Jack Zhang was 34 years previous, three and a half years into working a startup, and sitting throughout from probably the most highly effective buyers in Silicon Valley. Michael Moritz of Sequoia had invited him to his dwelling — a spot with, Zhang recollects, a few flooring and a view straight to the Golden Gate Bridge — to make the case for promoting.
Stripe wished to purchase Airwallex for $1.2 billion. On the time, the Melbourne firm had round $2 million in annualized income. The mathematics was virtually fairly irresistable: a income a number of someplace close to 600 instances. Patrick Collison, Moritz argued, was a generational founder. The deal would “compound” into one thing extraordinary. Zhang listened. He walked round San Francisco for 2 weeks, stressed, unable to assume straight. At one level, he mentioned sure.
Then he flew almost 8,000 miles again dwelling.
“I actually went deep on what motivates me to construct Airwallex,” he mentioned early this week, chatting with this editor from abroad. “I used to be three and a half years into the enterprise. The enterprise was rising 100 instances in 2018. And I solely simply form of tasted what it [was like] to be an entrepreneur. And that’s what I’d been dreaming about.”
Two of his three co-founders had voted towards the deal, which helped. However he says the clearest sign got here from wanting on the whiteboard again in his workplace. The imaginative and prescient was nonetheless there, unfinished: to construct the monetary infrastructure that lets any enterprise function anyplace on this planet as if it have been an area firm.
That call is wanting more and more prescient. Airwallex now claims greater than $1.3 billion in annualized income and is rising at 85% year-over-year. It processes approaching $300 billion in annualized transaction quantity. None of it has come simply — and Zhang argues that’s exactly the purpose.
It’s a conviction that runs quite a bit deeper than enterprise technique. Zhang grew up in Qingdao, a port metropolis in northeastern China, and moved to Melbourne at 15 with out his mother and father, barely talking English, dwelling with a number household. When his household’s funds collapsed, he took on 4 jobs to get by a pc science diploma on the College of Melbourne, in accordance with the Australian Monetary Evaluation — bartending, washing dishes, working graveyard shifts at a petroleum station, selecting lemons on a farm within the college holidays, which he has known as the toughest job he ever had. He went on to spend years writing buying and selling code within the entrance workplace of an Australian funding financial institution, a job that paid effectively and by no means felt “deeply fulfilling.”
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Earlier than Airwallex, he began roughly 10 companies: {a magazine} at age 14, an actual property growth firm, import-export operations working wine and olive oil from Australia to Asia, textiles going the opposite course, a burger chain.
He was working a Melbourne espresso store when the concept for Airwallex took form. Whereas making an attempt to pay espresso bean suppliers in Brazil, Indonesia, and Guatemala, his co-founder Max Li stored watching funds disappear into correspondent banking programs — flagged and frozen by American middleman banks imposing OFAC sanctions guidelines, generally bouncing again weeks after they have been despatched. “That pushed me to essentially have a look at how correspondent banking works,” Zhang mentioned, “how SWIFT works, and the way we may construct our personal international cash motion community.”
That’s nonetheless the concept, simply scaled up significantly. Airwallex now holds near 90 monetary licenses throughout 50 markets. Zhang estimates Stripe has roughly half that quantity at finest. Getting these licenses has been immensely time consuming — in Japan alone, the method took seven years. In some rising markets, the corporate needed to purchase shell corporations whose licenses have been not being issued by central banks, then rebuild the expertise beneath them completely.
“You may’t actually vibe-code an integration with Mexico’s central financial institution,” Zhang mentioned. “We have now to have a safe room — it’s important to do a biometric scan simply to stroll in to entry the central financial institution integration.”
The purpose of holding these licenses isn’t regulatory window dressing. In Japan, for example, Stripe and Sq. can course of funds, however they’re required to right away switch funds out to the service provider’s checking account. Airwallex, with its fund switch operator license, can maintain these funds inside its ecosystem. Which means a buyer can problem financial institution accounts, problem playing cards, and spend cash with out it ever leaving the platform.
The overseas change economics alone are substantial: a U.S. service provider settling transactions in Australian {dollars} avoids the two% to three% conversion payment that processors like Stripe sometimes cost to maneuver a refund into U.S. {dollars} — and might use these native balances to pay native distributors, run payroll, and canopy digital advertising bills, all at interbank charges.
