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Nigerian fintech firm TeamApt raises $5M, eyes global expansion

Posted by on Feb 28, 2019 in africa, Asia, Banking, Canada, cellulant, ceo, CFO, Chief Information Officer, consumer finance, economy, engineer, ethiopia, Europe, Finance, flutterwave, Lagos, Mexico, money, Nigeria, online payments, paystack, POS, Series A, TC | 0 comments

Nigerian fintech startup TeamApt has raised $5.5 million in capital in a Series A round led by Quantum Capital Partners.

The Lagos based firm will use the funds to expand its white label digital finance products and pivot to consumer finance with the launch of its AptPay banking app.

Founded by Tosin Eniolorunda, TeamApt supplies financial and payment solutions to Nigeria’s largest commercial banks — including Zenith, UBA, and ALAT.

For Eniolorunda, launching the fintech startup means competing with his former employer, the later stage Nigerian tech company Interswitch.

The TeamApt founder is open about his company going head to head not only with his former employer, but other Nigerian payment gateway startups.

“Yes, we are in competition with Interswitch,” Eniolorunda said. But he also said that the Nigerian fintech startups Paystack and Flutterwave—both of which facilitate payments for businesses— are competitors as well.

TeamApt, whose name is derivative of aptitude, bootstrapped its way to its Series A by generating revenue project to project working for Nigerian companies, according to CEO Eniolorunda.

“To start, we closed a deal with Computer Warehouse Group to build a payment solution for them and that’s how we started bootstrapping,” he said. A project soon followed for Fidelity Bank Nigeria.

TeamApt now has a developer team of 40 in Lagos, according to Eniolorunda, who spent 6 years at Interswitch as developer and engineer himself, before founding the startup in 2015 .

“The 40 are out of a total staff of about 72 so the firm is a major engineering company. We build all the IP and of course use open source tools,” he said.

TeamApt’s commercial bank product offerings include Moneytor— a digital banking service for financial institutions to track transactions with web and mobile interfaces—and Monnify, an enterprise software suite for small business management.

TeamApt worked with Sterling Bank Nigeria to develop its Sterling Onepay mobile payment app and POS merchant online platform, Sterling Bank’s Chief Information Officer Moronfolu Fasinro told TechCrunch.

On performance, TeamApt claims 26 African bank clients and processes $160 million in monthly transactions, according to company data. Though it does not produce public financial results, TeamApt claimed revenue growth of 4,500 percent over a three year period.

Quantum Capital Partners, a Lagos based investment firm founded by Nigerian banker Jim Ovia, confirmed it verified TeamApt’s numbers.

“Our CFO sat with them for about two weeks,” Elaine Delaney said.

TeamApt’s results and the startup’s global value proposition factored into the fund’s decision to serve as sole-investor in the $5.5 million round.

“The problem that they’re solving might be African but the technology is universal. ‘Can it be applied to any other market?’ of course it can,” said Delaney.

Delaney will take a board seat with TeamApt “as a supportive investor,” she said.

TeamApt plans to develop more business and consumer based offerings. “We’re beginning to pilot into much more merchant and consume facing products where we’re building payment infrastructure to connect these banks to merchants and businesses,” CEO Tosin Eniolorunda said.

Part of this includes the launch of AptPay, which Eniolorunda describes as “a push payment, payment infrastructure” to “centralize…all services currently used on banking mobile apps.”

The company recently received its license from the Nigerian Central Bank to operate as a payment switch in the country.

On new markets, “Nigeria comes first. But we’re also looking at some parts of Europe. Canada is also hot on list,” said Eniolorunda.  He wouldn’t specific a country but said to look for a TeamApt expansion announcement by fourth quarter 2019.

TeamApt joins several fintech firms in Africa that announced significant rounds, expansion, or partnerships over the last year.  As covered by TechCrunch, in September 2018, Nigeria’s Paga raised $10 million and announced possible expansion in Ethiopia, Asia, and Mexico. Kenyan payment company Cellulant raised $53 million in 2018, targeted to boost its presence across Africa. And in January, Flutterwave partnered with Visa to launch the GetBarter global payment product.

