Airwallex Business Model Analysis: A Case Study of a Fintech Unicorn

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Central Queensland University, Australia
MGMT20143- Think Big
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Airwallex
Executive summary
The report reflects on one of the best Australian based company as Airwallex. It was founded in
Melbourne, 2015 by a team of entrepreneurs Jacob Dai, Jack Zhang, Ki-Lok Wong, and Max li.
The company has developed the right way of payment infrastructure for business operators. The
business aims to enhance the payment transaction level at the international level through the
cloud and other artificial intelligence systems. The Airwallex systems help the investor to
manage their cross border revenue and other financial aspects effectively. At present, the
company has valued the C series that shows its business value over $ 1 billion (Russel, 2019).
At present Airwallex company has entered the Billion dollar Unicorn club where investors can
analyse how they can secure their funds and earn high interest with the help of cloud-native
systems, artificial intelligence and by using auto-routing technology (Tezuka, 2019). From 2017
the financial value of a company was $ 26 million after adding two more investors in the same
year as Horizon ventures and Indonesia center capital the financial value of company leads to
$138 million (Russel, 2019). The Airwallex is one of the best companies in resourcing and
securing funds through artificial intelligence. The higher technical advancement of the company
leads to its higher success in the market.
The essential features of Airwallex are:
 Protect data related to funds and business by using authentication and security processes.
 Delivering powerful account management systems to business operators and to their
clients.
 Develop flexible bespoke user experience by accessing API’s systems.


Table of Contents
Executive summary.......................................................................................................................2
Introduction....................................................................................................................................4
Business model canvas...................................................................................................................4
Customer segments....................................................................................................................4
Key partner................................................................................................................................5
Value propositions.....................................................................................................................5
Key activities..............................................................................................................................5
Channels.....................................................................................................................................5
Revenue streams........................................................................................................................6
Cost structure.............................................................................................................................6
Key resources.............................................................................................................................7
Customer relationship...............................................................................................................7
Interrelationship............................................................................................................................8
Critical success factors..................................................................................................................8
Downside risks...............................................................................................................................9
Business model changes.................................................................................................................9
Conclusion......................................................................................................................................9
Recommendations..........................................................................................................................9
Appendix.......................................................................................................................................10
Airwallex Business model canvas...........................................................................................10
References.....................................................................................................................................11

Introduction
Airwallex is the latest tech starter company founded in 2015, Melbourne. The company offers
effective techniques and approaches to investors and business operators to secure their funds and
earn a high rate of interest. The company offers suitable and effective approaches to the forward-
thinking processes for the business through they can manage their payments digitally. From 2016
the company has already reach to the global market level and offers its artificial intelligence
payments system to 130 countries (Airwallex, 2019). The company has built different
applications and systems for a different mode of platforms. The web app especially offers to
business operators where they can accelerate their business payments transactions effectively and
efficiently. The three essential procedures of payment of Airwallex has changed the payment
systems to advance level, the methods are Collect- convert and pay (Tezuka, 2019). The
company has set a platform which is powered by scale, where clients have surety about
successful payment transactions.
Business model canvas
As advancing the payment core systems for business operators by developing payment
management devices leads to extend growth for the business. Airwallex has enhanced its market
growth by analysing market conditions and set customer segments with the help of key partners
and distribution channels (Ovans, 2015). The business model canvas includes 9 business
approaches, such essentials of Airwallex are stated below:
Customer segments
The Airwallex developed secured payment methods such as API's, Web App for business
operators to centralise different parties payment through electronic onboarding process. The
routing methods lead to onboard verification of transactions which enhance systems of security
to international level (Russel, 2019). These systems have developed effective customer segments
for the company.
The main customer segments of the company are:
Sequoia Capital China Investor from China
Tencent Holding Ltd. The investor from the UK

Hillhouse Capital management The investor from the USA
Horizons Ventures The investor from the USA
Mastercard (Powered by Airwallex) The investor from the USA
Key partner
The essential key partners of the Airwallex has played an essential role in setting up the company
at international level and for offering fast cashless transaction services in more than 130
countries. The key partners of the company are:
Key partners Joined partnership (In year)
Railsbank 2017
Seqouia Capital China 2016
Melbourne's Square Peg Capital. 2015
Horizons Ventures 2016
Value propositions
 Enhance visibility and control of funds.
 Develop high speed, low-cost international payments
 Provide real-time access to competitive exchange rates
Key activities
The essential key activities of the Airwallex are:
 Remove barriers at the time of making international payments
 The web app for business operators can analyse the performance of their funding
transactions and advise them to manage their account appropriately.
 Develop high volume scalability and maintains flexibility in payments (Airwallex, 2019).
Channels
In the past three years from the establishment, the Airwallex has set more than its 500
distribution channels by which it can offer its payments methods to more than 130 countries of

customers (Airwallex, 2019). The list of some main essential channels of Airwallex are stated
below:
 Pat pat
 Shein
 Soufeel
 Orderpplus
 Club factory
 Tencent
 Bang good
Revenue streams
From 2016, the Airwallex Company has driven the payments methods and develops essential
revenue strategies by implementing a high-security level of payments modes. The below table
shows the revenue income of Airwallex for last three years:
(Revenue income) In
each Year 2016 2017 2018
U.K £ 51,00,000 £ 95,00,000 £ 200,00,000
USA $ 150,00,000 $ 265,00,000 $ 420,00,000
Asia ¥200,000 ¥350,000 ¥400,000
It can be analysed from the above table that the increase of payments transactions through
Airwallex has advanced the world and enhance its revenue growth with the help of distribution
channels (Joyce, & Paquin, 2016)...

