Airwallex
{{Short description|Financial services company}}
{{Infobox company
| name = Airwallex
| type = Private company
| logo = Airwallex logo (2025).png
| industry = Financial services, technology, fintech
| founded = 2015 in Melbourne, Australia
| founders = Jack Zhang, Max Li, Lucy Liu, Xijing Dai, Ki-lok Wong
| hq_location_city = Singapore{{cite web | url=https://www.cnbc.com/2023/08/02/here-are-the-worlds-top-200-fintechs-cnbc-and-statista.html | title=From banking giants to lending up-and-comers — here are the world's top 200 fintech companies | website=CNBC | date=2 August 2023 }}
| num_locations =
| areas_served = 130 countries"[https://www.smh.com.au/business/small-business/coffee-cup-dilemma-leads-to-australia-s-latest-1b-tech-unicorn-20190325-p517bv.html Coffee cup dilemma leads to Australia's latest $1b tech unicorn]", Cara Waters (26 Mar 2019), Sydney Morning Herald. Retrieved 20 May 2022.
| key_people =
| services = Payment processing, forex, debit cards, banking services
| equity = US$5.5 billion
| equity_year = 2022
| num_employees = 1,400
| num_employees_year = 2022
| website = {{URL|airwallex.com}}
}}
Airwallex is an Australian multinational financial technology company offering financial services and software as a service (SaaS). Founded in 2015 in Melbourne, Australia"[https://www.ft.com/content/6e90f9a2-303d-4c64-849d-718cd87f3727 Airwallex aims to upend global payments system]", Henny Sender (7 July 2020), Financial Times. Retrieved 20 May 2022. and currently based in Singapore, the company is a financial technology platform providing cross-border payments and financial services to businesses through a proprietary banking network and its API.{{Cite web |date=2022-12-08 |title=Airwallex and Plaid partner on payments |url=https://www.finextra.com/pressarticle/95177/airwallex-and-plaid-partner-on-payments |access-date=2022-12-09 |website=Finextra Research |language=en}}"[https://asia.nikkei.com/Spotlight/Startups-in-Asia/Fintech-unicorn-rewrites-forex-rules-to-snag-big-bank-profits Fintech unicorn rewrites forex rules to snag big bank profits]", Michelle Chan (7 June 2019), Nikkei Asia. Retrieved 20 May 2022. It also provides services and products such as business accounts, expense cards, and payroll,{{cite web | url=https://www.altfi.com/article/9957_in-a-tough-market-airwallex-raises-a-second-100m-series-e-extension | title=In a tough market, Airwallex raises a second $100m Series e extension | date=11 October 2022 }} among others. It was Australia's third technology unicorn company overall."[https://www.bloomberg.com/news/videos/2019-03-26/airwallex-becomes-australia-s-third-tech-unicorn-video Airwallex Becomes Australia's Third Tech Unicorn]", 26 March 2019, Bloomberg Daybreak. Retrieved 20 May 2022. With a valuation of US$5.5 billion, as of 2022, the company processed $50 billion in annualized transactions.{{Cite web |title=Fintech Airwallex opens Israel office to expand footprint in Middle East |url=https://www.timesofisrael.com/fintech-airwallex-opens-israel-office-to-expand-footprint-in-middle-east/ |access-date=2024-04-05}}
History
=Founding and growth (2015–2018)=
Airwallex was created in 2015 in Melbourne, Australia by five co-founders. At the time, software engineer Jack Zhang and architect Max Li had invested in a coffee shop in Melbourne, and were finding cross-border payments for imports to be costly and time-consuming for a small company. Zhang was involved in designing the digital forex trading platforms for the National Australia Bank (NAB) and Australia and New Zealand Banking Group Limited (ANZ),"[https://www.entrepreneur.com/article/331200 The Journey of Four Chinese Students Who Founded Australia's Newest Tech Unicorn]", Nidhi Singh (26 March 2019), Entrepreneur. Retrieved 20 May 2022. and was inspired to provide a simple, cheaper service to small and midsize businesses. Zhang and Li partnered with Lucy Liu and Xijing Dai, fellow alumni from the University of Melbourne, as well as Ki-Lok Wong. With the founders investing a combined $1 million, roles included Zhang as CEO,"[https://www.afr.com/technology/how-a-career-break-and-coffee-turned-into-a-3-4b-business-20210421-p57l0a How a career break and coffee turned into a $3.4b business]", Yolanda Redrup (26 March 2021), Australian Financial Review. Retrieved 20 May 2022. Liu as president, Li as head of design, Dai as chief technology officer, and Wong as principal architect.