The fintech space has also been the source of speculation regarding the continent’s first tech IPO on a major exchange, including Interswitch’s much anticipated and delayed public offering.

TeamApt’s CEO is open about the company’s future intent to list. “The project code name for the recent funding was NASDAQ. We’re clear about becoming a public company,” said Eniolorunda.


Source: The Tech Crunch

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Ousted Flipkart founder Binny Bansal aims to help 10,000 Indian founders with new venture

Posted by on Feb 5, 2019 in Amazon Web Services, Asia, binny Bansal, ceo, Co-founder, Companies, computing, E-Commerce, executive, Flipkart, India, online payments, Sachin Bansal, Startup company, United States, Walmart, web services | 0 comments

Flipkart co-founder Binny Bansal’s next act is aimed at helping the next generation of startup founders in India.

Bansal has already etched his name into India’s startup history after U.S. retail giant Walmart paid $16 billion to take a majority stake in its e-commerce business to expand its rivalry with Amazon. Things turned sour, however, when he resigned months after the deal’s completion due to an investigation into “serious personal misconduct.”

In 2019, 37-year-old Bansal is focused on his newest endeavor, xto10x Technologies, a startup consultancy that he founded with former colleague Saikiran Krishnamurthy. The goal is to help startup founders on a larger scale than the executive could ever do on his own.

“Person to person, I can help 10 startups but the ambition is to help 10,000 early and mid-stage entrepreneurs, not 10,” Bansal told Bloomberg in an interview.

Bansal, who started Flipkart in 2007 with Sachin Bansal (no relation) and still retains a four percent share, told Bloomberg that India-based founders are bereft of quality consultancy and software services to handle growth and company building.

“Today, software is built for large enterprises and not small startups,” he told the publication. “Think of it as solving for startups what Amazon Web Services has done for computing, helping enterprises go from zero to a thousand servers overnight with no hassle.”

“Instead of making a thousand mistakes, if we can help other startups make a hundred or even few hundred, that would be worth it,” Bansal added.

Bansal served as Flipkart’s CEO from 2007 to 2016 before becoming CEO of the Flipkart Group. He declined to go into specifics of the complaint against him at Flipkart — which reports suggest came about from a consensual relationship with a female employee — and, of the breakdown of his relationship with Sachin Bansal, he said he’s moved on to new things.

It isn’t just xto10x Technologies that is keeping him busy. Bansal is involved in investment firm 021 Capital where he is the lead backer following a $50 million injection. Neither role at the two companies involves day-to-day operations, Bloomberg reported, but, still, Bansal is seeding his money and experience to shape the Indian startup ecosystem.


Source: The Tech Crunch

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Chat app Line’s mobile payment service is getting its own Visa card

Posted by on Jan 30, 2019 in alibaba, alibaba group, alipay, Apps, Asia, China, E-Commerce, economy, Japan, King, mobile payments, money, online payments, payments, points, Tencent, visa, WeChat | 0 comments

Brown, Cony and the gang are coming to a credit card near you in Japan. Line, the messaging app company behind the cute sticker characters, announced today that it is bringing its payment service to plastic through a tie-in with Visa.

Line is Japan’s largest chat app with an estimated 50 million registered users. The cards will be released later this year and they’ll allow Line Pay, the company’s digital wallet service, to stretch beyond its existing merchant base to allow users to pay at any retailer accepting Visa . In addition, the first year of use will see customers get 3 percent of their spending back in Line’s ‘Points’ virtual currency, which is used to buy stickers and other content.

The partnership is a step up from Line’s own payment cards, which were introduced in 2016 and supported by JCB.

It’s an interesting deal because mobile is generally seen as being the future form factor for payments. In China, for example, using cash or card to pay is considered antiquated — you’ll get glares from other patrons forced to wait while you complete your transaction — but digital payments face a struggle in most other markets.

WeChat and Alipay have become de facto in China, but retailers — and particularly smaller ones — don’t always have the awareness, confidence or resources to add support for Line or other digital wallets. Japan, where cash is still king, is perhaps most emblematic of that struggle. The government is making a sustained push towards cashless — particularly ahead of the 2020 Olympics — and Line, as the country’s dominant chat app, may help that along with this partnership.