Cost structure
Cost charges from distribution channels as per the number of transactions (12% of each
Airwalllex transaction). The other users are charged at 9% of the cost at each Airwallex
transaction.
Key resources
Financial and use of artificial and technical intelligence are the essential key resources of the
Airwallex, that helps in setting up a longer sustainability period for the company.
Customer relationship
Airwallex has maintained effective customer relationship by providing best payment services by
ensuring zero percent of transaction failures of payments and by reducing time at the time of
making international payments through investors.

Interrelationship
The Airwallex is one of the biggest Australian Fintech payment transfers company. From the
establishment in Melbourne, the company has not extended its market in Australia but it has
covered more than 130 countries in the world. The company aims to ease payment transfer
methods by launching various payment techniques and structures. At present, the company has
gained its financial value over more than $ 1 billion dollars (Russel, 2019).
It is necessary to have a better interrelationship with the investors because these are playing an
essential role in the customer segments of the company. The Airwallex developed secured
payment methods such as API's, Web App for business operators to centralise different parties
payment through electronic onboarding process. The routing methods lead to onboard
verification of transactions which enhance systems of security to international level. By
implementing such effective payments company has developed its effective relationship with its
customers.
The company made a recent investment which is raised more than $ 200 million. CEO Jack
Zhang reveals that the company is providing validation and financial additional services to build
an effective reputation in the market (Tezuka, 2019). As developing the technical advancement
in payment procedures, the company vision has grown since seed round through which company
transfers millions of US dollars which developed the effective flow of payments worldwide.
“We want to enhance payment methods of small businesses to grow and expand them globally”-
Jack Zhang
The above statement reveals that Airwallex Company has developed better interrelationship with
the small businesses which help in expanding their business globally.
Critical success factors
The main essential success factors of the Airwallex are listed below:
Advance use of artificial intelligence: The Airwallex is one of the developed Fintech
Australian Company that has to use artificial intelligence to advance the payment transactions of
business operators.

Advancement to an international level: The Airwallex not only advance the payment to only
national level but the third parties of business can make their payments through WEB app
designed by Airwallex at international level. The company also provide scalable platforms for
international payments which increases security level for successful payment transactions.
Downside risks
The main motive of every organisation is to enhance their market growth for which business
entrepreneurs have to take the risk. Every business contains some risk factors which can reduce
its market growth and its sustainability power. The main risk factors of Airwallex are failures of
API's which is specially designed for local users which may decrease their trust at the time of
making payment transactions. So Airwallex should analyse the aspects of risk factors through
which effective strategies and techniques can be implemented
Business model changes
Like to modify the API's model through which the customer and business operators can control
their funds and earn a maximum rate of interest through investment.
Increase customer segment can increase the customer retention rate of the company globally.
Conclusion
The information which is analysed in this report was based on public information. From the
above conclusion, it can be analysed that Airwallex has made higher growth in the market by
advancing payment structures for business operators at the international level.
Recommendations
 Enhance visibility and control of funds.
 Develop high speed, low-cost international payments
 Provide real-time access to competitive exchange rates through which operators can
manage their funds accordingly.


Appendix
Airwallex Business model canvas
Source: by Airwallex, 2019

References
 Joyce, A., & Paquin, R. L. (2016). The triple-layered business model canvas: A tool to
design more sustainable business models. Journal of Cleaner Production, 135, 1474-1486.
 Ovans, A. (2015). What is the business model? Retrieved July 5, 2016.
 Bagheri, M., & Movahed, S. H. (2016, November). The effect of the Internet of Things
(IoT) on education business model. In 2016 12th International Conference on Signal-
Image Technology & Internet-Based Systems (SITIS) (pp. 435-441). IEEE.
 Onken, M., & Campeau, D. (2016). Lean startups: Using the business model canvas.
Journal of Case Studies, 34(1), 95-101.
 Handberg, Ø. N., & Angelsen, A. (2019). Pay little, get little; pay more, get a little more:
A framed forest experiment in Tanzania. Ecological Economics, 156, 454-467.
 Russel, J. (2019). Cross-border fintech startup Airwallex raises $100M at a valuation of
over $1B. Retrieved from https://techcrunch.com/2019/03/25/airwallex-raises-100m/
 tezuka, M. (2019). DST Global leads series C round for financial technology startup
Airwallex. Retrieved from https://www.spglobal.com/marketintelligence/en/news-
insights/trending/4ivjws-e2qgm7me05nw0za2
 Bailey, M. (2018). Airwallex in the money with $108m raise. Retrieved from
https://www.afr.com/technology/airwallex-in-the-money-with-108m-raise-20180626-
h11wca
 PYMTS (2019)... Airwallex Inks Partnership To Expand X-Border Payments Service To
Europe Retrieved from https://www.pymnts.com/news/b2b-payments/2017/airwallex-
railsbank-international-payments-partnership/
 Airwallex. (2019). Retrieved from https://www.airwallex.com/en-US/