In an age where traditional wire transfers and steep fees once hindered international money transfers, the landscape of financial transactions has undergone a remarkable transformation. With the emergence of borderless banking platforms such as Wise, sending money across borders has been redefined. As this fintech trailblazer continues to disrupt the industry, it’s imperative to unravel the narrative behind Wise and understand its profound impact on travel and financial experiences in Malaysia and across the globe.

Born out of a desire to challenge the status quo of traditional banking and tackle the opaque and often exorbitant fees associated with cross-border transactions, Wise has emerged as a disruptive force in the digital finance arena. Its innovative platform has empowered millions of individuals and businesses worldwide to navigate the complexities of international finance with unparalleled transparency and ease.

100,000 NEW PERSONAL AND BUSINESS CUSTOMERS JOIN WISE WEEKLY

Aaron Raj | 1 March, 2023

Through an insightful interview with Lim Paik Wan, Country Manager of Wise Malaysia, we delve into how the company harnesses the power of technology to reshape the travel and savings landscape in Malaysia and beyond.

The digital renaissance has brought transformative shifts in travel. How do you see technology shaping every aspect of travel beyond being a mere tool to smoothen the process?

Technology has now made travel more accessible and has allowed consumers to personalize their holidays, as people now take to blogs and social media platforms for inspiration. Additionally, consumers are now accustomed to instant and seamless experiences, with everything readily available through a few taps on their smartphones. This seamless digital connectivity has also changed how people make transactions for their travels. 

Lim Paik Wan, Country Manager, Malaysia at Wise

In years past, travelers needed to exchange cash physically and were usually required to pay for most meals and excursions in cash. Today, contactless payment options are offered almost everywhere, making it easier and safer for consumers to make international transactions. 

Even how consumers plan their travels has changed, with hotel bookings and flights done through travel apps. However, consumers still face challenges as the world transitions to a largely cashless society. A common one is a general unfamiliarity with international transaction fees, causing them to spend more than anticipated or budgeted for. Issues like these have led fintech providers to create solutions to make these processes smoother and more manageable. 

How do Wise’s digital cards and contactless payment solutions like Apple Pay and Google Pay enhance travel safety?

Today, contactless payment methods are widely accepted in many countries, lessening the burden of carrying large sums of cash. However, when used internationally, most traditional credit or debit cards tend to come with additional fees and hidden costs. Providers like Wise offer users the ability to hold money in over 40 currencies and make transactions at the mid-market exchange rate with no markups, helping travelers save money on international transactions. 

This relieves users of having multiple traditional cards, where they would have to bear the cost of foreign transaction fees and interest fees. Wise’s smart technology automatically converts the currencies you hold in your account for you, which have the lowest conversion fee; the card even allows users to withdraw money from ATMs with low fees while traveling.

Another great thing is that Wise users can start spending immediately with its digital cards, available instantly upon request in the app. Users can get up to 3 digital cards with different card details for an extra layer of protection. These digital cards can be deleted anytime, so customers can generate new card details when they need them. 

The cards can also be added to Apple Pay and Google Pay — these contactless payment methods are powered by NFC technology, which is generally more secure. Additional features on the account allow users to track their spending in real-time, ensuring smoother user and travel experiences. 

How has the pandemic impacted Wise’s services, particularly regarding international travel and cross-border transactions?

Digital adoption during the pandemic created the expectation for instant and real-time processes and a trend of contactless payment options. This has dramatically impacted the Malaysian market, as e-wallets and mobile payments are now expected payment options that businesses should offer. Additionally, we found that Malaysians are spending more time online, adopting more

Wise app shows that users can manage all their currencies all over the world. Source: Wise

international lifestyles, and traveling more frequently, leading to an increase in cross-border spending and shopping. 

These trends suggest a need for efficient cross-border payment solutions that offer faster, cheaper, and transparent international payments. Wise addresses these needs with its multi-currency account, empowering Malaysian consumers to seamlessly navigate global payments and lifestyles with no hidden fees and complete transparency. 

The recent launch of Wise on Apple Pay and Google Pay in Malaysia is part of our commitment to making international transactions more convenient and accessible for customers. A few other ways Wise is providing more convenience is by offering our users the ability to send money to popular e-wallets in the region, including Touch’nGo in Malaysia, GrabPay in the Philippines, and ShopeePay in Indonesia — being able to offer multiple money movement options makes moving money across borders even more convenient.

How does Wise promote financial literacy and awareness among users regarding currency exchange and international transactions?

A crucial part of our mission has been advocating for transparency in foreign exchange fees, empowering people with knowledge and insight into their transactions. This is reflected in our services and is why we support transparent and fair cross-border transactions. With Wise, all fees are transparently displayed to customers when they set up a transaction. 

Customers pay a single upfront fee, and the exchange rate they get is the one you see on Google with no markups or hidden charges. People also gain visibility into what’s happening to their money from start to finish when making cross-border payments, which includes the actual total cost to make the payment.

Wise also offers price comparison tools in the app, which allows our customers to compare the exchange rates and fees across a range of currency routes to make better decisions when choosing their preferred provider.

What upcoming advancements can users anticipate from Wise, and how will they improve travel and financial experiences?

Not to give too much away, but we are always looking to bring globally available features to Malaysia, such as Wise Business and Wise Platform. Wise Business accounts are for businesses that want to grow and operate internationally, making it easier to manage their finances across borders, such as paying overseas vendors and employees or receiving funds from clients.

Wise Platform is our infrastructure offering, which enables financial institutions and businesses to incorporate our global payment network into their platforms. As Wise operates globally, we’re always looking to see what would benefit Malaysian customers and work to solve their pain points. 

Lastly, in the rapidly changing landscape of digital finance and travel, how does Wise stay adaptive and responsive to its diverse user base’s dynamic needs and preferences?

At Wise, we constantly listen to our customers, and our goal continues to be making Wise as convenient, low-cost, fast, and transparent as possible. As more Malaysians look for cross-border opportunities, it’s vital that our users can use Wise to broaden their lifestyles globally.

Looking ahead to 2024 and beyond, we’ve got a number of exciting things coming up in our product roadmap to improve the speed, convenience, and cost of cross-border payments for our customers around the world.