Line wrapped up a deal with WeChat last November that allows users of the China-based chat app to make payment via Line Pay points of sale. Tencent’s WeChat and Alipay from Alibaba have spent recent years developing a system that lets Chinese tourists pay while they are overseas.


Source: The Tech Crunch

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New policy puts revenue squeeze on China’s payments giants

Posted by on Jan 17, 2019 in alibaba, alibaba group, Ant Financial, Asia, Bank, Banking, Beijing, China, E-Commerce, financial services, insurance, mobile payment, online payments, payment, payments, Tencent | 0 comments

The era that saw China’s mobile payments providers making handsome interest returns on client money has officially ended.

Starting this week, non-bank payments companies must place 100 percent of their customer deposit funds under centralized, interest-free accounts as Beijing moves to rein in financial risks. In the past, third-party payments firms were allowed to hold pre-paid sums from buyers for a short period of time before transferring the money to merchants. This layout allowed companies like Alibaba’s payments affiliate Ant Financial and Tencent to earn interest by depositing customer money into bank accounts.

Exactly how much money Ant and Tencent derived from these deposits is unclear. Both companies declined to comment on the policy’s revenue implications but said they have complied with the rules and finished transferring all customer reserve funds to a centralized clearing system.

Here are some numbers to help grasp the scale of the lucrative practice. The central bank gave a two-year window for all payments firms to complete the transition as it gradually raised the reserve funds ratio, which climbed to 85 percent in November. By then, total customer funds deposited by non-bank payments companies into central custodians hit 1.24 trillion yuan ($180 billion), while another estimated 260 billion yuan was yet to come under regulated control, shows data published by the People’s Bank of China.

Collectively, the giants account for more than 90 percent of China’s third-party mobile payments and 34 percent of all third-party, internet-based payments (which include both PC and mobile transactions), according to research firm Analysys.

While the regulatory control surely has measurable revenue implication on payments firms, some experts point to another adverse consequence. “Now that payments companies are no longer putting deposits into their [partnering] banks, they lose bargaining power with these banks that charge commissions for handling their mobile payments,” an employee from a major payments firm told TechCrunch on the condition of anonymity.

Tencent doesn’t break down how much it makes from payments but the unit has grown rapidly over the past years while its major income source — video games — took a hit last year. Meanwhile Ant Financial has been diversifying its business to go beyond financial services. It has earnestly marketed itself as a “technology” company by opening its proprietary technologies to a growing list of traditional institutions like banks and insurance companies. Reuters reported earlier that technology services will make up 65 percent of Ant’s revenue in about four years, up from an estimated 34 percent in 2017.


Source: The Tech Crunch

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Flutterwave and Visa launch African consumer payment service GetBarter

Posted by on Jan 17, 2019 in africa, android, Apple, cameroon, ceo, Column, credit cards, E-Commerce, economy, Facebook, Finance, flutterwave, Ghana, greycroft, kenya, M-Pesa, mastercard, money, Nigeria, online payments, rave, San Francisco, South Africa, spokesperson, Uber, Uganda, visa, vodafone | 0 comments

Fintech startup Flutterwave has partnered with Visa to launch a consumer payment product for Africa called GetBarter.

The app based offering is aimed at facilitating personal and small merchant payments within countries and across Africa’s national borders. Existing Visa card holders can send and receive funds at home or internationally on GetBarter.

The product also lets non card-holders (those with accounts or mobile wallets on other platforms) create a virtual Visa card to link to the app.  A Visa spokesperson confirmed the product partnership.

GetBarter allows Flutterwave—which has scaled as a payment gateway for big companies through its Rave product—to pivot to African consumers and traders.

Rave is B2B, this is more B2B2C since we’re reaching the consumers of our customers,” Flutterwave CEO Olugbenga Agboola—aka GB—told TechCrunch.

The app also creates a network for clients on multiple financial platforms, such as Kenyan mobile money service M-Pesa, to make transfers across payment products, national borders, and to shop online.

