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Miguel Cordon · · 5 min readFomo Pay’s parent sees profit dip in 2024 as expenses double
Faced with rising competition, Fomo Global Holdings – the parent company of digital payments provider Fomo Pay – experienced declining revenue and profits last year.
The Singapore-based firm’s revenue dropped 8.1% year on year to S$23.9 million (US$18.4 million), according to its latest audited financial statements.
Its profit before taxes fell 46% to US$7.1 million over the same period.
In recent years, the company has been investing to broaden its product mix. It acquired investment platform CapBridge in 2023, which now powers its treasury product. CapBridge also operates 1exchange, a secondary market trading platform for listing and trading private company shares, bonds, and tokenized real-world assets.
Fomo Global has also been gradually expanding its Web3 offerings. The firm first received a license from the Monetary Authority of Singapore to offer crypto-based payments in 2021. Within six months, it began letting its merchants as well as corporate and financial clients convert between fiat currencies to the stablecoin USDC.
“It may not be mainstream right now, but probably in the near future, we will see merchants accepting bitcoin or ether,” Fomo Pay founder and CEO Louis Liu said in 2021.
Fomo Pay founder and CEO Louis Liu / Photo credit: Fomo Pay
Integrating newly acquired platforms into its current business, however, has raised costs. At the same time, the firm has had to contend with currency volatility and potential pricing pressures due to stiffer competition from banks and other fintech companies.
Fomo Global did not respond to Tech in Asia’s multiple requests for comment.
Contracting remittance
Fomo Pay’s backers include AMTD Group and HashKey Capital. Its last fundraise was in 2022, when it secured US$13 million in a round led by Jump Crypto.
The platform offers three main products. First, its point-of-sale solution enables merchants to accept various payment options like credit cards, e-wallets, QR codes, and buy now, pay later.
Second, it offers virtual accounts that businesses can use to receive funds, make payouts, and convert multiple currencies.
See also: Line Man Wongnai eyes food delivery crown as fintech push deepens
Third, it provides treasury solutions for companies looking to invest idle funds. Clients can choose from various asset classes such as money market funds, bonds, and public market products.
Profits, dividends amid slowdown
Escalating competition in payments
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Fomo Global Holdings' profit before taxes fell 46% year on year in 2024. Analysts say rising competition was one of many reasons.
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