“You don’t actually function like a U.S. firm anymore,” Zhang mentioned. “You use like an organization with entities world wide, however without having to bodily arrange these entities.”
The gradual construct was intentional, and Zhang has a framework for it that he returns to usually: the “path of most resistance.” Each license, each financial institution integration, each native fee rail that Airwallex painstakingly assembled created a layer that makes it more durable to compete towards. “It took us six and a half years to get to $100 million in annual recurring income,” Zhang mentioned. “However after that, it took simply over three years to get to a billion.”
The aggressive logic, in his telling, comes all the way down to one thing fundamental about what it means to personal infrastructure versus driving another person’s. When you don’t management the end-to-end fee workflow and one thing goes incorrect, you’ll be able to’t entry the underlying knowledge to clarify it to your buyer. You may’t prolong new merchandise cleanly on prime of another person’s stack. “Constructing on prime of different infrastructure,” he mentioned, “is just not scalable.”
For many of its life, Airwallex and Stripe have largely operated in numerous geographies, promoting to completely different patrons. That’s altering. As Stripe pushes deeper into worldwide markets, and Airwallex makes its first critical strikes into the USA, the overlap is rising.
The customer for Airwallex has traditionally been the CFO’s workplace in Australia and Southeast Asia, the place the corporate is already well-established — finance administrators, treasury groups — which places it in a unique gross sales movement than Stripe, whose buyer acquisition has been pushed largely by U.S. builders selecting a default start line for a brand new firm. Greater than 90% of Airwallex prospects land first on a enterprise account product, and funds and spend administration observe from there. Over half are utilizing a number of merchandise, says Zhang.
Nonetheless, there are challenges that Zhang doesn’t attempt to downplay. The largest could also be that Stripe is Silicon Valley’s golden youngster, its privately held shares having minted millionaires throughout the tech business. One other is the accompanying model hole. Airwallex must embed itself within the pondering of engineers and builders — not simply finance groups — in order that founders attain for it instinctively. “Our model is simply not there but,” he mentioned. “That’s a more durable competitors to win.”
It’s a contest being watched carefully from quite a lot of vantage factors. Sequoia backed Airwallex early — although the deal was sourced by Sequoia Capital China, which has since spun out and rebranded as Hongshan — and stays one of many firm’s largest shareholders. The funding agency Greenoaks Capital holds stakes in each corporations, too. Zhang shrugged off any suggestion of awkwardness round these overlapping cap tables. The buyers, he famous, are betting on a big market.
Nonetheless, it brings up the valuation query. Stripe was valued at $159 billion in a February tender provide — up 74% from a 12 months earlier — after processing $1.9 trillion in whole fee quantity in 2025. Airwallex, assigned an $8 billion valuation in December, is valued at roughly a twentieth of that. However in accordance with Zhang, Stripe’s fee quantity is just about six instances Airwallex’s, not 20 instances. At 85% annual progress and projecting $2 billion in income inside the subsequent 12 months, Airwallex is closing the income hole sooner than the valuation hole would counsel.
Whether or not the market finally notices is a unique query — one which an IPO, which Zhang says is no less than three to 5 years away, would power into the open.
Within the meantime, Zhang says he’s centered on longer-horizon targets: 1,000,000 prospects by 2030, $20 billion in annual income, common income per buyer rising from round $12,000 to $13,000 right now to roughly $20,000. A collection of AI-powered autonomous finance merchandise — brokers that don’t simply floor knowledge however truly execute transactions — is rolling out now. The thesis is {that a} decade of economic knowledge throughout the whole company finance stack, from income assortment to treasury administration to vendor funds and bills, has created a coaching set that no competitor can replicate in a single day, he suggests.
Now to see if all that arduous work is sufficient to eat into Stripe’s market share. For now, the competitors appears to be enjoying out at a distance. Zhang and Collison have been by no means pals, however they have been pleasant whereas merger talks have been ongoing years in the past. Final 12 months, Zhang and Collison have been each at Greenoaks Capital’s annual gathering. They didn’t converse.