The post Wise: Revolutionizing travel and finance in Malaysia appeared first on Tech Wire Asia.

As the age-old adage goes, “There’s a first time for everything,” and tech titan Apple Inc., ranked second among the world’s most valuable companies, being slapped with a whopping €1.84 billion fine by European Union antitrust regulators over its App Store regulations marks an unprecedented twist. It’s a scenario Apple undoubtedly sought to sidestep with all its might (as you would), signaling a pivotal moment in the company’s storied history of navigating regulatory scrutiny.

“For a decade, Apple abused its dominant position in the market for the distribution of music streaming apps through the App Store,” Margrethe Vestager, Executive Vice-President of the European Commission, declared. “It did so by restricting developers from informing consumers about alternative, cheaper music services outside the Apple ecosystem,” she added.

That, according to Vestager, is illegal under EU antitrust rules. “So today we have fined Apple over €1.8 billion,” she concluded on March 4, 2024. The Commission concluded on Monday that the fine of over €1.8 billion is proportionate to Apple’s global revenues and is necessary to achieve deterrence.

BRUSSELS SLAPS APPLE WITH HISTORIC FINE FOR EU LAW VIOLATION

Dashveenjit Kaur | 20 February, 2024

A decade-long parade of Apple App Store antics

Apple’s actions may have made iPhone and iPad users pay more for music streaming for nearly ten years. Apple charged developers high fees, causing them to raise prices for users. At the heart of this conflict lies Spotify’s grievance towards Apple, stemming from what it perceives as unfair treatment in Apple’s music streaming policies.

Spotify, the world’s largest music streaming service, has long accused Apple of anti-competitive behavior, particularly regarding its App Store rules. Apple’s requirement for developers to use its in-app payment system is central to Spotify’s complaint. Apple takes a hefty commission of up to 30% on subscriptions and purchases made within the app.

Source: X.com

This commission structure, Spotify argues, puts it at a disadvantage compared to Apple Music, Apple’s streaming service, which does not face the same financial burden. Spotify contends that the high commission fees force it to either raise subscription prices for users who subscribe through the App Store or accept lower margins, undermining its ability to compete effectively.

The feud between Spotify and Apple Music eventually spilled into the regulatory arena, with Spotify filing formal complaints with antitrust authorities in the US and the European Union. These complaints allege that Apple’s conduct violates competition laws and constitutes an abuse of its dominant position in the music streaming market.

For its part, Apple has defended its App Store policies as necessary to ensure a safe and secure user experience and support the platform’s ongoing development and maintenance. The tech giant maintains that its commission fees are standard industry practice and that it applies the same rules to all developers, including its services.

From the European Commission’s point of view, Apple’s anti-steering provisions led to non-monetary harm in the form of a degraded user experience: iOS users either had to engage in a cumbersome search before they found their way to relevant offers outside the app or they never subscribed to any service because they did not find the right one on their own.

The investigation started in June 2020, when the European Commission launched an inquiry into Apple’s App Store regulations affecting app developers. This inquiry intensified in April 2021 when the Commission issued Apple a Statement of Objections, prompting a response from Apple in September of the same year. In a twist, by February 2023, the Commission had replaced the original statement with a revised version, to which Apple responded in May 2023. 

The heart of the matter lies in Article 102 of the Treaty on the Functioning of the European Union (TFEU) and Article 54 of the European Economic Area Agreement, which prohibits the abuse of market dominance. While market dominance is not illegal, companies must wield it responsibly, refraining from actions that stifle competition. The upside is that fines levied for antitrust violations flow into the EU’s general budget, easing taxpayers’ burdens. 

Despite Brexit, the EU retains jurisdiction over ongoing cases initiated pre-Brexit, with the UK set to receive reimbursement for its share of any fines collected by the EU. “In setting the level of the fine, the Commission considered the duration and gravity of the infringement as well as Apple’s total turnover and market capitalization. It also factored in that Apple submitted incorrect information in the framework of the administrative procedure,” the Commission said.

What will Apple do next?

Apple criticized the EU decision, declaring its intention to challenge it in court. On Monday, the US tech giant swiftly announced its plans to appeal the penalty, marking Brussels’s first antitrust fine ever imposed on the company. “The decision was reached despite the Commission’s failure to uncover any credible evidence of consumer harm, and ignores the realities of a market that is thriving, competitive, and growing fast,” the company said.

Apple argued that Spotify does not pay any commission to Apple because it sells its subscriptions on its website rather than through Apple’s App Store. “The primary advocate for this decision — and the biggest beneficiary — is Spotify, a company based in Stockholm, Sweden. Spotify has the largest music streaming app in the world and has met with the European Commission more than 65 times during this investigation,” it said.

The post Apple slapped with €1.8b fine for App Store music rules appeared first on Tech Wire Asia.

In an era where digital privacy is paramount, Apple is integrating PQ3 into iMessage. This announcement marks a watershed moment in messaging security, propelling iMessage to unprecedented heights of protection. As the first widely deployed messaging app to achieve Level 3 security, what does the announcement mean for iPhone users, and why should they care?

NO IMESSAGE ON ANDROID: APPLE BLOCKS THIRD-PARTY APP

Aaron Raj | 12 December, 2023

At the heart of Apple’s PQ3 integration lies a revolutionary cryptographic protocol designed to withstand the challenges posed by quantum computing. Unlike traditional encryption methods, which may be vulnerable to future quantum attacks, PQ3 provides robust protection against even the most sophisticated adversaries. Using advanced cryptographic techniques, PQ3 ensures that iMessage conversations remain secure and private, regardless of the evolving threat landscape.

“To our knowledge, PQ3 has the strongest security properties of any at-scale messaging protocol in the world,” Apple’s Security Engineering and Architecture (SEAR) team stated in a blog post a week ago.

The new state of the art in quantum-secure messaging at scale. Source: Apple.

A quantum leap in messaging security

Traditionally, messaging platforms rely on classical public key cryptography like RSA, elliptic curve signatures, and Diffie-Hellman key exchange for secure end-to-end encryption. These algorithms are based on complex mathematical problems deemed computationally intensive for conventional computers, even with Moore’s law in play. However, the advent of quantum computing poses a new challenge.

