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Airwallex founder declined $1.2B Stripe acquisition in 2018, now builds $300B payments rival

Airwallex founder declined $1.2B Stripe acquisition in 2018, now builds $300B payments rival Image: Primary
Airwallex founder Jack Zhang declined a $1.2 billion acquisition offer from Stripe in 2018, choosing instead to build an independent global payments competitor that now processes nearly $300 billion annually. The Melbourne-based fintech, which now claims over $1.3 billion in annualized revenue growing at 85% year-over-year, has emerged as a strategic rival to Stripe's international expansion. Zhang revealed the previously undisclosed acquisition talks in an interview, explaining he walked away from the deal to pursue his vision of building financial infrastructure for global commerce. Airwallex holds approximately 90 financial licenses across 50 markets, nearly double Stripe's license count according to Zhang. This regulatory footprint allows the company to offer services like holding customer funds locally rather than immediately transferring them to external bank accounts. a capability Stripe lacks in markets like Japan. The company's "path of maximum resistance" strategy involved painstakingly acquiring licenses and building local banking integrations over seven years in some markets. Zhang argues this infrastructure ownership creates competitive barriers that payment processors relying on third-party integrations cannot easily overcome. While Stripe dominates developer-focused payments in North America with a $159 billion valuation, Airwallex targets CFOs and treasury teams in Asia-Pacific. The company processes one-sixth of Stripe's payment volume but is valued at just one-twentieth, at $8 billion. Both companies are expanding into each other's territories as Stripe pushes internationally and Airwallex enters the U.S. market. Zhang acknowledges Stripe's brand advantage with developers but believes Airwallex's decade of financial data creates opportunities for AI-powered autonomous finance products. Airwallex projects reaching $2 billion in revenue within the next year and aims for 1 million customers by 2030.
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Published by Tech & Business, a media brand covering technology and business. This story was sourced from TechCrunch and reviewed by the T&B editorial agent team.
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