Airwallex is a financial technology company that provides cross-border payments and currency exchange services. The company was founded in 2015 in Melbourne, Australia by Jack Zhang, Max Li, Lucy Liu, Xijing Dai, Ki-lok Wong
Airwallex’s platform allows businesses to make and receive international payments in over 130 currencies. The platform also offers currency exchange services, which allow businesses to buy and sell currencies at competitive rates.
The company provides innovative solutions that help businesses overcome the complexities and inefficiencies associated with traditional international payment processes. With its cutting-edge technology, seamless user experience, and a wide range of financial services, Airwallex is empowering businesses to transact globally with ease and efficiency. From small startups to multinational corporations, Airwallex is making cross-border payments faster, cheaper, and more accessible, transforming the way businesses operate on a global scale.
Airwallex’s platform is designed to be easy to use and affordable. The platform is also integrated with a number of popular accounting and e-commerce platforms, which makes it easy for businesses to integrate Airwallex into their existing workflows.
Airwallex is headquartered in Melbourne, Australia, and has offices in Hong Kong, Singapore, the United Kingdom, and the United States. The company has raised over $1.2 billion in funding from investors such as Sequoia Capital China, Tencent, and GIC.
Airwallex is a rapidly growing company. The company’s annual revenue has grown from $10 million in 2017 to $100 million in 2020. Airwallex is now one of the leading providers of cross-border payments and currency exchange services.
Here are some of the key features of Airwallex’s platform:
Easy to use: Airwallex’s platform is designed to be easy to use, even for businesses that are not familiar with cross-border payments.
Affordable: Airwallex’s fees are competitive, and the company offers a number of pricing plans to fit the needs of businesses of all sizes.
Integrated with popular platforms: Airwallex’s platform is integrated with a number of popular accounting and e-commerce platforms, which makes it easy for businesses to integrate Airwallex into their existing workflows.
Global reach: Airwallex has a global network of offices, which allows businesses to make and receive payments in over 130 currencies.
Airwallex’s platform is a valuable tool for businesses that are looking to expand their global reach. The platform is easy to use, affordable, and integrated with popular platforms.
Here are some of the company’s achievements:
- In 2019, Airwallex was named one of the “Top 50 Fintech Companies in the World” by KPMG.
- In 2020, Airwallex was named one of the “World’s Most Innovative Companies” by Fast Company.
- In 2021, Airwallex was named one of the “Top 100 Fintech Companies in the World” by CB Insights.
Airwallex is a rapidly growing company. The company is well-positioned to continue to grow in the years to come.
Founding History of Airwallex
The founding history of Airwallex dates back to 2015 when four ambitious entrepreneurs, Jack Zhang, Lucy Liu, Xijing Dai, and Max Li, identified a pressing need for a more efficient and cost-effective solution for cross-border payments. These founders, with diverse backgrounds in finance, technology, and business, came together to establish Airwallex and disrupt the traditional international payment landscape.
The idea behind Airwallex originated from the personal experiences of the founders who encountered significant challenges and frustrations when making cross-border payments for their respective businesses. They recognized that existing solutions were plagued by high fees, slow transaction times, complex processes, and limited transparency, which hindered businesses’ ability to operate effectively on a global scale.
Determined to address these pain points, the founders set out to create a platform that would streamline cross-border payments and empower businesses of all sizes to transact seamlessly across different currencies and geographies. With this vision in mind, they began developing Airwallex’s innovative technology and building a team of experts in finance, technology, and compliance.
In 2016, Airwallex secured its initial seed funding of $3 million, which provided the necessary capital to further develop its platform and infrastructure. The company continued to attract significant attention from investors, raising $13 million in a series A funding round in 2017. This funding injection enabled Airwallex to accelerate its growth and expand its global presence.
Since its founding, Airwallex has experienced remarkable growth and achieved several key milestones. The company launched its first product, a multi-currency virtual wallet, which allowed businesses to hold and manage funds in different currencies. This offering laid the foundation for Airwallex’s comprehensive suite of financial services.
In subsequent years, Airwallex expanded its product portfolio to include features such as global payment collection, foreign exchange services, cross-border payments, and corporate card issuance. The company also developed a robust and scalable infrastructure, leveraging cutting-edge technology, artificial intelligence, and machine learning algorithms to optimize payment processes and deliver a seamless user experience.
The success and rapid growth of Airwallex attracted the attention of prominent investors and financial institutions. In 2019, Airwallex raised $100 million in a series C funding round, led by DST Global and other high-profile investors, which brought the company’s valuation to over $1 billion, earning it the coveted status of “unicorn” startup.
With its strong financial backing and innovative solutions, Airwallex has expanded its global footprint, establishing offices in major financial hubs around the world, including Melbourne, Hong Kong, Shanghai, London, Singapore, and San Francisco. The company has also obtained various regulatory licenses and certifications, ensuring compliance and building trust with its clients.
