Behind YouTrip’s rough 2020

The Top Up is Tech in Asia’s free newsletter that breaks down the biggest stories and trends in fintech. [Read from your browser]( The Top Up 💵 Welcome to The Top Up! Delivered every Wednesday via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and trends in fintech. If you’re not a subscriber, get access by [registering here](. Written by Melissa Goh Journalist at Tech in Asia Hello {NAME} , Multicurrency cards offering preferential exchange rates were big in 2019, if you recall. Back then, there was no lack of choice over which cards to get: Did you fancy one in purple, green, or metallic? Some people collected them all. But then came Covid-19, and almost two years into this pandemic, the fervor around such cards seems to have died down. I own one myself, which I’ve used on several trips before 2020. But given the restrictions around movement and travel these days, my card is stored in a drawer next to my desk. Businesses like Hong Kong-based YouTrip, which has just one core travel product to date, have been hard hit by the global crisis. Last year was a particularly challenging one for the fintech startup as its Singapore office saw a wave of departures that sapped morale. But YouTrip says that thanks to a timely pivot, transaction volumes have since gone up and even exceeded pre-pandemic levels. But last week, a third of YouTrip’s employees in Hong Kong were let go as it shifted its headquarters to Singapore. The layoffs came just days before the startup announced a plan to make over 50 new hires in Singapore by 2022. The move has drawn outrage from some affected staffers, who claim that they were “blindsided” and unfairly treated since the company had reassured them that they would keep their jobs. We spoke to several former employees and YouTrip’s CEO to uncover the story in one of this week’s big reads. THE BIG STORY  1️⃣ [YouTrip cuts a third of HK workforce, faced staff departures in SG]( Image credit: Timmy Loen Affected employees are disgruntled over the way the layoffs were handled. But YouTrip says it has recovered from the pandemic and is upping its headcount.  2️⃣ [Indonesian fintech in limbo with new rules on foreign control]( Indonesia’s fintech firms, particularly e-wallet players, have been twists and turns lately. But things are about to get more complicated with the introduction of new rules that place severe limitations on foreign ownership. This can deter foreign investors from pumping capital into the space. On the other hand, clearer rules may actually encourage global investors to take a second look at Indonesia. DEEP READ  1️⃣  [Paytm IPO: 8 key points about India’s largest stock market debut]( Photo credit: 123rf Fintech super app Paytm is headed for an initial public offering estimated to be worth US$2.2 billion. The Ant Group-backed company’s road to IPO marks a coming of age for tech startups in India looking to go public, following in the footsteps of Zomato and CarTrade. While Paytm may not be the market leader in payments, financial services, or cloud services, its scale and scope make it India’s fintech behemoth. TRENDING NEWS Check out Tech in Asia’s coverage of Asia’s fintech scene [here](.  1️⃣ [Mastercard launches buy now, pay later product]( Credit card giant Mastercard has launched its own buy now, pay later (BNPL) product, entering a market that’s seen as a rival to credit cards. The move follows the [US$29 billion buyout]( of BNPL firm Afterpay by Square, the payments company of Twitter co-founder Jack Dorsey. Why it matters: BNPL has exploded onto the scene in the past year after a relatively quiet rise. With credit card usage waning among youths, various players are hoping to tap into a generational shift with installment-free loans that promise to be less predatory than credit cards. Even Apple and Goldman Sachs have [reportedly]( been working on their own BNPL offering.  2️⃣ [Singapore’s Advance Intelligence Group enters unicorn club after SoftBank co-led $400m round]( The fresh funding, which takes the company’s valuation to US$2 billion, will be used to drive the growth of its digital lending business in Asia and deepen its capabilities in AI and big data analytics. The new unicorn is also looking to expand its enterprise client base and its global talent pool. Incorporated in 2016, Advance Intelligence Group is the parent company of buy now, pay later (BNPL) platform Atome, big data analytics provider Advance.ai, Indonesian digital lender Kredit Pintar, and ecommerce merchant services platform Ginee. Why it matters: Atome may be one of the [biggest BNPL players in Southeast Asia and Singapore]( but little is known about Advance Intelligence Group and some of its other business lines like Advance.ai. We do know, however, that Atome - and presumably its other lending businesses - rides on its parent firm’s big data and AI expertise. The US$400 million fundraise is significant and will further propel Advance Intelligence Group’s consumer and enterprise businesses in its existing 12 markets across Southeast Asia, Greater China, and Latin America.  3️⃣ [Singapore, Malaysia’s central banks to link PayNow and DuitNow]( The Monetary Authority of Singapore (MAS) and Bank Negara Malaysia have announced plans for a phased linkage of their respective real-time payment services. The first phase of linking Singapore’s PayNow and Malaysia’s DuitNow will launch in the fourth quarter of 2022. The announcement comes on the heels of MAS introducing a [similar plan]( with the Indian central bank by July 2022. Why it matters: These tie-ups could make cross-border remittance more convenient and affordable. To deposit money into a person’s bank account in another country, all you’ll need is their phone number. This can potentially give banks a powerful tool to compete with fintech players like Wise and Revolut for a slice of the remittance pie.  4️⃣ [Fave partners with Google Pay to expand partner network]( The deal Google Pay users to earn cashback when they spend at Fave’s 15,000 retailers via SGQR (Singapore quick response) code payments. It also effectively integrates Google Pay users in over 40 countries with Fave’s merchant platform. Why it matters: We dove into the potential of Google Pay when it launched in Singapore in September 2020. Back then, we discussed how the US tech giant might make a useful partner for banks, given its primary aim of gathering user data for more targeted advertising, rather than competing for bank deposits. Instead of [going toe-to-toe with local e-wallet players]( Google Pay opted for a partnership route instead. This seems like a win-win situation for all: Users of both e-wallets stand to benefit from both ecosystems, Fave gets a bigger user base, and Google can gather more data on its users. STARTUP WATCH 1️⃣ Sribuu - [Indonesian financial app bags funding from Kopi Kenangan founder, Beenext]( Previously known as Chat Alia, [Sribuu]( allows users to track and analyze their spending from their bank and e-wallet accounts, such as GoPay and Ovo. The app, which can also provide recommendations based on people’s financial habits, has over 45,000 users as of September this year.  2️⃣ TAG Innovation - [YC-backed Pakistani fintech firm nets $12m funding]( The funding from New York-based investors Liberty City Ventures and Canaan Partners brings [Tag]( valuation to US$100 million. The one-year-old startup offers banking services, utility bills payments, and mobile phone top-ups through its mobile app.  3️⃣ Cobo - [DST Global joins $40m investment in crypto wallet Cobo]( [Cobo]( a crypto asset management and custodian platform based in Singapore, offers custodial services to corporate clients like bitcoin-mining pools and exchanges. The firm, which was initially a maker of crypto wallets, aims to provide software as a service for businesses to access decentralized finance. That’s it for this edition - we hope you liked it! Do also check out previous issues of the newsletter [here.]( Not your cup of tea? 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