Amidst Global Complexity it’s a Great Time to be in Fintech Business: David Messenger

SINGAPORE, November 30, 2023 – Southeast Asia is a high growth region and with a reorganisation of supply chains in the post-Covid era, some of the big winners will emerge from this region, said Mr David Messenger, CEO of Global Businesses for PingPong, a global payment platform. Talking exclusively to AsiaBizToday at the recently concluded Singapore Fintech Festival, Mr Messenger was bullish about countries like Vietnam, Indonesia, Philippines alongwith Bangladesh, India in the larger Asia Pacific region.

Founded in 2015, PingPong is a leading global technology company built on the vision that empowers cross-border digital commerce to grow. As a cross border payments company, Mr Messenger was of the view that it is a great time to be in this business. With new supply chains evolving and increasing acceptance of digital payments, cross border trade finance has come to play a critical role for businesses of all sizes.

The key to growth is about addressing volatility, regulatory changes, and evolving supply chains besides cutting edge technology combined with local teams, and strong local connections with valued partners. PingPong, he mentioned, had been working at setting up deep presence in the developing markets of Southeast Asia, an essential element to understand and respond to local regulations as well as put in place a robust risk management framework. “It is critical to quickly adapt to changing foreign exchange market (FX) and legal landscapes in this business,” he said.

Tieup for BNPL

PingPong has also announced a partnership with MODIFI, a fintech leader in digital trade finance, to offer worldwide B2B Buy Now, Pay Later (BNPL) option, enabling exporters and cross-border merchants to offer BNPL payment options to their B2B customers, which will help them accelerate global trade expansion and increase revenues.

The cooperation leverages digital technology, along with a robust international bank account and payment financing infrastructure. Sellers can benefit from the advantage of instant invoice payments, which reinforces their financial liquidity. Meanwhile, buyers enjoy a range of adaptable and flexible payment terms.

PingPong recently secured approval as a Major Payment Institution in Singapore by the Monetary Authority of Singapore (MAS). This allows PingPong to offer a comprehensive range of payment services, facilitating faster global expansion for local businesses.

Over the years, PingPong has accommodated business flows from over 200 markets and regions. It also claims a tested and proven global infrastructure having processed over US$100 billion in transaction volume besides connecting over 100 international e-commerce marketplaces and ecosystem partners, as well as over 100 international financial institutions.

Fintech Startups

Given the drying up of venture funding and a proliferation of fintech start-ups, Mr Messenger foresees a consolidation in the industry. “Except for some level of seed capital, funding for advanced series has been difficult to come by. Only those companies who have well defined domestic or cross border markets will be able to survive as business becomes more competitive. PingPong is well positioned to grow, having built a robust network of partners,” he said.

Mr Messenger is optimistic about the introduction of Central Bank Digital Currencies (CBDCs) by central banks and feels that private companies like PingPong will have a very important role to play in its adoption. He, however, said that it will be a while before CBDCs come into the cross-border market as it will involve a lot of changes to the existing regulations as well as legal structures among companies. “The future is very bright and interesting for the fintech business and particular for the cross-border payments industry.”