A powerful enough quantum computer could solve these mathematical problems in novel ways, potentially jeopardizing the security of end-to-end encrypted communications. While quantum computers capable of decryption aren’t yet available, well-funded attackers can prepare by exploiting cheaper data storage. They accumulate encrypted data now, planning to decrypt it later with future quantum technology—a tactic termed “harvest now, decrypt later.”

When iMessage launched in 2011, it became the first widely available messaging app with default end-to-end encryption. Over the years, Apple has continually enhanced its security features. In 2019, the iPhone maker bolstered its cryptographic protocol by transitioning from RSA to elliptic curve cryptography (ECC) and safeguarding encryption keys within the secure enclave, increasing protection against sophisticated attacks. 

“Additionally, we implemented a periodic rekey mechanism for cryptographic self-healing in case of key compromise. These advancements underwent rigorous formal verification, ensuring the robustness of our security measures,” the blog post reads. The cryptographic community has been developing post-quantum cryptography (PQC) to address the threat of future quantum computers. These new public key algorithms can run on today’s classical computers without requiring quantum technology. 

Designing PQ3

Designing PQ3 involved rebuilding the iMessage cryptographic protocol to enhance end-to-end encryption, meeting specific goals:

1. Post-quantum cryptography: PQ3 protects all communication from current and future adversaries by introducing post-quantum cryptography from the start of a conversation.
2. Mitigating key compromises: It limits the impact of critical compromises by restricting the decryption of past and future messages with a single compromised key.
3. Hybrid design: PQ3 combines new post-quantum algorithms with current elliptic curve algorithms, ensuring increased security without compromising protocol safety.
4. Amortized message size: To minimize additional overhead, PQ3 spreads message size evenly, avoiding excessive burdens from added security.
5. Formal verification: PQ3 undergoes standard verification methods to ensure robust security assurances.

According to Apple, PQ3 introduces a new post-quantum encryption key during iMessage registration, using Kyber post-quantum public keys. These keys facilitate the initial critical establishment, enabling sender devices to generate post-quantum encryption keys for the first message, even if the receiver is offline.

Furthermore, PQ3 implements a periodic post-quantum rekeying mechanism within conversations to self-heal from crucial compromise and protect future messages. This mechanism creates fresh message encryption keys, preventing adversaries from computing them from past keys.

The protocol utilizes a hybrid design, combining elliptic curve cryptography with post-quantum encryption during initial critical establishment and rekeying. Rekeying involves transmitting fresh public key material in line with encrypted messages, with the frequency of rekeying balanced to preserve user experience and server infrastructure capacity.

PQ3 continues to rely on classical cryptographic algorithms for sender authentication and essential verification to thwart potential quantum computer attacks. These attacks require contemporaneous access to a quantum computer and cannot be performed retroactively. But Apple noted that future assessments will evaluate the need for post-quantum authentication as quantum computing threats evolve.

A man uses an Apple iPhone in Beijing on September 12, 2023. (Photo by Pedro PARDO/AFP).

Why PQ3 on iMessage matters for iPhone Users

Integrating PQ3 into iMessage signifies a huge leap forward in privacy and security for iPhone users. With the exponential growth of data and the looming specter of quantum computing, traditional encryption methods face unprecedented challenges. PQ3 mitigates these risks by providing quantum-resistant protection, ensuring that your conversations remain shielded from future threats. 

PQ3’s implementation in iMessage demonstrates Apple’s interest in safeguarding user privacy and staying ahead of emerging security threats. Beyond its robust encryption capabilities, PQ3 introduces a host of additional security features designed to enhance the overall integrity of iMessage. These include secure fundamental establishment mechanisms, cryptographic self-healing protocols, and real-time threat detection capabilities. 

By incorporating these advanced security measures, Apple hopes to ensure that iMessage remains a bastion of privacy in an increasingly interconnected world.

When can iPhone users expect the update?

Support for PQ3 will begin with the public releases of iOS 17.4, iPadOS 17.4, macOS 14.4, and watchOS 10.4. Already available in developer previews and beta releases, PQ3 will automatically elevate the security of iMessage conversations between devices that support the protocol. As Apple gains operational experience with PQ3 globally, it will gradually replace the existing protocol within all sustained conversations throughout the year.

The post Apple adds PQ3 protocol into iMessage appeared first on Tech Wire Asia.

In the tumultuous landscape of the technology industry, a profound clash has dominated headlines for several years: the ongoing feud between two giants, Spotify and Apple.

At the core of the dispute lies a narrative of fierce competition, regulatory scrutiny in the European Union (EU), and the quest for equity in music streaming. While Spotify has emerged as a trailblazer in the online music domain, hooking audiences worldwide with its extensive catalog and tailored playlists, beneath the surface lies a palpable tension with Apple Inc.

The crux of Spotify’s grievance lies in what it perceives as Apple’s monopolistic grip over its App Store ecosystem. In Spotify’s eyes, Apple’s stringent rules and significant fees impose undue burdens on competitors, stifling innovation and limiting consumer choice. Central to the discord is the “Apple tax” issue – a term coined to describe the hefty commission fees levied by Apple on in-app purchases made through its platform. 

For Spotify, this means navigating a landscape where every note played comes with a price that threatens to undermine its competitive edge and erode its bottom line. Spotify contends that Apple’s control extends beyond financial matters, permeating into the very fabric of user experience. Allegations of preferential treatment for Apple’s music streaming service, Apple Music, have fueled accusations of anti-competitive behavior and sparked an outcry within the industry.

APPLE IPHONE OVERTAKES SAMSUNG AS BEST-SELLING SMARTPHONE IN 2023

Dashveenjit Kaur | 18 January, 2024

At the helm of Spotify stands CEO Daniel Ek, who is leading the charge against what he sees as Apple’s stranglehold on the music streaming industry. “The company charges an excessive 30% tax and imposes prohibitive rules on developers, many of whom helped build iOS into what it is today. And increasingly, Apple considers these developers among its fiercest challengers,” he wrote in an October 2023 opinion piece for the UK’s extreme right-wing newspaper, The Daily Mail.

Daniel Ek, CEO of Spotify, at The Future of Audiobooks Event on October 03, 2023 in New York City. (Photo by Bryan Bedder/GETTY IMAGES NORTH AMERICA/Getty Images via AFP).

