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 a move set to redefine Malaysia’s digital landscape, Amazon Web Services (AWS) has forged strategic partnerships with two of the country’s leading telecommunications giants, Maxis and CelcomDigi, at the Mobile World Congress 2024 (MWC 2024) in Barcelona. The announcements mark a significant step forward in Malaysia’s local technological innovation, as the collaboration promises to unleash the potential of generative AI and 5G connectivity like never before.

By integrating generative AI into its suite of cloud services, AWS has been empowering businesses to extract valuable insights from data, enhance customer interactions, and drive innovation at scale. But perhaps most exciting of all is the potential for generative AI to democratize creativity and innovation. By providing businesses access to powerful AI tools and resources, AWS is leveling the playing field and enabling organizations of all sizes to compete globally.

Multiple Amazon AWS announcements at MWC demonstrate how telecom and technology markets are merging. Cloud/hyperscaler companies are crtical parts of telecom service providers' infrastructure #mwc24 pic.twitter.com/9sjRo3dTE8

— Ian Fogg (@ianfogg42) February 26, 2024

AWS & CelcomDigi at MWC 2024

By harnessing the power of AWS’s cloud capabilities, CelcomDigi aims to co-create innovative generative AI solutions tailored to the telecommunications industry. CelcomDigi will be tapping into Amazon Bedrock’s cutting-edge technology to revolutionize its operations. This fully managed service provides access to top-tier AI models and ensures security, privacy, and responsible AI practices. 

Through its Innovation Centre, CelcomDigi is establishing an AI Sandbox, offering its employees a playground to explore and implement generative AI solutions. This initiative isn’t just about experimentation but driving innovation across various departments, including HR, customer service, legal, and finance. 

AWS and CelcomDigi sign Letter of Collaboration at MWC 2024 in Barcelona, Spain.

With the combined expertise of CelcomDigi’s IT engineers and AWS AI specialists, the company is poised to unlock the full potential of generative AI and integrate it seamlessly into its operational platforms. CelcomDigi and AWS are also teaming up to provide AI training for CelcomDigi staff. 

“CelcomDigi is already integrating its knowledge-based AI chatbot with Amazon Bedrock, crafting a comprehensive platform for accessing organizational and HR data. This innovative approach streamlines workflows enhances employee experiences, and fosters a culture of continuous learning and development,” AWS said following the signing of a Letter of Collaboration at MWC 2024.

CelcomDigi is also teaming up with Amazon’s Bedrock, diving into linguistic diversity, to develop Bahasa Melayu language algorithms. Using Amazon Titan and Anthropic Claude models equipped with cutting-edge deep learning algorithms, CelcomDigi aims to create innovative solutions such as chatbots tailored to its culturally diverse customer base. 

FROM AI-POWERED CHIPS TO CHATBOT: HERE’S WHAT WAS UNVEILED AT AWS RE-INVENT 2023

Dashveenjit Kaur | 1 December, 2023

But the collaboration continues beyond there. CelcomDigi and AWS are trying to revolutionize the Malaysian business landscape with personalized generative AI applications spanning various industries and consumer experiences.

“CelcomDigi’s collaboration with AWS is a great example of how telcos can enhance end-to-end operational efficiency and redefine the user experience for both employees and customers with the power of generative AI technology,” Pete Murray, Country Manager, Malaysia at AWS, said in a press release. Murray reckons with AWS, CelcomDigi can drive new use cases at scale with AI-optimized infrastructure and the flexibility to choose fit-for-purpose foundational models through Amazon Bedrock. 

“This collaboration also accelerates the delivery of innovative AI services to Malaysian enterprises. We are excited to support CelcomDigi in advancing its 5G and AI transformation with our upcoming AWS Region in Malaysia and our joint commitment to develop AI talent in the country,” he added. 

AWS and Maxis at MWC 2024

In 2019 when Maxis joins Amazon Partner Network (APN) to deliver cloud solutions to businesses in Malaysia. Maxis currently has the largest pool of AWS-trained employees in Malaysia.

As for Maxis and AWS, the two took the stage at MWC 2024 to share the announcement that they are joining forces to bring cutting-edge 5G and generative AI innovations to the forefront of business. Targeting critical sectors like retail, manufacturing, logistics, and financial services, this collaboration hopes to ignite innovation, helping Malaysian enterprises to thrive in the digital age.

