Mobile Payment Startup QFPay Secures $20M to Fuel Expansion

Chinese digital payment technology firm QFPay announced today that it has raised $20 million in a new round of funding backed by existing investors Sequoia Capital China and Matrix Partners.

Established in 2012 by Time Lee and Weiquan Feng, QFPay services over one million merchants across Asia by partnering with various mobile wallet providers, such as China UnionPay, WeChat Pay, and Alipay.

The company is present in 13 markets in Asia and the Middle East, including Singapore, China, Hong Kong, the Philippines, Malaysia, Laos, Japan, Korea, Indonesia, Cambodia, United Arab Emirates, and Thailand.

Aside from existing investors, the funding round was also participated by MDI Ventures, the venture capital arm of Telkom Indonesia; Dubai-based VC firm VentureSouq; and Japan’s Rakuten Capital.

QFPay said it will continue to expand its presence deeper into its core markets and further research and develop new digital payment products and solutions.

Time Lee, co-founder and CEO of QFPAY, said demand for digital payment in Asia continues to rise as more merchants and consumers go cashless. “We are excited to leverage what we have learned to help lead the cashless movement in Asia,” he said.

According to the Price Waterhouse Coopers 2019 Global Consumer Insights Survey, Asia remains the leading growth region for digital payments, on the back of the demand for financial inclusion of the unbanked population.

A separate report by Nomura Global Markets Research said mobile payment gross transaction value in the Southeast Asia region is expected to increase by over 25 per cent until 2027 to hit $109 billion.

“We have been witnessing tremendous growth in digital payment adoptions across Asia and given the need for localized strategy and networks in each of the markets,” said QFPay co-founder and international CEO Patrick Ngan.

Having the support from strategic partners, including MDI Ventures, Rakuten Capital, and VentureSouq, “plays an important role in navigating through complex business environments,” he added.

Sequoia Capital China vice president Li Zhanglu said QFPay has the largest footprint in Asia and is one of the most experienced and established digital payment technology providers in the region.

QFPay’s solutions have served over 1.2 million merchants and executed over 1 billion transactions so far.