How This New Fintech Billionaire Is Cashing In On Cross-Border Payments
Airwallex, an Australian cross-border payments startup valued at $11 billion, is under fire amid allegations it shared customer data with China. The company, founded in 2015 by Jack Zhang and Lucy Liu, has grown into a global payments platform challenging the likes of Stripe and Ramp.
The allegations, reported by Forbes, claim Airwallex improperly transferred transaction data to servers in China, raising concerns about privacy and national security. Airwallex has denied the claims, stating it complies with all data protection laws in the countries where it operates. The controversy comes as Airwallex prepares for a potential IPO, which could value the company at over $15 billion.
Airwallex's rapid ascent has been fueled by the booming cross-border payments market, which is projected to reach $250 trillion by 2027. The startup processes $100 billion in annual transaction volume and serves over 100,000 businesses worldwide. Its latest funding round, a $200 million Series G led by BlackRock, pushed its valuation to $11 billion, making its co-founders billionaires on paper.
The company competes directly with Stripe, which is valued at $65 billion, and the corporate expense management platform Ramp, valued at $8.1 billion. Airwallex differentiates itself by offering multi-currency accounts and low foreign exchange fees, aimed at small and medium-sized enterprises. However, the data-sharing allegations could derail its expansion in key markets like the United States and Europe.
Analysts say the allegations underscore the mounting geopolitical tensions surrounding Chinese-linked tech companies. Airwallex's connection to China is tenuous—it was founded in Melbourne by Chinese-born Australian entrepreneurs—but the involvement of Chinese venture capital firms, including Tencent and Sequoia Capital China, has attracted scrutiny. If regulators in the U.S. or EU decide to investigate, Airwallex could face restrictions or fines that harm its growth.
What happens next will depend on the outcome of any formal investigations. Airwallex has said it will cooperate fully with authorities. The company is also reportedly exploring an IPO on the Australian Securities Exchange or Nasdaq in 2027. Investors will be watching closely to see if Airwallex can navigate the privacy storm while maintaining its breakneck growth in the competitive cross-border payments space.
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How This New Fintech Billionaire Is Cashing In On Cross-Border Payments
Amid allegations of sharing customer data with China, Australian payments startup Airwallex, now valued at $11 billion, is gunning for Stripe and Ramp.
Jeff Kauflin, Forbes Staff
Forbes
2 min read
7/10
Key Takeaways
- Airwallex is valued at $11 billion after a $200 million Series G round led by BlackRock.
- The startup processes over $100 billion in annual transaction volume for 100,000+ businesses.
- Co-founders Jack Zhang and Lucy Liu became billionaires on paper following the valuation.
- The company faces allegations of sharing customer transaction data with Chinese servers.
- Airwallex competes with Stripe ($65B valuation) and Ramp ($8.1B) in the cross-border payments market.
Frequently Asked Questions
Airwallex is an Australian fintech company that provides cross-border payment solutions for businesses. It is valued at $11 billion and processes over $100 billion in annual transactions.
Airwallex has been accused of sharing customer transaction data with servers in China. The company denies the allegations and says it complies with all data protection laws.
Airwallex competes primarily with Stripe, a digital payments giant valued at $65 billion, and Ramp, a corporate expense management platform valued at $8.1 billion.
Airwallex earns revenue through foreign exchange fees, payment processing charges, and subscription fees for its multi-currency accounts and treasury services.
Airwallex is reportedly exploring an initial public offering on the Australian Securities Exchange or Nasdaq, potentially in 2027, with a valuation expected above $15 billion.
Airwallex was founded in 2015 by Jack Zhang and Lucy Liu, both Chinese-born Australian entrepreneurs. They remain the co-CEOs and majority shareholders.
Topics
Original source
www.forbes.com
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