How Airwallex’s APAC Payment Leaders Mixer helped drive a clearer vision for embedded finance

Embedded financial solutions are giving traditional banking a run for its money.

The integration of the former into platforms and marketplaces has elevated the digital customer journey. It has also allowed businesses to access more markets and offer a seamless payment experience to customers – sans the rigorous processes needed at traditional banks. As such, more companies are starting to favor embedded financial solutions to meet their needs.

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In Singapore, for example, a survey on embedded finance by global fintech platform Airwallex found that 67% of SMEs remain skeptical about traditional banks’ abilities to meet their needs in financial services. On the other hand, 90% of respondents expressed high confidence in SaaS platforms or marketplaces that offered embedded financial solutions.

According to David Brady, enterprise sales director for Southeast Asia at Airwallex, this high confidence in fintech and digital services is largely attributed to how these platforms can help businesses manage rising costs and optimize user operations.

Such findings were just one of the many points covered at Airwallex’s recent APAC Payments Leaders Mixer held in November last year.

Bringing payment leaders together

Through the mixer, Airwallex wanted to bring together strategy, growth, payment, and product leaders from across the Asia-Pacific region and give them the opportunity to discuss and exchange ideas.

“We really wanted to give payments and growth leaders a platform to connect and learn from each other,” says Brady.

All in a day’s work / Photo credit: Airwallex

Airwallex joined in the discussions too. Primarily, the firm shared insights it had gained from two pieces of research it conducted earlier this year. The first was a survey conducted on Singapore SMEs, and the other was a report on the state of global embedded finance.

“We wanted to show that we’ve built one of the most comprehensive global embedded finance solutions around, as well as the value that it can unlock for businesses and their customers,” Brady adds.

Leading the way for global payment acceptance for enterprises

Through its research, Airwallex uncovered several pain points that businesses face with regards to payments and other financial needs.

For example, when it came to receiving payments abroad, 52% of SMEs in Singapore struggled with lengthy processing and settlement times, while 47% faced limited payment options and currencies for customers. Additionally, 43% of respondents said that high transaction fees due to forced currency conversion was an issue.

These businesses also faced challenges when it came to paying out funds to vendors, suppliers, employees, and contractors. More specifically, they highlighted issues such as management of multiple payment methods and currencies, processing and disbursement delays, and a lack of automation in payment processes.

According to Brady, embedded finance can help businesses manage these challenges in two ways.

David Brady, enterprise sales director for Southeast Asia at Airwallex / Photo credit: Airwallex

Firstly, by providing coverage across multiple geographies, embedded financial solutions can address the issues in dealing with foreign currencies and overseas payment options. For instance, they can help expand the range of foreign currencies the firm wants to transact in.

Secondly, embedded financial solutions bring a layer of digital infrastructure that allows businesses to automate their payment and disbursement processes, helping them maintain low costs while driving operational efficiency.

By implementing these solutions, companies will be able to better monetize and keep track of payments, streamline compliance across their markets, and further their global ambitions.

A future powered by embedded finance might not be too far away either, according to Airwallex’s report. It found that 75% of Singapore SMEs are prepared to switch out their existing banking solutions with comparable alternatives from their software providers, while 48% of them are looking to migrate to a different payment solution provider in the next 12 months to satisfy their cross-border transaction needs.

“This willingness is a positive sign,” says Brady, “We hope that through further education and market use cases, more companies will explore these alternatives, which can be faster, more cost-efficient, and effective.”

Brady also notes that embedded finance is increasingly discussed within the industry, but it isn’t always understood. As such, events like Airwallex’s mixer give industry players the opportunity to learn more about the topic.

New year, new plans in the pipeline

In the coming years, Brady says that Airwallex will continue helping businesses navigate challenges, minimize costs, and ensure the seamless operation of their embedded financial solutions.

As for Airwallex itself, it’s looking to expand its headcount in Singapore – where its headquarters is located – to more than 200 next year. It also aims to bring more firms under its wing, similar to its recent acquisition of MexPago, a Mexican payment service provider.

Additionally, Airwallex is working with Singapore Airlines’ Kris+, a lifestyle rewards app, to expand the latter’s platform to Australia.

“We are extremely excited about the potential of embedded finance in Southeast Asia,” says Brady, “This is the right time for businesses to explore how it can improve customer experiences and unlock new revenue streams.”

Airwallex is the go-to global payment acceptance solution for enterprises.

Find out more about Airwallex’s latest report here.

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This content was produced by Tech in Asia Studios, which connects brands with Asia’s tech community. Learn more about partnering with Tech in Asia Studios.