“The target market is pretty much everyone who has a payment need in Africa. That includes the entire customer base of M-Pesa, the entire bank customer base in Nigeria, mobile money and bank customers in Ghana—pretty much the entire continent,” Agboola said.

Flutterwave and Visa will focus on building a GetBarter user base across mobile money and bank clients in Kenya, Ghana, and South Africa, with plans to grow across the continent and reach those off the financial grid.

“In phase one we’ll pursue those who are banked. In phase-two we’ll continue toward those who are unbanked who will be able to use agents to work with GetBarter,” Agboola said.

Flutterwave and Visa will generate revenue through fees from financial institutions on cards created and on fees per transaction. A GetBarter charge for a payment in Nigeria is roughly 40 Naira, or 11 cents, according to Agboola.

With this week’s launch users can download the app for Apple and Android devices and for use on WhatsApp and USSD.

Founded in 2016, Flutterwave has positioned itself as a global B2B payments solutions platform for companies in Africa to pay other companies on the continent and abroad. It allows clients to tap its APIs and work with Flutterwave developers to customize payments applications. Existing customers include Uber, Facebook, Booking.com, and African e-commerce unicorn Jumia.com.

Flutterwave has processed 100 million transactions worth $2.6 billion since inception, according to company data.

The company has raised $20 million from investors including Greycroft, Green Visor Capital, Mastercard, and Visa.

In 2018, Flutterwave was one of several African fintech companies to announce significant VC investment and cross-border expansion—see Paga, Yoco, Cellulant, Mines.ie, and  Jumo.

Flutterwave added operations in Uganda in June and raised a $10 million Series A round in October that saw former Visa CEO Joe Saunders join its board of directors.

The company also plugged into ledger activity in 2018, becoming a payment processing partner to the Ripple and Stellar blockchain networks.

Flutterwave hasn’t yet released revenue or profitability info, according to CEO Olugbenga Agboola.

Headquartered in San Francisco, with its largest operations center in Nigeria, the startup plans to add operations centers to South Africa and Cameroon, which will also become new markets for GetBarter.


Source: The Tech Crunch

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WeChat is quietly ranking user behavior to play catch-up with Alibaba

Posted by on Jan 15, 2019 in alibaba, alibaba group, alipay, Ant Financial, Asia, Bank, Beijing, China, credit score, Government, Messenger, mobile payments, online lending, online payments, payments, power bank, Tencent, WeChat | 0 comments

Over one billion people leave behind trails of information on WeChat every day as they use the messenger to chat, read, shop, hail rides, rent umbrellas and run many other errands. And the Tencent app has quietly started using this type of signal to determine whether a user is worthy of perks such as deposit-free renting services.

The rating system, which the company calls the “WeChat Payments Score” in Chinese, soft-launched last November across eight cities and has been piloting on a small number of apps. Among them is the Tencent-backed power bank rental service Xiaodian, which waives deposits for users if their points hit a certain benchmark. It’s easy to imagine how the rewards mechanism can help nudge customers to try out WeChat’s panoply of in-house and third-party offerings down the road.

Exactly how WeChat calculates these points is unclear, but a test done by TechCrunch shows it factors in one’s shopping and contract-fulfilling records. We’ve reached out to Tencent for more details and will update the article when more information becomes available.

Alibaba’s affiliate Ant Financial — WeChat’s biggest contender in online payments — has been running a similar assessment engine called the “Sesame Credit” since 2015. Like WeChat’s, it measures several dimensions of user data including purchase behavior and capability to fulfil contracts. People with higher scores enjoy perks like deposit waivers when staying at a hotel, incentives that could keep customers in the house. Sesame points are available through Ant’s Alipay digital wallet that recently claimed to have crossed one billion users worldwide.

The WeChat payments score is reminiscent of Tencent’s short-lived credit-rating scheme. Indeed, digital footprints can also help China’s fledgeling financial system predict creditworthiness among millions of people without financial records. That’s why Beijing enlisted tech companies including Tencent and Ant in 2015 to come up with their own “social credit” scores under state-approved pilot projects.

