Airwallex, an Australian fintech firm, is making a direct move to challenge Stripe, which has led global payments for more than 15 years. The company says the market has had too little real competition and is now moving in with a full global push. With new tools for cross-border and in-person payments, the firm is targeting Stripe’s core business and aiming to change how global payments are built and used.
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Airwallex Launches Point-of-Sale System to Compete with Stripe
In a recent interview, Airwallex CEO Jack Zhang told outlets that the market has been too quiet for too long, noting that “there’s just not been a real competition to Stripe considering how big the market is.” To address this, Zhang stated that Airwallex is launching a new product with features that many rivals, including Stripe, do not fully offer.
He explained that when firms enter a new country, they usually have to onboard a local acquirer in each market. They also have to deal with different rules in each market and manage several vendor setups at the same time. To address this, Airwallex is building a Point-of-Sale system that lets businesses accept payments across many countries from a single platform.
This removes the need to set up separate local partners in each market. Zhang also pointed out a key difference in how payments for these businesses are handled. He noted that when companies like Stripe and Block Inc. (XYZ) process payments in markets like Japan, they usually send funds directly to merchants’ bank accounts rather than keeping them in local systems.
However, Airwallex takes a different approach. Its setup allows it to hold and convert funds locally. This gives businesses more control over how money moves across borders.
Airwallex Pushes Into Global Payments Expansion
This bold push comes years after Stripe offered to buy Airwallex for about $1.2 billion in 2019. At that time, Airwallex was making around $2 million in revenue. Reports say Zhang first agreed to the deal, but later changed his mind. He chose to stay focused on his goal of making cross-border payments cheaper and simpler.
Airwallex now holds close to 90 regulatory licenses across about 50 markets. It connects to payment systems in more than 120 countries and can also settle transactions in over 90 currencies.
As of this year, Airwallex is also valued at about $8 billion by investors. The company reportedly generates around $1.3 billion in yearly revenue, growing at about 85% each year. It also serves more than 46,000 U.S. businesses and handles about $100 billion in annual payment volume.
What Are the Best Fintech Stocks to Buy?
While Airwallex and Stripe remain private companies with no publicly traded stock yet, investors interested in fintech stocks can explore well-known players such as Mastercard (MA) and Visa (V), Rocket Companies (RKT), Block (XYZ), and SoFi (SOFI). All of these stocks have their respective buy ratings and forecasted price targets, which investors can view on TipRanks’ Stocks Comparison Center.
