What The FinTech #159 - 12 Nov 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 #69: Zetl - Navigating New Finance Frontiers (growth, payroll amp; working capital)
🎧 This time, we're venturing into the realm of innovative financing with Shan Han, one of the co-founders behind Zetl. 🚀
Zetl stands as a beacon in the Asia-Pacific financial landscape, renowned for pioneering asset-light business financing. It's not just about loans; it's about empowering the new wave of service-based businesses, easing their path to operational and growth-related financial stability. 💡🌟
Shan brings to the table a personal narrative that many entrepreneurs will resonate with - the daunting challenge of navigating cash flow in the modern business world. 🌊🏦 His journey from draining personal accounts to bridging payment gaps is a story of resilience and foresight.
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🎙️🎧 Dive into previous sessions for a mix of insights and exciting discussions. 🎥🚀 Stay tuned for what's coming, and as always, your likes, give a 5⭐, shares, and subscribes mean the world! Keep the fintech vibes strong! 💪🎉
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What was the FinTech this week in: 📰
HONG KONG
Yedpay Hong Kong collaborates with Mastercard to optimize the sequence of cash flow
Hong Kong Monetary Authority identifies three use cases where CBDCs can add unique value to payments
Yedpay Hong Kong collaborates with Mastercard to optimize the sequence of cash flow
Yedpay, Hong Kong’s leading payment technology company, collaborates with Mastercard to break tradition and pioneer the innovation of the next-generation payment industry with ‘One Touch’ technology. This technology aims to optimize the sequence of cash flow from collection, payment, and settlement for businesses, providing a new experience for real-time cash flow. In the past, payment and settlement were separately managed. Due to the cash flow transfer of acquirers, settlement institutions, and banks, the cash flow from payment transactions was considerably delayed after a lengthy process of circulation and advance payment. With the ‘One Touch’ payment technology, the boundary between cash and electronic payments is foreseen to disappear. Collection, payment, and settlement can be achieved in just one step, making it easy for businesses to manage their funds.
Source: https://cionews.co.in/yedpay-collaborates-with-mastercard/
Hong Kong Monetary Authority identifies three use cases where CBDCs can add unique value to payments
The Hong Kong Monetary Authority (HKMA) has completed the first phase of Project e-HKD to develop a digital Hong Kong dollar and in the process has identified three use cases where the adoption of a central bank digital currency (CBDC) could facilitate faster, more cost-effective, and inclusive payments and enable new types of economic transactions. In its Phase 1 Report, HKMA says that domestic and retail case studies carried out by a consortium of partner organizations “uncovered three key areas where an e-HKD could add unique value to consumers and businesses and address their evolving and future needs” and that “these are: programmability, tokenization, and atomic settlement”. A programmable e-HKD could unlock new types of transactions for consumers and businesses, by facilitating the wider adoption of conditional settlements for retail transactions.
CHINA
Maybank: MAE now supports Alipay QR payments in mainland China
Zetrix pilots cross-border supply chain financing with Bank of China and Dixchain
China's EV sector is 'absolutely booming' as the old economy decompresses
Tencent pumps capital into ex-Paypal execs' Primer
Huawei, Tencent lead China cybersecurity patents push
Ant receives Chinese government nod to roll out AI Services
Maybank: MAE now supports Alipay QR payments in mainland China
Maybank’s MAE app can now be used for Alipay QR payments in China. Maybank claims to be the first Malaysian bank to expand its cross-border QR Pay service to China, and it will benefit over 8 million Maybank MAE app users visiting China. The addition of the China corridor expands Maybank’s cross-border QR payment which currently includes Thailand, Indonesia, and Singapore. Maybank’s active engagement in the cross-border initiative demonstrates the Bank’s unwavering commitment to provide convenience to its customers, and aligning with Maybank’s M25+ strategic thrusts, to strengthen its regional presence. Maybank has announced that its over 700,000 Maybank QRPay merchants in Malaysia can also accept transactions made by incoming visitors from mainland China. This enables a seamless and secure payment experience for tourists as they can scan the DuitNow QR through Alipay.