By integrating advanced AI technologies into real-world use cases, Maxis will offer tailored solutions designed to adapt and evolve alongside the ever-changing needs of businesses.

Central to this collaboration is the integration of generative AI and language models tailored to support the Bahasa Melayu language. This strategic move accelerates the digital transformation journey for Malaysian businesses.

The collaboration cements Maxis’ status in the realm of cloud services. As Malaysia’s first telco to achieve AWS Advanced Tier Services Partner status, Maxis is leading the charge in delivering unparalleled connectivity and cloud solutions to enterprises nationwide.

“We are pleased to expand our collaboration with AWS to bring next-generation digital capabilities to Malaysian businesses. As Malaysia’s leading integrated telecommunications provider, we look forward to enabling our customers with the power of 5G and Generative AI,” Maxis CEO Goh Seow Eng said.

Since forging their partnership in 2019, Maxis and AWS have been at the forefront of driving technological innovation in Malaysia. Through strategic collaborations and a shared vision for the future, Maxis continues to leverage the power of partnerships to meet the diverse digital needs of enterprises, ensuring they stay ahead in today’s fast-paced digital landscape. 

The post AWS strikes AI collaboration deals with Malaysian telcos at MWC 2024 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.

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 the technology industry, where silicon drives innovation, the global semiconductor industry reflects the ebb and flow of progress through its revenue patterns. In 2023, several challenges emerged — a dip in spending led to an 8.8% global revenue decline.

Amid the narrative twists of the year, Intel reclaimed the revenue throne from Samsung, which was grappling with memory sector woes, while Nvidia stole the show, nearly doubling its 2023 revenues and ascending to the third spot in the market.

The global semiconductor industry has witnessed a market in flux, and it’s still navigating the delicate balance of supply and demand. “The global semiconductor industry’s revenue declined 8.8% in 2023 due to a slowdown in enterprise and consumer spending. Besides, the overall 2023 semiconductor revenue rankings saw some big changes from 2022, like Intel reclaiming the top spot from Samsung as the latter suffered a lot from the memory sector downtrend as well as lackluster smartphone business,” Counterpoint Research said in its latest Global Semiconductor Revenues report.

The report characterizes 2023 as a year for semiconductor companies to fine-tune their strategies/outlook and manage inventory adjustments to prepare for the impending AI boom. “AI provided positive news to the semiconductor industry, emerging as a key content and revenue driver, especially in the year’s second half. Nvidia appeared to be the largest beneficiary, followed by AMD. Both will be growing their AI-related businesses in the coming years,” the report noted.

COULD MALAYSIA’S SEMICONDUCTOR INDUSTRY HELP CHINA? 

Aaron Raj | 19 December, 2023

Counterpoint’s semiconductor revenue tracker shows only six of the top 20 global semiconductor vendors reported a year-on-year (YoY) revenue growth. The memory sector, in particular, experienced solid headwinds and was down 43% YoY in revenue in 2023. “We also found that the top 20 global semiconductor vendors contributed to 71% of the market, down from 76% in 2022 and showing a 14% YoY revenue decline,” Counterpoint added.

Intel & allies see declines, but AI surge lifted Nvidia up

In 2023, Intel may have reclaimed its throne but still echoed a 16% revenue dip from PC and server woes. Samsung got swept up in the memory market’s ebb and faced a 38% YoY revenue decline. Meanwhile, soft demand and market glut afflicted SK Hynix and Micron, marking 33% and 36% declines, respectively. 

Top 10 semiconductor companies’ revenue equals 55% of global revenue. Source: Counterpoint Research.

Amid this symphony of setbacks, Nvidia emerged, riding the AI wave. With an 86% YoY revenue surge, Nvidia secured a third place in revenue, its first-ever top five position. “We believe the company will continue to lead the semiconductor industry’s growth because of its high market share of general purpose GPUs used in AI/high-performance computing,” the report noted.