Frustrated by what he sees as Apple’s anti-competitive practices, Ek has not shied away from taking his concerns public. Spotify filed a complaint with the European Commission in December 2023, alleging that Apple’s practices violate EU competition law. The legal battle has since underscored the high stakes involved, with neither company backing down.

Ek claims he envisions a future where innovation flourishes in a fair and open marketplace, where consumers have genuine choice, and competition breeds excellence. That being so, his commitment to holding Apple accountable for its actions is crucial to him.

It’s worth noting of course that Spotify itself has recently been the subject of revelations about its questionably small remuneration policies for the artists it hosts on its platform, so Ek’s shining city on a digital hill is built on the proviso that Spotify comes out on top.

What is the outcome for Apple and Spotify in the EU?

Before the latest complaint filed in December 2023, Spotify lodged an official antitrust grievance with the European Commission nearly four years ago, citing Apple’s anti-competitive practices that impeded innovation and detrimentally affected developers and consumers globally, especially in Europe. The situation has remained essentially unchanged since, according to the streaming giant.

Regrettably, Spotify noted that the absence of definitive regulatory intervention has encouraged Apple to persist in its questionable conduct. Despite a growing chorus of advocates clamoring for action, regulators have been slow to act decisively, leaving a palpable frustration among stakeholders.

Before the complaint was filed two months ago, Spotify and seven other companies and organizations in sectors including publishing, audio streaming, dating, communications, and marketplaces sent a joint letter in January 2023 to call for meaningful regulatory action against Apple’s long-standing anti-competitive European practices.

After much back and forth between regulators and the tech giants, on February 19, 2024, the bloc announced its intention to fine Apple for allegedly breaching EU law concerning access to its music streaming services. This historic penalty marks a pivotal moment in the ongoing battle between regulatory authorities and Silicon Valley giants, underscoring the EU’s commitment to enforce fair competition practices in the digital realm.

The EU’s decision to impose its first-ever fine on Apple also sends a clear message to the tech industry: compliance with EU regulations is non-negotiable. Reports indicated that this development follows a protracted investigation by EU authorities, drawing on insights from five individuals intimately familiar with the case. Their direct knowledge sheds light on the intricate details of the long-running probe, revealing the meticulous scrutiny of Apple’s business practices.

“In a closed-door meeting between EU officials and Apple in June last year, the tech firm told regulators it had already addressed any possible competition concerns arising from Spotify’s complaint,” a report by Bloomberg reads. For Apple, although accustomed to navigating complex regulatory landscapes, this fine represents a significant setback. 

When contacted for comment, Bloomberg also noted that Apple referred to a previous statement, which said that the “App Store has helped Spotify become the top music streaming service across Europe.” That translates directly into Apple  vigorously challenging the fine, using its formidable legal and financial resources to defend its practices. Nevertheless, the EU’s unwavering stance underscores the imperative of upholding fair competition principles to safeguard consumer choice and innovation within the digital ecosystem – however big and formidable the company held to be in breach. 

This landmark decision has broader implications for the tech industry. As the tech landscape continues to evolve, this landmark fine against Apple is a poignant reminder of the regulatory challenges confronting industry titans. With the EU leading the charge in enforcing antitrust laws, the repercussions of this decision will surely reverberate across the global tech industry, shaping the future of digital competition and regulation for years to come.

The post Brussels slaps Apple with historic fine for EU law violation appeared first on Tech Wire Asia.

In the corridors of power in Washington, the clout of corporate giants often speaks volumes. In 2023, two notable Chinese-founded companies, ByteDance and Shein, made headlines for their substantial lobbying efforts. As scrutiny intensified over their Chinese ties, TikTok’s parent company, ByteDance, and the fast fashion giant Shein significantly ramped up their lobbying expenditures in the US.

According to data from OpenSecrets, Shein experienced a staggering 657% surge in lobbying spending, reaching a total of US$2.12 million in 2023 compared to the previous year. Despite this substantial increase, it’s noteworthy that Shein’s lobbying budget remained less than a quarter of ByteDance’s expenditure, which stood at a whopping US$8.74 million for the same period. 

These figures underscore the growing importance of influencing US policymakers for companies with international stakes, particularly those facing scrutiny due to their origins. Tighter regulation and possible bans that continue to loom over TikTok’s future in the US pushed ByteDance to ramp up its lobbying efforts last year. Since 2019, ByteDance has spent a total of US$21.27 million.

CHINA DECOUPLES: HUAWEI ENDS US LOBBYING

Dashveenjit Kaur | 15 January, 2024

The parent company of the immensely popular video-sharing app TikTok also ensured it maintained a formidable presence in lobbying, employing 45 lobbyists throughout 2023. This figure, essentially unchanged from previous years, highlights the company’s ongoing efforts to navigate the complex regulatory landscape in the US, where concerns about data privacy, national security, and censorship have often dominated the discourse surrounding Chinese tech firms.

ByteDance spends millions lobbying, outpacing prior years amid crackdown on TikTok’s China ties. Source: Open Secret.

TikTok boasts over 150 million American users, and therefore, US lawmakers harbor suspicion regarding the app’s data accessibility to the Chinese government and its potential role in expanding China’s influence. On the other hand, Shein, known for its rapid rise in the fashion e-commerce space, made a strategic move by increasing its lobbying team, hiring 14 lobbyists in 2023 compared to just eight the year before. 

This surge in lobbying personnel reflects Shein’s proactive approach to addressing regulatory challenges and uncertainties, especially against a potential initial public offering (IPO) in the US market.

Why are Chinese entities increasing their lobbying efforts in the US?

Source: Open Secrets.

The increased lobbying activities of ByteDance and Shein coincide with a broader trend of Chinese companies facing heightened scrutiny and regulatory challenges in the US. Allegations of espionage, data privacy concerns, and geopolitical tensions have fueled calls for stricter oversight and regulation of Chinese tech firms operating on American soil.

Additionally, Shein’s decision to bolster its lobbying efforts amid an uncertain IPO outlook underscores the significance of regulatory clarity and favorable legislative conditions for companies seeking US capital markets.

The success or failure of Shein’s lobbying endeavors could have far-reaching implications for its IPO aspirations and the broader landscape of Chinese companies seeking to establish a foothold in the US market.

