The World is growing faster and smarter day-by-day. Advancements in technology are revolutionizing each and every part of life, and people are finding easier and efficient ways to accomplish their tasks. The traditional means of money exchange have been now conquered by e-payments. Now, you don’t need to travel miles to exchange payments as online payment systems have provided convenient access to your accounts so that you can process payments even sitting at your home. Online shopping portals are storming the internet where you can buy your favorite items and have them at your doorstep. All the industries have integrated their business with an online payment system in order to survive the race.
Some stats reveal that Asia’s population was grown up to 4.427 billion till 2014 making almost 61% of the entire world population. In 2014, there were $878 billion online sales with a 36% increase in 2015 and it is believed that by 2018, the sales will hit $1.9 trillion, adding 63% increase. Analysts are of the view that Asia holds almost 51% of the entire world online retail sales. Several Asia-based payment services are competing with PayPal and are providing alternatives to conventional payment channels. Here is a review of some startups that are providing online payment exchange services in Asia as an alternative to PayPal.
- Headquarters: Singapore
- Total Funding: $5.2 million (in 5 rounds)
- Countries: Indonesia, Malaysia, Philippines, Thailand, and Singapore.
- Investors: Rakuten, GMO (Global Payment Fund), CyberAgent, Accion Venture Lab, DMP VC, Golden Gate Ventures, IMJ Investment Partners Pte. Ltd, Toivo Annus
Codapay is an alternative online payment service headquartered in Singapore. It empowers sellers to exchange payments in Southeast Asia including Indonesia, Malaysia, Philippines, Thailand, and Singapore. The company offers direct carrier billing, bank transfers, cash payments at utility stores, and physical vouchers. It also allows customers to make online purchases by deducting charges from their mobile credit. Several leading giants like Baidu, Gumi, Alibaba’s UCWeb, Kunlun and Garena are growing their businesses via Codapay services. Codapay claims to accept payments from more than 500 million customers across Southeast Asia.
Recently, the company has raised a $2 million funding, invested by IMJ Investment Partners, GMO Global Payment Fund, Skype co-founder Toivo Annus and Golden Gate Ventures that makes a total of $5 million funding raised till now. Codapay had also raised a funding of $2.3 million back in December 2013.
Red Dot Payment (RDP)
- Headquarters: Singapore
- Total Funding: Undisclosed (in 2 rounds)
- Countries: Singapore, Thailand, Indonesia
- Investors: Randy Tan, MDI Ventures, Toivo Annus, Wavemaker Partners
Red Dot Payment (RDP) is an online payment provider in Asia that was founded in 2011 in Singapore. It offers online payments, payment consulting and merchant acquisition plans for online payment exchanges. It holds a Payment Card Industry Data Security Standard (PCI DSS) Level 1 Certification and supports Visa, MasterCard, Nets, China UnionPay and Alipay. RDP claims that almost 500 multi-national companies trade through their payment channels. RDP has also its roots embedded in Indonesia and Thailand. Recently, RDP has raised a funding of ‘seven digits’ US dollars invested by MDI Ventures. The exact amount has not been revealed yet.
- Headquarters: Hong Kong
- Countries: Hong Kong, China (3), India, Indonesia, Malaysia, Singapore, Philippines, Taiwan, Thailand and Vietnam
AsiaPay is a professional e-payment service headquartered in Hong Kong that provides its consultancy and local service support across 12 countries in Asia. AsiaPay was founded back in 2000 and since then, it is serving its customers with premier electronic payment solution services, striving to provide integrated and secure payment solutions to e-businesses and e-markets via debit, credit, and other prepaid cards. Currently, AsiaPay is serving several reputed industries like Nestle, Canon, Nike, and Yahoo. AsiaPay is now heading towards other global markets in near future.
- Headquarters: Singapore
- Total Funding: $ 10 million (in 3 rounds)
- Countries: Singapore, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines and Thailand, Hong Kong.
- Investors: Amun Capital, DMP VC, GMO Venture Partners
2C2P is a payment transfer company headquartered in Singapore that was founded in 2003 by an entrepreneur from Myanmar, Aung Moe. Besides 2C2P, he also formed Paysbuy that is rocking Thailand currently. 2C2P aims omni-channel payments to boost e-commerce businesses and retailers. Apart from conventional transaction methods, it also provides e-payments and mobile commerce solutions like ATMs and internet banking. 2C2P claimed to process over $2.2 billion in transactions in 2014. The company was recognized as one of only 3 businesses in Singapore and the 100th in rapidly growing tech companies in the 2013 Deloitte Technology Fast 500 Awards. In 2015, it was included among the top 25 payment service startups.