The Airwallex platform was developed to lower consumer costs on foreign exchange rates,"[https://www.cnbc.com/2019/07/30/airwallex-from-coffee-shop-to-australias-fastest-growing-unicorn.html How a coffee shop business turned into Australia's fastest-growing $1 billion start-up]", Karen Gilchrist (29 July 2019), CNBC. Retrieved 20 May 2022. and was launched in a closed beta trial stage in 2015.{{cite web |last1=Russell |first1=John |title=Asia Pacific cross-border payment startup Airwallex lands $3M |url=https://techcrunch.com/2016/07/08/asia-pacific-cross-border-payment-startup-airwallex-lands-3m/ |website=www.techcrunch.com |date=8 July 2016 |access-date=19 September 2022}} The company built a proprietary network with banks, such as Standard Chartered, DBS Bank and the Industrial and Commercial Bank of China, to handle local transactions. ANZ began providing transactional services to Airwallex in 2017, with both MasterCard's Send platform and Tencent's WeRemit service powered by Airwallex.{{cite web |last1=Russell |first1=Jon |title=Australia's Airwallex raises $6M to grow its cross-border payment business |url=https://techcrunch.com/2017/12/15/airwallex-raises-6m |website=www.techcrunch.com |date=15 December 2017 |publisher=Tech Crunch |access-date=19 September 2022}} In 2018, Airwallex moved its headquarters from Melbourne to Hong Kong and turned down a US$1 billion acquisition bid by Stripe."[https://www.smh.com.au/business/banking-and-finance/payments-unicorn-airwallex-knocked-back-1b-offer-from-stripe-20210423-p57lws.html Payments 'unicorn' Airwallex knocked back $1b offer from Stripe]", Charlotte Grieve (26 April 2021), Sydney Morning Herald. Retrieved 20 May 2022. Airwallex closed the "second-largest fundraising round in Australian start-up history" in July 2018, netting $80 million.{{cite news |last1=Bailey |first1=Michael |title=Airwallex in the money with $108m raise |url=https://www.afr.com/technology/airwallex-in-the-money-with-108m-raise-20180626-h11wca |access-date=22 September 2022 |work=Australian Financial Review |publisher=The Australian Financial Review}}
=International expansion (2019–2020)=
After a round of funding in March 2019 brought in $100 million from investors such as DST Global, Sequoia Capital, and Hillhouse Capital, Airwallex reached a valuation of US$1 billion,"[https://www.news.com.au/finance/business/technology/airwallex-is-australias-latest-unicorn/news-story/200b1a8aa7c9884ec8536f7bbfd29e49 Airwallex is Australia's latest unicorn]", Derek Rose (26 March 2019), News.com. Retrieved 20 May 2022. and became the "quickest company in Australia to reach unicorn status," as well as Australia's third technology unicorn overall. Press reported in February 2020 that instead of focusing largely on forex transfers, Airwallex was aiming to become a "neobank" akin to Salesforce, specifically the "AWS of financial services."{{cite news |last1=Redrup |first1=Yolanda |title=Airwallex launches 'borderless' card |url=https://www.afr.com/technology/airwallex-launches-borderless-card-20200204-p53xl2 |access-date=20 September 2022 |work=Australian Financial Review |publisher=The Australian Financial Review}} In 2020, NAB was providing payroll and rental payment services to Airwallex. The NAB had previously cancelled transactional banking services for Airwallex customers in 2018."[https://www.smh.com.au/business/banking-and-finance/denied-nab-citi-pulled-banking-services-from-fintech-unicorn-airwallex-over-risk-fears-20210413-p57iv9.html 'Denied': NAB, Citi pulled banking services from fintech unicorn Airwallex over risk fears]", Charlotte Grieve (14 April 2021), Sydney Morning Herald. Retrieved 20 May 2022."