FinTech Company Stripe Planning to Expand to Asia
One of the fastest-growing digital payment companies known as Stripe has revealed its plan to expand its operation across Asia. Stripe plans to begin operating in Japan, Southeast Asia, India, and China. As a result, Stripe has increased its workforce by about 40% to meet the new expansion target.
The U.S. FinTech company started in San-Francisco and currently has a regional headquarters in Singapore. In 2020, this payment company launched its operations in Indonesia by allowing businesses to carry out interbank transfers using the Stripe platform.
With over ten (10) years of existence, this U.S. company has acquired thousands of clients, including Amazon. As regards its Asian expansion project, Stripe added a job posting on LinkedIn where it stated that it was seeking experienced individuals from China, Southeast Asia, and Japan.
Additionally, Stripe was making efforts to adapt to the countries’ laws and payment options they intend to start operations. Stripe allows merchants to carry out a good number of banking services as well as accept digital payments.
In April 2020, Stripe was able to raise a whopping $36 billion and is currently projected to worth twice that amount. Interestingly, due to Stripe’s reduction in processing time, the company has started winning merchants in Japan.
Even more, Stripe is also making plans to launch a product that will all its merchants make use Konbini. Konbini is a payment method that allows people to purchase products and services online and then pay with cash at any store convenient to them.
Although Stripe is already beginning to penetrate the Asian market, the company is expected to face some challenges with differing regulations and laws across Asia. Stripe is also expected to develop a localized strategy that will make them capable of competing against other local payment processors.
Thanks to the COVID-19 pandemic, there has been a massive increase in digital payments. As a result, regulators of the digital payment industry have made efforts to regularize and standardize digital payments to promote better growth for the sector.
Interestingly, Asia has a large e-commerce presence with the likes of Shoppee, Rakuten, and Alibaba, to mention a few. These players have made digital payments thrive with prospects of growing bigger in the coming years.
Some of the opportunities Strive stand to gain if they can become one of the leading payment processors in Asia includes:
Southeast Asia currently boasts of high digital penetration, with over 40 million people making use of digital payments. This and several other factors make Southeast Asia a fertile ground for Stripe.
China is one of the few countries that boasts of a large market for digital payments. Thanks to major e-commerce players like Alibaba, Stripe stands a chance of cashing in on the available market. Stripe can also tap into niches that are yet to be explored by local players.
Just like China, India boasts of having some major e-commerce players like Amazon, JioMart, and Flipkart. With these firms and the growth potential in India, Stripe stands a chance of cashing in on India’s digital payments market.
One of Stripe’s advantages over other local digital payment players in Japan is its shorter processing time. Merchants in Japan are already showing interest in embracing Stripe since it offers a far lesser processing time. If Stripe is able to further shorten digital payment processing time, they are likely going to take over the market in Japan.
Overall, Stripe’s move to Asia is a great move. With the increase in the use of digital payments thanks to the COVID-19 pandemic and the expected increase in the coming years, it is safe to say that there is no better time than now for Stripe to love into the Asian market.