AI to dominate the industry

CES 2024: INTEL AND QUALCOMM TO TAKE ON NVIDIA IN AUTOMOTIVE INDUSTRY

Aaron Raj | 11 January, 2024

Senior analyst William Li, commenting on the market dynamics, said he believes AI servers, AI PCs, AI smartphones, etc, will continue to be significant organic growth drivers in the semiconductor industry in 2024, followed by the memory sector’s rebound due to a normalizing oversupply situation and demand recovery. 

“The automotive sector could be another driver for the market due to content growth, which was already a key revenue driver for Infineon and STMicroelectronics in 2023,” he added. Li claims that since the industry is at the end of the inventory correction cycle and the support from clients’ demand is relatively solid, supply constraints will likely be the key variants to keep an eye on. 

“During its latest quarterly earnings call, the world’s largest foundry player, TSMC, maintained its solid capacity expansion plan for 2024. The company holds an optimistic view on its utilization rate in the coming quarters, reiterating our view of strong demand throughout the year,” Li concluded.

The post Semiconductor revenue: Intel tops, Nvidia soars in 2023 slump appeared first on Tech Wire Asia.

In the dynamic telecommunications landscape, TD Tech stands as a testament to the intricate interplay of collaboration, evolution, and strategic partnerships. Established in 2005 as a joint venture between Siemens (51% stake) and Huawei (49% stake), TD Tech found its roots in the shared vision of pioneering wireless technology solutions. However, the landscape shifted in 2007 when Siemens sold half of its stake to Nokia, introducing a new player to the collaborative equation. 

That marked a pivotal moment, steering TD Tech on a new trajectory under joint ownership. Siemens gradually divested its remaining shares in 2013, leaving Nokia as the major shareholder in TD Tech. This strategic move altered the company’s ownership structure and set the stage for further developments in its market presence and product offerings.

A notable chapter in TD Tech’s narrative emerged in 2021 when the company diversified its portfolio by venturing into rebranded phones from Huawei. One such model, the M40 5G, utilized a 7-nanometer chip from Taiwan’s MediaTek instead of Huawei’s Kirin processors. Due to Washington’s sanctions, companies are prohibited from providing Huawei with advanced chips containing US-origin technology, including MediaTek processors, manufactured by Taiwan Semiconductor Manufacturing Co, the world’s largest contract chipmaker. 

Nokia, in the thick of geopolitical challenges, clarified that TD Tech operates independently and is not linked to Nokia’s operations or supply chains in China. A year and a half later, in April 2023, Nokia revealed plans to leave TD Tech. The Finnish telecommunications equipment giant said its decision was driven by TD Tech’s expanded business scope, which now includes handsets, modems, and other devices. That broadened scope no longer aligns with Nokia’s strategic focus as a B2B technology innovation leader.

NOKIA PLAYS AN IMPORTANT ROLE IN INDIA’S 6G VISION

Aaron Raj | 10 October, 2023

“Nokia decided to divest its 51% stake in TD Tech for an estimated price of EUR 285 million (US$ 305.7 million), with an estimated gain of EUR 227 million (as of June 30; US$ 243.58 million), to New East New Materials, a company involved in raw materials manufacturing for the flexible packaging industry. However, the finalization of the deal was subject to conditions that included a pre-emption right (refusal of sale) of the joint venture partner, which is Huawei in this case,” Nokia said in September 2023.

New buyers from China to partner with Huawei

Over the weekend, reports surfaced that the Finnish telecom equipment giant had secured new buyers for its significant stake in a Beijing joint venture with Huawei. The deal, which faced protests from the Chinese company last year, is now back on track. Nokia’s attempt to sell its majority stake to Shanghai-listed ink maker New East New Materials in 2023 faced a hurdle when Huawei threatened to stop technology licensing to TD Tech. 

The prospective deal eventually fell apart. Analysts speculated that Huawei was likely unwilling to relinquish control of TD Tech, seeing it as a strategic asset to navigate US sanctions and enhance efficiency in specific market segments, as noted by Yang during that period. 

Now, according to a disclosure published on Friday by the State Administration for Market Regulation (SAMR), under the latest agreement, wireless technology firm TD Tech will be jointly controlled by Huawei and a group of entities that include the government-owned Chengdu High-Tech Investment Group and Chengdu Gaoxin Jicui Technology Co, as well as venture capital firm Huagai.

