Challenges for International Expansion

Many merchants have long aimed to expand internationally but often found themselves deterred by the complexity involved. Airwallex seeks to address this challenge through its introduction of an in-store point-of-sale (POS) system.

Based in Australia, the fintech company is trying to distinguish itself in a competitive market by providing a physical solution that enables businesses to accept in-person payments across multiple countries via a single platform—reducing the need for local partnerships on a market-by-market basis. These offline transactions can also be integrated with online payments within Airwallex’s broader ecosystem, which includes reporting tools and back-office functionalities.

According to Don Apgar, Director of Merchant Payments at Javelin Strategy & Research, this approach is compelling because it ties data processing to financial acquisition, aligning the interests of merchants.”

Operational Hurdles

For those looking to expand internationally, the process often requires onboard local acquirers, navigating regulatory complexities, and managing a network of domestic vendors. These obstacles can prove insurmountable, even for younger business owners who are more inclined towards international growth.

The traditional cross-border model’s high costs and time demands frequently make such ventures seem unfeasible.

Airwallex’s Strategy

Airwallex is positioning its robust infrastructure as the key to its success. With nearly 90 regulatory licenses across approximately 50 markets and direct connections to local payment networks in over 100 countries, the company can handle currency conversions efficiently.

This setup allows for funds to be held, converted, and redeployed within specific local markets, an advantage that sets Airwallex apart from competitors who still require immediate payouts. If Airwallex manages to carve out a niche in this market, its global infrastructure will likely play a more critical role than the point-of-sale hardware.

Apgar agrees, stating, The global POS platform built by Airwallex is notable for tech innovation, but what truly sets them apart are their extensive global banking licenses.”