A CEO’s perspective: MatchMove’s acquisition of Shopmatic
MatchMove’s acquisition of Singapore-based ecommerce firm, Shopmatic, is making waves throughout Southeast Asia and further globally. In this interview, the CEOs of both firms discuss the recent acquisition, the integration of embedded finance and ecommerce, and how it’s set to transform the fintech space in the near future.
What is the background behind MatchMove and Shopmatic?
Shailesh Naik, CEO of MatchMove : Today, 60% of people in Southeast Asia are unbanked. People typically don’t want a bank account or to take credit, and would prefer to handle cash, yet in the digital world we live in, having a 16-digit card number is the best way to make purchases online.
At MatchMove, we decided to take this gap in the market and move into what is now called banking-as-a-service (BaaS) or embedded finance. We took the opportunity six years ago and are now one of Asia’s leading BaaS organisations. Our customers are all B2B and include various global companies who want to embed finance into their systems, ranging over different sectors.
Over the prior four years, before we pivoted from B2B entertainment to embedded finance, we grew to 300 million monthly active users, but we identified that people were having difficulty paying in underdeveloped markets, unlike developed markets such as the US and Europe. In Southeast Asia, there is only 3% credit card penetration, whereas credit cards are the simplest way to pay online within the US, Europe, Japan and various other regions. With this gap in the market, we were forced to integrate with local payment options and so we started looking to banking organisations to see if they could provide us with the technology to embed into our platform. For various structural reasons, we determined that they could not then, and would not be able to help for a […]
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