- Headquarters: Hangzhou
- Total Funding: $4.5 billion (in 2 rounds)
- Investors: China Construction Bank, China Development Industrial Bank (CDIB), China Investment Corporation, National Social Security Fund (NSSF), Primavera Capital Group
This money transferring platform was established in China in 2004 by Alibaba Group that is one of the leading cargo services in the world. Some reports reveal that Alipay has nearly 300 million users, and it controls half of the economy of China. Alipay provides services at your doorstep, with an escrow service ensuring that you are happy with the goods you receive. Alipay claims compatibility with 65 financial channels like Visa, Mastercard, Boleto Bancário, Transferência Bancária, Maestro, WebMoney, QIWI Кошелек etc., providing payment services to nearly 460,000 Chinese businesses. Round the globe, more than 300 clients use Alipay to render services in China. Currently, Alipay is providing its services in 12 countries.
Comparing Alipay and PayPal, it seems as PayPal is aimed to target the core of its business of payment processing while Alipay is hitting other relative areas too. PayPal is concerned about reliability and security, targeting major markets of US and Europe. While Alipay is just limited to the Chinese market, connecting China to the international platform. Alipay offers daily transactions and is involved in everyday businesses of its customers while PayPal shows up only at the time of the final transaction.
- Headquarters: Bangkok
- Total Funding: $20.4 million (in 4 rounds)
- Countries: Thailand, Japan
- Investors: 500 Startups, Ascend Capital, Ascend Venture Group, East Ventures, Golden Gate Ventures, SBI Asset Management, Sinar Mas Indonesia, SMDV, True Incube
Omise, better pronounced as ‘Oh-Mee-Say’ is an online payment exchange company, founded in 2014. In Southeast Asia, there are six major countries, each featuring its own payment mode. Omise is trying to offer payment services for each country under one roof. Currently, Omise is available in Thailand and Japan, but it is planning to hit Indonesia, Malaysia Vietnam, Philippines, and Singapore in near future. Omise has recently raised a funding that was led by SBI Investment, with participation from Sinar Mas Digital Ventures (SMDV), Thailand’s Ascend Money and the existing investor Golden Gate Ventures.
- Headquarters: Malaysia
- Countries: Malaysia, Singapore, Thailand, Philippines, Indonesia, Vietnam, Taiwan, Australia, New Zealand, Turkey, US, and Brazil.
MOLPay is a global payment gateway that was found in 2005 in Malaysia. It provides efficient payment methods via Visa, MasterCard, Amex, CUP and JCB, featuring 170 currencies and internet/domestic banking to more than 100 banks in Asia. It also offers Online to Offline payment, better known as MOLPay CASH. MOLPay has a broad range of payment solutions like online payment processing, fraud tackling, and secure money transfer. MOL claims to process around 5 million transactions per month and MYR1 billion transactions a year. It is a part of 1.6 million physical payment channels across 80 countries. In 2011, MOLPay was merged in MOL Global Group, one of the largest internet companies in Malaysia. Here is a sharp comparison between MOLPay and PayPal.
- Headquarters: Thailand
- Countries: Thailand, Vietnam, Cambodia, Myanmar, Indonesia, Philippines.
- Investors: Undisclosed
TrueMoney is an e-payment service provider in Southeast Asia that was established in 2003 as part of True Corporation. Talking typically about Thailand, the company offers TrueMoney Wallet, WeCard, TrueMoney Cash Card, Kiosk, Express, Payment Gateway and Remittance. TrueMoney Wallet is an e-wallet that allows its users to pay their utility bills, charge their mobile credit, pay money via TrueMoney Cash Card and buy other stuff on Facebook. WeCard is a service of MasterCard that enables customers to make online as well as on-spot store purchases wherever MasterCard is accepted. The TrueMoney Cash Card is your backup for mobile top ups. Kiosk and Express can pay your bills, top up your mobile credit and charge your TrueMoney Wallet. Payment Gateway is the online payment transfer service for dealers and sellers to receive payments for online purchases whereas Remittance is the money transfer service for cross-border payments.
- Headquarters: Philippines
- Total Funding: Undisclosed (in 1 rounds)
- Countries: Philippines
- Investors: GMO Venture Partners
Dragonpay is a payment gateway that was founded in 2010 to provide alternate payment means to e-commerce businesses in the Philippines. In a lapse of just 5-6 years, Dragonpay has occupied several hundred merchants that use payment services in different areas like traveling and online shopping. The Philippines is a developing country that has a rare trend of using credit cards. That’s where Dragonpay jumps in to provide its customers an alternate payment method rather than typical cash payments. Dragonpay complies with several Philippine’s banks to offer alternative payment methods keeping in view security and convenience for their customers. Dragonpay is expanding its services, and now it has provided complete integration with PayPal accounts to hit a broader market. Here is an interesting link showing a sharp comparison between PayPal and Dragonpay.
It is expected that by 2030, Asia will be controlling 67% of the world’s economy as a result of an increase in the ratio of educated people. In the struggle of being globalized, mobile payments will prevail throughout the world, and payment modes will become smarter to afford larger businesses.