[https://www.smh.com.au/business/banking-and-finance/airwallex-banks-with-anz-despite-nab-and-citi-rejection-20210415-p57jg9.html Airwallex banks with ANZ, despite NAB and Citi rejection]", Charlotte Grieve (15 April 2021), Sydney Morning Herald. Retrieved 20 May 2022. In 2021, Hong Kong unfroze $18.2 million in funds and released them to Airwallex{{cite news |last1=Waters |first1=Cara |title=Atlassian co-founder backs Airwallex as it raises another $56m |url=https://www.smh.com.au/business/small-business/atlassian-co-founder-backs-airwallex-as-it-raises-another-56m-20200928-p55zwl.html |access-date=20 September 2022 |work=www.smh.com.au}} after Hong Kong's High Court dismissed suspicions"[https://www.smh.com.au/business/small-business/police-freeze-26m-in-aussie-tech-unicorn-s-funds-after-alleged-fraud-20191223-p53mc5.html Police freeze $26m of Aussie tech unicorn's funds after alleged fraud]", Cara Waters (23 Dec 2019), Sydney Morning Herald. Retrieved 20 May 2022. by the Hong Kong Police Organised and Serious Crimes Ordinance that two former Airwallex clients had used Airwallex for money laundering."[https://www.afr.com/technology/airwallex-has-26m-frozen-in-hong-kong-fraud-probe-20191224-p53mow Airwallex has $26m frozen by Hong Kong police in fraud probe]", Lucas Baird (24 Dec 2019), Australian Financial Review. Retrieved 20 May 2022.
=Recent developments (2021-2024)=
In May 2021, Airwallex received a license in the Netherlands, giving them access to the European market.{{cite web |title=Airwallex secures EMI licence from the Dutch Central Bank |url=https://thepaypers.com/online-payments/airwallex-secures-emi-licence-from-the-dutch-central-bank |website=www.thepaypers.com |publisher=The Paypers |access-date=20 September 2022}} Airwallex started operations in the US in August,"[https://www.bloombergquint.com/markets/airwallex-raises-funds-at-4-billion-valuation-for-expansion Airwallex Raises Funds at $4 Billion Valuation for Expansion]", Lulu Yilun Chen (20 Sep 2021), Bloomberg Quint. Retrieved 20 May 2022. and secured a license in Malaysia in September 2021.{{cite news |last1=MOSQUEDA JR. |first1=Mars W. |title=Fintech unicorn Airwallex hits $4bn valuation after raising $200m |url=https://asia.nikkei.com/Spotlight/DealStreetAsia/Fintech-unicorn-Airwallex-hits-4bn-valuation-after-raising-200m |access-date=20 September 2022 |work=Nikkei}} In November 2021, Airwallex raised an additional US$100 million, reaching a new valuation of $5.5 billion and bringing the total funds raised since 2015 to $802 million.{{cite news |last1=Jennings |first1=Ralph |title=Hong Kong Fintech Startup Airwallex Raises Another Nine Figures In Funding |url=https://www.forbes.com/sites/ralphjennings/2021/11/19/hong-kong-fintech-startup-airwallex-raises-another-nine-figures-in-funding/?sh=7585f9524216 |access-date=22 September 2022 |work=Forbes |date=2021-11-19}} In late 2021 it had 1000 employees in 19 locations."[https://www.scmp.com/business/banking-finance/article/3156428/li-ka-shing-and-tencent-backed-airwallexs-valuation-swells Li Ka-shing and Tencent-backed Airwallex's valuation swells to US$5.5 billion after latest funding round]", Chad Bray (18 November 2021), South China Morning Post. Retrieved 20 May 2022. The company processed $20 billion at an annualized volume in 2021,"[https://www.theage.com.au/business/entrepreneurship/wave-of-global-unicorns-airwallex-hits-5-5-billion-valuation-20210920-p58t6i.html Wave of global unicorns': Airwallex hits $5.5 billion valuation]", Cara Waters (20 September 2021), The Age. Retrieved 20 May 2022.{{Cite web |title=Airwallex closes Series E with USD 100 mln raise |url=https://thepaypers.com/online-payments/airwallex-closes-series-e-with-usd-100-mln-raise--1258708 |access-date=2022-12-09 |website=thepaypers.com |language=en}} and by 2022, that had increased to $50 billion processed in annualized transactions.