In conclusion, the increased lobbying expenditures of ByteDance and Shein shed light on the evolving dynamics of corporate influence and regulatory challenges faced by Chinese-founded companies in the US. As these companies navigate a complex web of political, economic, and regulatory pressures, their lobbying efforts testify to the strategic importance of engaging with policymakers and stakeholders to safeguard their interests and ensure continued growth and success in an increasingly competitive global marketplace.

The post This is how much ByteDance and Shein spent on US lobbying in 2023 appeared first on Tech Wire Asia.

In the ever-shifting landscape of technology, Meta recently stood at a pivotal juncture. Once heralding the ambitious vision of a metaverse, where the physical and digital world seamlessly intertwined, Meta confronted obstacles that led to a reality check and loss of billions of dollars. Alas, the grand metaverse dream, which once seemed boundless, faced a catastrophic failure. However, Meta, under the leadership of Mark Zuckerberg, refused to linger in the aftermath of disappointment. Instead, the social media giant swiftly redirected its focus to a new horizon: AI and cutting-edge chips. 

Meta’s CEO, Mark Zuckerberg, acknowledges the metaverse challenges but frames them as learning opportunities. In a recent address, he emphasized that while the metaverse vision persists, the immediate focus is leveraging AI to enhance user experiences across existing platforms. The goal is clear – to infuse AI into the core of Meta’s offerings, creating a personalized and intelligent digital environment.

SPEECH-TO-SPEECH? META AI CAN NOW TRANSLATE SPOKEN-ONLY LANGUAGES

Joe Devanesan | 25 October, 2022

It started with a significant move last July when Meta disrupted the competition for advanced AI by unveiling Llama 2, a model akin to the one driving ChatGPT. Then, last month, Zuckerberg introduced his vision for artificial general intelligence (AGI) in an Instagram Reels video. In the previous earnings call, Zuckerberg also emphasized Meta’s substantial investment in AI, declaring it as the primary focus for 2024. 

2024: The year of custom AI chips by Meta?

In its quest to empower generative AI products across platforms like Facebook, Instagram, WhatsApp, and hardware devices like Ray-Ban smart glasses, the world’s largest social media company is racing to enhance its computing capacity. Therefore, Meta is investing billions to build specialized chip arsenals and adapt data centers. 

Meta is gearing up to introduce Artemis, its latest AI chip, into its global data centers. This innovative chip represents the next wave in Meta's silicon development, offering a strategic advantage by lessening its dependence on Nvidia's prevalent chips. pic.twitter.com/V9leNMRLyA

— Interesting Engineering (@IntEngineering) February 2, 2024

Last Thursday, Reuters got hold of an internal company document that states that the parent company of Facebook intends to roll out an updated version of its custom chip into its data centers this year. The latest iteration of the custom chip, codenamed ‘Artemis,’ is designed to bolster the company’s AI initiatives and might lessen its dependence on Nvidia chips, which presently hold a dominant position in the market. 

If successfully deployed at Meta’s massive scale, an in-house semiconductor could trim annual energy costs by hundreds of millions and slash billions in chip procurement expenses, suggests Dylan Patel, founder of silicon research group SemiAnalysis. Moreover, the deployment of Meta’s chip marks a positive shift for its in-house AI silicon project. 

In 2022, executives abandoned the initial chip version, choosing instead to invest billions in Nvidia’s GPUs, dominant in AI training. The upside is that Meta is poised to accumulate many coveted semiconductors. Mark Zuckerberg revealed to The Verge that by the close of 2024, the tech giant will possess over 340,000 Nvidia H100 GPUs – the primary chips used by entities for training and deploying AI models like ChatGPT. 

Additionally, Zuckerberg anticipates Meta’s collection to reach 600,000 GPUs by the year’s end, encompassing Nvidia’s A100s and other AI chips. The new AI chip by Meta follows its predecessor’s ability for inference—utilizing algorithms for ranking judgments and user prompt responses. Last year, Reuters reported that Meta is also working on a more ambitious chip that, like GPUs, could perform both training and inference.

Zuckerberg also detailed Meta’s strategy to vie with Alphabet and Microsoft in the high-stakes AI race. Meta aims to capitalize on its extensive walled garden of data, highlighting the abundance of publicly shared images and videos on its platform and distinguishing it from competitors relying on web-crawled data. Beyond the existing generative AI, Zuckerberg envisions achieving “general intelligence,” aspiring to develop top-tier AI products, including a world-class assistant for enhanced productivity.

Meta founder and CEO Mark Zuckerberg speaks during the Meta Connect event at Meta headquarters in Menlo Park, California, on September 27, 2023. (Photo by JOSH EDELSON / AFP)

The post Here’s how Meta plans to take on the AI chips market appeared first on Tech Wire Asia.

Paytm, short for “Pay Through Mobile,” began its journey with a revolutionary idea – letting users make cashless transactions through their mobile phones. But it wasn’t until the whirlwind of India’s 2017 demonetization that Paytm soared to new heights. That year, Prime Minister Narendra Modi’s bold move shook up the cash-dependent economy, compelling many individuals and countless small merchants to seek alternatives. Amid the chaos, Paytm’s wallet emerged as the straightforward solution, drawing a massive influx of users. 

Paytm emerged as a prime beneficiary of demonetization, witnessing a meteoric rise from 140 million users in October 2016 to a staggering 270 million by November 2017 following the demonetization program. The winds of change propelled Paytm to the forefront of India’s digital financial revolution. It has become a pioneering force, transforming how millions transact and engage with digital finance. 

WHY WHATSAPP SHOULD START WORRYING ABOUT PAYTM

Soumik Roy | 10 August, 2018

The platform provided a versatile and convenient solution for individuals and businesses, from small grocery purchases to utility bill payments. In short, Paytm’s success during demonetization contributed to the broader acceptance of mobile wallets in India. The platform’s simplicity and strategic marketing campaigns played a significant role in shaping the narrative around digital wallets as a reliable alternative to traditional currency.

A QR code for Paytm is pictured at a shop in New Delhi on November 8, 2021. (Photo by Sajjad HUSSAIN/AFP).

What is happening with Paytm in India now?

