Spenda’s Buy-Now, Pay-Later functionality has successfully launched into Whola’s marketplace – enabled by partnership with Mastercard

Key Highlights 

  • Whola and Cirralto have entered into a standard rolling contract with no fixed term to deliver services to Whola’s marketplace buyers.
  • Successful roll-out of the Spenda Buy-Now-Pay-Later widget into Whola’s online marketplace, utilising Mastercard Track Business Payment Services.
  • The first seven days of the initial rollout period highlighted a 60% take-up of the Pay-Later services by Whola’s marketplace customers.
  • Whola has 3,000 buyers in its network, this is expected to create a payment and lend flow of $5,000,000 per month over a 12 month period assuming a 30% adoption rate. 
  • Cirralto receives a minimum gross fee of 2% from all transactions passed through the Whola network.
  • Based on a 30% adoption rate Cirralto will receive minimum gross revenues of approximately $1.2m per annum from the Whola network.

 

Cirralto is pleased to announce the release of its Buy-Now-Pay-Later (BNPL) and related payment services to the Whola platform and the continuing commercial execution of its marketplace node-spoke strategy with the launch of services to the Whola marketplace.

Following an extended development and BETA program, the Whola solution has been commissioned and is now processing a growing volume of transactions and payment flow. The parties have entered into a standard rolling contract with no fixed term to deliver the Spenda BNPL service on the basis of 30% adoption across Whola’s marketplace user base over a 12-month period. 

Although, there are no guarantees of adoption rate, at present adoption rates from a 10% sample of the base determined from the first week of initial use suggests a 60% adoption and utilisation rate.  Cirralto considers the forecasted revenue of $1.2 million per year expected to be generated under this agreement to be material at this point in time.

Cirralto is investing in onboarding and regulatory technologies to serve Whola and similar projects to streamline compliance and shorten approval times. 

The delivery of the Whola solution also incorporates the commercial scaling of new payment processing and data collaboration with Mastercard and its Track™ Business Payment Service, a partnership designed to offer increased financial control, efficiency and security for buyers and suppliers.

Cirralto, CEO Adrian Floate said, “Whola has established a strong presence in the fashion wholesale trade and we are thrilled to be working with Alice Fitch and her team. The provision of extended credit to Whola’s customers will reduce each store’s stock risk, lower the cost of capital required to run their businesses and drive their supply chain.  We see this partnership as a win-win for Whola and its customers and suppliers.“

Whola, Managing Director Alice Fitch said, “BNPL really is going to be a game-changer for Australian retailers. After 2 years of challenging conditions, Whola’s customers will now be in a position to ready themselves for a stellar Christmas trade. We’re thrilled to bring BNPL to market in partnership with Cirralto.”

The launch of Cirralto’s working capital and payment solutions over the Mastercard platform is a milestone achievement made possible by the continued relationship between the two organisations. 

Mastercard’s Track Business Payment Service is an innovative, open-loop network that delivers value to both buyers and suppliers by simplifying and automating the set-up and execution of business payments using multiple payment rails and enhancing the exchange of payments-related data. In turn, it enables buyers and suppliers to utilise the best available option to pay and be paid.

Commenting on the program, Adrian Floate, CEO of Cirralto, said “Since we began working with Mastercard the synergies between our businesses and the shared vision we have for improving business payments has been obvious. Implementing Mastercard Track Business Payment Service into our payment services means we can offer our customers additional security and enterprise integration.”

Asha Cugati, Head of Government and Business, Account Management, Australia at Mastercard, added “As local organisations look to the future following what has been a challenging year, optimising working capital and fostering business growth has never been more important. Mastercard is excited to build on its partnership with Cirralto, leveraging Mastercard’s Track platform to increase the velocity with which payments and data pass between buyers and suppliers and making it easier for businesses to do business.”


Media Contact
Lauren Jones
Head of Communications at Cirralto
E: lauren.jones@spenda.co
M: 0451 059 961


About Cirralto

Cirralto Limited (ASX:CRO) is a feature-based payment company capable of owning transactions from any customer up and down the value chain. Through their core product, Spenda, Cirralto delivers a fully integrated digital payment and business software solution that enables businesses to transform with fast, error-free digital efficiency.

Cirralto supplies industries with a broad range of B2B payment services, digital trading software and integrated solutions. Our goal is to convert EFT payments to card payments utilising the BPSP/BPA engagement coupled with our payments collaboration framework. Our competitive advantages deliver customers end-to-end e-invoicing integration, rapid ordering, digital trust and automated reconciliation.

