Tuesday, 19 June 2018 Sydney

Melbourne Fintech Airwallex raises A$17m from Mastercard, Sequoia China and Tencent::

In another endorsement of Victoria's fintech sector, local cross-border payment startup Airwallex has secured A$17 million in funding to continue its global expansion.

International companies who have invested in Airwallex include MastercardSequoia Capital China, and Chinese web giant Tencent.

Airwallex has a licence in China to conduct international transactions, a privilege that many massive multinationals such as Western Union have not been able to secure.

Airwallex's order management system uses machine learning to find the best mid-market point on currency trades so that businesses can avoid inflated margins.

The company, which can make payments to 100 countries, will use the funding to expand to London, Shanghai, Hong Kong, Indonesia, Malaysia and Taiwan.

The startup also received A$4 million in July last year from Gobi Partners, the investment manager of Chinese ecommerce conglomerate Alibaba and a group of angel investors.

Investments in Australian fintech companies reached its highest level last year, hitting US$656 million, more than triple the US$185 million invested in 2015, according to a report by professional services firm KPMG.