Xendit

Xendit Full Analysis: Southeast Asia's Leading Digital Payment Infrastructure Provider

Xendit is one of the most influential digital payment infrastructure companies in Southeast Asia, focusing on providing comprehensive payment solutions to businesses in Indonesia, the Philippines and surrounding regions. As a unicorn in the fintech sector in the region, Xendit is reshaping the fragmented payment environment in Southeast Asia through its powerful technology platform, contributing to the rapid development of the local digital economy.

Company Profile

Xendit was founded in 2015 and is headquartered in Jakarta, Indonesia, and was co-founded by Moses Lo and Tessa Wijaya. In the year of its establishment, the company was selected for the Y Combinator Startup Camp, becoming the first tech start-up in Indonesia to pass the accelerator program 39. After years of rapid development, Xendit has officially become a unicorn after completing a $150 million Series C financing in September 2021.

As a leader in payment infrastructure construction in Southeast Asia, Xendit has expanded its business to markets such as the Philippines and Thailand, and plans to further expand to Southeast Asian countries such as Malaysia and Vietnam. The company's diverse global team combines local expertise with an international perspective to solve complex payment challenges in Southeast Asia.

Products & Services

Xendit offers a full range of payment solutions, and its core products can be grouped into four categories:

1. Payment collection solutions

Xendit's payment system supports more than 15 payment methods, including:

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virtual accounts: Automatically identify transfers from different banks, eliminating the need to maintain multiple separate accounts 2

• credit/debit cards: Supports international card schemes such as Visa, MasterCard, JCB, and AMEX, as well as local banks

• e-wallets: Integrates OVO, DANA, LinkAja, ShopeePay and other mainstream e-wallets

• in Southeast Asia

  convenience store cash payment: covering more than 12,000 convenience store outlets such as Alfamart in Indonesia

• QRIS QR code: Unified QR code payment in line with Bank Indonesia standards, supporting cross-wallet

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  installments: Partnering with Kredivo to provide a "buy now, pay later" service

2. Invoice and billing management

Xendit provides a smart invoicing system that allows you to create e-invoices with payment terms, automatic reminders, and payment detection from any bank. Customers only need to share a link to complete the payment, greatly simplifying the B2B transaction process.

3. Funds distribution service

Xendit's instant money transfer system supports bulk transfers to more than 140 local banks and e-wallets (e.g. GoPay, OVO), even on weekends and holidays 36。 This service is ideal for businesses that need to handle a large number of distributor settlements or employee payroll.

4. Fraud detection systems

Xendit has developed an advanced fraud detection system based on a privacy-preserving approach that accurately identifies suspicious transactions while minimizing false positives 36。 The system helps merchants reduce payment risk and improve transaction security.

Technical Architecture & Integration

Xendit provides a highly flexible way to integrate:

• API interface: Developers can quickly access the payment system through REST API. Support multiple programming languages

• pre-built payment pages: standardized payment interface that can be used without programming, support Shopify, WooCommerce and other e-commerce platforms

• payment links: One-click generation of payment chains that can be shared to social platforms such as WhatsApp and Facebook Messenger

mobile SDK: provides an optimized payment integration solution for mobile applications

Xendit's systems are modernized to ensure high availability and fast response. All payment data transmissions are encrypted via HTTPS and comply with PCI DSS security standards.

Market Positioning & Business Model

Xendit mainly serves the Southeast Asian market, with a particular focus on the two key regions of Indonesia and the Philippines. Its customer base includes:

• small and medium-sized enterprises: Help solve payment needs that are difficult to meet with traditional banking services

e-commerce platform: provide multi-payment method integration to increase conversion rates

fintech companies

• : As the underlying payment infrastructure to support innovative services

• large enterprises: including regional well-known brands such as Traveloka and Grab110

The company adopts a "fee-per-transaction" business model and does not charge a docking fee or monthly fee. Fees vary depending on the payment method, e.g.

• virtual account/bank transfer: 4 per transaction, IDR 500

credit/debit card: 2.9% of transaction amount + IDR 2,000

e-wallet: 1.5% of transaction amount

• QR code payment: 0.7% of transaction amount2

For corporate clients with a monthly trading volume of more than IDR 5 billion, Xendit offers customized solutions and exclusive rates.

The company's development status and financing history

Xendit has maintained rapid growth in recent years:

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trade size: Annual payment processing volume grew from $650 million in 2019 to $1.5 billion in 20215

• Market coverage: Expanded from Indonesia to the Philippines and Thailand and plans to enter more Southeast Asian countries

• staff size: more than 200 team

• members

  number of customers: serving more than thousands of enterprise customers

financing history:

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2015: Selected for the Y Combinator incubator

• March 2021: $64.6 million in Series B (led by Accel)

• September 2021: $150 million in Series C (Tiger Global), valued at $1 billion

• $300 million in a :D round of funding in May 2022 (led by Cougue and Insight Partners) for a total of $538 million

Evaluation & Outlook

Xendit, as a representative of Southeast Asia's local payment infrastructure, stands out in the following aspects:

• degree of localization: The product design fully considers the complex payment environment in Southeast Asia, Support a large number of local payment methods

• Technical capabilities: Provide stable and easy-to-use API interfaces and developer tools, lower the threshold for enterprise access

• growth potential: Seizing the opportunity of the rapid development of Southeast Asia's digital economy, the market expansion strategy is clear

potential development directions include:

• regional expansion: further expansion into emerging markets such as Malaysia and Vietnam

• product innovation: develop more value-added services, such as cross-border payment, supply chain finance, etc<

• p style="line-height: 28.575px"> ecosystem construction: strengthen in-depth integration with banks, e-wallets and other partners

Overall, Xendit has become an important driving force for the development of the digital economy in Southeast Asia. Its payment infrastructure has clear advantages in terms of reliability, ease of use, and localization, and is able to meet the payment needs of various businesses in the Southeast Asian market. As the region's digital economy continues to grow, Xendit is expected to further consolidate its market leadership.