The Scoop
Airwallex, the global payments startup, has crossed the $1 billion mark in assets under management for its money market service, the company shared with Semafor exclusively, and is expanding the service to the US.
Offering a high yield savings product might seem like table stakes in a crowded market but the company believes it has a unique trick up its sleeve: 80 banking licenses across the globe that allow it to move customer money across borders essentially for free.
Airwallex hopes the infrastructure, which took a decade to build, will put it in a good position to capitalize on the AI boom, which is driven by subscriptions and API fees. And as the infrastructure grows, micropayments that cross borders could become part of the fabric that enables “agentic commerce.”
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Reed’s view
Stablecoin companies, built on advanced blockchain technology, would have something to say about Airwallex’s mission. Th company’s co-founder and CEO Jack Zhang has been something of a curmudgeon when it comes to blockchain, but one can’t deny it’s a low fee alternative to traditional banking and works even in markets where traditional financial rails are nonexistent or nonfunctioning.
Airwallex is a reminder that fintech disruption can come in many forms, and isn’t just an either-or choice between traditional banking and blockchain.
At some point, however, Airwallex will probably take part in the stablecoin boom — it won’t be able to operate traditionally in every country. Combining its current network with emerging markets via some kind of stablecoin offering could prove powerful.
Notable
- Airwallex famously rejected a $1.2 billion acquisition offer from Stripe in 2018, when it had only $2 million in revenue. The founders believed it was too early and preferred building their own infrastructure.
- The fintech is reportedly eyeing an IPO for this year, and recently hired Rachael Horwitz as SVP for communications and public affairs as it makes its expansion push.