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Bangkok Post - YouTrip eager to grow regional offerings
YouTrip eager to grow regional offerings
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YouTrip eager to grow regional offerings

The company has hefty ambitions after posting growth in digital travel payments for several currencies

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Ms Juthasree says it is important to tailor offerings to the specific needs of each market.
Ms Juthasree says it is important to tailor offerings to the specific needs of each market.

YouTrip, the Singapore-based fintech firm, is evolving beyond being a travel card service after establishing itself as Southeast Asia's leading multi-currency digital payments platform, demonstrating the fastest growth in the region's business sector.

The company has ambitious plans to expand its financial services across Southeast Asia in the coming years, according to Juthasree Kuvinichkul, founding partner of YouTrip Thailand, in an exclusive interview with the Bangkok Post.

New Opportunities

YouTrip launched operations in Singapore in 2018. The company expanded into Thailand in 2019, just before the pandemic. Like many businesses, YouTrip was affected by global lockdowns, but recorded a significant recovery with the reopening.

With the resumption of offshore travel in 2022, the company posted growth based on pent-up demand from the pandemic period. Growth was particularly strong last year, driven by operations in Singapore and Thailand.

In 2023, YouTrip acquired millions of users across the region and showcased robust business metrics, achieving 180% revenue growth year-on-year and reaching profitability goals. The company recorded a total payment volume of around US$10 billion, or 350 billon baht.

The exact number of users, revenue and net profit figures were not disclosed.

Given the robust growth, in October 2023 YouTrip raised $50 million (1.84 billion baht) in a Series B fundraising round led by new investors and global venture capital firm Lightspeed. This raised YouTrip's total funds to more than $100 million, or 3.68 billion baht, since its inception.

In the first half of 2024, YouTrip reported 80% growth in spending via its platform year-on-year, driven by markets in Singapore and Thailand in the travel, e-commerce and insurance categories.

As the fastest-growing multi-currency payment platform in Southeast Asia, YouTrip was listed among the world's top fintech companies by Singapore-based CNBC in 2024.

"We expect 100% revenue growth this year. We already hit our target for the first half of the year and foresee a positive outlook for the second half as well," Ms Juthasree said.

Positive Momentum

With the global tourism recovery and improving outbound travel from Thailand, YouTrip has shown significant momentum in the Thai market, she said.

As of June this year, new users in Thailand tripled and transaction volume increased fivefold compared with the past two years, said Ms Juthasree.

"During Songkran this year, YouTrip users' spending increased by 150% year-on-year, demonstrating the recovery in travel and spending after the lockdown," she said.

During the Songkran festival, China is a key destination for Thais. Transaction volume of Thai travelers spending in China via YouTrip increased by 466% in Chinese yuan in April this year, said Ms Juthasree.

She highlighted greater business opportunities in the Thai market, with plans for growth in the coming years.

The company aims to develop new innovative services and payment solutions through strategic partnerships.

In Thailand, YouTrip partners with Kasikornbank to offer financial services and plans to collaborate with other business partners to strengthen the ecosystem and localise services to meet the needs of Thai users, said Ms Juthasree.

Regional Expansion

She said the company plans to start operations in Malaysia this year, following approval from regulators there. Under its localisation strategy, YouTrip will partner with local businesses to expand in Southeast Asia, said Ms Juthasree.

YouTrip is awaiting regulatory approvals to operate in three more regional markets considered to have high growth potential, but she did not disclose the countries.

Ms Juthasree anticipates intensified competition in the digital payment arena, covering travel cards, cross-border fund transfers, and multi-currency payment solutions from banks, non-banks and fintech firms.

The rise in outbound travel and the continued traction of digital payments present greater opportunities for related digital payment businesses, she said.

The company remains confident in its position, thanks to tailored product offerings that meet local demand, said Ms Juthasree. YouTrip's focus on user experience, transparency and security positions it well to navigate the evolving travel payment industry landscape, she said.

"We are not overly concerned about increased competition," said Ms Juthasree.

"We currently compete with several peers, including major global players. However, we will monitor the market and handle competition appropriately."

Business challenges

She said the economic outlook presents a significant challenge for YouTrip's business operations and growth on global, regional and local levels. A softer growth trajectory for the global and Thai economies could affect spending via YouTrip.

As a result, users are prioritising their payments according to their lifestyles. For instance, some users may prioritise spending on their destination rather than on accommodation or dining to save costs on their trips, said Ms Juthasree.

YouTrip's users range from 12 to 60 years old and can sign up using only an ID card. High-spending users, typically aged 20-30, tend to focus on tourism, she said.

Ms Juthasree said the company's service partially overlaps with credit cards, particularly in the area of overseas payments, and is disrupting the traditional plastic card industry.

The main advantages of YouTrip over traditional payment solutions include no transaction fees, no dynamic currency conversion fees and reasonable exchange rates, she said.

YouTrip prioritises providing a seamless and secure user experience, emphasising transparency, real-time notifications, 24/7 customer support, and robust fraud protection mechanisms to build trust among users, said Ms Juthasree.

The company also recognises the importance of tailoring its offerings to the specific needs of each market, exploring contactless payment methods and expanding its complementary offerings, such as travel insurance, flights, accommodation and experience partnerships, she said.

For Thailand, Ms Juthasree said the emergence of virtual banks is unlikely to intensify competition significantly because existing banks already offer digital banking services.

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