Founded in 2010 by Vijay Shekhar Sharma, Paytm initially gained prominence as a mobile wallet but swiftly evolved into a comprehensive financial ecosystem. Over the years, Paytm has diversified its services, expanding beyond mobile wallets to offer various financial products. The platform now provides services ranging from digital payments, mobile recharges, and bill payments to insurance, wealth management, and even digital gold investments. 

This diversification has positioned Paytm as a one-stop shop for various financial needs. By 2017, Paytm received approval from the Reserve Bank of India (RBI) to launch Paytm Payments Bank, a significant milestone in its journey. The Payments Bank allowed users to open savings accounts with zero balance requirements, seamlessly integrating banking services within the Paytm app. The bank is restricted from lending and can accept deposits of up to 200,000 Indian rupees. 

For context, Paytm Payments Bank is primarily owned by Paytm (One 97 Communications), with a 49% stake, while the remaining 51% is held by Paytm’s chief executive and founder, Vijay Shekhar Sharma. The bank serves as a crucial banking partner for Paytm, holding funds from popular digital wallets within its operations. 

All 330 million wallet accounts under the parent company are housed within Paytm Payments Bank, making it the repository for the money held in these wallets. However, It is noteworthy to know that on top of its immense success, Paytm was not short of challenges. Most recently, in a significant setback for one of India’s largest payment firms, the RBI has directed Paytm’s payments bank subsidiary to cease accepting new deposits in its accounts or popular wallets starting in March. 

So what exactly won’t be working on PayTM after 29th Feb then? 🤔 pic.twitter.com/rNJvRPAJhc

— Sunderdeep – Volklub (@volklub) February 4, 2024

According to a report by Reuters, India’s central bank said it took action because of “persistent non-compliance and continued material supervisory concerns in the bank,” which it did not specify. The restriction, effective from March 1, 2024, follows a previous limitation imposed two years ago, preventing Paytm Payments Bank from onboarding new customers.

Paytm Payments Bank was restricted from adding customers in March 2022 due to similar concerns but continued doing business with existing customers. It has been told to wind down most of its businesses this month. Moreover, local reports indicated that the banking regulator consistently raised concerns over various issues. 

Sources reveal that apprehensions regarding money laundering and substantial financial transactions, amounting to hundreds of crores of rupees, between the well-known Paytm wallet and its less prominent banking arm prompted the RBI to take action against entities overseen by Vijay Shekhar Sharma. 

It has also been disclosed that Paytm Payments Bank had numerous non-KYC (Know Your Customer) compliant accounts, with thousands of cases using a single PAN to open multiple accounts. Instances of transactions exceeding regulatory limits in minimum KYC pre-paid instruments, reaching crores of rupees, raised red flags for potential money laundering, as per sources.

What is Paytm doing about the scrutiny by the Reserve Bank of India?

Paytm’s CEO on X.com

Paytm has committed to adhere to the RBI’s directives promptly. As part of compliance, it will discontinue its association with Paytm Payments Bank and exclusively collaborate with other banks. The company anticipates a potential adverse impact on its annual earnings before interest, tax, depreciation, and amortization (EBITDA), ranging from 3 billion rupees (US$36 million) to 5 billion rupees under the worst-case scenario.

One 97 Communications (OCL), the parent of Paytm, said in an exchange filing that it would partner with other banks, not with Paytm Payments Bank (PPBL). “OCL has been working with other banks for the last two years. We will now accelerate the plans and move to other bank partners,” the company said.

“Regarding the direction on termination of the nodal account of OCL and Paytm Payments Services Limited (PPSL) by February 29, 2024, OCL and PPSL are moving the nodal account to other large commercial banks,” it added.

In a report, Bloomberg claims that India’s banking regulator is considering canceling Paytm Payments Bank’s license as early as next month, potentially impacting the growth plans of Paytm, a troubled local fintech giant. The RBI is prioritizing the protection of depositors and may take action after the February 29 deadline, sources told Bloomberg.

The post India’s Paytm is in a crisis. What do we know about the fintech giant’s turmoil? appeared first on Tech Wire Asia.

In a strategic maneuver responding to the challenges posed by the US government’s inclusion of Huawei Technologies Co. on its Entity List, in August 2019, the company embraced HarmonyOS as its proprietary Android alternative. Now, four years on, the unfolding narrative is reaching a pivotal moment. HarmonyOS is now on the brink of surpassing Apple’s iOS, marking a transformative milestone in the evolving landscape of China’s operating systems.

According to a report from Canadian research firm TechInsights released on January 3, although Google’s Android and Apple’s iOS will maintain their dominance worldwide in smartphone operating systems, Huawei’s homegrown HarmonyOS is expected to gain traction against these giants in China.

The HarmonyOS adoption surge has found momentum in Huawei’s unexpected, successful re-entry into the 5G smartphone arena. This resurgence began with the unveiling of the Mate 60 Pro in late August 2023, featuring a cutting-edge, domestically developed 5G chip—a bold move in defiance of US tech sanctions designed to impede access to exactly this kind of advanced technology.

Heralding the era of 5G handsets in China, Huawei’s Mate 60 Pro series is poised to impact the country’s already-vibrant smartphone market. Estimates by Counterpoint Research projected sales figures ranging from five to six million units for 2023. This optimistic outlook is rooted in Huawei’s expansive base of HarmonyOS users, fostering a robust domestic ecosystem. 

SURPRISING SHIFT: HUAWEI AND XIAOMI SURPASS APPLE IN CHINA’S SINGLES’ DAY SALES

Dashveenjit Kaur | 28 November, 2023

Experts believe the allure of these innovative 5G devices extends beyond loyal users, drawing in fresh customers and enticing those who have ventured into other smartphone realms in recent years. As Huawei emerges from the challenges of a strained supply chain, coupled with a return to regular product launches, the company’s trajectory paints a promising picture for the times ahead.

To top it off, the company’s product lineup has seen additional growth in the past week, marked by the introduction of new smartphone models within its mid-range Nova series. In other words, TechInsights expects Huawei to make a solid recovery in 2024, incluing a gradual alleviation of the company’s supply challenges, primarily attributed to the shortages of Kirin 9000 chipsets over the next few months. 

What’s next for HarmonyOS in 2024?