Over time, regulators became wary of the mounting personal information used by online lending companies and moved to assert greater control over the whole credit-rating matter. In early 2018, it changed tack to crack down on private efforts — including a Tencent-run trial. Beijing subsequently set up Baihang Credit, the only market-based personal credit agency approved by China’s central bank. The government holds a 36 percent stake in Baihang. Ant, Tencnet and several other private firms also got to be part of the initiative, though they play complementary roles and hold 8 percent shares each.

While most countries use credit rating mainly as a financial credibility indicator, China has taken things a few steps further. By 2020, China aims to enrol everyone in a national database that incorporates not only financial but also social and moral history, a program that has raised concerns about privacy and surveillance.


Source: The Tech Crunch

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Moglix raises $23M to digitize India’s manufacturing supply chain

Posted by on Dec 18, 2018 in Accel Partners, Amazon, Asia, chairman, E-Commerce, eCommerce, Flipkart, funding, Fundings & Exits, IFC, India, innoven capital, jungle ventures, Moglix, online payments, ratan tata, SaaS, series C, Singapore, temasek, Walmart, World Bank | 0 comments

We hear a lot about India’s e-commerce battle between Walmart, which bought Flipkart for $17 billion, and Amazon. But over in the B2B space, Moglix — an e-commerce service for buying manufacturing products that’s been making strides — today it announced a $23 million Series C round ahead of a bigger round and impending global expansion.

This new round was led by some impressive names that Moglix counts as existing investors: Accel Partners, Jungle Ventures and World Bank-affiliated IFC. Other returning backers that partook include Venture Highway, ex-Twitter VP Shailesh Rao and InnoVen Capital, a venture debt fund affiliated with Singapore’s Temasek. The startup also counts Ratan Tata — the former chairman of manufacturing giant Tata Sons — Singapore’s SeedPlus and Rocketship on its cap table.

Founded in 2015 by former Googler Rahul Garg, Moglix connects manufacturing OEMs and their resellers with business buyers. Garg told TechCrunch last year that it is named after the main character in The Jungle Book series in order to “bring global standards to the Indian manufacturing sector.” The country accounts for 90 percent of its transactions, but the startup is also focused on global opportunities.

“The entire B2B commerce industry in India will move to a transactional model,” Garg told us in an interview this week. He sees a key role in bringing about the same impact Amazon had on consumer e-commerce.

“We think there’s an opportunity to start from a blank sheet and rewrite how B2B transactions should be done in the country,” he added. “The entire supply chain has been pretty much offline and fragmented.”

In a little over three years, Moglix has raced to its Series C round with rapid expansion that has seen it grow to 10 centers in India with a retail base that covers over 5,000 suppliers and supplying SMEs.

Yet, despite that, Garg has kept things lean as the company has raised just $41 million across those rounds, including a $12 million Series B last year, with under 500 staff. However, Moglix is laying the foundations for what he expects will be a much larger fundraising round next year that will see the company go after international opportunities.

“This [new] round is about doubling, tripling, down on India but also establishing a seed in a couple of countries we are looking at,” Garg said.

Moglix aims to make the B2B online buying experience as intuitive and user-friendly as e-commerce sites are for consumers

Adding further color, he explained that Moglix will expand its Saas procurement service, which helps digitize B2B purchasing, to 100 markets worldwide as part of its global vision. While that service does have tie-ins with the Moglix platform, it also allows any customer to bring their existing sales channels into a digital environment, therein preparing them to get their needs online, ideally with Moglix. That service is currently available in eight countries, Garg confirmed.

Beyond making connections on the buying side, Moglix also works with major OEM brands and their key resellers. The basic pitch is the benefits of digital commerce data — detailed information on what your target customers buy or browser — as well as the strength of Moglix’s distribution system, tighter fraud prevention and that aforementioned digital revolution.

“Brands have started to realize [that digital] will be a very important channel and that they need to use both [online and offline] for crafting their distribution,” explained Garg.

Indeed, a much-cited SPO India report forecasts that B2B in India is currently a $300 billion a year market that is poised to reach $700 billion by 2020. Garg estimates that his company has a 0.5 percent market share within its manufacturing niche. Over the coming five years, he said he believes that it can reach double-digit percent.

