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.

The post Emerging Markets Are Pioneering Payments Innovation | PayerMax & Standard Chartered | Singapore FinTech Festival 2024 appeared first on FF News | Fintech Finance.

At Singapore Fintech Festival we spoke to Sergey Nazarov, co-founder of Chainlink, to find out how blockchain is reshaping finance. They’re at the heart of the decentralised finance revolution and are pioneering a number of ways to foster greater trust in the technology. 

Nazarov points to a future where advanced, secure, and interoperable smart contracts power the global financial system. He lets us know what’s needed to get there. 

Watch our in-depth interview to find out about:

• Swift’s role in enabling 11,000+ institutions to interact with blockchain-based assets. 
• Which asset managers are leveraging blockchain for new tokenized funds.
• The power of the Chainlink Runtime Environment (CRE).

The discussion above highlighted blockchain’s growing influence in institutional finance, the significance of interoperability, and the need for regulatory clarity to drive further adoption. Read on to find out more. 

Appetite for Blockchain in Singapore and Southeast Asia

Speaking at the Singapore Fintech Festival we were keen to find out his thoughts on this region and the regulator’s appetite for this new technology. Nazarov was happy to commend the Monetary Authority of Singapore (MAS) and Project Guardian for fostering a conducive regulatory environment for blockchain technology. An inspiration to the rest of the world, they provide regulatory clarity, critical for executing compliant blockchain transactions. MAS’s approach has attracted not only local entities but also international institutions, including ANZ Bank, UBS, and SBI, showcasing its global appeal. The framework offers a secure foundation for blockchain-based activities, removing barriers that often hinder innovation in more uncertain regulatory climates.

According to Nazarov, Southeast Asia, particularly Singapore, is experiencing rapid growth in blockchain adoption due to those favorable regulations and the technology’s dual benefits for retail and institutional users. On the retail side, blockchain can revolutionise payments through innovations like stablecoins. Chainlink’s tools, such as data oracles and cross-chain protocols, play a role in building a robust market where this technology can have an impact. Nazarov emphasized the role of the Chainlink Runtime Environment (CRE) in streamlining blockchain interactions, accelerating the adoption of advanced financial products in the region.

Nazarov goes on to explain how CRE reduces development time from months to days by enabling developers to use familiar programming languages like Go and TypeScript. This streamlined approach not only accelerates innovation but also enhances the reliability of blockchain applications with Nazarov even likening the CRE’s transformative potential to past breakthroughs like COBOL in the 1970s and Java Runtime in the 1990s.

Integrating SWIFT with Blockchain for Tokenized Asset Transactions

Chainlink has also integrated with SWIFT’s global payment systems to bridge traditional finance and blockchain. There are few greater votes of confidence. With SWIFT’s network of over 11,000 institutions, this partnership allows seamless access to blockchain-based digital assets for SWIFT users. It means efficient interactions with blockchain technologies through familiar systems, reducing friction and opening opportunities for widespread blockchain integration. It’s equally transformative for the blockchain community, as it extends the reach of their assets to a broader, more traditional audience.

Another step forward in increasing adoption of blockchain in institutional finance is tokenized funds. Nazarov explained that major asset managers, such as BlackRock, going down this route signals a significant shift in the financial landscape. Chainlink’s solutions, including on-chain integration of Net Asset Value (NAV) data and SWIFT-powered fund subscription and redemption processes, simplify tokenized fund operations. This innovation reduces operational friction, enabling asset managers to scale tokenized fund offerings efficiently.

2024 Breakthroughs and Future Predictions

As well as some thoughts on Chainlink’s CCIP, Nazarov identified Chainlink’s growing adoption as a global standard in data, cross-chain communication, and computation as a major breakthrough for 2024. Looking ahead, Nazarov predicted that regulatory clarity would play a key role in accelerating blockchain adoption globally. He envisions a future where blockchain, smart contracts, and oracle networks redefine the global financial system, integrating DeFi innovations with traditional financial infrastructure.

To watch more great interviews from events this year, head to our website. 

The post This Company Is Making Blockchain Happen | Chainlink | Singapore Fintech Festival 2024 appeared first on FF News | Fintech Finance.