Source: https://soyacincau.com/2023/11/08/maybank-mae-supports-alipay-qr-payments-mainland-china/
Zetrix pilots cross-border supply chain financing with Bank of China and Dixchain
Zetrix, a public blockchain platform, has announced the commencement of a pilot project to offer supply chain financing products in conjunction with Chinese banks for international importers and exporters. Starting with the Bank of China as the first financial institution to be onboarded under the project, the end-to-end solution offers a soft landing for trading firms with fully digital onboarding, including registration of a Chinese legal entity, bank account opening, and credit assessments. Approved clients will enjoy low-cost financing and quicker release of drawdowns as the service leverages on-chain events recorded and verified on Zetrix. Zetrix is a public blockchain network that also hosts the international supernode of China’s national blockchain, Xinghuo Blockchain Infrastructure and Facilities (Xinghuo BIF). It is focused on enabling global trade through its connection to Xinghuo BIF. Zetrix provides users with access to a secure and reliable blockchain platform that is endorsed by the Chinese government. Zetrix’s commitment to localization is further cemented by its partnership with Dixchain, a national-level high-tech enterprise in China that integrates financial technology and financial services, focusing on providing comprehensive digital solutions for global cross-border trade and finance.
China's EV sector is 'absolutely booming' as the old economy decompresses
China‘s economic recovery story has been a largely disappointing one, but the economic powerhouse is seeing stellar growth in one particular sector. While China‘s recovery is still ―a bit bumpy,‖ the country is also building is a more resilient, sustainable, and stronger economy. China boasts the world‘s largest EV market with 5.9 million units sold in 2022, capturing 59% of EVs sold globally. Additionally, Counterpoint Research data showed that domestic brands make up 81% of the EV market — with BYD, Wuling, Chery, Changan and GAC among the top players. Standard Chartered‘s offshore business, with Hong Kong as the hub, is growing between 50% to 60% per annum.
Source: https://www.cnbc.com/2023/11/08/china-is-absolutely-booming-in-sector-says-standard-chartered.html
Tencent pumps capital into ex-Paypal execs' Primer
Primer, which provides a platform for online merchants to manage their payment and commerce services, has secured an undisclosed sum of investment from Chinese tech titan Tencent. This capital injection would help the company grow its business, develop its products, as well as access Asia-Pacific markets, partnerships, and growth opportunities. The UK-based firm allows merchants to integrate multiple payments and commerce services through a single platform. It also offers tools to improve checkout conversion and reduce payments fraud risk. Primer will continue to deepen its market coverage in Asia Pacific – focusing on China, Singapore, and Australia – and key markets in Europe.
Source: https://www.techinasia.com/tencent-pumps-capital-expaypal-execs-primer
Huawei, Tencent lead China cybersecurity patents push
The majority of global cybersecurity patents now belong to Chinese tech giants such as Huawei and Tencent, Nikkei Asia reported, as the country‘s firms continue to push hard to develop their own technological breakthroughs amid the ongoing trade war with the US. Six of the top 10 global patent holdings in the sector were in Chinese hands as of August, the report went on, with Ant Group and Alibaba also featuring in the rankings which were led by US giant IBM. IBM head the rankings with 6,363 patents. Huawei Technologies came in second with 5,735 patents and Tencent Holdings placed third with 4,803.
Source: https://www.asiafinancial.com/huawei-tencent-lead-china-cybersecurity-patents-push-nikkei
Ant receives Chinese government nod to roll out AI Services
Ant Group Co., the fintech affiliate of Alibaba Group Holding Ltd., received approval from the Chinese government to roll out products powered by its large language model Bailing to the public. Bailing will be applied to Ant‘s various services and help with innovation. Chinese tech firms from Alibaba to Tencent Holdings Ltd. and Baidu Inc. have joined startups Baichuan and Zhipu to release ChatGPT-like products, joining a global race to capitalize on the potential of generative AI. Ant, the owner of Alipay, can leverage the popularity of the mobile payment service to gain more data and insight on user habits. Hangzhou-based Alibaba has defined AI as one of its two core strategies as it goes through a six-way spinoff.
Source: https://time.com/6332071/ant-ai-services-bailing/
ASIA
Ant Group partners with PayNet Malaysia for DuitNow QR
Finfra & Xendit team to offer lending platform for SMEs in Indonesia
Visa launches Real Time Visa Account Updater in Asia Pacific to streamline payment experiences
Southeast Asia’s digital economy hits $100 billion in revenue. Businesses now focusing on boosting profitability; widening digital participation remains critical
ICICI Bank enables merchant QR code payments on digital rupee app
DataRobot expands partnership with SBI Holdings to advance generative AI Capabilities
A single QR code for payments across the world will let even kiosk businesses go global
Vietnam on fastest pace for digital economic growth in region
JD.com JD worldwide platform boosts authenticity verification services for imported merchandise
PhonePe crosses 500 million registered users, appoints top leaders
Ant Group partners with PayNet Malaysia for DuitNow QR
Ant Group has partnered with Payments Network Malaysia (PayNet) to enable travelers from eight countries to use DuitNow QR in Malaysia. Through this collaboration, travelers using Alipay+ partner e-wallets can make digital payments by scanning PayNet’s DuitNow QR at its network of over 1.8 million merchant touchpoints throughout the country. With this move, the two companies intend to increase international tourism and trade among Malaysia and eight other countries, including China, Hong Kong, the Philippines, Mongolia, Macau, South Korea, and Thailand. The collaboration with Ant Group allows PayNet to enable cross-border payment interoperability, as businesses in the DuitNow QR ecosystem can immediately access travelers from eight more countries efficiently and securely. Considering that the Malaysian tourism industry is back at a steady growth and will be further supported by Visit Malaysia Year in 2026, the partnership came at a suitable time for PayNet. DuitNow QR is the National QR Standard, enabling participating merchants to accept real-time payments from customers of banks and e-wallets, as well as connected countries with a single unified QR code.