While it may not be as sexy as consumer commerce, stronger unit economics — thanks to a large part to different buying dynamics of business customers, who are less swayed by discounts — make the space something to keep an eye on as India’s digital development continues. Already, Garg paid credit to GST — the move to digitize taxation — as a key development that has aided his company.

“GST enabled good trust and accelerated everything by 2/3X,” he said.

There might yet be further boons as the Indian government chases its strategy of becoming a global manufacturing hub.


Source: The Tech Crunch

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WeChat e-wallet teams up with Line to target Japan’s 7M Chinese tourists

Posted by on Nov 27, 2018 in alibaba, alibaba group, alipay, Asia, China, Finance, Japan, mobile payments, online payments, payments, TechCrunch, Tencent, Thailand, WeChat, yahoo japan | 0 comments

China’s biggest chat app WeChat is set to make its payments service more ubiquitous in Japan, a popular outbound desitnation for Chinese tourists.

On Tuesday, the Tencent-run messenger unveils a partnership with Japan’s Line chat app on mobile payments. The tie-up allows Japanese brick-and-mortar merchants with a Line Pay terminal to process WeChat Pay transactions directly. Instead of going through the hassle of currency swaps, a Chinese customer can simply summon the WeChat app and pay by scanning a QR code the retailer presents.

The fresh alliance is hot on the heels of a similar gesture from Tencent’s most serious rival, Alibaba. In September, the Chinese ecommerce giant’s payments affiliate Alipay teamed up with Yahoo Japan in an effort to grab Chinese outbound travelers.

Tencent did not provide information on the number of potential Japanese retailers reached through the scheme when inquired by TechCrunch . But the firm says its setup with Line Pay allows small and medium-sized businesses to adopt mobile payments at relatively low costs because it doesn’t require merchants to purchase QR code scanners.

Both WeChat Pay and Alipay have already been going it alone in Japan over the past few years. WeChat Pay, for instance, claims that it scored a six-fold increase in the number of transactions in Japan between June 2017 and 2018.

On the other hand, having an ally with an extensive local reach can help Alibaba and Tencent capitalize on a wave of increasingly sophisticated Chinese tourists.

The partnership with Line “significantly boosts WeChat Pay’s penetration among small and medium-sized retailers and its application in more daily scenarios, rather than serving Chinese people only at traditional tourism hotspots,” says a Tencent spokesperson. “This strategy is in line with an upgraded demand from Chinese people to travel like locals.”

Japan’s appeal to Chinese people is on the rise. During China’s weeklong “Golden Week” national holiday in October, Japan leapfrogged Thailand for the first time to become the most popular destination for Chinese tourists, according to a report from Chinese online travel agency Ctrip. In 2017, the Japan National Tourism Organization recorded a total of 7.36 million Chinese tourists, who made up more than a quarter of all visitors to Japan that year.


Source: The Tech Crunch

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Tencent e-wallet is following Alibaba to Hong Kong subways

Posted by on Nov 22, 2018 in alibaba, alibaba group, alipay, Ant Financial, Asia, China, executive, mobile payments, Octopus, online payments, payments, Smartphones, TC, Tencent, WeChat | 0 comments

China’s payments giants have taken their battle to Hong Kong. Less than a week after Ant Financial announced adding QR codes to the city’s MTR public transport network of rail, Tencent’s WeChat Pay unveiled a similar scheme on Wednesday.

Starting mid-2021, commuters in Hong Kong can scan a barcode to enter the subway turnstile through WeChat Pay, the digital wallet linked to Tencent’s popular messaging app. That’s a year behind Alibaba’s payments affiliate Alipay, which claims to enable QR codes for MTR in mid-2020.

Both Alipay and WeChat Pay are making this scan-to-ride option available to visitors from the Chinese mainland and Hong Kong residents.

Hong Kong has become a testing ground for the Chinese e-wallet titans going global due to the city’s geographic adjacency and cosmopolitan population. Its market of 740 million people also offers growth potential as mobile payments adoption is still nascent. In a survey conducted by the Hong Kong Productivity Council, only 30 percent of the respondents said they had paid with mobile devices, while most locals are accustomed to credit cards and cash.

