Insights

Worldline Expands Asian Footprint with New S'pore License

Worldline Group’s wholly owned subsidiary, GCS APAC, has been granted a Major Payment Institution license by the Monetary Authority of Singapore (MAS). This license allows GCS APAC to provide domestic and cross-border money transfers and merchant-acquiring services in Singapore.

Worldline’s Singapore Subsidiary Receives Major Payment License

The MAS license positions Worldline to expand its presence in Singapore and the broader Asian markets. It also enables the company to bring its payment solutions to local and international merchants operating in Singapore.

According to Worldline, the license reflects its strategic push into fast-growing Asian markets like Japan, South Korea, India and ASEAN countries. Over 85% of banks in ASEAN already use Worldline’s products.

We are delighted to announce that #Worldline has been granted the Major Payment Institution licence by @MAS_sg, enabling us to expand our presence in one of Asia’s most attractive markets while enhancing our offerings for merchants. More information: https://t.co/4QEIh92n9v pic.twitter.com/CZKtMEBiat

— Worldline (@WorldlineGlobal) December 13, 2023

The company cited strong e-commerce growth projections for Singapore, with the market expected to reach SGD29.4 billion by 2027. The rapid adoption of contactless payments in the country drives this growth. It increased from 27.7 million in 2019 to 39.3 million in 2023, with the annual value of card transactions estimated to exceed $107.3 billion this year.

“We are committed to playing a pivotal role in our Asian markets that are so rapidly gaining importance,” Beate Krugmann, the head of East & Southeast Asia at Worldline, said. “I am very proud we have now been granted our new license from the Monetary Authority of Singapore.”

Headquartered in France, Worldline generated €4.4 billion in revenue in 2022. It provides payment services to merchants, banks and acquirers globally. Recently, the company also received a payments license in the UK.

Worldline Expands in Asia

The announcement also reflects Worldline’s expansion in other Asian countries. For example, In Japan, where card payment volumes are anticipated to reach approximately $750 billion in 2023, according to GlobalData, Worldline has established a preferred partnership with Vesca, a local payment solutions and network service provider.

Moving to South Korea, e-commerce revenues are expected to hit $119 billion in 2023, with a projected annual compound annual growth rate of 7.7% from 2023 to 2028, culminating in an estimated market volume of $160 billion by 2027. Worldline has recently expanded its geographical presence here, leveraging its understanding of the local financial ecosystem and partnerships to aid international online businesses in processing payments domestically.

In India, Worldline has been developing a payment ecosystem for over 26 years. Its Paytech solutions span the entire in-store and online payment chain, partnering with over 30 major public and private sector banks. Its reach in the country includes more than 1.5 million merchant touchpoints across over 5,000 towns and cities.

Market Valuation Challenges

The European financial technology sector faces significant challenges, as evidenced by Worldline’s recent downturn. The company’s announcement of lowered sales forecasts triggered a substantial decrease in its stock value, resulting in a loss of over half of its market capitalization. This reduction, amounting to approximately €3.8 billion, has left Worldline with a nearly €2.7 billion valuation.

This trend isn’t isolated to Worldline. CAB Payments Plc, a UK-based fintech firm, also witnessed a severe 72% drop in its stock value following a downward revision of its revenue expectations. Similarly, payment company Adyen NV experienced a market sell-off after announcing disappointing bi-annual results in August.

Worldline Group’s wholly owned subsidiary, GCS APAC, has been granted a Major Payment Institution license by the Monetary Authority of Singapore (MAS). This license allows GCS APAC to provide domestic and cross-border money transfers and merchant-acquiring services in Singapore.

Worldline’s Singapore Subsidiary Receives Major Payment License

The MAS license positions Worldline to expand its presence in Singapore and the broader Asian markets. It also enables the company to bring its payment solutions to local and international merchants operating in Singapore.

According to Worldline, the license reflects its strategic push into fast-growing Asian markets like Japan, South Korea, India and ASEAN countries. Over 85% of banks in ASEAN already use Worldline’s products.

We are delighted to announce that #Worldline has been granted the Major Payment Institution licence by @MAS_sg, enabling us to expand our presence in one of Asia’s most attractive markets while enhancing our offerings for merchants. More information: https://t.co/4QEIh92n9v pic.twitter.com/CZKtMEBiat

— Worldline (@WorldlineGlobal) December 13, 2023

The company cited strong e-commerce growth projections for Singapore, with the market expected to reach SGD29.4 billion by 2027. The rapid adoption of contactless payments in the country drives this growth. It increased from 27.7 million in 2019 to 39.3 million in 2023, with the annual value of card transactions estimated to exceed $107.3 billion this year.

“We are committed to playing a pivotal role in our Asian markets that are so rapidly gaining importance,” Beate Krugmann, the head of East & Southeast Asia at Worldline, said. “I am very proud we have now been granted our new license from the Monetary Authority of Singapore.”

Headquartered in France, Worldline generated €4.4 billion in revenue in 2022. It provides payment services to merchants, banks and acquirers globally. Recently, the company also received a payments license in the UK.

Worldline Expands in Asia

The announcement also reflects Worldline’s expansion in other Asian countries. For example, In Japan, where card payment volumes are anticipated to reach approximately $750 billion in 2023, according to GlobalData, Worldline has established a preferred partnership with Vesca, a local payment solutions and network service provider.

Moving to South Korea, e-commerce revenues are expected to hit $119 billion in 2023, with a projected annual compound annual growth rate of 7.7% from 2023 to 2028, culminating in an estimated market volume of $160 billion by 2027. Worldline has recently expanded its geographical presence here, leveraging its understanding of the local financial ecosystem and partnerships to aid international online businesses in processing payments domestically.

In India, Worldline has been developing a payment ecosystem for over 26 years. Its Paytech solutions span the entire in-store and online payment chain, partnering with over 30 major public and private sector banks. Its reach in the country includes more than 1.5 million merchant touchpoints across over 5,000 towns and cities.

Market Valuation Challenges

The European financial technology sector faces significant challenges, as evidenced by Worldline’s recent downturn. The company’s announcement of lowered sales forecasts triggered a substantial decrease in its stock value, resulting in a loss of over half of its market capitalization. This reduction, amounting to approximately €3.8 billion, has left Worldline with a nearly €2.7 billion valuation.

This trend isn’t isolated to Worldline. CAB Payments Plc, a UK-based fintech firm, also witnessed a severe 72% drop in its stock value following a downward revision of its revenue expectations. Similarly, payment company Adyen NV experienced a market sell-off after announcing disappointing bi-annual results in August.

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