Today, Airwallex is trusted by thousands of businesses across industries, ranging from small and medium-sized enterprises (SMEs) to multinational corporations. Its comprehensive and user-friendly platform has transformed the way businesses make and manage cross-border payments, enabling them to transact with greater efficiency, cost-effectiveness, and transparency.
Products and Services of Airwallex
Airwallex offers a comprehensive suite of products and services that cater to the diverse financial needs of businesses operating in the global market. By leveraging cutting-edge technology and innovative solutions, Airwallex aims to streamline cross-border payments, currency exchange, and other financial operations. Let’s explore the key products and services provided by Airwallex:
Borderless Account
Airwallex’s Borderless Account is a digital multi-currency account that allows businesses to hold, manage, and transact in multiple currencies. It provides users with local bank account details for different countries, eliminating the need for separate bank accounts in each country of operation. With the Borderless Account, businesses can receive and make payments globally, facilitating seamless cross-border transactions.
Global Payments
Airwallex simplifies cross-border payments by offering efficient and cost-effective solutions. Through its platform, businesses can make international payments to suppliers, vendors, and partners in different currencies, utilizing competitive exchange rates and low fees. Airwallex’s global payment infrastructure ensures secure and fast transactions, reducing the complexities associated with traditional banking channels.
Foreign Exchange Services
Airwallex provides foreign exchange (FX) services that enable businesses to convert currencies at competitive rates. By accessing real-time interbank rates, businesses can execute FX transactions with transparency and minimal fees. Airwallex’s platform automates currency conversions, allowing businesses to efficiently manage their FX needs and mitigate currency risks.
Corporate Cards
Airwallex offers corporate cards that empower businesses to streamline expense management and control spending. These cards provide employees with a convenient and secure way to make business-related purchases while allowing businesses to track expenses in real-time. The corporate cards integrate seamlessly with the Airwallex platform, providing centralized control and visibility over expenditure.
API and Developer Tools
Airwallex provides Application Programming Interfaces (APIs) and developer tools, allowing businesses to integrate Airwallex’s capabilities directly into their existing systems and applications. This enables businesses to leverage Airwallex’s infrastructure for payments, currency exchange, and other financial operations within their own platforms, enhancing efficiency and improving the customer experience.
Compliance and Risk Management
Airwallex prioritizes compliance and risk management, ensuring adherence to global regulations and industry standards. The company employs robust anti-money laundering (AML) and know-your-customer (KYC) procedures to verify user identities and prevent fraudulent activities. Additionally, Airwallex incorporates advanced security measures and encryption protocols to protect sensitive data and ensure the safety of transactions.
Business Insights and Analytics
Airwallex provides businesses with access to real-time transaction data, analytics, and reporting tools. Through its user-friendly dashboard, businesses can monitor their financial activities, track payment flows, and generate customized reports. These insights help businesses gain a better understanding of their financial performance, optimize cash flow management, and make data-driven decisions.
APIs for Partnerships
Airwallex offers APIs and partnerships for businesses that want to leverage Airwallex’s capabilities to enhance their own product offerings. By integrating Airwallex’s technology and infrastructure, businesses can extend their services to include global payments, foreign exchange, and other financial solutions, providing added value to their customers.
Airwallex provides a range of products and services that enable businesses to navigate the complexities of cross-border payments, foreign exchange, and financial operations. Its offerings, including the Borderless Account, global payments, foreign exchange services, corporate cards, API integrations, compliance and risk management, business insights, and partnerships, empower businesses to transact globally with efficiency, cost-effectiveness, and transparency. Airwallex’s innovative solutions contribute to the growth and success of businesses operating in the global marketplace.
Business Model of Airwallex – How does Airwallex make money?
Airwallex operates under a business model that combines various revenue streams and strategic partnerships to deliver innovative financial services for businesses operating globally. Let’s delve into the details of Airwallex’s business model:
Currency Conversion Fees
Airwallex generates revenue through currency conversion fees. When businesses use the platform to convert one currency into another, Airwallex applies a small fee based on the exchange rate and transaction amount. By offering competitive rates and low fees, Airwallex provides businesses with cost-effective currency conversion solutions.
Airwallex’s currency conversion fees depend on the following factors:
- The amount of the currency exchange: The larger the amount of the currency exchange, the lower the fee.
- The currency pair: The exchange rate between the two currencies involved in the exchange.
- The Airwallex pricing plan: Airwallex offers a number of pricing plans, and the currency conversion fees vary depending on the plan.
Airwallex’s currency conversion fees are typically lower than the fees charged by banks and other traditional financial institutions.
Here is an example of Airwallex’s currency conversion fees:
- Exchange amount: $10,000
- Currency pair: USD/EUR
- Airwallex pricing plan: Standard
- Currency conversion fee: 0.3%
This means that Airwallex would charge $30 in currency conversion fees for a $10,000 exchange of USD to EUR.