 

About Spenda

Spenda offers one connected digital platform that equips businesses with smart software applications, flexible B2B payment and lending solutions, and integration services. Ultimately, by improving how businesses trade and get paid, Spenda’s solution enables businesses to transform with fast, error-free digital efficiency and aims to boost cash flow across the entire supply chain.

Spenda is a core product of Cirralto Limited, an ASX listed company with over 20 years’ experience in delivering B2B payment services, digital trading software and integrated solutions. For more information, please visit www.spenda.co

 

About Whola

Founded in 2019, Whola Pty Ltd (Whola) is a curated wholesale fashion marketplace serving more than 3,000 retailer customers and connecting them to the best Australian brands in one place. Whola has close to a hundred of Australia’s best fast-to-market labels from a core group of manufacturers and suppliers.

Seven things you need to know about usage-based car insurance

KOBA revolutionises car insurance with pay-per-kilometre policies

You only pay for the amount of electricity you consume each month, and you only pay for the food you choose to put in your trolley at the supermarket, so why pay any more for car insurance than you have to?

Launching in November, KOBA Insurance, Australia’s first real-time kilometre-based car insurer is making sure you don’t. They’re flipping existing policies on their heads by placing the consumer in control of their car insurance costs.

With KOBA, you pay an upfront cost to cover your vehicle when it is parked and by taking advantage of cutting-edge connectivity technology, then you only pay for the kilometres you actually drive.

The company facilitates this via a KOBA Rider – a small matchbox-sized device that attaches to the car’s onboard diagnostic (OBD) outlet and communicates with a smartphone app to record when the vehicle is driving and charges you a small per-kilometre rate for each trip.

It’s a smart and fuss-free solution that is more transparent and can be more affordable than conventional insurance coverage – especially if you drive limited distances each year.

So, considering more of us are working from home more these days, and therefore driving less, here’s seven reasons why you should only pay for what you need.

1. A KOBA policy has you covered
KOBA provides comprehensive car insurance with coverage for fire, theft and accidental damage, as well as offering additional benefits such as expenses for travel and accommodation, towing, a hire car replacement if the vehicle is stolen and agreed value (with new car replacement in the first 24 months of its original registration) if the vehicle cannot be recovered or repaired. Basically, you pay an upfront cost for coverage when the vehicle is parked and a few cents per kilometre when the vehicle is being driven.

2. KOBA automatically knows when you’re driving
The KOBA Rider is a small communication device that is connected to the vehicle’s OBD computer outlet. This is usually located behind a panel in the lower section of the dash and is used when servicing or repairing the vehicle to monitor codes that indicate if a system or component is not functioning properly. The KOBA Rider collects important real-time data from the moment the vehicle is switched on that recognises the vehicle’s location and relays the data to your smartphone app.

koba man smiling

3. KOBA uses data to determine the price
Like all insurance providers, both the fixed upfront cost and the per-kilometre rate is determined by a number of factors including the value of the vehicle, where you live and your driving experience. The unique aspect of KOBA’s pricing relies on the concept that low-usage drivers pose less risk and are involved in fewer accidents and this allows KOBA to offer low-cost rates to customers.

4. So how much can you save?
That will entirely depend on how many kilometres you drive, and how often. If your vehicle is rarely used because you’re working from home more often, the savings could be substantial. KOBA estimates that low-usage drivers who generally drive less than 7000km per annum could save up to 25 per cent compared to high-usage drivers.(1) However, the biggest benefit is for those that use their car infrequently. Normally, an insurance policy rate doesn’t vary because you’re forced to work from home and use your car less. With KOBA, what you pay changes based on the distance covered each month.

5. What about the privacy and security of my data?
The KOBA Rider communicates between the vehicle and smartphone app and is encrypted for maximum security. Data security and privacy is a critical element of KOBA’s service and the distance and location data is used to determine your per-kilometre rate. All the other data collected from the vehicle is used for the benefit of the customer through personalised services.

6. Will KOBA make me a better driver?
KOBA plans to introduce a range of personalised services in the future, and these could include monthly reports on driving behaviour to assist drivers to lower carbon emission outputs, decrease fuel consumption and help reduce the risk of speeding. Indeed, KOBA technology could be used in the future to provide customers with insight on vehicle maintenance issues or emergency services alerts when the vehicle is involved in a serious collision.