The equity distribution among the new stakeholders remains undisclosed, pending final government approval. Regulators said they harbor no antitrust worries about the deal and are open to public input until January 28. According to the SAMR, Huawei and TD Tech jointly oversee less than 10% of China’s smartphone market, though the specific timeframe for this data was not provided.

China’s market regulator has solicited public opinion on Huawei and Chengdu Hi-Tech Investment Group’s proposal for a complete acquisition of TD Tech.

**MARKETLYT –>** China's market regulator is soliciting public opinion on the proposed acquisition plans by Huawei and Chengdu Hi-Tech (000628 CH) to acquire TD Tech.

**Market Impact Rating –>** 89

**MARKETLYT Analysis –>**
The request for public opinion on the…

— Instant headlines & Analysis (@marketlyt) January 19, 2024

The post Huawei’s TD Tech shake-up: Nokia sells majority stake appeared first on Tech Wire Asia.

This week, Google ushered in a new era with the introduction of ‘Circle to Search,’ a gesture-based feature for Android smartphones. This functionality lets users effortlessly search for information within any app on their phones using intuitive gestures such as circling, highlighting, scribbling, or tapping. Google aims to enhance the naturalness and accessibility of search, starting with selected premium Android smartphones first.

To recall, when Google started venturing beyond traditional text-based searches, the tech giant allowed users to audibly pose questions, discover song titles through humming, and delve into the visual realm with Lens. Simply put, with each technological breakthrough, Google has drawn nearer to its aspiration of letting users to search effortlessly, adapting to their preferences regardless of the context. 

QUALCOMM AND GOOGLE POWER UP SAMSUNG’S GENERATIVE AI SMARTPHONE

Aaron Raj | 19 January, 2024

“Today, we’re sharing our latest step toward that goal: Circle to Search,” Google said in a blog posting on January 17. While Circle to Search is launching on January 31, it will initially only be available on selected premium Android smartphones, including the Pixel 8, Pixel 8 Pro, and the new Samsung Galaxy S24 series — in all languages and locations where they’re available.

Answer any❓with a ⭕️

Launching January 31st on #Pixel8 and Pixel 8 Pro, Circle to Search is a new way to search anything without switching apps. Just draw a circle around an image, text, or video, and Google AI finds it, so you can round up answers fast: https://t.co/01F0rHAc1T pic.twitter.com/a1HRnLRhDp

— Made by Google (@madebygoogle) January 17, 2024

How will Circle to Search work on Android?

Think of your phone as a gateway to endless information – whether pursuing a passion, solving a problem, shopping, learning, or just seeking a moment of joy. When you’re deeply engrossed in exploring something, it can be inconvenient to interrupt the flow by switching between apps to gather more information.

Circle to Search can help you quickly identify items in a photo or video. Relevant ads will continue to appear in dedicated slots throughout the page. Source: Google

That’s where Circle to Search by Google comes in. Now, with a simple gesture like circling, highlighting, scribbling, or tapping, users can select what interests them and instantly get more information without switching apps.

“For example, maybe you need help identifying a few items a creator wore in their ‘Outfit of the Day’ video, but they didn’t tag the brands. Just long-press the home button or navigation bar on your Android phone to activate Circle to Search. From there, you can select any item you see with your preferred gesture — like circling their sunglasses — to quickly find similar, shoppable options from retailers across the web. You could scribble the bag and tap on the boots to look those up, too — all without leaving where you are. When you’re done, swipe away, and you’re right back where you started,” Google noted.

That said, with multi-search and Google’s latest AI enhancements, searching with both text and images simultaneously, you can effortlessly grasp concepts, ideas, or topics by accessing informative content gathered from the web. 

“Simply circle the corn dog and ask a question, like “Why are these so popular?” You’ll quickly learn that these sweet and savory treats are Korean corn dogs. And they’re trending because of their unique combination of flavors and textures — including meat or gooey melted cheese surrounded by a crunchy exterior — and the growing popularity of Korean cuisine,” it added.

Even on YouTube, the Circle to Search feature would work, and according to the search engine behemoth, relevant ads will continue to appear in dedicated slots throughout the search page. 

