Thredd’s Damien Gough said that in today’s economically challenged environment, many Fintechs seeking growth must expand to new countries. However, with every country having unique characteristics, companies cannot simply cut and paste their playbook from one into another.
Thredd helps such firms quickly and successfully make those transitions, its head of Asia Pacific Gough said. A two-plus-decade veteran in APAC Fintech, Gough said many Fintechs are now winning significant business in Asia from that specialized approach.
Gough said few regional or global aspirants have strong knowledge of each region’s unique traits and how to deal with local regulators. Even securing a bank information number (BIN) is complex. Thredd is connected to roughly 40 BINs. That is one step in smoothing the process of launching in a new region.
Another crucial plus is having on-site teams in each region. Those personnel know the banks and regulators. They are naturally familiar with the local customs and social cues that outsiders often miss.
Thredd has a Chinese-speaking team that works at every stage, from sales engagement, solution design, onboarding, account management and customer service.
“All of that can be done in Chinese,” Gough said. “We’re winning some of the biggest names in Asia right now.”
That attentiveness is particularly welcome as Chinese companies look outside of their borders as GDP slows. Thredd has worked with hundreds of Fintechs and processes billions in annual prepaid and debit transactions.
Fintech is also getting more complex, with AI forcing accelerated fraud detection responses. Compliance continues to evolve. Newish concepts like tokenization add to the challenges.
“There are lots of complexities you got to bring together,” Gough said. “However, how to navigate all that gets taken away as a pain point because we’ve got it all there; we know the players and how to work them, and we can set realistic expectations.”
Whether it be retail brands, forex companies, cross-border payment firms, or digital banks, more want to introduce their own cards. Being new to the card space in an evolving and increasingly competitive environment, it makes even more sense to work with an experienced hand. This is doubly so if the long-term vision is a presence in multiple countries.
APAC’s unique characteristics
Gough said APAC is an exciting region. It’s at the front of the digital adoption curve, and its post-pandemic digital conversion is significant. Contactless payment and digital wallet use have surged. Tokenized credentials are helping drive digital card use.
APAC does have its challenges. Unlike the EU or the 50 United States, institutions have to work with each company separately. Working with Thredd, Gough said firms can quickly identify a BIN sponsor while working with regulators in parallel to accelerate the process.
Many APAC Fintechs seeking growth are looking internationally. Some from countries like Vietnam and Indonesia have painstakingly developed productive regulatory relationships and now want to meet a hunger for more international products.
Stablecoins, Virtual supplier payment cards: What’s new
Gough is excited about stablecoins, which are seeing early adoption across APAC. Tier 1 banks are testing concepts, attracted by the potential cost savings on international transactions. More partnerships are forming between stablecoin issuers and exchanges.
“It’s only a matter of time before adoption picks up,” Gough said.
Also, keep an eye on virtual supplier payment cards. Through tokenization, they can be pre-funded for specific time frames and purposes. Gough sees notable Asian brands using such cards on Visa and Mastercard infrastructure as they seek efficiencies they can’t find on SWIFT.
“The networks are talking about dropping, over time, 16-digit (primary account numbers) and tokenizing,” Gough said. “The tokenization element means the movement of money becomes even easier, less risky and more efficient.”