7. Will KOBA work with my car?
The KOBA Rider can only be fitted to vehicles with OBD II outlets, which limits its use to passenger cars and light commercial vehicles built from 2006 onwards. KOBA plans to introduce technology that will allow owners of older vehicles and motorcycles to have the device fitted to their vehicles in the future.

So, there you have it, seven simple reasons why usage-based insurance can save you time and money and how KOBA is, quite literally, putting the future of car insurance in the driver’s hands.

For more information on KOBA Insurance, visit www.kobainsurance.com.au

KOBA Insurance Pty Ltd (KOBA) (ABN 33 642 789 286, AR number 1288655) is authorised to deal in the insurance which is issued by Eric Insurance Limited (eric) (ABN 18 009 129 793, AFSL 238279). Any advice provided is general in nature and does not take into account your particular needs and circumstances. Before purchasing the insurance, decide whether this product is right for you by reading the Product Disclosure Statement and Target Market Determination – which will be available on the KOBA website prior to launch.

Source: (1) – The Australian Bureau of Statistics estimated that in 2018 the average passenger vehicle in Australia travelled 12,600 km per year. Insurance premiums are often based on these averages and our comparison is based on a driver with a KOBA policy driving this distance.


Koba one of the ten leading insurtech companies in Australia

To find out which Australian insurtech companies are taking advantage of these partnerships or carving their own path, Insurance Business referred to business information website Crunchbase’s data. Read more….

KOBA Insurance
Total funding: $1 million
Number of investors: 1

Victoria-based KOBA Insurance says its mission is to help more than 10 million Australians lower their annual premiums by only charging them for what they use. The insurtech firm uses a pay-as-you-drive platform, meaning policyholders will only be charged each month based on how much they travel.

Five Fintechs On Friday – October 08, 2021

The new edition of the five fintechs on Friday is here!

But first, news from the industry…

Independent Reserve becomes first Australian cryptocurrency exchange licensed in Singapore. Some major partnership deals recently with Zip’s global partnership with all-in-one payments platform Adyen and Stake partners with fintech unicorn Airwallex. New launches! 1WordFlow launching the digital edition of Scott Farrell’s Payments System and TrueLayer launches its global Open Banking Platform in Australia!

Aussie fintech disruptor Till Payments raises $110 million in Series C funding round for global and local expansion.

Lastly, we have 5 days to go for the Finnies! We are excited to celebrate the success of the industry on October 13 (5:45 pm – 7:00 pm AEDT)Save the date and join us at the Finnies 2021 awards night next week.

Below are five fintechs we shortlisted for this fortnight

 

Taulia

Headquartered in San Francisco, Taulia is the leading fintech provider of working capital management solutions who believe in building a world in which every business thrives by liberating cash trapped in the supply chain. They help companies access value tied up in their payables, receivables, and inventory. Taulia also helps companies transition from inefficient and often manual working capital management practices into technology-led, working capital optimisation strategies where every party across the supply chain has the cash they need to thrive. Over 2 million businesses use Taulia’s platform to determine when they want to pay and be paid. Taulia processes more than $500 billion each year and is trusted by the world’s largest companies including Airbus, AstraZeneca and Nissan. They recently continued their development in Asia and have a strong presence in Australia and New Zealand.

Meeco

Pioneering since 2012, Meeco unlocks the power of consent-based personal data, giving organisations the tools to empower their customers to access, control and create mutual value from their personal data. Meeco offers FinTech, RegTech, LifeTech and KidTech solutions across, banking, telecommunications, government and health. Meeco’s technology is a Privacy and Security by Design, ISO certified suite of products: a decentralised wallet (incorporating identity, verifiable credentials along with micropayments and tokens), a key management store, a secure data enclave (vault) and a credential brokerage service. Meeco’s technology is decentralised on Hedera Hashgraph and a strategic Consumer Data Right enabler.

Precinct

While some in the community are ‘digital native’ and a growing number have fully migrated to digital banking channels, there remains a majority of the population that use physical banking channels either sometimes, most of the time, or all of the time. At Precinct, the purpose is to ensure sustainable access for that segment of the community, both businesses and consumers. This purpose is increasingly needed as bank branch networks continue to reduce. They are strongly supportive of the continuing advances of digital platforms and solutions, but we feel a strong obligation to ensure that we don’t leave people behind – those people are often the most vulnerable in the community. The team is building both a physical and digital infrastructure, with services from a number of fintechs as part of our architecture, to allow businesses and consumers to continue to bank physically with their bank if that is their preference or need.