By contrast, 92 percent of China’s 970 million mobile users have paid on smartphones, according to a July report from consulting firm Ipsos.

Cracking the Hong Kong market isn’t easy. For years, locals have used the stored-value Octopus card to pay for everything from MTR rides to convenient store purchases. The card system, which is 57.4 percent owned by MTR, claims to cover 99 percent of the city’s population.

Time will tell whether the payments newcomers could replicate their success in their neighboring city. On the Mainland side, WeChat Pay took off after a series of marketing campaigns that involved users fighting for cash-filled digital packets on WeChat. Alipay, on the other hand, traced much of its success to its ties with Alibaba’s ecommerce platforms, which don’t accept WeChat Pay.

In Hong Kong, the rivals have introduced redeem programs and shelled out generous subsidies to vie for shoppers. AlipayHK said in June that it crossed 1.5 million users, up from one million in March. WeChat Pay Hong Kong is keeping mum about its user base but a company executive said in November that the wallet scored more than ten times growth in transactions over the past year.


Source: The Tech Crunch

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Google is supercharging its Tez payment service in India ahead of global expansion

Posted by on Aug 28, 2018 in Apps, Asia, economy, financial services, Google, Google Pay, ibibo, India, mobile payments, money, online payments, payments, peer to peer, Southeast Asia, tez, Uber, Xiaomi | 0 comments

Google launched its Tez paymen app in India a year ago, and now the company is giving the service major push into retail as it prepares to expand it to other parts of Asia and beyond.

The app itself is being rebranded to Google Pay — bringing it in line with Google’s global payment service, which is available in 20 countries — but there are more tangible updates on their way. Most notably, Google is plotting to turn Tez Google Pay into an all-encompassing payment app for India.

The service started out in bank-based payments before adding bill and utility payments and messaging, but now Google is planning an extended push into retail, both online and offline. Economic Times recently reported on the rebrand and expansion.

The service already supports payments with some 2,000 apps and websites, including Goibibo and RedBus, but it is adding to that number and planning ‘deep’ integration with partners such as Uber and ticketing service BookMyshow. Google is also focusing on offline, and it said it is in the process of adding in-store payment support with a range of retail brands that will include Big Bazaar, e-Zone, and FBB.

Tez competes with dedicated payment services like Paytm and Mobikwik, and also WhatsApp — the Facebook-owned service that is India’s top messaging app but has struggled to win approval to launch an upcoming payment service due to concerns around its lack of a local office.

Already, Google’s service has made progress. The Tez app has pulled in 55 million downloads, and Google said it has racked up 750 million transactions with an annual run rate of over $30 billion. That, it said, has motivated it to look at overseas expansion opportunities.

Google’s India-based Tez service has been rebranded to Google Pay

Beyond the retail push, the service formerly known as Tez will also expand to cover micro-loans, bringing it into direct competition with startups like ZestMoney — which just closed an investment from Xiaomi this week.

Google said it has partnered with a number of India-based banks — including HDFC Bank, ICICI Bank, Federal Bank, and Kotak Mahindra Bank — to offer “pre-approved” loans to customers “in a matter of seconds” through the Google app.

These will be smaller than typical loans, especially those in the West. Loans on services like ZestMoney typically cover one-off purchases like electronics, education fees and more, CEO Lizzie Chapman told TechCrunch in a recent interview.

Finally, Google also plans to expand Tez Google Pay overseas. That means both adding Tez features to the Google Pay service worldwide, and taking the India-based service into new parts of Asia. That’ll require plenty of localization since the Indian version is heavily based around the country’s UPI payment system — which doesn’t translate overseas — but it’s a step in the right direction.

Google isn’t saying too much about which markets it might move into but you’d imagine Southeast Asia, which as plenty of similarities with India, will be top of mind.

Note: The original version of this story was updated to correct that the integration with banks doesn’t use Tez payment data to assess user creditworthiness. 


Source: The Tech Crunch

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