Payment Processing Fees
Airwallex earns revenue through payment processing fees. When businesses make cross-border payments using the Airwallex platform, Airwallex charges a fee for facilitating the transaction. These fees may vary based on factors such as transaction volume, currency pairs, and the speed of payment settlement.
Here are the Airwallex payment processing fees:
- Standard: 1%
- Premium: 0.6%
- Enterprise: 0.3%
The Airwallex payment processing fees are calculated as a percentage of the transaction amount. The fees are charged in the currency of the recipient’s bank account.
For example, if you send $100 to a recipient in Australia, you would be charged a processing fee of $1 (1% of $100) if you are on the Standard plan. If you are on the Premium plan, you would be charged a processing fee of $0.6 (0.6% of $100).
Interchange Fees
Airwallex earns interchange fees on corporate card transactions. When businesses use Airwallex’s corporate cards for purchases, Airwallex earns a percentage of the transaction value as interchange fees, which are typically charged by card networks and shared with the payment processor.
Interchange rates vary depending on a number of factors, but generally speaking, you can expect to pay an average rate of 1.3% – 3.5% of the transaction value plus a small fixed fee (usually US$0.2 per transaction).
Interest on Funds
Airwallex can earn interest on the funds held in the Borderless Account. As businesses maintain balances in multiple currencies within their Borderless Account, Airwallex may invest those funds to generate interest income. This allows Airwallex to generate additional revenue while providing businesses with the convenience of holding funds in different currencies.
API Usage Fees
Airwallex offers APIs and developer tools for businesses to integrate Airwallex’s capabilities into their own platforms. Airwallex may charge usage fees for businesses that leverage these APIs, enabling them to access Airwallex’s infrastructure for cross-border payments, currency exchange, and other financial services.
It is currently free of cost.
Strategic Partnerships
Airwallex collaborates with various strategic partners to expand its offerings and reach. These partnerships may involve integrating Airwallex’s services into third-party platforms or leveraging the capabilities of other fintech providers to enhance its own solutions. Airwallex may earn revenue through revenue-sharing agreements or other collaborative models with its partners.
Banking Partnerships
Airwallex works with banking partners to provide certain financial services. Through these partnerships, Airwallex can leverage the banking infrastructure, regulatory licenses, and compliance frameworks of its partners. In some cases, Airwallex may share revenue or pay fees to its banking partners for utilizing their services.
Enterprise Solutions
Airwallex offers tailored solutions for enterprise clients, including customized pricing and services based on their specific requirements. These solutions may include additional features, dedicated support, or integration options to meet the unique needs of larger businesses. Airwallex generates revenue by charging enterprise clients based on negotiated terms and the scope of services provided..
In summary, Airwallex’s business model is built on a combination of revenue streams, including currency conversion fees, payment processing fees, interchange fees, interest on funds, API usage fees, and strategic partnerships. By offering innovative financial services, leveraging technology, and collaborating with partners, Airwallex provides businesses with efficient and cost-effective solutions for cross-border payments, currency exchange, and other global financial operations.
Investors and Funding of Airwallex
Airwallex was founded in 2015 and has raised over $1.2 billion in funding from investors such as:
Sequoia Capital China: Sequoia Capital China is a venture capital firm that has invested in a number of successful technology companies, including ByteDance, Alibaba, and Meituan.
Tencent: Tencent is a Chinese multinational technology conglomerate that has invested in a number of successful technology companies, including WeChat, QQ, and Riot Games.
GIC: GIC is a sovereign wealth fund that invests on behalf of the government of Singapore. GIC has invested in a number of successful technology companies, including Grab, Sea, and Razer.
Square Peg Capital: Square Peg Capital is an Australian venture capital firm that has invested in a number of successful technology companies, including Afterpay, Canva, and Atlassian.
IDG Capital Partners: IDG Capital Partners is a Chinese venture capital firm that has invested in a number of successful technology companies, including Baidu, Alibaba, and Tencent.
SoftBank Vision Fund: SoftBank Vision Fund is a venture capital fund that is backed by SoftBank Group. SoftBank Vision Fund has invested in a number of successful technology companies, including Uber, Alibaba, and ByteDance.
Airwallex’s funding rounds have been as follows:
- Seed round: $3 million in 2017
- Series A round: $13 million in 2017
- Series B round: $80 million in 2018
- Series C round: $100 million in 2019
- Series D round: $300 million in 2021
- Series E round: $100 million in 2022
The company is valued at $5.5 billion post Series E funding.
Airwallex’s funding has helped the company to grow rapidly. The company’s revenues have grown by 184%, ARR passed $200 million in September 2022, and it’s processing close to $50 billion in annualized transactions. Airwallex is now one of the leading providers of cross-border payments and currency exchange services.
Also Read: Stripe – Success Story, Business Model, Revenue, Growth & Funding
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