How Razer’s Fintech Arm Contributed US$64M Of Its H1 2020 Revenue

The COVID-19 pandemic has helped Razer thrive. Last week, the gaming giant reported record revenue of US $ 447.5 million with 25.3% year-over-year growth in the first half (S1) of 2020.

Its gaming verticals aren’t the only thing that generates profit.

Razer also has a powerful fintech arm – which includes Razer Gold, Razer Fintech and zVentures – which saw a 114.3% increase in total payment volume (TPV) equivalent to US $ 1.8 billion for the former. semester.

Razer Singapore
Image Credit: The Esports Observer

As part of its financial affiliates, Razer has launched a unified virtual currency, a Southeast Asia digital payment platform (SEA) and an enterprise venture capital arm.

Razer Gold and Razer Fintech contributed US $ 64 million in the first half of 2020, which represents 14.3% of the unicorn’s total revenue.

With a digital banking license in the works, it looks like Razer might just give superapps like Grab a run for their money in Singapore. Here’s a look at Razer’s lesser-known financial sectors.

zVentures

Razer’s corporate venture capital arm, zVentures, funds startups that contribute to the Razer ecosystem.

Currently, the fund targets tech startups that thrive in the Internet of Technology (IoT), Virtual Reality (VR) and the e-sports space, among others.

In 2016, zVentures had US $ 30 million (S $ 41 million) in funds.

Razer founder and CEO Min-Liang Tan estimated that 100,000 to 1 million US dollars (136,000 to 1.35 million dollars) would be invested per startup.

A total of US $ 20 million has been set aside for startups, while US $ 5 million is spent on creating content for Razer’s open source virtual reality (OSVR) ecosystem.

razer open-source virtual reality osvr
Razer OSVR / Image Credit: Flickr

To date, zVentures has funded five startups, all of which are listed on their website. It includes brands like Esports Mogul, a pure-play online esports platform, and Cash Shield, a standalone fraud detection startup.

Razer-funded startups have access to the company’s massive commercial networks, a customer base of 20 million people, technology, distribution networks and more.

Razer Gold and Silver

Razer Gold and Razer Silver are Razer’s unified virtual currency system.

Razer Gold allows you to purchase games and in-game content for up to 33,000 games, at over 3.4 million channel touchpoints worldwide. This includes games like Mobile Legends and Call of Duty.

Razer Silver is attached to Razer Gold, which is touted as the only loyalty rewards program for gamers.

Each spend on Razer Gold allows you to accumulate Razer Silver and potentially redeem rewards such as Razer gear, Steam games, vouchers and more.

razer gold and razer silver
Razer Gold and Razer Silver / Image Credit: Twitter

First launched in 2017, Razer Gold and Razer Silver have grown to become one of the world’s largest virtual currency and rewards platforms by 2018, serving over five million users in one year.

Growth is booming, in part driven by demand for home entertainment during Covid-19.

According to a report from Finextra, Razer Gold saw a 125.9% year-over-year increase in POS for the first half of 2020.

Razer Fintech

Founded in 2018, Razer Fintech operates one of SEA’s largest online offline digital payment networks, handling billions of dollars in POS.

Razer’s fintech arm controls Razer Merchant Services and Razer Pay.

Razer’s Merchant Services enable online and offline payments for leading SEA merchants like Grab, Lazada, and Shopee.

Meanwhile, Razer Pay is an electronic wallet aimed at young people, millennials and the underbanked. First launched in 2018 in Malaysia, the app lets you top up, transfer, and pay for goods and services.

razer paid app
Razer Pay / Image Credit: Ringgit Plus

In January of this year, Razer Fintech applied for a full digital banking license from the Monetary Authority of Singapore. The subsidiary has since been shortlisted and the results will be announced at the end of 2020.

Users of full digital banks will eventually be able to conduct all of their traditional banking activities entirely online. This includes withdrawing digital credits in real capital (something you can’t do with e-wallets like GrabPay – at the moment).

Razer Fintech also launched a digital hackathon in May to incubate digital banking solutions for issues caused by Covid-19.

Much like Razer Gold and Razer Silver, Razer Fintech has experienced strong growth. The financial subsidiary generated US $ 1.8 billion from POS for the first half of 2020, an increase of 114.3% year-on-year.

Growth was largely driven by the integration of new merchants and the boom in online shopping and entertainment.

Razer Deepens Its Foray Into FinTech

It has been over 22 years since Razer was first founded. It’s a relatively short time for a company to have practically transformed the face of the gaming industry.

Now that Razer has its fingers in the fintech cake, it will be interesting to see how it competes with other fintech players like Grab in SEA, which is already strong in the e-wallet game.

Regarding the digital banking business, Razer said it is already assessing the prospects for launching an overseas digital banking business pending the outcome of its Singapore license application.

Razer Fintech CEO Lee Li Meng acknowledges that the local banking industry is very competitive.

The company is currently focusing on Southeast Asia and other emerging markets such as India and Latin America as it seeks to expand its fintech business.

Featured Image Credit: fintechnews.my

Also Read: Games Company Razer Unveils Record Revenue of US $ 447.5 Million Amid COVID-19

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