Razer, the world's leading gaming device manufacturer, and Visa, the payment company that owns the world's number one international credit card brand by market share, have announced a partnership.
Visa is a world leader in digital payments and has been active in partnering with financial institutions, e-commerce solutions, and POS system companies, but now it is partnering with Razer, a gaming device manufacturer.
Why did Razer and Visa partner, what is the nature of the partnership, and why does Razer, a gaming device manufacturer, provide payment services?
Razer actually has a financial technology division, Razer Fintech
As a gaming device manufacturer, Razer may not seem to be involved in payment solutions, but in fact, the company has a financial technology division called "Razer Fintech".
With this partnership, Razer Fintech will participate in the Visa Fintech Fast-Track Program.
The Visa Fintech Fast-Track Program, which includes Japanese startups such as Kyash, supports fintech companies developing next-generation digital payment solutions and facilitates integration with Visa's global network. The program will facilitate integration with Visa's global network.
The program has been offered in the Asian region, including Japan, since November 2018.
Razer Fintech is working with Visa to develop a virtual visa prepaid solution that will be incorporated into Razer Pay.
Razer Pay is already deployed in Malaysia.
Razer Pay has already been released in Malaysia and was introduced around July 2018 at Berjaya Group, which operates 7-Eleven, Starbucks, and Wendy's in Malaysia and already has many merchants.
It will soon be released in Singapore, where Razer Pay will not only allow payments at merchants, but also money transfers between Razer Pay users.
Currently, only domestic money transfers are available since it is only being released in Malaysia, but in the future it will also be possible to send money to users overseas, i.e., internationally.
Why from Southeast Asia?
While credit card and banking infrastructure is already in place in the U.S., Japan, and other countries, Southeast Asia does not have bank accounts and does not offer sufficient financial solutions.
Recently, games, both consumer and smartphone games, have become subscription-based, such as Xbox Live Gold and PlayStation Plus, not to mention download purchases and item billing.
Southeast Asian game users who do not have credit cards usually have to prepare bank accounts and credit cards to solve these problems, which is a high hurdle in Southeast Asia.
This is where the partnership between Razer Fintech and Visa is expected to make it possible to expand microfinance services to users without financial services.
Charging funds to Razer Pay can be done through bank account transfers as well as at convenience stores, making it possible for users without bank accounts to use the service.
Razer's strengths in finance are
Given the above, it is understandable that Visa is expanding in Southeast Asia, but what is the reason for Visa to partner with Razer, a gaming device manufacturer? Surprisingly, the answer is simple.
Razer has a proven track record of designing and building the world's largest hardware, software, and services ecosystem for gamers, and Razer can introduce financial functionality with a gaming-like feel.
This is also expected to improve the financial literacy of people in Southeast Asia.
Razer is also a highly recognized gaming brand, and the Razer triple-head snake logo is recognized around the world and is expected to appeal to many gamers.
Razer already offers one of the world's largest virtual credit services for gamers, " Razer Gold ", and has a proven track record in financial services, and as mentioned above, Razer Pay is already widely available in Malaysia. We are sure that there is no other partner better suited for this project than Razer. "There is no other partner more suitable than Razer".
The integration of Razer Pay with Visa Prepaid Solutions will enable customers to pay at 54 million Visa merchants worldwide.
The service will first be launched in Malaysia, followed by Singapore, and then in phases to other Southeast Asian countries, and then to the entire world.
The Japanese payment market is already in a state of chaos, with Nantoka Pay in disarray in Japan, but gamers can look forward to Razer Pay gaining market share in each country and then rolling out to Japan.