Airwallex to introduce new virtual payment card for businesses in Hong Kong as rivalry intensifies

Airwallex, the fintech unicorn backed by Tencent Holdings and Sequoia Capital China, is teaming up with Visa to offer a “borderless” virtual card for businesses in Hong Kong as competition for business-to-business payments intensifies.

“Demand for virtual cards has been accelerating as businesses look for a modern solution to not only transact money, but to also control their finances, optimise spending and enhance their security and protection,” said Kai Wu, Airwallex’s CEO for Greater China.

The “borderless” product will come into direct rivalry with other operators, including a venture between HSBC and Mastercard that offers a similar card to business customers in the financial hub as the Covid-19 pandemic accelerated and multiplied e-commerce transactions.

Airwallex has seen its valuation nearly triple in the past two years to US$2.6 billion, following a Series D fundraising round in March. The firm’s other financial backers also include San Francisco-based Greenoaks Capital, Australia’s Grok Ventures and Hong Kong tycoon Li Ka-shing’s Horizons Ventures that focuses on disruptive technology and start-ups.

Founded in Melbourne in 2015, Airwallex employs more than 600 people in 12 offices globally. The firm has created “hundreds of thousands of virtual cards” for its business customers since its introduction in Australia in February 2020, Wu said. Hong Kong is the third market where the service is being offered globally.