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This week: Alipay, Alpha FX, Amazon, LianLian Global, OFX, Payoneer, ScalaPay, Remitly, Wave, WorldFirst, Zepz
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Remitly, one of the leading digital remittance players, set its proposed IPO pricing range yesterday, implying a $7bn valuation. We publish a 30+ page teardown report on Remitly today to dig into all the details. Enjoy!

In the online seller space, we've been busy too. Off the back of Amazon launching its Payment Service Provider (PSP) program earlier this year, we spoke to the CEOs of Payoneer, WorldFirst, LianLian and OFX to produce an in-depth report on the sector. 

And finally, we cover B2B-focused Alpha FX's half year earnings as it rebounds strongly.

PSPs report · Remitly teardown · Alpha FX · news · context · archive

Inside Amazon's PSPs program

Ecommerce has surged during the pandemic, including among online marketplaces, where the number of merchants selling cross-border has increased significantly. This has prompted increased scrutiny and regulation, including Amazon’s launch of its Payment Services Provider (PSP) Program. But what impact has this had, and how are these PSPs reacting? We explore these issues and more in our latest downloadable report.

Our report, 'Online Sellers and Cross-Border Payments: The State of the Industry in a Changing Ecommerce Landscape' takes a deep dive into the challenges and concerns facing online sellers, and the myriad ways in which PSPs are responding.

It includes exclusive interviews with the CEOs of key companies participating in Amazon's PSP program, as well as a detailed analysis and breakdown of the different products and services being offered to online sellers. We look at how sellers' needs have been changing and how the products offered to them are developing. Pricing is always a hot topic, and we look at that too.

The overall feedback on the Amazon program is very much positive (from those in it) and it will be interesting to see whether other ecommerce sites follow Amazon's lead. Amazon also provides a unique dynamic as it has its own offering to online sellers too.

The report includes insights from:

  • LianLian CEO David Messenger
  • OFX CEO Skander Malcolm
  • Payoneer CEO Scott Galit
  • WorldFirst CEO Jeff Parker
and plenty more.
Download our Online Sellers and Cross-Border Payments report
For more background articles and context on payment service providers see the context section at the end of this letter

PSPs report · Remitly teardown · Alpha FX · news · context · archive

Tearing down Remitly's IPO financials

Remitly moved closer to its IPO yesterday as it proposed its pricing to the market. Remitly plans to raise around $500m at a valuation of c.$7bn. 

The S1 listing document provided the first real insights into Remitly's financials and we've published a report that provides a detailed analysis of Remitly's financials and competitive position – you can download it here

In our report, we take a deep dive into the company's recent numbers, as well as Remitly’s history and product offerings, and compare them to those of its competitors to get a full sense of the company’s place in the money transfer industry.

Key topics covered include:

  • Drivers of its revenue growth
  • The path to profitability  
  • Its unit economics and revenue per customer
  • Analysis of its take rate and volumes
  • How its proposed valuation stacks up
Remitly stands out from the pack in its strong customer unit economics and continued market leading growth rates which have continued through 2021. Finding a publicly listed comparison to Remitly is not easy as it is growing like Wise but targeting a customer base much closer to Western Union and MoneyGram.

Zepz, the parent of WorldRemit and Sendwave that was valued privately in the past month at $5bn, looks the closest and it likely to IPO soon too. We look forward to seeing how the market finally values Remitly.
Get your copy of our Remitly teardown report
For more background articles and context on Remitly, see the context section at the end of this letter

PSPs report · Remitly teardown · Alpha FX · news · context · archive

Alpha FX sees strong rebound

B2B cross-border payments major Alpha FX reported its interim results while we were away, and they paint the picture of a company that has successfully bounced back from the pandemic’s impact.

The company saw a 90% year-on-year increase in revenue to £34.2m for H1 2021, with pre-tax profits increasing by 225% for the same period. 

This has been helped by an increase in client numbers, which grew from 754 in December 2020 to 838 at the end of June 202. Alpha also reports that its clients remain diversified, with an increase in client activity also contributing to the company’s revenue growth.

Notably, while activity may have bounced back, Alpha has benefitted from ongoing reductions in travel and in-person entertaining, both of which have helped boost its profits.

Alpha FX has also made moves into alternative banking over the past year, and has undertaken a process of decentralisation – dividing the business into two separate divisions – to support this. Its alternative banking division, Alpha Platform Solutions, was a strong driver of growth, seeing a 371% year-on-year revenue increase. It now accounts for 24% of Alpha’s overall revenues.

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For more background articles and context on Alpha FX, see the context section at the end of this letter

PSPs report · Remitly teardown · Alpha FX · news · context · archive

On our radar this week:
Curated by FXC Intelligence's Team
Alipay faces breakup risk
Alipay is reportedly facing the prospect of being broken up by Chinese regulators following ongoing scrutiny of its financial affiliate Ant Group. 
BBC
Wave achieves Unicorn status
US and Senegal-based mobile money provider Wave has reached a valuation of $1.7bn after raising $200m in a Series A funding round.
TechCrunch
Zepz raises $292m Series E
Zepz, the new parent company of WorldRemit and Sendwave, raises $292m at a $5bn valuation. Expect and IPO to come next.
Businesswire
BNPL ScalaPay raises $155m
Italian buy now, pay later player ScalaPay has raised $155m in a Series A funding round led by Tiger Global, making it one of the country's most valuable startups.
Sifted

PSPs report · Remitly teardown · Alpha FX · news · context · archive

Additional research by FXC Intelligence on this week's topics

Payment service providers: Growing Payoneer in the Changing Landscape of Global Ecommerce (here); Analysing Ant Financial’s acquisition of WorldFirst (here); OFX’s transition to B2B and enterprise (here)
Remitly: Remitly to move ahead with IPO (here); Q2’s biggest cross-border payments funding and market listings (here); How digital banks are focusing on servicing migrant workers (here)
Alpha FX: Argentex, Alpha rally from pandemic hit (here); How Alpha FX’s valuation compares in B2B payments (here); Alpha FX 2020 results see growth despite pandemic (here)
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PSPs report · Remitly teardown · Alpha FX · news · context · archive

Missed the last few weeks?

The highest valued companies in cross-border payments (here)
dLocal Q2 2021 earnings: Record growth in its first public quarter (here)
Adyen’s growth run continues in H1 2021 (here)
Access our previous articles here
Stay healthy and stay safe,

Daniel
Copyright © 2021 FXC Intelligence Ltd, All rights reserved.

London Washington DC

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