Source: https://thepaypers.com/mobile-payments/ant-group-partners-with-paynet--1265326
Finfra & Xendit team to offer lending platform for SMEs in Indonesia
Finfra, the lending infrastructure provider that operates in Indonesia has announced a partnership with Xendit to bring automated collections of revenue-based financing of SMEs across Indonesia. Finfra and Xendit have developed a new system of API-enabled bank accounts that can be opened on behalf of the borrowing party. Through these Finfra- and Xendit-built accounts, users can receive short-term loans, enabling business growth by providing needed capital and repayment flexibility that caters to their exact needs. Xendit’s Rekening Dana Fintech (RDF) feature then allows funds to be automatically debited from the borrower as corresponding revenue accumulates in their account.
Visa launches Real Time Visa Account Updater in Asia Pacific to streamline payment experiences
Visa, a world leader in digital payments, today announced the expansion of Real Time Visa Account Updater (VAU) to selected markets in Asia Pacific[1], streamlining the payment experience for merchants and customers by providing cardholders with a single credential for life. With the introduction of the service in Asia Pacific, consumers and merchants in the region will have access to Real Time VAU across subscription services such as ride-hailing, food delivery and monthly utility payments, amongst others. Backed by Visa’s technology, Real Time VAU helps merchants solve the issue of declined payments from customers with expired or replaced debit and credit cards by allowing businesses to effortlessly update customers’ stored card details in real time. When a merchant submits a payment, Real Time VAU instantly checks for the latest card details and will transact the payment request with the updated card details, lowering the rates of authorization declines, lost sales, and severed cardholder relationships.
Southeast Asia’s digital economy hits $100 billion in revenue. Businesses now focusing on boosting profitability; widening digital participation remains critical
The region’s gross merchandise value (GMV) continues an upward trajectory and is set to reach $218 billion, growing 11% year-on-year (YoY). The report also reveals that SEA’s revenue from the digital economy is poised to hit $100 billion this year, growing 1.7x as fast as the region’s GMV. E-commerce continues a growth trajectory with a 22% increase in revenue YoY, reaching $28 billion. Online Travel is on track to recover by 2024 as flight passenger volume nears pre-pandemic levels. The sector’s revenue – accelerated by inflation – will reach $14 billion, increasing 57% YoY. Its GMV grew 63% YoY, reaching $30 billion in 2023, and is tracking towards $43 billion in 2025. Online travel is seeing significant momentum in Thailand where it’s the main growth driver in 2023, growing 85% YoY. Transport is seeing a strong recovery boosted by successful monetization efforts as its revenue reaches $1.1 billion, growing 47% YoY. Full recovery, fueled by international travel recovery, is expected by early 2024. Food delivery revenue hits $0.8 billion in 2023, growing 60% YoY despite the return to in-person dining and a pullback in promotions. In the short term, the sector’s revenue growth is driven by increased take rate while user and order growth will drive it in the long run. Online Media’s GMV grows to $26 billion, increasing 10% YoY. Advertising and video streaming are expected to remain its long-term revenue drivers as the sector heads toward $34 billion GMV in 2025. The sector’s GMV grew to $139 billion in 2023 and is expected to reach $186 billion in 2025, growing 16%. Adoption of DFS continues to grow with digital payments making up more than 50% of the region’s overall transaction value. Over 70% of digital economy transaction values are made by the top 30% of SEA spenders. These high-value users (HVUs) spend more than 6x the amount non-HVUs spend online, particularly higher in discretionary spending verticals such as gaming, transport, and travel.
