DigiAsia Corp. and Digit9 Announce Strategic Collaboration

Rhea-AI Summary

DigiAsia Corp. (NASDAQ: FAAS), a leading Fintech as a Service (FaaS) ecosystem provider, has announced a strategic collaboration with Digit9, a cross-border payments orchestration platform developed by LuLu Money Singapore. This partnership aims to enhance DigiAsia's cross-border payments offerings for Indonesian consumers and SMEs in Indonesia and the GCC.

Key benefits of the collaboration include:

• Access to Digit9's wide network of partners
• Ability to facilitate cross-border payments in over 150 markets globally
• Creation of efficient and cost-effective cross-border payment rails

DigiAsia estimates that this partnership will generate an annual volume of US$250 million in cross-border payments. Both companies plan to continue strategic discussions and launch innovative products and services in the cross-border payments space in the near future.

Positive

• Strategic collaboration with Digit9 to enhance cross-border payment offerings
• Access to Digit9's network enabling payments in over 150 markets globally
• Estimated annual volume of US$250 million in cross-border payments
• Potential for future innovative products and services in cross-border payments

Negative

• None.

Insights

Financial Analyst

This strategic collaboration between DigiAsia Corp. and Digit9 is a significant development for DigiAsia's cross-border payment capabilities. The partnership is expected to generate an impressive $250 million in annual transaction volume, which could substantially boost DigiAsia's revenue stream. By leveraging Digit9's extensive network spanning 150 markets, DigiAsia is positioning itself to capture a larger share of the growing cross-border payments market, particularly in Indonesia and the GCC region. This move aligns with the global trend of fintech companies expanding their international reach to tap into emerging markets. The collaboration also has the potential to enhance DigiAsia's competitive edge in the FaaS ecosystem by offering more comprehensive and cost-effective payment solutions to both consumers and SMEs. Investors should monitor how this partnership translates into actual financial performance and market share gains for DigiAsia in the coming quarters.

Market Research Analyst

The strategic collaboration between DigiAsia and Digit9 taps into the burgeoning cross-border payments market, which is projected to reach $156 trillion by 2026. This partnership is particularly well-timed, given the increasing demand for efficient international money transfer solutions in emerging markets like Indonesia. By focusing on Indonesian consumers and SMEs, DigiAsia is targeting a high-growth segment, as Indonesia's digital economy is expanding rapidly. The collaboration with Digit9, backed by the established LuLu Financial Holdings, lends credibility and potentially accelerates DigiAsia's market penetration. The promise of future innovative products in the cross-border space suggests a long-term growth strategy. However, investors should be aware of the intensifying competition in this sector and monitor DigiAsia's ability to differentiate its offerings and maintain competitive pricing to achieve the projected transaction volumes.

~ Enhancing Cross Border Payments ~

ABU DHABI, United Arab Emirates and NEW YORK, Oct. 16, 2024 (GLOBE NEWSWIRE) -- DigiAsia Corp. (NASDAQ: FAAS) (“DigiAsia” or the “Company”), a leading Fintech as a Service (FaaS) ecosystem provider, has announced a strategic collaboration with Digit9, the cross-border payments orchestration platform developed by LuLu Money Singapore, a wholly owned subsidiary of Abu Dhabi-based LuLu Financial Holdings.

The partnership with Digit9 will enhance DigiAsia’s offering and competitiveness in servicing the cross-border payments needs for Indonesian consumers and SMEs in Indonesia and the GCC.

Further, DigiAsia will be able to leverage Digit9’s wide network of partners and the ability to facilitate cross-border payments in more than 150 markets globally, to create efficient and cost-effective cross-border payment rails to further support Indonesian consumers and SMEs.

DigiAsia estimates that the partnership with Digit9 will generate an estimated US$250mn volume annually in cross-border payments.

DigiAsia and Digit9 will continue strategic partnership discussions and look to launch innovative products and services in the cross-border payments space in the near future.

About DigiAsia

DigiAsia is a leading Fintech as a Service (FaaS) provider operating a B2B2X model offering its complete Fintech solution in emerging markets. DigiAsia's fintech architecture offers small and medium business enterprises (SMEs) comprehensive embedded finance APIs to streamline processes across the commerce value chain of distributors and customers. DigiAsia's embedded fintech solutions equally address democratizing digital finance access that supports financial inclusion of underbanked merchants and consumers in emerging markets resulting in growth for enterprise business. The suite of B2B2X solutions provided by DigiAsia include, but are not limited to, cashless payments, digital wallets, digital banking, remittances and banking licenses. DigiAsia has recently established a strategic initiative to develop its embedded FaaS enterprise solution with AI capabilities in Southeast Asia, India, and the Middle East, with plans for global expansion. For more information, please visit DigiAsia’s Corporate website here or Investor Relations website here.

About Digit9

Digit9 is a payments orchestration platform tailored to meet the diverse needs of financial institutions. It seamlessly integrates an array of payment methods, banks, and service providers, simplifying the complexities of cross-border payments. Digit9 has been developed by LuLu Money Singapore, a wholly owned subsidiary of LuLu Financial Holdings.

About LuLu Financial Holdings

LuLu Financial Holdings is a leading global financial services provider, offering a wide range of services including cross-border payments, currency exchange, and financial technology solutions. With over 350 customer engagement centers in over 10 countries and a commitment to innovation and customer satisfaction, LuLu Financial Holdings continues to set benchmarks in the financial services industry.

Forward-Looking Statements:

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe”, “expect”, “anticipate”, “project”, “targets”, “optimistic”, “confident that”, “continue to”, “predict”, “intend”, “aim”, “will” or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that may be deemed forward-looking statements. These forward-looking statements including, but not limited to, statements concerning DigiAsia and the Company’s operations, financial performance and condition are based on current expectations, beliefs and assumptions which are subject to change at any time. DigiAsia cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors such as government and stock exchange regulations, competition, political, economic and social conditions around the world including those discussed in DigiAsia’s Form 20-F under the headings “Risk Factors”, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Business Overview” and other reports filed with the Securities and Exchange Commission from time to time. All forward-looking statements are applicable only as of the date it is made and DigiAsia specifically disclaims any obligation to maintain or update the forward-looking information, whether of the nature contained in this release or otherwise, in the future.

DigiAsia Company Contact:
Subir Lohani
Chief Financial Officer and Chief Strategy Officer
646-480-0142

Lulu Financial Holdings Company Contact:
Ajit Johnson
Head of Strategic Business Relations
ajit.johnson@lulufin.com

Investor Contact:
MZ North America
Email: FAAS@mzgroup.us

FAQ

What is the estimated annual volume of cross-border payments for DigiAsia (FAAS) from the Digit9 partnership?

DigiAsia estimates that the partnership with Digit9 will generate an annual volume of US$250 million in cross-border payments.

How many markets can DigiAsia (FAAS) facilitate cross-border payments in through the Digit9 collaboration?

Through the collaboration with Digit9, DigiAsia can facilitate cross-border payments in more than 150 markets globally.

What are the main target markets for DigiAsia's (FAAS) enhanced cross-border payment services?

The main target markets for DigiAsia's enhanced cross-border payment services are Indonesian consumers and SMEs in Indonesia and the GCC (Gulf Cooperation Council) region.

When was the strategic collaboration between DigiAsia (FAAS) and Digit9 announced?

The strategic collaboration between DigiAsia Corp. (NASDAQ: FAAS) and Digit9 was announced on October 16, 2024.