In the "Insider Insights" series, we explore the intricacies of cross-border transactions through different lenses. Small and Medium-sized Enterprises (SMEs) form the backbone of many economies, yet they often face greater challenges in accessing financial solutions compared to their larger counterparts due to limited resources and higher perceived risks. How can fintech empower SMEs in cross-border transactions to support their expansion across geographical boundaries?

Unveiling ASEAN’s Cross-Border Payment Challenges

The ASEAN region’s cross-border payment systems are undergoing rapid transformation. This evolution presents unique challenges and opportunities for SMEs, which are pivotal to the region’s economic vitality.

Hiro Kiga, M-DAQ Global’s General Manager of Payments and Co-founder of Wallex, shares his invaluable insights into the seismic shifts in the financial landscape drawn from a rich background in venture capital and fintech entrepreneurship. He notes, “The fintech sector has matured rapidly, particularly in the last four to five years, with ASEAN countries adopting varied regulatory stances to foster innovation.” His observations underscore the region’s vibrant and diverse approach to financial technology.

Fintech Revolution: Empowering SMEs in APAC

The fintech revolution has significantly impacted how SMEs handle cross-border transactions. Hiro recalls, “Making cross-border payments in Indonesia was a labourious process involving physical bank visits and extensive paperwork.” Fintechs like M-DAQ Gobal and Wallex have streamlined these processes, enabling SMEs to navigate the complexities of international payments more efficiently, especially during challenging times like the pandemic, providing them a solution to continue their businesses as usual from their homes.

The Future of B2B Payments: APAC’s Emerging Trends

The fintech industry’s evolution has been nothing short of revolutionary. Where once the infrastructure for cross-border payments was non-existent, necessitating partnerships with reluctant banks, today’s landscape allows new companies to build upon established payment rails. This shift has drastically accelerated the pace at which new fintech solutions can reach the market.

Looking to the future, Hiro envisions three key developments poised to shape the B2B cross-border payments space: the incorporation of stablecoins like cryptocurrency, the automation of international accounts receivable and payable processes, and the untapped potential for global AR/AP process streamlining. “The infrastructure exists domestically; extending it internationally could be a significant market opportunity,” he asserts.

Passing the Turing Test towards a Seamless Cross-Border Payments Network

In an industry where collaboration is essential, Hiro emphasises the synergy of strengths. By partnering strategically and leveraging each other’s strengths, companies can create a more robust and comprehensive cross-border payment network that benefits all players, especially SMEs in the APAC. “We must focus on our strengths and partner with others to offer holistic solutions to our customers, as establishing a solid global cross-border payments network is an ongoing challenge,” he advises.

For Hiro and M-DAQ Global, a “World without Currency Borders" is not a distant dream but an imminent reality. It’s a vision where transactions are as seamless and intuitive as passing the Turing test, where the complexities of currency exchange like rates and conversion fees are invisible to users. This frictionless future promises to redefine the global payments landscape, making it more accessible and efficient for consumers and businesses alike.

Stay informed and engage with thought leaders like Hiro to contribute to the dialogue on how technology and collaboration are forging a new path for SMEs in APAC by following M-DAQ Global on LinkedIn.