Payments startup Airwallex maintains the pattern of late fundraising in financing rounds
**Network-Led Payment Providers Expanding Their Global Footprint**
In the rapidly evolving world of digital payments, five prominent network-led payment providers - Airwallex, Thunes, Rapyd, Terrapay, and Nium - are strategically expanding their reach to cater to growing demand for cross-border and local payment solutions. These companies, which have raised significant funds in recent years, are avoiding Initial Public Offerings (IPOs) and instead focusing on geographical expansion.
**Geographical Expansion with Local Market Customization**
These payment providers are targeting high-potential regions, especially emerging markets or areas with low digital payment penetration. To cater to regional preferences and regulatory environments, they are expanding local payment method offerings, such as Adyen's global focus on local payment methods. Building local partnerships and complying with regional regulations is also crucial for easing market entry and building trust.
**Strategic Partnerships and Ecosystem Development**
Collaborating with banks, fintechs, e-commerce platforms, and other ecosystem players is another key strategy. This approach mirrors PayPal's partnership-driven growth strategy, enabling these providers to enhance capabilities and extend their reach. Forming alliances with industry stakeholders to integrate complementary services further strengthens the value proposition.
**Product Innovation and Diversification**
Innovation beyond core payment processing is essential. These providers are adding value-added services like advanced fraud prevention, data analytics, richer reporting, and issuing of cards. They are also exploring new financial services to widen revenue streams and invest in technology advancements to improve operational efficiency and customer experience.
**Leverage Scalable, Compliant Infrastructure**
Employing a payment system designed for scalability and regulatory compliance is vital for smooth expansion into new markets. Ensuring seamless cross-border payments with robust compliance controls is essential to handle the complexities of multiple jurisdictions.
**Capitalizing on Payment Industry Trends**
Prioritizing faster payments, real-time settlement, and seamless checkout experiences is crucial to meet merchant and consumer demands. Developing subscription and recurring payment models can build long-term revenue streams and customer loyalty. Continuously enhancing fraud detection and security measures is also essential as digital payment fraud risks rise.
Rapyd, for instance, has raised a total of $1.3bn in funding, and its PayU acquisition provided strategic additions in Central and Eastern Europe and Latin America. Airwallex, which raised $300m in a Series F funding round, increasing its valuation to $6.2bn, is focusing on expanding its financial infrastructure offering in Japan, Korea, the UAE, and Latin America.
Thunes, which recently raised $150m in a Series D round, is using its funding for ongoing expansion into the US market. Terrapay and Nium, which announced further fundraises in 2024, are also looking to enter new markets for their next stage of growth. Airwallex, over its 10-year business tenure, has raised a total of $1.2bn.
In summary, a network-led payment provider aiming for market expansion should combine targeted regional growth with tailored local payment options, strategic partnerships, innovative financial products, and robust technology infrastructure that supports scalability and compliance. Aligning these strategies with evolving payment industry trends such as real-time payments and subscription models will further enhance competitiveness and growth prospects.
*Network-led payment providers are diversifying their financial services and product offerings beyond traditional payment processing, including services like advanced fraud prevention, data analytics, and card issuance.* While avoiding Initial Public Offerings, these providers are investing in technology advancements and expanding their geographical reach into high-potential markets with a focus on local market customization and partnership development.