Fundsquire

Fundsquire is a global source of capital that invests in innovative businesses in Australia, the UK and Canada – working closely with the customers to offer straightforward, personalised, non-dilutive funding through R&D tax credit loansgovernment grant funding and revenue based financing. Transitioning from a startup to a scaleup, their own journey motivates them to create unique solutions that empower businesses to take control of their funding timeline for accelerated growth. Over the past year, Fundsquire has doubled its investments in category-leading businesses. This rapid growth has been enabled by strategic expansion of team and operations along with technology platform development. Fundsquire also brings its customers an expansive network of partners and perks to enable seamless funding options for businesses at all stages of growth.

Global Processing Services

Global Processing Services (GPS) is the trusted and proven go-to payments processing partner for today’s leading challenger fintechs, including Revolut and Paidy. GPS has to-date issued over 170 million cards, enabled in over 48 countries, and last year processed over 1.3 billion transactions through its platform. Joanne Dewar, CEO of GPS, commented: “Agility is key to fintech success, and the winners will be those that learn how to collaborate with the best technology providers as true partners rather than suppliers. This collaborative approach that harnesses the collective experience is one of the real secrets to success, regardless of the size of the organisation.”

 

Check out our previous issues here!

New CreditorWatch research: fintechs driving change in financial services

Sydney, 29 September 2021 – Leading commercial credit reporting agency CreditorWatch is today launching its Future of Fintech 2021 thought leadership paper, which is a comprehensive overview of the state-of-play across Australia’s vibrant fintech sector.

This year has been a watershed for the local fintech sector, with a number of pivotal transactions, including US digital payments leader Square’s $39 billion acquisition of buy-now-pay later pioneers Afterpay and, more recently, global fintech platform, Airwallex’s highly successful $275 million Series E capital raising, which valued the business at more than $5 billion.

“These are just two of a slew of deals that have been completed in the local fintech sector this year, which has been buoyed by the strong uptake of digital technologies as a result of COVID lockdowns, among other trends,” said CreditorWatch CEO Patrick Coghlan.

“The local fintech sector has never been hotter, and our Future of Fintech 2021 thought leadership paper outlines exactly why this is. The paper is part of our commitment to bring new thinking to the market through thought leadership,” he said.

This research explores how fintechs are defining the future for financial services, examining new technologies such as artificial intelligence and machine learning, new business models and new regulatory and market structures, such as open banking.

The paper was developed following an extensive research process, as well as exclusive interviews with leading members of Australia’s fintech sector, including global payments platform Adyen, global payments leader Airwallex, business loan disrupter Prospa and industry body FinTech Australia.

The report’s highlights include: 

  • Consumer confidence in digital technologies is supporting demand for fintech products and services.
  • Cross-border partnerships such as Westpac’s tie up with fintech 10x will become more commonplace in the future, improving consumer choice for banking products and services.
  • Consolidation is a key trend. Fintechs are banding together to create multifaceted solutions for consumers and businesses.
  • Big banks see fintechs as partners that can help them tap into a new wave of consumer demand.
  • Australian Payments Plus, a merger of the National Payments Platform, BPAY and EFTPOS, will support faster payments and new payment mechanisms, such as an industry standard for making payments with QR codes.
  • Open banking is at a critical juncture. Draft rules for intermediaries have recently been published, supporting a similar model to the UK’s, through which affiliates are sponsored into the system.

The challenge for fintechs is to work out how to survive and thrive in an increasingly competitive market, while navigating new regulations and an ever-changing global marketplace.

— 

Media Contacts:
Hayley Schubert
Sling & Stone
hayleyschubert@slingstone.com
0431 651 418

Mitchy Koper
GM Communications and Marketing, CreditorWatch
mitchy.koper@creditorwatch.com.au
0417 771 778

About CreditorWatch

CreditorWatch is a leading commercial credit reporting agency, headquartered in Sydney. From sole traders through to ASX listed companies, more than 50,000 Australian businesses now use CreditorWatch to make affordable, informed credit decisions, avoid high-risk customers and ensure they get paid on time. CreditorWatch customers can easily search for and monitor the credit history, court actions, payment defaults and insolvency notices associated with any business entity in Australia (including sole traders, trusts and partnerships) giving them an incredibly accurate picture of the risk posed to their business.

