CurrencyFair acquires for Asian expansion
Written by Peter Walker
CurrencyFair has announced an Asian expansion through the acquisition of Hong Kong-based Convoy Payments.
The deal is part of the Irish money transfer service’s €20 million investment plan to drive global growth, which will also see the creation of 90 new jobs over the next 18 months. These will be created with particular emphasis on product development, customer service, compliance and marketing and global partnership development.
These plans will be funded from internal cash flow and with the support of four Asian and European investment firms: Convoy Global, Octopus Ventures, Harbert European Growth Capital and Seligman Private Equity Select.
Michael Yap, head of venture capital at Convoy Global, said the partnership includes the merger of Convoy’s existing payment business with CurrencyFair, as well as a direct investment earmarked towards supporting the joint entity’s Asian expansion.
“Alongside the investment and merger, Convoy and CurrencyFair will build up a larger FinTech platform to enhance online services that Convoy will pave the way to apply for a virtual banking license in line with our digital banking strategy.”
CurrencyFair will launch the Chinese currency renminbi on its platform in the next phase.
Paul Byrne, chief executive and president of CurrencyFair, explained: “We will now be able to provide business payment services for non-Chinese companies seeking to pay their Chinese suppliers as a first step to a broader expansion across the region.”
As well as providing entry into the Asian market, the acquisition opens up access to the US market through Convoy Payments’ existing business.
The transaction remains subject to regulatory and shareholder approvals.