The new wave of globalization and its economic effects drives pan-entertainment, manufacturing and e-commerce change. As a bridge between businesses and consumers, global payments are in the spotlight with their huge market potential and ever-changing atmosphere of innovation.
The fintech market is undergoing a rapid shift, with the rise of new technologies, such as Open Banking, generative AI and A2A (Account-to-Account) payments having a major impact on business models. According to McKinsey research, the payments industry’s revenue and valuation growth are consistent with optimism about the future, with likely revenue growth of 6% to 8% over the next five years. Market is moving into a phase where is more competitive and uncertain than ever.
In this interview, Lewison Chen, CEO of PhotonPay, shares insights into the company’s journey expanding into the global market. Founded in Hong Kong in 2015, PhotonPay has become a prominent player in the global fintech space, offering digital financial infrastructure and services to businesses worldwide. Lewison shares pearls of wisdom from his decades-long career and offers valuable lessons learned and advice for companies looking to make their mark in the global market.
EqualOcean: Tell us about the genesis of PhotonPay
Taking a step back to the end of 2017, the People's Bank of China(PBOC) released three significant policy documents, foretelling a reshaping of the mobile payment market landscape in China, which became increasingly narrow and filled with uncertainty.
At that time, PhotonPay, as a startup, had two choices: one was to delve into China's lower-tier market, and the other was to enter the overseas fintech market, truly facing global users. One of my favorite questions to ask myself when faced with a big decision is, “In 20 years from now, what will I wish I had done?”My answer at the time set PhotonPay on the path to globalization in 2018.
Certainly, our decisions are undoubtedly wise. Whatever was, is. Cross-border e-commerce has truly become mainstream in recent years, and the nature after domestic adoption, is globalisation. We were quite lucky to catch that wave.
EqualOcean: What accomplishments are you most proud of over the past few years?
Financial services, as an industry, is a multiple-trillion- dollar revenue pool dominated by tens of thousands of banks, and its essence lies in combining specific scenarios to provide in-depth solutions. From the outset, PhotonPay has focused on building a global digital financial infrastructure, which is our biggest challenge and greatest opportunity.Unlike a single payment business, this requires us to maintain a long-term perspective, continuously optimizing our products while solving a significant problem for our customers.
My team and I have gone through a relatively painful growth process but it has also given us the opportunity to started a company in a field where there is a trillion-dollar revenue and tocontinue compounding our success over the next decade or even longer.
EqualOcean: What are the trends in the fintech market?
Instances of regional and domestic networks with local control over key infrastructure are proliferating, challenging the standardization of solutions across geographies. PhotonPay embraces global regulation with a proactive attitude, having applied for and successfully obtained payment licenses or permits in Hong Kong, the United States, Canada, the United Kingdom, etc., and partners with international tier-one clearing banks and licensed financial institutions to offer secure, reliable, and compliant infrastructure.
Payment fragmentation is another trend we have observed, which is a challenge that hinders the fluidity of the global financial landscape. Payment preferences can differ significantly from one region or country to another, leading to disparities in how payments are handled.Imagine a one-stop-shop for payments, integrating diverse methods into a single, user-friendly interface, what PhotonPay is currently working on. We hope to leverage PhotonPay's efficient business processes, low-cost payment fees, and high-level security compliance mechanisms to impact millions of businesses globally and empowering them to expand.
Showcases based on the PhotonPay
In 2023, PhotonPay became the pioneer fintech card issuer in the Greater China region of Discover® Global Network, which is an important breakthrough for us in the multi-currency corporate credit card business.
Here, we can share a solution provided for the online travel agent(OTA) by leveraging the capabilities of the Discover® Global Network. Compared to other industries, the supply chain of OTA is more complex, involving not only hotels, airlines, car rentals, and other transportation and travel service segments, but also frequently dealing with transaction changes, cancellations, and delays. Now, OTAs can leverage PhotonPay Issuing to request virtual cards to make these payments. Cards can be set up for a specific amount and currency, along with additional authorization controls.
The second case is about our embedded finance. The API-first solution allows businesses to personalize their layout and features, ensuring an experience tailored to users. For example, a global supply chain platform integrated our embedded finance, they’ve made it straightforward to collect top-ups locally in multiple markets and to seamlessly convert currencies at competitive rates. Their customers can then pay supplier invoices and employee reimbursements at scale through fast, cost-effective local payment rails.
EqualOcean: For emerging markets, does PhotonPay have any expansion plans?
PhotonPay has always been eager to explore the global financial market. We recognize the immense potential in emerging markets and take them as the key area for our company's expansion in the coming years. Currently, we are actively positioning ourselves in emerging markets such as Southeast Asia, Latin America, the Middle East, and Africa. We believe that in the near future, we will also achieve more breakthroughs in our product.
At the same time, to ensure the steady development in emerging markets, we are also closely monitoring policy risks and compliance risks around the world and adjusting our strategies in a timely manner.
EqualOcean: What are PhotonPay's key CSR practices? '
The essence of corporate social responsibility is to sustainably address social issues. As a global fintech company, PhotonPay builds a digital global payment and financial platform through technology, providing enterprises of all sizes with convenient financial management for collections and payments, as well as embedded financial services.
In 2023, PhotonPay has once again upgraded its security and fraud prevention measures to ensure that its business operations comply with the laws and regulations of various countries, creating a healthy and sustainable cross-border business environment for merchants.
In terms of sustainable development, PhotonPay's environmental footprint is relatively small, but we pay close attention to the risks and opportunities related to the environment and climate in the regions where our companies, employees, and businesses are located, contributing to build a community of human destiny.
EqualOcean: What is your dream for PhotonPay?
PhotonPay has gradually integrated into the international market and has achieved some key milestones. Looking to the future, I have three major expectations for the strategic planning of PhotonPay:
First is internationalization. We will continue to expand into global markets, not only helping Chinese companies go international but also hoping to provide payment services for more local businesses.
Second is ecosystem development. We will continue to deepen cooperation with industries worldwide, offering customized solutions to help businesses succeed in the global market.
Lastly is intelligence. We will continuously introduce artificial intelligence technology to enhance our capabilities in risk control, anti-money laundering, customer service, and other areas, ensuring that PhotonPay remains at the forefront of competition in the future.
I truly believe that with the further expansion of the global payment network and the continuous application of innovative technologies, PhotonPay will continue to lead in the field of payments and help more businesses successfully go global.
EqualOcean: Any tips for businesses entering the global market?
Understanding the consumer mindset is critical―not only to enter the market but to thrive within it. Consumer preferences and behaviors can vary significantly across different regions and countries due to factors such as cultural, economic, social, and political differences.
Secondly, maintaining compliance, not only in operational aspects but also in payment compliance. A compliant, secure payment platform can enable businesses to match the level of friction to the situation, thriving in different markets
Exchange rate fluctuations are another major challenge for businesses when going global, particularly in emerging markets. Using financial derivatives such as forward contracts to control exchange rate volatility is effective. Companies can also consider adopting localization strategies in different markets to reduce currency risks.
About PhotonPay
Founded in 2015, PhotonPay is a digital financial infrastructure providing global cash management services to businesses. Our innovative core products include Global Accounts, Card Issuing, Online Payments, Payouts, FX Management and Embedded Finance.
With strong compliance strength and technological innovation capabilities, PhotonPay committed to building a digital payment network to takes the friction out of global payments and enhance operational efficiency for businesses operating on a global scale.
Headquarters in Hong Kong and expand localized service to 8 international offices, PhotonPay partners with a network of top-tier banks, global financial institutions and serves more than 200,000 enterprises expanding globally