Bridging Asia’s digital divide, one transaction at a time

In recent years, Asia has witnessed a meteoric rise in digital payment systems to meet the growing consumer demand for cashless transaction options. The region’s digital leap – which saw entities and individuals in many countries adopting a mobile-first approach – has fostered an environment ripe for the development of fintech solutions tailored for Asian markets. 

Yet, the digital divide remains a significant barrier in Asia, with many small- and medium-sized enterprises (SMEs) remaining on the fringes of the digital wave. In the Philippines, for instance, SMEs make up 99.5 per cent of all businesses and employ 63 per cent of the workforce, yet account for a mere 36 per cent of value to the national economy. 

Mr Peng Yang, president of Ant International, pointed out how while large enterprises are already at new frontiers of tech innovation, “tens of millions of SMEs are still hampered by steep transaction costs and technology barriers”. He added that such divides pose a major obstacle to the next era of economic transformation. 

Recognising the need to bridge this divide, Ant International has emerged as a leading player in the global fintech space, boasting a suite of cutting-edge digital solutions designed to serve both businesses and individuals. 

EXPANDING ITS GLOBAL FOOTPRINT

The international arm of Ant Group, Ant International, is dedicated to revolutionising global commerce through digital innovation. It aims to provide effortless payment services for consumers and support merchants worldwide with innovative and trusted solutions – such as Alipay+, which offers a suite of global cross-border payments, marketing and digitalisation solutions.

For instance, Alipay+ empowers SMEs to expand their business presence, including across both offline and online channels while integrating a variety of payment methods, thus broadening their reach to a wider customer base. With Alipay+ D-store, SMEs can set up an online store within minutes to connect and easily manage store operations.

To date, the Alipay+ ecosystem serves close to 30 payments partners as well as tens of millions of merchants spanning more than 50 countries, with connectivity to over 1,000 online platforms.

“Through Alipay+, we aim to simplify the global cross-border payments landscape and facilitate seamless interactions between consumers and businesses,” said Mr Yang. 

Since its acquisition by Ant International in 2019, WorldFirst has transformed from a foreign exchange services provider to a comprehensive cross-border digital payments and financial services platform to better support SMEs engaged in international trade. Today, WorldFirst serves over one million SMEs in various regions, including Greater China, Southeast Asia, Europe and Australia.

In June 2022, Ant International introduced ANEXT Bank, one of Singapore’s first digital banks for SMEs. Licensed and regulated by the Monetary Authority of Singapore, the digital wholesale bank is designed to address banking and financing challenges faced by regional SMEs, with the aim of driving inclusion and growth at scale. ANEXT Bank now serves SMEs in Singapore as well as 11 other markets across Asia, and has seen an average 40 per cent month-on-month increase in cross-border transactions. 

AMPLIFYING GROWTH THROUGH REWARDING PARTNERSHIPS 

A firm believer in the power of collaboration to drive long-term growth, Ant International has forged partnerships with organisations such as the Infocomm Media Development Authority (IMDA) in Singapore. Their collaborative endeavours, focused on trust technologies and inclusion projects, aim to elevate trust and efficiency in digital commerce. Ant International is currently participating in IMDA’s Privacy-Enhancing Technologies sandbox, working with Nanyang Technological University to pioneer privacy-protecting technologies. Additionally, discussions are in progress to explore initiatives that promote sustainable digitalisation and greener digital practices. 

Mr Yang shared: “We believe that open collaborations of this nature will empower us to harness the full potential of digital technologies to drive innovation, growth and inclusivity both locally and globally.”

Ant International’s dedication to bolstering fintech capabilities and advancing digitalisation within local markets is evident in its partnerships with regional e-wallet providers like GCash in the Philippines and TrueMoney in Thailand. These collaborations have resulted in the development of superapps, delivering significant convenience and promoting financial inclusion.

With the transition to a digital economy, superapps are emerging as crucial platforms that offer a broad spectrum of financial services. TrueMoney, for instance, is more than a mere e-payment platform. Apart from remittance services, it connects merchants and consumers through its rewards platform and extends digital loans to a variety of local businesses. It also recently partnered with Ant International to streamline cross-border mobile payments between Thailand and China.

As part of its Alipay+-in-China programme, Ant International has introduced 10 Asian e-wallets to the Chinese mainland payments system. This integration streamlines transactions for users from Hong Kong SAR, Macau SAR, Malaysia, Mongolia, Singapore, South Korea and Thailand, allowing them to use their local e-wallets for payments.

With the recent launch of the Ant International Foundation, the company is dedicated to environmental protection, digital inclusion for underserved communities,  and the cultivation of digital leadership and talent. 

Said Mr Yang: “We envision a future where every individual and business can leverage digital technologies to achieve sustainable growth. Our mission is singular: To help realise the promise of digital technologies, bringing impactful changes to every small business and community we serve.”

Discover how you can make a difference to your business and community with Ant Group.

Learn more about the future of finance at the Singapore FinTech Festival from Nov 15 to 17, 2023.