Razorpay, a Bengaluru-based fintech startup, has launched its first international payment gateway in Malaysia. The payment gateway is a collaboration between the fintech startup and Curlec, now known as ‘Curlec By Razorpay.’
The new Curlec Payment Gateway aims to serve over 5,000 businesses and achieve an annualized GTV of RM 10 billion ($2.1 billion) by 2025.
In February 2022, Razorpay made a significant move by acquiring a majority stake in Curlec, a Kuala Lumpur-based fintech, for $20 million. This strategic acquisition aimed to fuel Razorpay’s global expansion plans, with the remaining stake acquisition scheduled for 2023.
By acquiring Curlec, the fintech startup demonstrates its commitment to expanding its global presence and services. Furthermore, this acquisition strengthens Razorpay’s comprehensive payment solutions provider position. Leveraging its expertise, Curlec aims to deliver exceptional payment experiences and drive substantial growth.
Curlec collaborates with over 700 Malaysian businesses, including Tune Protect, CTOS, Courts, Mary Kay, and The National Kidney Foundation. Razorpay has stated that the newly launched Curlec payment gateway will serve over 5,000 businesses.
With ambitious goals, their target is to achieve an annualized gross transaction value (GTV) of RM10 billion ($2 billion) by 2025.
Shashank Kumar, MD, Razorpay
Razorpay’s managing director Shashank Kumar believes that simplifying payments is a universal challenge. The fintech startup sees great potential in the SEA region and recognizes the power of payments in Malaysia. Their experience in India has prepared them to tackle global payment challenges and solve problems.
Zac Liew, CEO, Curlec
Zac Liew, Curlec’s CEO, highlights the launch of their Payment Gateway, combining tech capabilities and local understanding.
Curlec has experienced significant traction in insurance, lending, and savings, with a 110% increase in transaction volumes. They anticipate providing an unrivaled payment experience and targeting a 10X growth in the next two years.
The partnership combines world-class tech capabilities with an understanding of the local payment ecosystem.
Digital Trade Growth For Malaysia
Recent reports indicate that digital trade currently contributes 22.6% to Malaysia’s GDP. By 2025, it is projected to increase to 25.5%, highlighting significant economic activity.
Boosting digital technology adoption and leveraging digital trade can lead to a potential 150% increase in economic activity. Malaysia and its businesses can reach $52.7 billion in economic activity by 2030. Digital trade is crucial in driving Malaysia’s economic growth and development.
The statistics underscore the importance of embracing digitalization and capitalizing on trade opportunities.
PhonePe Also Launched Its Payment Gateway
Reportedly, PhonePe, backed by Walmart, has also launched its payment gateway to target offline and online merchants. According to the company, the move results from the app’s capacity to handle large-scale transactions.
This offering puts PhonePe in competition with Paytm, Pine Labs, Razorpay, and Cashfree Payments. PhonePe is diversifying its services, including wealth management, lending, stockbroking, and an ONDC-based shopping app.
The payment gateway services are currently offered at zero fees to attract merchants. PhonePe has obtained in-principal approval for payment aggregator services and is awaiting RBI approval.
Indian Fintech is One of the Fastest Growing Industry
India’s fintech ecosystem is among the fastest-growing globally, thanks to the efforts of the PM Modi-led government. The government aims to globalize India’s digital payment infrastructure and extend the benefits of UPI beyond the country.
Razorpay, boasting 10 million Indian businesses, aims to bridge the gap between local and international payment gateways. Moreover, launching their payment gateway will help the fintech startup expand internationally and contribute to the Digital India initiative.
In addition, the startup recognizes South-East Asia as a digital payment powerhouse and highlights Malaysia’s potential for remarkable economic growth. By 2030, Malaysia and its businesses have the potential to achieve a 150% increase in economic activity, amounting to $52.7 billion.
Furthermore, Razorpay’s expansion into international markets will enable it to leverage emerging opportunities and strengthen its capabilities. Consequently, the company aims to penetrate global waters and make its payment solutions available in emerging markets.
Aligned with their goal of making digital payments more accessible and seamless, Razorpay’s launch holds great significance. Additionally, the expertise of Razorpay and the solutions provided by Curlec position them as a full-stack payment provider.
As a result, their combined efforts aim to address diverse payment needs and deliver world-class payment solutions.