The company was founded in 2011 and has offices in Sydney, Melbourne and Brisbane. Find out more at www.creditorwatch.com.au.

Investor Study Report 2020-2021

BTC Markets recently ran a survey with over 1,800 participants to find out more about what the average Australian cryptocurrency investor looks like. Far from the stereotypes perpetuated by pop culture, what we found is that Australian investors are as diverse in their motivations and reasons for investing as their counterparts in traditional markets.

With crypto hitting the mainstream in 2021, this timely report sheds light on the current state of play in Australia’s crypto industry, why investors are increasingly choosing this digital asset class, and what the industry in this country needs to do in order to become a leader in the global crypto scene.

Download the Investor Study Report 2020-2021

Openpay: Exporting Australian payments fintech to the UK & US

Openpay is an Australian fintech offering ‘buy now, pay later’ (BNPL) and business-to-business (B2B) payments services. The company began operating in Australia and New Zealand in 2013 and listed on the Australian Stock Exchange (ASX) in 2019. It has now launched in the United Kingdom (UK) and the United States (US).

In this case study, Openpay’s Group Chief Marketing Officer, Georgina Whalley takes us through the company’s export journey and future plans, including:

  1. the evolution of ‘buy now, pay later’ services in Australia
  2. how Austrade has helped Openpay’s global expansion
  3. the role of the UK-Australia FinTech Hub.

Fertile ground for fintech innovation

According to Whalley, the current model for BNPL financing was pioneered in Australia. Melbourne-based investment company, Meydan Group combined technology and digital banking to create a new payments service in 2013. The business spin-off eventually became Openpay.

‘Australians are tech-savvy consumers who are open to modern ways of conducting traditional transactions,’ says Whalley. ‘This makes Australia fertile ground for fintech companies like Openpay.’

Differentiation is key to success in the BNPL market

Demand for BNPL is surging – especially since the COVID-19 pandemic began. To succeed, Openpay focuses on niche industries to deliver growth.

‘Openpay has a strongly differentiated BNPL offering, which we call ‘buy now, pay smarter (BNPS),’ says Whalley. ‘We cater to demand in specific segments such as healthcare, education and home improvement.

‘Our idea is to enable access to major life purchases while minimising the financial risks for our customers’.

Austrade supports high growth-potential businesses

Openpay was selected by Austrade to participate in a program for high growth tech exporters in late 2020.

‘The Austrade program was a key milestone in our journey,’ says Whalley. ‘Access to Austrade’s network gave us a foothold within the larger fintech ecosystem.’

‘Austrade is a great partner for Australian businesses which are innovative and offer a ground-breaking proposition,’ she adds. ‘Program support from the Australian Government is a vote of confidence in high growth-potential startups.’

Austrade opens doors for overseas expansion

Openpay has participated in a number of events organised by Austrade since 2019. These events helped to open doors in overseas markets.

One event was part of the ‘UK-Australia FinTech Bridge’ collaboration. This took place in London earlier in early 2021. It focussed on the role of fintechs in the post-COVID-19 recovery. It helped Openpay understand changing regulation in the UK finance market.

‘Local regulations go a long way in informing our offerings and go-to-market strategies,’ says Whalley.

‘Setting up operations in an overseas market can be an uphill task for start-ups, particularly in mature and greenfield markets,’ she adds ‘We’re glad to have Austrade as a trusted and reliable ally because every new market we enter is a huge leap forward for us.’


About Austrade

The Australian Trade and Investment Commission (Austrade) is the Australian Government’s international trade promotion and investment attraction agency.

We deliver quality trade and investment services to businesses to grow Australia’s prosperity. We do this by generating and providing market information and insights, promoting Australian capability, and facilitating connections through our extensive global network.

To discover how we can help you and your business, visit austrade.gov.au or contact us on 13 28 78 (within Australia).

Airwallex raises $200M at a $4B valuation to double down on business banking

Business, now more than ever before, is going digital, and today a startup that’s building a vertically integrated solution to meet business banking needs is announcing a big round of funding to tap into the opportunity. Airwallex — which provides business banking services directly to businesses themselves as well as via a set of APIs that power other companies’ fintech products — has raised $200 million, a Series E round of funding that values the Australian startup at $4 billion.

Lone Pine Capital is leading the round, with new backers G Squared and Vetamer Capital Management, and previous backers 1835i Ventures (formerly ANZi), DST Global, Salesforce Ventures and Sequoia Capital China also participating.