TechInsights believes that HarmonyOS is poised for a groundbreaking moment in 2024 with the unveiling of HarmonyOS Next, breaking away from the typical Android open source project (AOSP) code. Huawei is undergoing a significant shift by pivoting away from Android and emphasizing HarmonyOS more strongly. 

This means it features its unique system architecture designed to foster the development of apps exclusively for HarmonyOS. These apps must be HarmonyOS-compatible and use Hap format installation packages. Consequently, HarmonyOS will no longer support Android apps. Huawei’s venture into uncharted territory involves the release of a developer preview for HarmonyOS Next in the first quarter of 2024, collaborating with major Chinese companies to craft native apps tailored for the system. 

A new chapter for Harmony?. Source: X.com

Ant Group, the financial tech giant associated with Alibaba Group Holding, has already embarked on creating a new version of its mobile payment app, Alipay, based on HarmonyOS, while Alibaba is developing a revised edition of DingTalk, its workplace collaboration app, for this innovative platform.

HUAWEI IS PREPARED TO CHALLENGE NVIDIA’S POSITION IN THE AI CHIP INDUSTRY

Dashveenjit Kaur | 9 November, 2023

Leading Chinese internet entities, including JD.com, NetEase, and Meituan, have begun recruiting developers to build native apps on HarmonyOS, with McDonald’s China emerging as an early adopter of HarmonyOS Next, marking a significant shift for multinational food companies in mainland China. 

For TechInsights, one question lingers: will these endeavors trigger a ripple effect, propelling HarmonyOS to become the default operating system for smartphones, laptops, and cars across China? TechInsights remains watchful, noting that HarmonyOS currently powers over 700 million devices, with a robust community of more than 2.2 million third-party developers, as highlighted by Richard Yu Chengdong, CEO of Huawei’s consumer business group, during the company’s annual developer conference in August. 

The post HarmonyOS set to overtake iOS in China this year appeared first on Tech Wire Asia.

TEMU IS PAYING A HEFTY PRICE TO RIVAL SHEIN, AMAZON, AND TIKTOK SHOP THIS HOLIDAY SEASON

Dashveenjit Kaur | 24 November, 2023

In a sudden twist of events roughly two months ago, TikTok, the widely embraced social media platform from China’s ByteDance, temporarily suspended its e-commerce services in Indonesia. The decision was prompted by regulatory mandates instituted by the Indonesian government to protect local merchants’ interests.

Fast forward to this week, and TikTok has orchestrated a remarkable strategy in the archipelago, unveiling plans to invest over US$1.5 billion and secure a 75% stake in Tokopedia, the nation’s largest e-commerce platform. 

TikTok’s decision to temporarily shut down its e-commerce services in Indonesia reflects the complex interplay between regulatory compliance, market dynamics, and strategic investments. But the social media giant did say it would recalibrate its approach to navigate the evolving regulatory landscape.

That said, the strategic move to collaborate with Tokopedia underscores TikTok’s commitment to the Indonesian market. It allows the company to continue its ‘Shop’ operations, showcasing the platform’s resilience in navigating regulatory challenges.

Indonesia’s Trade Minister Zulkifli Hasan poses during the launch of social media video sharing app TikTok and Indonesia’s leading e-commerce site Tokopedia’s Buy Local Campaign in Jakarta on December 12, 2023. (Photo by Yasuyoshi CHIBA / AFP).

The Indonesian government mandated TikTok to halt its e-commerce services temporarily in October this year; the move was solely to ensure a level playing field for local merchants and protect their interests within the fiercely competitive e-commerce sector.

For TikTok, it was a detrimental move, especially for TikTok Shop, considering Southeast Asia is the app’s biggest market in terms of users, and Indonesia, the region’s biggest economy and most populous nation, is the most significant market for the platform. 

TIKTOK BOWS DOWN TO INDONESIA, SHUTTING ‘SHOP’ DOWN. WILL A NEW APP ARISE?

Dashveenjit Kaur | 5 October, 2023

In fact, Indonesia was so critical to TikTok’s plans that it was the first nation to pilot the app’s e-commerce arm, TikTok Shop. The country of 278 million people was supposed to be a template for a global expansion from the US to Europe. When talks on the new ruling were making waves, TikTok argued that separating social media and e-commerce would hamper innovation and hurt millions of merchants and consumers. 

According to the country’s Director General of Public Information and Communications of the Ministry of Communications and Informatics, Usman Kansong, Tiktok Indonesia has two permits from his ministry. “There are two permits: social media and e-commerce. But with Minister of Trade Regulation No. 31 of 2023, Tiktok must separate social media from e-commerce,” he added.

TikTok has a new strategy in Indonesia

The logo of Indonesia’s leading e-commerce site Tokopedia is seen during the launch of the Buy Local Campaign in Jakarta on December 12, 2023. (Photo by Yasuyoshi CHIBA / AFP).

When the ByteDance-owned TikTok unveiled its strategic move on Monday, it said the plan was to invest US$1.5 billion in a unit of Indonesia’s GoTo, aiming to salvage its shopping business following regulatory challenges in the country. In a letter to investors, GoTo said TikTok will secure a controlling 75.01% stake in Tokopedia, an e-commerce unit within the GoTo umbrella. 

As a part of this transaction, Tokopedia is set to acquire TikTok Shop’s Indonesia business for US$340 million, expanding its footprint in the dynamic Indonesian e-commerce landscape. “As part of the agreement, Tokopedia and TikTok Shop Indonesia’s businesses will be combined under the existing PT Tokopedia entity in which TikTok will take a controlling stake. The shopping features within the TikTok app in Indonesia will be operated and maintained by the enlarged entity,” GoTo’s statement reads.

The arrangement will allow TikTok and GoTo to serve Indonesian consumers and MSMEs comprehensively. “GoTo will benefit from the growth of the enlarged entity and will remain an ecosystem partner to Tokopedia through its digital financial services via GoTo Financial and on-demand services via Gojek. GoTo will also receive an ongoing revenue stream from Tokopedia commensurate with its scale and growth,” GoTo noted.

What will unfold next?

According to both companies, the strategic partnership will kick off with an initial pilot period conducted in close collaboration with and under the supervision of relevant regulators. The Beli Lokal initiative’s inaugural campaign is scheduled to launch on December 12, aligning with Indonesia’s National Online Shopping Day (Harbolnas) — a government initiative to foster the country’s digital economy by bolstering local MSMEs. 

