(Yicai Global) March 8 -- Airwallex, an Australian cross-border payment startup backed by Tencent Holdings, said it has secured a coveted online payment business license in the Chinese mainland by acquiring another company.

Airwallex bought Guangzhou Shangwutong Network Technology, an information services and logistics provider with a payment business license, the Melbourn-based firm announced on its WeChat account yesterday.

US fintech giant PayPal is the only other foreign company with a licensed third-party payment platform in China after it took control of GoPay Information Technology in early 2021.

The acquisition is expected to further deepen Airwallex’s China-based operations as it focuses more on digital economy services and the potential of small and micro enterprises, Wu Kai, the firm’s chief revenue officer and Asia Pacific general manager, said today.

Established in 2015 by a Chinese team, Airwallex processes annual transactions in excess of USD50 billion. Its global payment network covers more than 150 countries and regions, including Hong Kong, Australia, New Zealand, the United States, Singapore, and Europe.

Airwallex secured USD100 million in a Series E2 funding round in October. The startup has raised more than USD900 million in the past seven years, lifting its valuation to USD5.5 billion. Participants in the fundraisers included Sequoia Capital China, Tencent Investment, ANZ Bank, and Australian pension fund HostPlus.

Editor: Martin Kadiev