{{cite web | url=https://techcrunch.com/2022/10/10/airwallex-raises-100m-to-power-cross-border-business-banking-valuation-stays-flat-at-5-5b/ | title=Airwallex raises $100M to power cross-border business banking, valuation stays flat at $5.5B | date=11 October 2022 }} Airwallex released a debit card with Visa in Hong Kong in 2021,"[https://www.scmp.com/business/banking-finance/article/3136730/airwallex-introduce-new-virtual-payment-card-businesses Airwallex to introduce new virtual payment card for businesses in Hong Kong as rivalry intensifies]", Chad Bray (10 June 2021), South China Morning Post. Retrieved 20 May 2022. followed by a release in the U.S. in 2022.{{cite news |title=FinTech Airwallex Debuts Multicurrency Virtual Business Cards in US |url=https://www.pymnts.com/news/cross-border-commerce/cross-border-payments/2022/fintech-airwallex-debuts-multicurrency-virtual-business-cards-in-us/ |access-date=20 September 2022 |work=www.pymnts.com |publisher=Payments TV}} Airwallex launched in Singapore in early 2022.{{cite news |last1=MOSQUEDA Jr. |first1=Mars W. |title=Fintech unicorn Airwallex launches in Singapore, eyes SE Asia expansion|url=https://www.dealstreetasia.com/stories/airwallex-singapore-launch-277259 |access-date=20 September 2022 |work=Deal Street Asia |publisher=Nikkei}} In October 2022, Airwallex raised another US$100 million as part of its Series E funding round, sustaining its estimated valuation of US$5.5 bln. CRN valued it at US$5.6 billion in October 2022.{{cite web | url=https://www.crn.com.au/news/airwallex-anz-sees-115-per-cent-revenue-increase-598509 | title=Airwallex ANZ sees 115 per cent revenue increase }}
In March 2023,{{Cite web |title=Tencent-backed Airwallex secures e-payment license in China |url=https://www.reuters.com/technology/tencent-backed-airwallex-secures-e-payment-license-china-2023-03-07/ |access-date=2024-04-05}} Airwallex secured a third-party payment license in China through the acquisition of Guangzhou Shangwutong Network Technology, becoming only the second foreign company to have secured the license after PayPal.{{cite web |last=Ziang |first=Guo |date=April 27, 2023 |title=Australia's Airwallex to Start Offering Direct Online Payment Services in China, Senior Executive Says |url=https://www.yicaiglobal.com/news/20230427-20-australias-airwallex-to-start-offering-mobile-payment-services-in-china-senior-executive-says |access-date=2024-05-31 |website=yicaiglobal.com}} As of August 2023, key markets included Singapore, Malaysia, Australia, the United Kingdom, the United States, the European Union, and Hong Kong. Also in 2023, Airwallex launched into Israel{{cite web | url=https://asia.nikkei.com/Spotlight/DealStreetAsia/Tencent-backed-Airwallex-s-Singapore-unit-gets-fresh-165m | title=Tencent-backed Airwallex's Singapore unit gets fresh $165m }} and Canada.{{cite web | url=https://www.businessnewsaustralia.com/articles/fintech-airwallex-rolls-out-global-payments-in-canada.html | title=Airwallex rolls out global payments in Canada }} In October 2023, Airwallex acquired a Mexico-based payments company, MexPago. The deal was made to help the firm expand its footprint in Latin America.{{Cite web |last=Browne |first=Ryan |date=2023-10-19 |title=As U.S.-China tensions rumble on, fintech unicorn Airwallex pushes into Latin America with Mexico deal |url=https://www.cnbc.com/2023/10/19/fintech-firm-airwallex-buys-mexpago-to-expand-in-latin-america.html |access-date=2023-10-19 |website=CNBC |language=en}} Currently based in Singapore, Airwallex has a total of 20 locations and most recently had 1400 employees.
