Airwallex, a fintech company, has just hit a major milestone, surpassing $1 billion in annualized revenue! This achievement puts them in direct competition with industry giants like Ramp and Stripe. But how did this company, originally from Melbourne, Australia, become a global player, and what does it mean for the future of fintech? Let's dive in.
According to co-founder and CEO Jack Zhang, Airwallex's annualized revenue reached $1 billion as of October, with an impressive year-over-year growth rate of 90%. This rapid expansion is fueled by a diverse product suite, including business banking accounts and spend management tools. This positions them as a direct competitor to not only Ramp and Stripe but also Mercury, Brex, and Revolut, among others. Zhang even joked about competing with so many fintech giants.
While Airwallex may not have the same name recognition in the U.S. as its rivals, its aggressive push into North America and Europe could change that soon. Founded in 2015, it took Airwallex nine years to reach its first $500 million in annualized revenue, but only one more year to double that to $1 billion. With gross profit margins exceeding 60%, Airwallex is quickly becoming a major force in the U.S. The company was last valued at $6 billion in a May funding round, compared to Ramp's $22.5 billion and Stripe's $106 billion.
After achieving cash flow positivity at the end of 2023, Airwallex decided to reinvest in the business but is on target to reach profitability once again in the fourth quarter of 2025. This strategic move highlights their commitment to sustainable growth.
Zhang attributes much of their success to being an "outsider," not part of the Silicon Valley ecosystem. But here's where it gets controversial... Is being outside the traditional tech hub an advantage or a disadvantage in the long run?
Many fintech companies start with a single core product and then expand their offerings. For example, Ramp began with corporate credit cards, Mercury with business bank accounts, and Stripe with payment processing. Airwallex, on the other hand, has always had a global focus, originating in Melbourne and later moving to Singapore. Zhang explains that Australia's relatively small market necessitated a global perspective from day one. Airwallex's revenue is now spread across a range of products, with business accounts accounting for 34%, spend management 20%, and payments 30%.
Airwallex also provides its global network of licenses and services to other fintech companies through API integrations, supporting the international expansions of companies like Brex, Rippling, and Deel. Zhang emphasizes their "real moat is the infrastructure, both on the regulatory side and on the financial services side, that we built over the last decade."
As Airwallex expands into North America, including opening a U.S. headquarters in San Francisco last year, Zhang acknowledges that they won't compete directly with Ramp for U.S.-focused customers. Instead, Airwallex targets companies seeking a global presence, offering services like employee cards, bank accounts, and payments across various jurisdictions. North America and Europe now account for nearly 40% of the company's revenue, up from zero just a few years ago.
Zhang's vision is clear: "If you're a U.S. company and you only have operations in Ohio, you better go with Ramp. But if you're a U.S. company that wants to sell in Australia, wants to sell in Singapore, wants to sell in the U.K., wants to sell in Canada, wants to do that efficiently, and wants to have banking, payments, spend, and treasury management all in a single platform, that’s where Airwallex comes in."
Like many other companies, Airwallex is also exploring AI. Zhang is working on a wallet product that will serve as foundational infrastructure for global agentic payments. He aims to scale the AI agents business to a "few $100 million" before considering an IPO.
Airwallex has also hired stablecoin developers, another hot area in fintech, though Zhang remains skeptical about blockchain's ability to improve global money movement compared to existing options. He notes that "the merchant adoption is still very low and there’s nothing happening on the B2B [business-to-business] side.” He expresses a 99% skepticism and a 1% probability for this technology.
And this is the part most people miss... Airwallex's success hinges on its ability to offer a comprehensive suite of global financial services, a strategy that sets it apart from many competitors. What do you think about Airwallex's approach? Do you agree with Zhang's skepticism about blockchain? Share your thoughts in the comments below!
