The value of gross digital payments across the six largest ASEAN economies is forecasted to rise to close to US$1.2 trillion by 2025, according to the World Economic Forum. The rapid evolution is leading to a growing need for seamless, secure, and efficient cross-border payment solutions.
Cross-border payments in the region have lately been impacted by two key trends: re-globalisation and domestic payment schemes. Re-globalisation has seen many markets stepping into the spotlight as global data and digital commerce become more inclusive. Many countries that were previously underserved or had underdeveloped payment infrastructures are now emerging as key players in the global economy.
Simultaneously, domestic payment schemes have taken off in Southeast Asia over the past two or three years, with most being spearheaded by government initiatives such as unified QR payment codes to boost financial inclusion and reduce dependency on international payment systems. Within the past month alone, payment systems in Vietnam, Cambodia, and Malaysia have announced new linkages to enhance cross-border capabilities.
These dual trends have created both challenges and opportunities for cross-border payment providers like Singapore-based paytech PayerMax, who act as a bridge between users, merchants, and local financial institutions, building trust between the three parties, and supporting companies across the local divide in the process of supporting their global brands.
Wang Hu, co-founder of PayerMax, spoke to Fintech News Singapore recently on the company’s ability to offer reliability and trust in cross-border payments while adhering to a variety of regulatory needs across multiple jurisdictions.
He said,
“In the complex payments ecosystem, PayerMax has focused from the outset on serving the specific needs of global internet companies expanding into emerging markets like the Philippines, Indonesia, and Singapore. Our goal is to provide these merchants with the most efficient and effective payment solutions that ensure a seamless customer experience.”
To achieve this, we have strategically partnered with leading e-wallet providers in Southeast Asia. While the competition among e-wallets in the region is fierce, PayerMax offers a unique value proposition. By acting as a trusted partner for global merchants, we help super apps attract more business and differentiate themselves in the crowded market.”
Wang said.
PayerMax’s business operations span across 150 countries and regions worldwide, including Southeast Asia, the Middle East, and Latin America. This network supports over 600 payment methods, more than 70 transaction currencies, catering to diverse global user payment preferences. PayerMax is headquartered in Singapore and also has offices in Indonesia, the Philippines, Malaysia, Saudi Arabia, UAE, Brazil, Mexico, South Korea, China etc.
PayerMax focuses on regulatory compliance in the cross-border payment arena, constantly enhancing payment security. Holding licenses from regulatory authorities in key markets such as Singapore, the Philippines, Thailand, Indonesia, Saudi Arabia, UAE,and Hong Kong (China), alongside official certifications from global banks, so PayerMax maintains a financial-grade risk control system.
Addressing three-tier challenges in cross-border payments
Wang believes cross-border payments challenges can be broadly sorted into three levels: entry-level, payment service capabilities, and value-added services.
At the entry level, key challenges include safety, compliance, pricing, and coverage. Not all payments solutions providers can handle the complexity of securing transactions, navigating a regulatory framework across different jurisdictions, and offer cost-effective solutions for cross-border payments.
As the business operations continue to deepen, the next level is payment service capabilities: success rate, fraud prevention, chargeback management, and system uptime. Once the fundamental requirements are met, companies must focus on the operational performance of their payment system. This includes ensuring high transaction success rates, implementing advanced fraud prevention mechanisms, managing chargebacks effectively, and meeting strict system uptime requirements.
The third level is value-added services like foreign exchange (FX) risk control, payment marketing and trading tools. Beyond the core payment functionalities, payment companies should also identify merchant’s pain point needs to to diversify its own business. For example, FX management and treasury solutions also play a crucial role to differentiate payment companies, as a lot of global players are comfortable dealing with the US dollars or euros, but are unfamiliar with emerging market currencies like the Indonesian rupiah or the Philippine peso.
“Successfully addressing all three levels of challenges requires a comprehensive approach. Only then can the company build a successful, scalable cross-border payment system that meets the evolving demands of the digital economy,”
he added.
By leveraging its experience in emerging markets, PayerMax provided a gaming client with targeted payment marketing support during a major gaming tournament. As a result, the client experienced a 153% increase in transaction value and an 180% increase in order volume during the campaign.
To global internet large enterprise companies, PayerMax offers a comprehensive service set, which includes global acquiring, disbursement, foreign exchange management, risk management, and also marketing tools. It ensures a seamless user experience by continuously optimising key areas like success rates, smart routing, and chargeback management, all of which are crucial to raise the industry standard of best-in-class services.
Perfecting data, one vertical at a time
PayerMax built its extensive global network by perfecting its data set, algorithm and anti-fraud capabilities, one vertical at a time. Its in-house tech platform is able to intercept very high-risk transactions, prevent significant and large-scale frauds, while boasting an industry-leading chargeback rate of 0.1%.
“Our anti-fraud system utilises advanced machine learning algorithms and also artificial intelligence to analyse vast data sets, identifying patterns that signal potential fraud. We have invested heavily in R&D to ensure our system remains at the cutting edge of technology,”
Wang explained.
One of PayerMax system’s key strengths is real-time functionality, allowing the team to detect and block potential fraud transactions before they are completed. It is started by fine tuning the engine within some specific verticals, and then optimised this with first-hand data. The merchants comes from different industries including digital entertainment, gaming, ecommerce, online education, etc.
“PayerMax is here to empower global business growth and drive the transition to a cashless society, and has forged partnerships with local banks, financial institutions, fintech companies, and even neo banks. That’s going to continue for the long-term, as we do our part in the payments ecosystem and help facilitate the industry transition,”
Wang said.
To learn more about how PayerMax can help you scale your business globally with cross-border payments, visit booth 4G31 at Singapore Fintech Festival (SFF) 2024, which will be taking place at Singapore EXPO from November 6 to 8.
Follow PayerMax’s LinkedIn Page for updates.
Featured image credit: edited from freepik
