ai platform, enabling seamless access to enterprises and small businesses alike.
Google Wallet in Malaysia now supports Standard Chartered
Google has recently added Standard Chartered Bank Malaysia Berhad to its digital wallet service, Google Wallet. This recent update to the list of supported banks in Malaysia now allows Standard Chartered users to utilize both their VISA debit and credit cards for contactless digital transactions done through Google Wallet.
60% of APAC online shoppers bail at checkout without local payments options
The Asia-Pacific region is poised to become a major area of growth for U.S. and U.K. merchants in the next three years, especially for specialty eTailers like Victoria‘s Secret, Adidas, and Sephora, which focus on a specific retail sector. And omnichannel retailers, direct-to-consumer (D2C) merchants, and online marketplaces are not far behind in terms of their own APAC ambitions. Only 1.8% of U. S. , U. K. and Canadian firms grasp that APAC customers want to use local digital wallets when shopping on their sites, but with the APAC region and China specifically having reopened after pandemic lockdowns. Examining the levels of interest that various types of online sellers have in optimizing APAC as a market showed ―specialty eTailers and omnichannel retailers exhibit the strongest presence within or interest in expanding into the APAC market of any type of business in our study, as 27% of omnichannel retailers already sell to consumers in APAC, leading all types of merchants. Another 11% ―plan to sell in APAC in the next year, the study found. ―Meanwhile, 23% of specialty eTailers already sell to APAC customers, and 17% plan to sell to the region in the next year. This means that these retailers potentially have the most to gain from localizing their payments.
Revolut launches Oz business account; wants banking license
Fintech giant Revolut has launched multi-currency business accounts in Australia and signaled its intention to obtain a banking license in the country. The new business account allows firms to exchange up to A$75,000 per month, with head of Revolut Business James Gibson telling The Australian that "Australian SMEs have been largely under-served when it comes to FX and anything international".
Apple launches Tap to Pay in Australia
Apple has launched Tap to Pay on iPhone in Australia, which they say empowers local businesses of any size to accept in-person contactless payments on iPhone using a partner-enabled iOS app. This move will rival Square and other POS systems. Merchants can enable Tap to Pay on iPhone through a supporting iOS app, such as Westpac‘s EFTPOS IOS Air app on an iPhone Xs or later device running iOS 16.4 or later. Once enabled, merchants will simply prompt customers to hold their iPhone or Apple Watch to pay with Apple Pay, their contactless credit or debit card, or other digital wallet near the merchant‘s iPhone, and the payment will be securely completed using NFC technology. Tap to Pay on iPhone also supports PIN entry, which includes accessibility options. Westpac and Tyro Payments are the first platforms in Australia to enable the payment method. With ANZ set to follow in the coming months along with Stripe, Till Payments, and Zeller. Westpac‘s business owning customers can use Apple Tap to Pay with a business transaction account, and then must apply for an EFTPOS Air merchant facility then download and set up the free app. Tyro Payments users can apply for a Tyro BYO account then download and set up the Tyro BYO app.
Cashfree payments and Tazapay to offer cross border payments to Indian exporters
Cashfree Payments has partnered with Tazapay, Singapore-based cross-border payments company to power its cross-border payments for Indian exporters. The partnership allows Tazapay to settle all cross-border payments directly to Indian exporters‘ local bank accounts in INR in one business day. This partnership streamlines transaction processing, improves cash flow management, and offers convenient payment options. It aims to unlock new opportunities for Indian sellers to expand their reach and tap into more global buyers. This aligns with Cashfree Payments‘ objective of supporting the Indian export growth story by providing businesses with cross-border payment infrastructure available to help them grow profitably. This partnership will accelerate Indian export growth and aid Indian businesses aiming to grow their customer base in international markets.
Moomoo announces expansion into Malaysia
Futu Holdings Limited announced its expansion into Malaysia with its investment platform, moomoo, introducing a comprehensive suite of tech-driven offerings to promote financial inclusion. Through inclusive finance, Malaysia investors will enjoy lifelong access to a holistic suite of self-help educational resources, free-for-all market data and a supportive global community to unlock more opportunities. With moomoo, retail investors are encouraged to also adopt a self-directed learning approach to securities and derivatives trading. This will be the first such financial literacy solution to roll out in Malaysia by a global technology company that believes in making investing right at the fingertips via digitalization. With its global presence and know-how in providing digitized investment services across major markets, the Company believes its digitized ecosystem that aggregates 20 million investors worldwide would promote financial inclusion in Malaysia and has a positive effect on driving the industry forward.
Emirates NBD opens Digital Asset Lab
Emirates NBD has opened a Digital Asset Lab to develop fresh ideas for consumer-facing financial services using digital assets and their underlying technologies. The bank has signed agreements with professional services firm, PwC, and digital asset transfer and direct custody technology platform, Fireblocks, as founding council members. The collaborative effort will focus on four key pillars including: strategy and policy: Compliance, risk and security framework(s) for Web 3.0 technologies; architecture: Business, technology and security reference architecture for Web 3.0 solutions; partners: Collection of partners (technology, business and governance) who can support with the required systems and processes for Web 3.0 technologies; capabilities: Design, build and experiment new capabilities and value propositions related to Web 3.0 ecosystem.
Standard Chartered expands digital collections gateway reach with Worldpay
Standard Chartered has teamed up with Worldpay to bring its Straight2Bank Pay digital collections gateway for merchants to more than 30 new markets. Straight2Bank Pay lets corporates offer their customers more digital payment options without needing multiple integrations and managing different collection accounts with providers across markets. Currently available in about 20 markets, the service has seen transaction value more than double between 2021 and 2022. The deal with FIS-owned Worldpay will see the service grow its footprint across Asia, as well as enter into new markets across Europe, Middle East, UK, and the US.
UBS maintains investment flows in Taiwan as tensions mount
UBS Group is maintaining fund flows at its Taiwan wealth unit and expects double-digit growth this year, even as tensions with China spook investors. While some clients are transferring assets to financial centers such as Switzerland or Hong Kong, others are reconfiguring their portfolios and bringing funds back to Taiwan, said Henry Su, head of wealth management for UBS in Taiwan. In addition to geopolitics, clients are considering intergenerational wealth transfers and supply-chain issues. UBS Taiwan‘s wealth management business is hoping to achieve double-digit revenue growth this year, in line with business expectations. It plans to offer alternative investments, to which Taiwan clients have historically had little access, and focus more on onshore banking for the island economy.
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And that's it for this week's What The Fintech 🎉 We hope you've found our selection of Asia's fintech trends, innovations, and insights both informative and valuable. Your feedback and suggestions are important to us, so please share your thoughts to help us curate content that matters most to you. 🌟
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Until next week, keep exploring the future of finance together! ✨
Your Fintech Navigator,
Medhy
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