The post Google’s ‘Circle to Search’: a gesture-based revolution on Android appeared first on Tech Wire Asia.

In the global smartphone market, two tech giants, Apple and Samsung Electronics Co., have been locked in a long-standing battle for supremacy. Their flagship devices, the iPhone and Samsung Galaxy series, have become synonymous with innovation and style. But in a significant turn of events and for the first time since 2010, Apple has outperformed its longtime rival, Samsung Co., in global smartphone sales.

The iPhone dethroned the Samsung Galaxy to become the best-selling smartphone series globally, marking a notable shift in the industry’s competitive landscape. According to preliminary data from the International Data Corporation’s (IDC) Worldwide Quarterly Mobile Phone Tracker, the iPhone accounted for a substantial fifth of the global smartphone market, with nearly 235 million shipments in the past year. 

“The last time a company not named Samsung was at the top of the smartphone market was in 2010, and for 2023, it is now Apple. A shifting of power at the top of the largest consumer electronics market was driven by Apple’s all-time high market share and a first time at the top,” IDC’s report reads. In other words, the unprecedented market share demonstrates Apple’s ability to capture a significant portion of consumer demand. It solidifies its position as a frontrunner in the highly competitive smartphone industry.

APPLE INTRODUCES NEW IPHONE SECURITY MODE  

Aaron Raj | 14 December, 2023

Apple’s dominance during the holiday quarter has been a recurring theme in recent years. However, its unprecedented lead over Samsung throughout the year indicates that Apple is navigating the challenges of an industrywide slump more effectively than its competitors.

Apple vs Samsung: a decade-defying achievement

While Samsung remains a formidable player in the smartphone market, its shipments experienced a double-digit slump, totaling 226.6 million. “The overall shift in ranking at the top of the market further highlights the intensity of competition within the smartphone market,” said Ryan Reith, group VP with IDC’s Worldwide Mobility and Consumer Device Trackers. 

The iPhone sold more than Samsung’s devices globally in 2023. Source: Bloomberg.

IPHONE 15 PRO MAX PUSHES APPLE TO ITS HIGHEST-EVER Q3

Dashveenjit Kaur | 7 November, 2023

Reith believes Apple played a part in Samsung’s drop in rank, but that the overall Android space is diversifying. “Huawei is back and making inroads quickly within China. Brands like OnePlus, Honor, Google, and others are launching very competitive devices in the lower price range of the high-end foldable, and increased discussions around AI capabilities on the smartphone are gaining traction. Overall, the smartphone space is headed towards an exciting time,” he added.

Apple’s surpassing Samsung in global smartphone sales signifies a crucial moment in industry rivalry. It highlights the enduring popularity of the iPhone series and Apple’s ability to connect with a diverse global audience. Consumers can expect more innovations and intense competition between these tech giants as the smartphone landscape evolves.

Global smartphone sales

Source: IDC Worldwide Quarterly Mobile Phone Tracker, January 15, 2024.

Overall, IDC said the global smartphone market remains challenged, but momentum is moving quickly toward recovery. According to initial findings, 2023 witnessed a 3.2% decline in global smartphone shipments, reaching 1.17 billion units. It is also the lowest full-year volume in a decade, primarily driven by macroeconomic challenges and elevated inventory early in the year,

The latter half of the year brought a surge, solidifying expectations for a robust recovery in 2024. IDC noted that the fourth quarter saw 8.5% year-over-year growth and 326.1 million shipments, higher than the forecast of 7.3% growth. “While we saw some strong growth from low-end Android players like Transsion and Xiaomi in the second half of 2023, stemming from rapid growth in emerging markets, the biggest winner is clearly Apple,” said Nabila Popal, research director with IDC’s Worldwide Tracker team. 

“Not only is Apple the only player in the Top 3 to show positive growth annually, but it also bags the number 1 spot annually for the first time. All this despite facing increased regulatory challenges and renewed competition from Huawei in China, its largest market. Apple’s ongoing success and resilience is largely due to the increasing trend of premium devices, which now represent over 20% of the market, fueled by aggressive trade-in offers and interest-free financing plans.”

The post Apple iPhone overtakes Samsung as best-selling smartphone in 2023 appeared first on Tech Wire Asia.