Airwallex, the Australian fintech company, is expanding into in-person payments, intensifying its competition with Stripe and targeting Square and Adyen in the financial technology sector. The company introduces a point-of-sale product that allows businesses to accept in-person payments in multiple countries through a single platform, eliminating the need for local vendors in each market.
“When a business enters a new market, they usually need to onboard a local acquirer and handle fragmented compliance and vendor relationships,” CEO and co-founder Jack Zhang explained. In 2019, Airwallex declined a $1.2 billion acquisition offer from Stripe, deciding instead to continue building its own payment infrastructure.
Founded in 2015 by Zhang due to international money transfer challenges, Airwallex worked on creating its own payment rails. Now valued at $8 billion and generating approximately $1.3 billion in annual revenue with a growth rate of about 85%, the company serves over 46,000 U.S. businesses and manages $100 billion in annual volume. It holds nearly 90 regulatory licenses in various regions and supports over 120 countries and 90 currencies.
Zhang highlights that Airwallex’s local banking licenses, which Stripe and Square lack, allow funds to be held and managed locally. For instance, in Japan, Airwallex’s license permits holding funds, unlike its competitors. The POS product extends this capability to physical transactions, connecting in-store and online payments, and integrating back-office systems for seamless cross-border business operations.
Adyen, a Dutch payment company, is a key competitor with similar global infrastructure. In contrast, legacy companies like Fiserv and Global Payments/Worldpay dominate traditional retail but have older architectures. Airwallex plans to invest $1 billion in the U.S. by 2029, up from $150 million over the past five years.
The open question remains whether businesses will switch from established relationships with Stripe or Square. Airwallex bets on its global infrastructure to appeal to multinational companies seeking to streamline vendor management.
“There hasn’t been significant competition to Stripe in 15 years, which is remarkable given the market size,” Zhang stated.