Indonesian fintech giant Xendit has taken a significant step in its regional expansion by acquiring Payex, a Malaysian payment gateway, marking a pivotal moment in its growth strategy.
This acquisition, finalized in 2025, builds on Xendit's initial investment in Payex in early 2023, as part of its strategic entry into the Malaysian market.
Xendit's Journey to Regional Dominance
Founded in 2015, Xendit has rapidly risen to prominence as a leading payment solutions provider in Southeast Asia, starting with Indonesia and later expanding to the Philippines.
The company’s focus on simplifying digital payments for businesses of all sizes has earned it a reputation as a trusted fintech unicorn.
Why Malaysia Matters for Xendit
Malaysia, with its burgeoning digital economy and growing SME sector, represents a key growth market for Xendit’s hyperlocal payment solutions.
The acquisition of Payex, a Bank Negara Malaysia-licensed provider, ensures Xendit can offer tailored services while complying with local regulations.
Impact on Businesses and Consumers
This move is expected to empower Malaysian businesses with seamless payment infrastructure, boosting e-commerce and digital transactions in the region.
For consumers, Xendit’s entry could mean more secure and diverse payment options, fostering greater trust in online platforms.
Historical Context of Xendit’s Expansion
Xendit’s journey reflects a broader trend of Southeast Asian fintechs scaling rapidly, with the company securing over $150 million in funding in 2021 to fuel its ambitions.
The Malaysian market is its third major territory, following successful operations in Indonesia and the Philippines.
Future Prospects and Challenges
Looking ahead, Xendit aims to deepen its presence across Southeast Asia, potentially eyeing markets like Thailand and Vietnam for future acquisitions or partnerships.
However, navigating diverse regulatory landscapes and competition from local and global players will remain a significant challenge for the fintech leader.
Andrew Lee