The funding brings the total raised by Airwallex — which has head offices in Hong Kong and Melbourne, Australia — to $700 million, including a $100 million injection that closed out its Series D just six months ago.

Airwallex will be using the funding both to continue investing in its product and technology as well as to continue its geographical expansion and to focus on some larger business targets. The company has started to make some headway into Europe and the U.K. and that will be one big focus, along with the U.S.

The quick succession of funding and rising valuation underscore Airwallex’s traction to date around what CEO and co-founder Jack Zhang describes as a vertically integrated strategy.

That involves two parts. First, Airwallex has built all the infrastructure for the business banking services that it provides directly to businesses with a focus on small and medium enterprise customers. Second, it has packaged up that infrastructure into a set of APIs that a variety of other companies use to provide financial services directly to their customers without needing to build those services themselves — the so-called “embedded finance” approach.

“We want to own the whole ecosystem,” Zhang said to me. “We want to be like the Apple of business finance.”

That seems to be working out so far for Airwallex. Revenues were up almost 150% for the first half of 2021 compared to a year before, with the company processing more than US$20 billion for a global client portfolio that has quadrupled in size. In addition to tens of thousands of SMEs, it also, via APIs, powers financial services for other companies like GOAT, Papaya Global and Stake.

Airwallex got its start like many of the strongest startups do: It was built to solve a problem that the founders encountered themselves. In the case of Airwallex, Zhang tells me he had actually been working on a previous startup idea. He wanted to build the “Blue Bottle Coffee” of Asia Pacific out of Australia, and it involved buying and importing a lot of different materials, packaging and, of course, coffee from all around the world.

“We found that making payments as a small business was slow and expensive,” he said, since it involved banks in different countries and different banking systems, manual efforts to transfer money between them and many days to clear the payments. “But that was also my background — payments and trading — and so I decided that it was a much more fascinating problem for me to work on and resolve.”

Eventually one of his co-founders in the coffee effort came along, with the four co-founders of Airwallex ultimately including Zhang, along with Xijing Dai, Lucy Liu and Max Li.

It was 2014, and Airwallex got attention from VCs early on in part for being in the right place at the right time. A wave of startups building financial services for SMBs were definitely gaining ground in North America and Europe, filling a long-neglected hole in the technology universe, but there was almost nothing of the sort in the Asia Pacific region, and in those earlier days solutions were highly regionalized.

From there it was a no-brainer that starting with cross-border payments, the first thing Airwallex tackled, would soon grow into a wider suite of banking services involving payments and other cross-border banking services.

“In the last six years, we’ve built more than 50 bank integrations and now offer payments across 95 countries, payments through a partner network,” he added, with 43 of those offering real-time transactions. From that, it moved on to bank accounts and “other primitive stuff” with card issuance and more, he said, eventually building an end-to-end payment stack.

Airwallex has tens of thousands of customers using its financial services directly, and they make up about 40% of its revenues today. The rest is the interesting turn the company decided to take to expand its business.

Airwallex had built all of its technology from the ground up itself, and it found that — given the wave of new companies looking for more ways to engage customers and become their one-stop shop — there was an opportunity to package that tech up in a set of APIs and sell that on to a different set of customers, those who also provided services for small businesses. That part of the business now accounts for 60% of Airwallex’s business, Zhang said, and is growing faster in terms of revenues. (The SMB business is growing faster in terms of customers, he said.)

A lot of embedded finance startups that base their business around building tech to power other businesses tend to stay at arm’s length from offering financial services directly to consumers. The explanation I have heard is that they do not wish to compete against their customers. Zhang said that Airwallex takes a different approach, by being selective about the customers they partner with, so that the financial services they offer would not be in direct competition with those of its customers. The GOAT marketplace for sneakers, or Papaya Global’s HR platform are classic examples of this.

However, as Airwallex continues to grow, you can’t help but wonder whether one of those partners might like to gobble up all of Airwallex and take on some of that service provision role itself. In that context, it’s very interesting to see Salesforce Ventures returning to invest even more in the company in this round, given how widely the company has expanded from its early roots in software for salespeople into a massive platform providing a huge range of cloud services to help people run their businesses.

For now, it’s been the combination of its unique roots in Asia Pacific, plus its vertical approach of building its tech from the ground up, plus its retail acumen that has impressed investors and may well see Airwallex stay independent and grow for some time to come.

