Companies Like SHEIN Are Working With Airwallex – Here’s Why, & How It Could Help Your Business
Wallich Street, Singapore
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April 17, 2024 08:25 AM Eastern Daylight Time
By Meg Flippin, Benzinga
Thanks to the proliferation of social media and e-commerce, small businesses are no longer local players but can cater to customers across the globe. But for many, growing without borders and doing business in far-flung corners of the world can be costly thanks to antiquated banks that charge inflated fees and make transacting in multiple currencies and payment methods cumbersome. That can hamper growth and dampen global ambitions for some small and medium-sized businesses.
The good news is that the old way of managing finances for global small and medium businesses is being flipped on its head thanks to Airwallex and its global business account. The Melbourne-founded financial technology company was built with a single purpose – to empower businesses with the ability to collect, manage and spend funds all over the world. And it’s doing precisely that with its global business account.
Leveling The Playing Field
A one-stop solution for small businesses, Airwallex’s borderless business account enables enterprises to pay suppliers, manage team expenses and accept payments from around the world with just one account.
Using the account, business owners can collect and hold multiple currencies without paying any monthly fees or meeting a minimum requirement, and they can offer shoppers several different local payment options no matter where their customers are in the world. Airwallex says it distinguishes itself by providing businesses the capability to accept payments from customers in their local currency and consolidating all transactions on your accounting platform. It also integrates with e-commerce marketplaces like Amazon (NASDAQ: AMZN) and TikTop Shop or platforms like Shopify (NYSE: SHOP) or WooCommerce
Additionally, Airwallex says it can send funds more affordably and efficiently than traditional banks – it has a large geographical reach and can have payments in over 150+ countries and regions in 60+ currencies while providing the advantage of converting funds at more competitive exchange rates compared to banks.
But the fintech doesn’t stop there. Its borderless Visa (NYSE: V) cards come with zero international fees. If that isn’t enough, its mobile app enables business owners to upload receipts for approval, reconcile expenses in one place, sync with your account systems like Xero, and get an overview of finances in real time.
Click here to see how businesses use Airwallex to save money and expand.
Filling An Unmet Need
Airwallex is addressing a market that has long been ignored by traditional banks that deem small businesses too small and too risky to transact with. But they are also the backbone of the U.S. and global economy and are growing by leaps and bounds thanks to technology.
In 2022, the global small-business market was valued at $119.35 billion. By 2030, it is projected to reach $229.2 billion, growing at a CAGR of 8.5%. Meanwhile, global commerce is taking off big time with 54% of global consumers expected to increase their cross-border purchasing in the next six to twelve months, according to Airwallex. Of that group, 77% would abandon their cart if their preferred payment method wasn’t offered.
It is for those reasons that Airwallex is doing such brisk business. The company reports over 100,000 customers, has an annual transaction volume of over $60 billion, and can help its businesses accept payments from major credit card schemes and more than 160 local payment methods. Using its platform, small and medium-sized businesses can open domestic and foreign currency accounts within minutes to collect payments from worldwide customers. What’s more, Airwallex says it can save businesses up to 80% in foreign exchange fees, and the majority of funds arrive on the same day. That is important to businesses that need quick access to cash flow to continue to grow operations.
Since launching in 2015, the company says it has raised $900 million in venture funding at a valuation of $5.6 billion, with big-name investors including Sequoia, DST Global, Greenoaks Capital, Salesforce Ventures, LonePine Capital, Square Peg Capital and 1835i Ventures (ANZ Bank).
Timing Is Everything
It only makes sense that companies like Airwallex would level the playing field, leveraging technology to empower companies to conduct business cheaper, bigger and better.
“E-commerce is more global than ever,” said Kai Wu, Chief Revenue Officer at Airwallex, and, “Despite ongoing economic uncertainty and slowing global growth, it is clear that consumer spending will continue to grow. With the global cross-border e-commerce market set to reach $7.9 trillion by 2030, it is critical for international merchants to solve consumer pain points and deliver the best possible customer experience to thrive in this competitive market.”
Airwallex customers, including SHEIN, GOAT and Campilify, are already thriving. SHEIN, the global fashion and lifestyle e-retailer, for example, is using Airwallex to collect online payments from its customers in more than 150 countries worldwide. With shoppers paying in multiple currencies and payment methods, by using Airwallex, SHEIN was able to eliminate costly conversion fees and streamline payouts to its global base of sellers.
The same story is playing out for GOAT, an online seller of used and new sneakers, and Campilify, Australia’s largest campervan, motorhome and caravan-sharing company. But it’s not just brand names that are benefiting from Airwallex. The company reports that even smaller enterprises are experiencing significant savings through its platform.
Take Two More Glasses, the Hong Kong leading fine wine and spirits e-retailer and importer across Asia Pacific, as one example. Since using Airwallex, its global revenue has increased by 30% largely because the tool is easier, cheaper and faster for overseas customers to pay with. Then there’s CROSSNET, the Miami, Florida-based maker of a four-way volleyball net. Since using Airwallex, the company said it expects to save more than $2,000 a month in fees, saving an extra $24,000 a year.
The world is becoming borderless and so is online shopping. Banks are ignoring the small and medium businesses doing brisk business in all corners of the world. Airwallex isn’t. It is stepping up to fill a void, leveraging technology to level the playing field – and companies across the globe are taking notice. To learn more about how Airwallex works, click here.
Featured photo by Ibrahim Boran on Unsplash.
Airwallex is a leading global financial platform for modern businesses, offering trusted solutions for global payments, treasury and expense management, and embedded finance. With our proprietary infrastructure, Airwallex removes the friction from global payments and financial operations, allowing businesses of all sizes to unlock new opportunities and grow beyond borders. Proudly founded in Melbourne, Airwallex powers over 100,000 businesses globally and is trusted by brands such as Brex, Rippling, Navan, Qantas, SHEIN and many more.
This post contains sponsored content. This content is for informational purposes only and is not intended to be investing advice.
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