Source: https://www.bain.com/about/media-center/press-releases/sea/e-conomy-sea-2023/
ICICI Bank enables merchant QR code payments on digital rupee app
Bank has announced that it has enabled its customers to pay to any merchant QR code by using the Bank‘s digital rupee (e₹) app, 'Digital Rupee by ICICI Bank‘. The Bank has made it possible by making its digital rupee app UPI (Unified Payments Interface) interoperable. This integration empowers customers to scan existing UPI QR codes at merchant outlets and pay via the digital rupee app. At the same time, it helps merchants to accept digital rupee payments on their existing UPI QR code, eliminating the need for a mandatory onboarding procedure. ICICI Bank‘s introduction of UPI interoperability on its digital rupee app provides flexibility and convenience to customers. It also expands the usage of the digital rupee.
DataRobot expands partnership with SBI Holdings to advance generative AI Capabilities
DataRobot, the leader in Value-Driven AI, signed an expansion agreement with Japanese internet financial services leader SBI Holdings, Inc (TYO: 8473) to drive greater overall efficiency and value with generative AI. The expanded partnership will focus on delivering the DataRobot generative AI offering for the core operations of SBI Holdings and scaling across hundreds of its subsidiary companies in Japan. Building on a May 2023 agreement to deploy DataRobot‘s single-tenant SaaS platform, the expansion announced today allows for secure distribution of generative AI solutions across subsidiary companies in the financial services sector. Initial generative AI use cases include deploying chatbots that query financial products, exploration and summarization of legal documents, and automatic creation of call center conversation records with the goal of deploying hundreds of revenue-generating applications within three years.
A single QR code for payments across the world will let even kiosk businesses go global
Masahiro Hara, the Denso Wave engineer who invented the 'quick response‘ (QR) code, had never imagined that his system of labelling automotive parts would one day become crucial to monetary exchange. That innovation is a preferred form of contactless transfer of value across Asia and Latin America, starting with China‘s Alipay and WeChat 12 years ago. Small retailers who couldn‘t afford costly credit-card terminals and high fees have been the biggest beneficiaries, as have consumers who have traditionally lacked access to bank accounts. A move toward integrating disparate apps so that one day a single QR will work anywhere in the world. Brazil‘s Pix QR, India‘s UPI QR, Indonesia‘s QRIS, the Philippines‘ QR Ph, and Singapore‘s SGQR are all successful examples of the basic idea that a merchant shouldn‘t have to display scores of barcodes to accept funds from various sources. A single image ought to be compatible with every consumer app and wallet.
Vietnam on fastest pace for digital economic growth in region
Vietnam is set to post a 31% growth in gross merchandise value from 23 billion USD in 2022 to 49 billion USD in 2025. The six major economies covered in the report, namely Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam, will achieve the milestone of 200 billion USD by 2025, three years earlier than scheduled. Vietnam ranks first in the group of six leading digital economies in Southeast Asia in terms of growth rate in 2022, of which its e-commerce has the highest growth rate in the region. Experts believe that despite existing difficulties in the world and region, Vietnam‘s gross merchandise value will reach 50 billion USD in 2025.
Source: https://en.vietnamplus.vn/vietnam-on-fastest-pace-for-digital-economic-growth-in-region/270851.vnp
JD.com JD worldwide platform boosts authenticity verification services for imported merchandise
JD Worldwide, JD.com‘s cross-border e-commerce platform, has announced the roll-out of enhanced authentication processes, named JD Smart Check, for imported goods. The initiative focuses on three areas: expediting quality inspections for cosmetics, incorporating blockchain technology for comprehensive anti-counterfeiting solutions, and providing on[1]demand authenticity inspections for products shipped via direct mail. JD Worldwide has implemented x-ray fluorescence analysis, developed in partnership with the Cosmetics Technology Center of China Inspection and Quarantine Science Institute, for rapid on-site assessment of cosmetics and personal care products at JD‘s logistic centers. This patented technology enables JD's team to conduct verifications within the company's extensive warehouse network, generating authenticity verification reports in a matter of minutes. JD Worldwide also utilizesserialised tracking codes, supply chain monitoring, and product inspection videos for each item. To cater to the needs of direct mail shoppers, it now extends its product inspection services to include reports from authoritative centers.
PhonePe crosses 500 million registered users, appoints top leaders
Payments major PhonePe made a few key changes to its top leadership, elevating multiple business heads to the position of chief executive of the firm‘s new business verticals. The Bengaluru-based unicorn has also crossed 500 million registered users on the platform. In terms of leadership changes, Hemant Gala has been appointed as the CEO of its lending business. He joined the company as part of the founding team and helped build the payments business. Over the last few years, he has been building the financial services vertical at the company. Vishal Gupta has been promoted to the role of CEO for PhonePe‘s insurance business. Also, a founding team member, Gupta managed multiple leadership roles across product, design, risk, and customer experience to build and scale the payments and merchant business. Vivek Lohcheb has become the CEO of Pincode and will be responsible for scaling the offering across key cities in India.
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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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