Emerging Markets Are Pioneering Payments Innovation | PayerMax & Standard Chartered | Singapore FinTech Festival 2024

Emerging markets are pioneering payments innovation. At the Singapore Fintech Festival, we spoke to Wang Hu, Co-founder & President of Payermax, and Luke Boland, head of FinTech East at Standard Chartered, to find out how they're navigating internal and international payments in emerging markets.  Local expertise is needed, not just to address regulations but also to understand the paying habits of local consumers. Through partnerships like this one, it's possible for merchants to access the market. Read on for thoughts on…

• Regulatory and infrastructure challenges across Southeast Asia and the Middle East.
• The two major trends reshaping global commerce and payment systems.
• The key role of APIs in real-time connectivity and more.

The Partnership: Leveraging Strengths for Growth

Key to this discussion was an exploration of the synergies between a global bank and an innovative payments company, highlighting opportunities in emerging markets and the challenges of cross-border payments. Wang Hu began by reflecting on the three-year partnership they have with Standard Chartered. He emphasized how the bank’s global infrastructure and local expertise have enabled Payermax to enhance their offerings, particularly for merchants with global operations. With Standard Chartered’s support, Payermax has been able to streamline payment solutions, reduce transaction costs, and improve processing efficiency. For merchants who centralize treasury management in APAC, Standard Chartered's liquidity management products have also been invaluable. Boland described the collaboration as symbiotic, with Payermax’s presence in emerging markets aligning well with Standard Chartered’s footprint. He also noted that the partnership has helped Standard Chartered to adapt its products to support new business models. Together, the companies are building robust solutions to meet the needs of a global clientele.

Trends Shaping the FinTech Landscape

Wang Hu identified two key macro trends influencing the industry, that on first glance, may appear to oppose one another.

1. Re-globalization: Contrary to the notion of de-globalization, trade and digital commerce are becoming more inclusive, spotlighting previously underserved regions. Cross border payments are growing at pace, with the total CBP value in 2023 sitting at $190 trillion and predicted to grow to $290.2 trillion by 2030.
2. Rise of Domestic Payment Schemes: On the other hand, governments in the region are promoting local payment networks to boost financial inclusion and reduce reliance on international systems. While these initiatives create growth opportunities, they also demand that cross-border payment companies integrate local schemes into their global offerings.

Finding the balance between these two shifts is key to success for merchants wanting to access this market. 

Challenges in Emerging Markets

Now operating in emerging markets comes with its challenges, something Wang acknowledges. These include underdeveloped payment infrastructure, currency volatility, and compliance complexities. For merchants, navigating issues like payment success rates, fraud prevention, and chargeback management can be daunting. Payermax addresses these by ensuring compliance, obtaining licenses across multiple markets, and integrating with local payment methods, from e-wallets to cash-based systems. Boland added that Standard Chartered’s long-standing presence in these regions provides critical regulatory insights. He stressed the importance of clear communication and shared understanding between the bank and its partners to address local nuances, such as FX controls and non-resident payment requirements. A big thing that will help with this is advancements like APIs that improve real-time connectivity and liquidity management, enabling seamless fund movement and last-mile distribution. This technological progress is vital for meeting the demands of a globalized economy.

Regional Focus and Expansion Strategy

Southeast Asia remains a cornerstone for Payermax, with Singapore as its global headquarters. Wang shared the company’s “less is more” philosophy, emphasizing deep regional integration over rapid expansion. Over the past four years, Payermax has built a solid network in Southeast Asia, working with leading e-wallet providers and local banks. This foundation supports thousands of global merchants. The company has also successfully replicated its Southeast Asia model in the Middle East. Starting in Saudi Arabia, Payermax has expanded to nearly 10 countries in the region. The future is bright for Payermax, and they’re clearly a valued partner of Standard Chartered. We’ve got more great interviews from the conference right here on our website.