Indonesian unicorn Xendit has broadened its operational horizon by extending its services to Thailand, marking another step in its expansion across Southeast Asia. This move comes as part of the company’s strategic efforts to explore new markets, building on its existing presence in Malaysia, the Philippines, and Indonesia.

Tessa Wijaya, one of the co-founders, has been appointed to lead the firm’s operations in Thailand, reflecting the company’s approach to tailoring its services to align with the specific needs of local businesses.

Thailand’s burgeoning digital economy, projected by the Google e-Conomy SEA 2023 report to escalate to a value between US$100 billion and US$165 billion by 2030, has been a key factor in Xendit’s decision to enter the market. This growth potential places Thailand as the second-largest digital economy in the region, highlighting the strategic importance of this expansion.

Tessa commented on the venture, stating the company’s intent,

“With our hyperlocal expertise and global best practices, we will be bringing more local payment methods and direct integrations to banks in Thailand that can help to catalyse economic progress and drive positive change for the communities.”

Xendit is entering a competitive landscape in Thailand, challenging established players like TrueMoney and Rabbit Line Pay, which currently hold a major share of the electronic money market. This competitive environment is set against a backdrop of widespread adoption of digital payment solutions, with reports indicating that 94% of the Thai population has engaged in cashless transactions.

Since its launch in 2015, Xendit has shown notable growth, servicing over 6,000 clients across various sectors, from SMEs and ecommerce startups to large corporations. The company offers a comprehensive suite of financial services, including payment processing, international money transfers, and business operation solutions, processing 320 million transactions annually.

Despite its expansion, Xendit has faced operational recalibrations, evidenced by a series of layoffs, including a recent reduction in January and a prior cutback in August 2023, impacting its product team. These adjustments reflect the company’s strategic realignments as it navigates the challenges of scaling in a rapidly evolving fintech landscape.

Featured image credit: Xendit