TOKYO, Sept. 28, 2018 /PRNewswire/ -- In China two of its biggest tech companies both Alibaba and Tencent are battling for market supremacy in remittance payments in Southeast Asia.
Daito Nippon Brokerage has noted that both companies have recently developed and launched their own money transfer platform that is based in Hong Kong. If you are based from the Philippines or Indonesia you will be able to use the platform to send money overseas instantly.
This is Alibaba and Tencent's first big move to tap into a global remittance market which is worth over $600 billion USD around the global on an annual basis.
"For companies to enable global transactions it is a much harder task than you would assume. Both Alibaba and Tencent are working with a fintech Hong Kong start-up company called EMO, the company has regulatory approvals and partnerships in place with many banks across the Southeast Asia." commented Richard Taisho who is the Head of Equity Research at Daito Nippon Brokerage.
Both Alibaba and Tencent will face the current competition in the remittance market including new smaller technology based start-up companies that will focus on mobile payments.
Moneygram International, which has been established since 1998, already provides a strong global presence when it comes to global payments. The company is spread over 200 countries already and have mentioned their interest on new tech developments.
"Investors looking to gain from future developments in Alibaba and Tencent should always remember that both companies have a lot of capital at their disposal." said Spencer Wright, Head of Corporate Trading at Daito Nippon Brokerage.
Researchers at Daito Nippon Brokerage have noted that by the end of this year Global remittance market will reach just shy of 500 billion USD.
In this early stage Alibaba's 'Alipay' said that their first focus was its Chinese customer, moving along it expanded into merchant accounts and is now looking to provide local wallets with easy access.
Media Contact: Richard Taisho, richard.taisho@dnbglobal.com, +81-3-4578-0676