“Airwallex has a clear competitive advantage in the digital payments market,” said David Craver, MD at Lone Pine Capital, in a statement. “Its unique Asia-Pacific roots, coupled with its innovative infrastructure, products and services, speak volumes about the business’ global growth opportunities and its impressive expansion in the competitive payment providers space. We are excited to invest in Airwallex at this dynamic time, and look forward to helping drive the company’s expansion and success worldwide.”

Cape and Basiq join forces to speed up SME access to credit and spend management tools through Open Banking

Cape joins as a flagship partner of Basiq’s newly-released Startup Launchpad program

Sydney, 15th of September, 2021: Cape, the spend management platform issuing corporate cards, and CDR accredited Open Banking platform Basiq have today announced a new partnership to accelerate SME access to credit and tools to help them save time and money. 

Cape has joined as an exclusive flagship partner of Basiq’s newly-released Startup Launchpad. The program supports fintech innovators on their journey to scale, by helping qualifying early-stage startups access real-time financial data and access to Basiq’s suite of products for free. 

Integrating Basiq’s Open Banking technology into the Cape application and risk analysis process will allow prospective SME borrowers to seamlessly connect their business current

account to instantly verify their identity, account and income information with Cape. They plan to eliminate the need for customers to manually enter any details or send additional documentation to Cape, saving time and improving the customer experience. 

The partnership will also allow Cape’s customers to benefit from Basiq’s Open Banking technology by increasing the accuracy of the underwriting process by using real-time financial data. 

Damir Ćuća, Founder & CEO, Basiq, commented: 

“We’re proud to announce Cape as our flagship partner on the Startup Launchpad and look forward to seeing their journey. 

Basiq’s ability to verify account and transaction data in real-time will streamline the onboarding process for Cape’s business customers, as we work together to re-design business spending. 

This will set the standard for how all alternative finance lenders and banks can enhance the customer experience by utilising Open Banking technology to convert analogue processes to seamless digital journeys.” 

Ryan Edwards-Pritchard, Founder & CEO, Cape, commented

“We start as we mean to go on, our partnership with Basiq will help make it easier and faster for future customers to apply for our Cape products digitally. 

Open Banking technology offers a way to radically speed up the digital application process by offering instant decisions and personalised products. It also reduces the administrative burden on businesses when applying for credit or a change of terms. 

When looking for an Open Banking partner, Basiq was a clear favourite given they are the leading Australian open banking platform and a strong supporter of startups.” 

————— 

About Cape 

Cape is building APAC’s first spend management platform that issues virtual corporate cards designed to help companies strengthen their cash flow. Cape provides businesses with full visibility and control on purchasing to cut wasteful spending and the time taken on financial administration work relating to expense management. 

Cape will be launching its business credit card in the coming months. Founders, CFO’s & Accountants interested in learning more should download the Cape waitlist App from the Apple App Store & Android Playstore. 

www.hellocape.com 

About Basiq

Basiq is a CDR-accredited Open Banking platform that provides the building blocks of financial services. Our APIs enable secure access to customer financial data and tools to uncover valuable insights. Backed by AP Ventures, Salesforce Ventures, Reinventure, NAB Ventures and Plaid, over 200 fintechs and banks rely on our platform to deliver innovative financial solutions across lending, payments, wealth, digital banking and more. 

https://basiq.io 

Media contact
Ryan Edwards-Pritchard, ryan@hellocape.com, +61 (0)406 252 332

E&S e-invoicing using Attaché software

The E&S Electrical Wholesalers group has adopted e-invoicing as part of the digitisation of their Procure-to-Pay processes. E&S selected e-invoicing Access Point Link4 for the implementation, and it is the first business in Australia to use Attaché (an Access company) software for e-invoicing. 

Attaché is the financial management and payroll software provided by the Access Group. Attaché is yet another example of an accounting software package that has been proven to integrate with Link4. 

“We have been working closely with the Attaché team to enable e-invoicing for E&S, but now any business using Attaché can benefit from e-invoicing with Link4,” says Sam Hassan, CTO of Link4. 

Link4 allows E&S to deliver their e-invoices through the Peppol network. If a customer is not yet on the network, Link4 will still deliver the invoice securely, giving customers the option of downloading a copy as a PDF, XML or CSV file. 

Link4 is a complete invoicing solution that will deliver both e-invoices and regular invoices. For E&S, more than 1,000 invoices were sent via Link4 within the first 2 weeks of going live. 

