PAYFAZZ invests US$30 million in Xfers to form a new financial entity

By Leandra Monteiro

Indonesia-based FinTech firm Payfazz, announced that the company has invested $30 million in Xfers, a Singapore-based payment solutions provider for businesses expansion. In 2020, Payfazz raised around $53 million in a Series B funding from investors including B Capital and Insignia Ventures Partners.

The latest deal marks one of the first cross-border transactions between two FinTech start-ups in Southeast Asia who are also graduates of the Y Combinator accelerator programme. According to the deal both companies will retain their respective names whilst operating under the new financial entity known as Fazz Financial Group. Wherein FFG will oversee their combined mission of providing inclusion through financial services across Southeast Asia.

According to media reports, Hendra Kwik, group CEO of Fazz Financial Group said, “Leveraging PayFazz’s vast local Indonesia network and Xfers’ robust payments infrastructure in the region, it was a natural next step for both firms to band together and work towards a common goal. With the newly-formed FFG group, our team will be broadening the combined capabilities to accelerate inclusion through financial services in Southeast Asia.”

Through this investment, Xfers will be the designated business-to-business (B2B) arm of FFG, with the aim of connecting external merchants to the payment infrastructure and user network.

PayFazz will utilise Xfer’s payment infrastructure to broaden its agent network across Indonesia, where the latter firm currently connects businesses to a range of payment methods that includes bank transfer, e-wallet and, more recently, offline channels such as agent banking networks and convenience stores.

According to media reports Tianwei Liu, Deputy CEO of Fazz Financial Group said, “We are thrilled to further deepen our partnership with PAYFAZZ, and for Xfers’ new role as the B2B and regional arm of Fazz Financial Group. With more resources on hand, we are also looking forward to helping more brands enter Southeast Asia. Especially for businesses looking to access the underserved consumer segment in Indonesia.”