TikTok pulls a power move in Indonesia.

“This campaign, accessible on both TikTok and Tokopedia, will spotlight a diverse array of merchants, placing a significant emphasis on Indonesian products. Going forward, TikTok, Tokopedia, and GoTo will transform Indonesia’s e-commerce sector, creating millions of new job opportunities over the next five years,” GoTo added. The transaction is expected to close in the first quarter of 2024.

The coming months will unveil how TikTok’s bold moves will shape the narrative of e-commerce partnerships and regulatory compliance in this dynamic market.

The post TikTok to revive its e-commerce in Indonesia with Tokopedia takeover appeared first on Tech Wire Asia.

Chinese fast fashion giant Shein has had quite the jounrey, from China to its current headquarters in Singapore, and in its latest evolution, aiming to file a US IPPO.

Founded by Chinese entrepreneur Chris Xu, within a decade of its inception, the company achieved a valuation of US$100 billion during an April 2022 fundraising round – a value higher than Zara’s owner Inditex and H&M combined. By 2022, Shein was the world’s third most valuable startup.

Fast forward to this week, when the fast fashion giant confidentially filed to go public in the US, one of its largest markets.

In May this year, the company experienced a valuation dip to slightly over US$60 billion, but if it goes ahead with its initial public offering (IPO), Shein is still on course to emerge as the most valuable China-founded company to go public in the US. So far, only Didi Global, the Uber of China, has come close, delivering one of the year’s biggest IPOs in 2021, at a US$68 billion valuation.

Shein faces the formidable task of convincingly assuring skeptical investors, politicians, and regulators that the controversies surrounding the company do not pose an impediment to its growth.

Still, the move to discreetly file for an IPO in the market from which it receives the most scrutiny is being seen as an audacious move by Shein. Around the world, the company has faced scrutiny for issues including reported subpar working conditions in factories, alleged copyright infringement concerning independent artists’ designs, and criticism of the environmental impact associated with fast fashion. Shein, however, has consistently refuted these accusations.

TEMU IS PAYING A HEFTY PRICE TO RIVAL SHEIN, AMAZON, AND TIKTOK SHOP THIS HOLIDAY SEASON

Dashveenjit Kaur | 24 November, 2023

In the US specifically, Shein is under constant, ongoing scrutiny – no matter what it does to stay on the good side of US lawmakers. Most recently, Shein and its rival Temu were accused of “building empires” by a US House committee in a report on firms exploiting legislative loopholes to evade US import taxes and sanctions checks.

Other concerns raised by critics center around the possibility that Shein might engage contract manufacturers located in China’s Xinjiang region, where advocates and governments have made allegations of the internment of Uighurs and other predominantly Muslim minority groups. Beijing, however, denies any such abuses.

Shein and its lobbying effort for its US IPO

Persuading regulators about the integrity of its supply chain is expected to be a significant regulatory hurdle for Shein as it seeks approval from the US Securities and Exchange Commission (SEC) for its IPO. Earlier this year, a bipartisan effort led by a congresswoman urged the SEC to postpone Shein’s IPO until the company’s supply chain could be verified free from forced labor. 

A man cleans the windows of the first permanent showroom of Chinese online fast fashion giant Shein in Tokyo. (Photo by Richard A. Brooks / AFP).

Additionally, a coalition of Republican attorneys general from 16 US states has called for an SEC audit of Shein. The company has faced scrutiny from two separate Congressional committees for its sourcing practices and utilization of a trade loophole that lets most of its products into the US duty-free.

In its latest social impact report, Shein emphasized its collaboration with Oritain, a firm employed by the US government to examine cotton connections to China’s Xinjiang region. As previously disclosed to Reuters, Shein conducts tests on samples from every third-party cotton mill with which it collaborates. Between June 1, 2022, and July 11, 2023, the company conducted 2,111 tests.

Nevertheless, critics argue that the testing procedures fail to adequately scrutinize the millions of garments Shein exports worldwide each year. A separate Reuters report noted that Shein allocated US$1.28 million for Capitol Hill lobbying this year in anticipation of its public debut. The company also engaged in private meetings with lawmakers, including prominent critics, aiming to reshape its image in Washington, as per insights from Congressional aides.

In addressing concerns about its supply chain, Shein representatives underscored the company’s commitment to diversifying its sourcing from China to include other nations, notably India. They also highlighted the company’s efforts to increase the number of Chinese goods coming to the US via conventional container shipping, acknowledging the payment of tariffs on these items.

“Shein is fundamentally a Chinese company; investors should approach Chinese offerings with extreme caution. Its attempt to go public should prompt a closer look at its business practices, especially its links to slave labor and its evasion of US customs laws,” Republican Sen. Marco Rubio told Reuters. “I will closely monitor Shein’s disclosures in the lead-up to its IPO,” added Rubio, who criticized the retailer’s lobbying efforts in a letter distributed to other senators in June.

The Wall Street Journal, the first to break the news on Shein’s IPO, said that Goldman Sachs, JPMorgan Chase, and Morgan Stanley have been hired as lead underwriters on the offering, which could happen in 2024.

How will Beijing treat Shein’s US IPO?

Since a broad crackdown on overseas listings, fewer Chinese IPOs have been in the US. As part of Shein’s ongoing efforts to prepare for its inaugural share sale in the US, the company strategically positions itself as a global entity despite its Chinese origins. It started in 2022 when Shein relocated its headquarters to Singapore and initiated the expansion of manufacturing facilities beyond its Chinese base. 

The e-commerce giant eventually established distribution centers in the US, Canada, and Europe to enhance shipping efficiency in these regions. Notably, the company acquired the British online brand Missguided in October and secured a stake in the fashion retailer Forever 21 owner in August.

A Shein pop-up store in Paris. (Photo by Christophe ARCHAMBAULT / AFP)

There remains the possibility that Chinese regulators will subject Shein’s listing to scrutiny and mandate the company to seek approval. After all, Chinese securities regulations necessitate companies to register for the sale of shares abroad, subjecting them to screening for state security and other potential concerns. Such regulatory processes could introduce further delays to Shein’s IPO proceedings.

The post Did Shein finally make the bold move and file for a US IPO? appeared first on Tech Wire Asia.