Razer Fintech is suspending its e-wallet and card services to focus on its more promising B2B payments business, confirmed an executive at the firm.
According to Razer Fintech’s chief executive officer Li Meng Lee, Razer Fintech’s B2B online payment gateway and offline channels currently drive the majority of its payment volumes and volumes. He added that over 95% of Razer Fintech’s total payment volumes (TPV) are driven by Razer Merchant Services (RMS), across over 50,000 merchants with direct international and local payment options.
“As part of the strategy to drive Razer Fintech’s hypergrowth
The shutting of Razer Fintech’s e-wallet and card business comes less than two years since its rollout in Malaysia and Singapore. All card and payment functions will end on August 31. Users have until September 30 to redeem their funds.
Razer Fintech has been looking opportunistically at various types of dealmaking, both in terms of fundraising and merger and acquisitions (M&As), it said in a recent interview with DealStreetAsia.
Razer Fintech currently counts Berjaya Group Berhad as an investor.
Filings on Acra show that the Malaysian conglomerate has invested $25.8 million in Razer Fintech so far, holding a 49% stake via an entity called Berjaya Fintech Sdn Berhad. Razer holds the remaining 51% majority stake via an entity called Razer Midas. Berjaya is one of Malaysia’s largest conglomerates engaged in sectors such as financial services, real estate, food and beverage (F&B), hotels, and gaming.
According to the firm’s FY20 financial report, Razer Fintech’s total payment volumes (TPV) jumped 104.4% on-year to $4.3 billion in the financial year. The firm currently has merchants across e-commerce, consumer, retail and F&B industries, forging partnerships with players like Funding Societies for merchant financing, and Rely and IOUPay to offer financial products like Buy Now Pay Later (BNPL) in Southeast Asia.
Razer Fintech has also been one of the key names tipped to be in the running for Malaysia’s upcoming digital banking license. Other reported candidates include Axiata Digital, AirAsia’s BigPay, as well as incumbent banks CIMB Group, Affin Bank Bhd, Hong Leong Bank Bhd and Standard Chartered Bank Malaysia Bhd.
Bank Negara Malaysia (BNM) is set to issue up to five licenses by the first quarter of 2022.