Digitising E&S’s invoicing processes will enable safer and faster invoice processing for their customers. It will also improve cash flow for E&S and streamline the process for their customers, because the invoice will be delivered directly into their accounting software without the need for long hours of data entry. 

“It is great to see E&S join the e-invoicing network,” stated Robin Sands, Link4 CEO. “They have shown how easy it is for any Attache user to make life easier for their trading partners – especially their small business customers.” 

The partnership between Attaché (an Access company) and Link4 will be strengthened through this integration led by E&S. By digitising their procure-to-pay process, E&S are taking the lead in encouraging more businesses to adopt e-invoicing. The benefits as more companies embrace this technology will be felt throughout the entire business ecosystem. 

About Link4 

Link4 is an award winning, PEPPOL certified Access Point that provides seamless e-Invoicing services throughout Australia, New Zealand, Singapore and the UK. Counted amongst Link4’s clients are BOC Australia, the BGW Group, and thousands of Australian SMEs that use Xero, MYOB or QuickBooks as their accounting system.

Regtech startup LAB Group expands into global markets

LAB Group is an Australian regtech (regulation technology) startup that provides compliance services to the financial services industry.

The company has adopted a global expansion strategy in the middle of the COVID-19 pandemic. It set up its first European office in 2020 and has doubled its workforce in the first six months of 2021.

In this case study, Nick Boudrie, CEO, LAB Group explains how the company has evolved, including:

  • how his company navigates the regulatory environment
  • the challenges and opportunities in regtech
  • the role Austrade played in the company’s expansion strategy.

Australia is a growing hub for regtech expertise

Regulatory compliance is a critical aspect of risk management in the finance industry. It is also highly complex. For example, disclosure and privacy rules pull banks in opposite directions.

‘Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) legislation require disclosures and audit trails,’ says Boudrie. ‘Meanwhile data privacy laws mean that finance companies must adhere to strict information-security rules.’

LAB Group helps finance companies to navigate this difficult path. The company’s cloud-based services helps clients to manage customer enrolments so the process complies with finance regulations. This includes the use of biometric verification.

The challenges of creating regtech exports

According to Boudrie, creating an exportable regtech product is a constant challenge.

‘The regtech domain is unique,’ says Boudrie. ‘On the one hand it requires global consistencies and compatibility. On the other hand, regtech has to adhere to local laws and practices.

‘We have created standardised workflows and configurations for these jurisdictions, as well as industry verticals to minimise customisation requirements and speed up implementations. We also support them through the technology adoption process as their use of the platform expands, and as it evolves with ongoing regulatory and technological changes.’

Role of Austrade in overseas expansion

Austrade has worked with LAB Group to help them grow in overseas markets. For example, Austrade invited LAB Group to join the Australian FinTech Mission at key trade events.

Two of these events were ‘Money 20/20’ in Singapore in 2019 and the Paris FinTech Forum 2020. These events provided opportunities to network and make introductions. This enabled executives to meet potential partners and local regulators.

Boudrie says that participation in trade missions has helped his company grasp the subtleties of the regtech landscape in different markets. Attendance also helped LAB Group make key decisions about product roadmaps and market entry in different jurisdictions.

‘Austrade helped us to set up some of our global operations, and to structure them’, he says. ‘They also helped with product promotion and distribution.’

Made in Australia, for the world

LAB Group now has an impressive client list across the region. This includes customers in New Zealand and Japan. The company raised $4 million from Costa Asset Management in March 2021. It will use the capital to expand into new markets in Europe and Asia.

‘Regtech is well established in Australia, but we lag behind other countries when it comes to raising funds,’ says Boudrie. ‘A part of that is due to the lack of exposure and experience. To that extent, Austrade has been a valuable partner.’

‘Our Australian experience has helped us develop a robust suite of solutions,’ he adds. ‘To expand, however, we need to understand specific markets. With new capital, we look forward to consolidating our offerings and expanding our global footprint.’


About Austrade

The Australian Trade and Investment Commission (Austrade) is the Australian Government’s international trade promotion and investment attraction agency.

We deliver quality trade and investment services to businesses to grow Australia’s prosperity. We do this by generating and providing market information and insights, promoting Australian capability, and facilitating connections through our extensive global network.

To discover how we can help you and your business, visit austrade.gov.au or contact us on 13 28 78 (within Australia).

 

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Videos

Ep 2: Fintechs Acceleration of Growth Since COVID

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