In 2024, Airwallex achieved an annual revenue run rate of $500 million.{{Cite web |last=Browne |first=Ryan |date=15 Aug 2024 |title=Tencent-backed Airwallex hits $500 million annualized sales, aims to get IPO-ready by 2026 |url=https://www.cnbc.com/2024/08/15/fintech-firm-airwallex-nears-500m-arr-plans-to-be-ipo-ready-by-2026.html |website=CNBC}}
In March 2025, Airwallex announced its entry into the New Zealand market, and also agreed to acquire Vietnamese intermediary payment service (IPS) CTIN Pay. The company was then reported as having exceeded US$600 million in annual revenue and US$130 billion in its annual transaction volume.{{cite web |url=https://ffnews.com/newsarticle/paytech/airwallex-signs-definitive-agreement-to-acquire-a-vietnamese-payment-company-accelerating-its-asia-pacific-expansion/|title=Airwallex Signs Definitive Agreement to Acquire a Vietnamese Payment Company, Accelerating Its Asia-Pacific Expansion|website=Fintech Finance news|access-date=2025-03-28}}
Products and services
Airwallex states its financial platform for businesses has features related to payments, treasury, spend management, and embedded finance.{{cite web |date=6 September 2023 |title="Airwallex for Startups" launches in Hong Kong to help local businesses streamline operations |url=https://www.airwallex.com/newsroom/airwallex-for-startups-launches-in-hong-kong-to-help-local-businesses |access-date=2024-05-31 |website=airwallex.com}}
Airwallex uses a proprietary banking network to handle local transactions, with machine learning in its SaaS products "[enabling] customers to... send money through local and international clearing networks" in around 130 countries. Beyond forex services, other services include online payments acceptance, bank accounts, borderless cards, and a suite of application programming interfaces (APIs).{{Cite web |last=Webber |first=Daniel |title=Airwallex: Building A Cross-Border Payments Infrastructure For Global Business |url=https://www.forbes.com/sites/danielwebber/2022/03/02/airwallex-building-a-cross-border-payments-infrastructure-for-global-business/ |access-date=2022-12-09 |website=Forbes |language=en}}
According to the company, as of 2023 its software infrastructure is used by 100,000 businesses including brands such as Navan, Qantas, SHEIN, HubSpot, GOAT, Saturday Club,{{cite news | url=https://www.straitstimes.com/business/global-payments-firm-airwallex-aims-to-double-s-pore-headcount-by-year-end | title=Global payments firm Airwallex aims to double S'pore headcount by year end | newspaper=The Straits Times | date=10 July 2023 | last1=Lim | first1=Clay }} and Brex. Others in Australia and New Zealand have included Culture Kings, Kogan, Freelancer.com, and Camilla, while Israeli firms include PAPAYA Global and OurCrowd.
References
{{Reflist}}
External links
- [https://www.airwallex.com Airwallex Pty Ltd]
Category:Financial services companies of Australia
Category:Financial services companies of Hong Kong
Category:Financial services companies established in 2015
Category:Online financial services companies of Australia
Category:Electronic funds transfer
Category:Financial technology companies