Airwallex's Jack Zhang rejected Stripe's $1.2B offer to build a global fintech powerhouse, now challenging its former suitor in a high-stakes rivalry.
Once Close Enough for an Acquisition, Airwallex's Jack Zhang Chose the Path of Max Resistance to Build a Global Fintech Powerhouse
Jack Zhang famously turned down a $1.2 billion acquisition offer from Stripe, choosing instead to forge his own path in the global fintech landscape.
Airwallex, now processing nearly $300 billion annually, is rapidly expanding its intricate financial infrastructure, challenging established players and empowering businesses worldwide.
The air in Michael Moritz's Silicon Valley home was thick with anticipation, the Golden Gate Bridge a silent sentinel in the distance. Jack Zhang, then 34 and three-and-a-half years into his startup journey, sat across from one of the most powerful investors in the world. Moritz was making his case: Stripe wanted to acquire Airwallex for a staggering $1.2 billion. The Melbourne-based company, at that point, had around $2 million in annualised revenue, making the offer a nearly 600-times multiple—an almost irresistible proposition that promised to compound into something extraordinary under Patrick Collison's leadership, as Moritz passionately argued.
Zhang listened, the weight of the decision pressing heavily upon him. For two weeks, he walked the streets of San Francisco, restless, his thoughts a whirlwind. He even said yes at one point, before the long flight home to Australia gave him the space to truly reflect. "I really went deep on what motivates me to build Airwallex," he recalled recently. It was 2018, the business was growing 100 times, and he had only just begun to taste the exhilarating, challenging life of an entrepreneur—a dream he had harboured for years. With two of his three co-founders also voting against the deal, and the unfinished vision staring back at him from his office whiteboard—to build the financial infrastructure enabling any business to operate globally as a local entity—Zhang knew what he had to do. He rescinded his acceptance, choosing an untrodden, more arduous path.
That audacious decision now looks remarkably prescient. Airwallex today boasts more than $1.3 billion in annualised revenue, growing at a brisk 85% year-over-year. The platform processes nearly $300 billion in annualised transaction volume, a testament to the founder's conviction. None of this has been easy, and that, Zhang insists, is precisely the point. His journey, and Airwallex's philosophy, is rooted in a deep-seated understanding of struggle and resilience, forged long before the bright lights of venture capital.
Born in Qingdao, a bustling port city in northeastern China, Zhang moved to Melbourne at 15 without his parents, navigating a new country and a new language with minimal English. When his family’s finances took a catastrophic turn, he juggled four jobs to fund his computer science degree at the University of Melbourne. Bartending, washing dishes, working graveyard shifts at a gas station, and picking lemons on a farm—the latter he vividly remembers as the hardest job he ever had—these experiences instilled in him a tenacious work ethic. After graduation, he spent years writing trading code for an Australian investment bank, a lucrative role that, despite the financial comfort, never truly offered "deeply fulfilling" purpose.
Before Airwallex, Zhang was a serial entrepreneur, with roughly 10 ventures under his belt. From a magazine at 14, to real estate development, import-export operations spanning wine and olive oil from Australia to Asia, textiles in the reverse direction, and even a burger chain. It was while running a coffee shop in Melbourne that the spark for Airwallex ignited. His co-founder, Max Li, frequently struggled with international payments to coffee bean suppliers in Brazil, Indonesia, and Guatemala. Payments would vanish into the opaque correspondent banking system, often flagged by American intermediary banks enforcing OFAC sanctions, sometimes bouncing back weeks later. "That pushed me to really look at how correspondent banking works," Zhang explained, "how SWIFT works, and how we could build our own global money movement network."
That core idea, born from the frustration of a coffee shop owner, has scaled exponentially. Airwallex now holds close to 90 financial licenses across 50 markets, a stark contrast to Stripe's estimated half that number. Obtaining these licenses has been an immensely time-consuming and complex endeavour. In Japan alone, the process stretched over seven arduous years. In some emerging markets, the company had to strategically acquire shell companies whose licenses were no longer being issued by central banks, then undertake the mammoth task of entirely rebuilding the technology underneath them. "You can't really vibe-code an integration with Mexico's central bank," Zhang noted, highlighting the rigorous security and compliance requirements. "We have to have a secure room—you have to do a biometric scan just to walk in to access the central bank integration."
These licenses are far from mere regulatory window dressing; they are the bedrock of Airwallex's competitive advantage. In Japan, for instance, while competitors like Stripe and Square can process payments, local regulations often require them to immediately transfer funds out to the merchant's bank account. Airwallex, armed with its fund transfer operator license, can hold those funds within its ecosystem. This crucial capability means a customer can issue bank accounts, issue cards, and spend money without those funds ever leaving the Airwallex platform. The foreign exchange economics alone offer substantial savings: a U.S. merchant settling transactions in Australian dollars can avoid the typical 2% to 3% conversion fee charged by processors like Stripe to move money back into U.S. dollars. Instead, they can utilise those local balances to pay local vendors, run payroll, and cover digital marketing expenses, all at competitive interbank rates. "You don't really operate like a U.S. company anymore," Zhang said. "You operate like a company with entities around the world, but without needing to physically set up those entities."
This painstaking, slow build was deeply intentional, guided by Zhang's often-referenced framework: the "path of max resistance." Every license secured, every bank integration forged, every local payment rail meticulously assembled has contributed to a robust, multi-layered moat that makes it incredibly difficult for competitors to replicate. "It took us six and a half years to get to $100 million in annual recurring revenue," Zhang elaborated, highlighting the initial grind. "But after that, it took just over three years to get to a billion." This exponential acceleration underscores the power of foundational infrastructure. The competitive logic, as Zhang articulates it, boils down to the fundamental difference between owning infrastructure versus merely building atop someone else's. Without end-to-end control of the payment workflow, diagnosing issues, accessing underlying data, or cleanly extending new products becomes immensely challenging. "Building on top of other infrastructure," he concluded, "is simply not scalable."
For much of their existence, Airwallex and Stripe have largely operated in distinct geographies, catering to different buyer personas. Airwallex, for instance, has historically focused on the CFO's office in Australia and Southeast Asia—finance directors and treasury teams—a sales motion distinct from Stripe's developer-led customer acquisition primarily in the U.S. More than 90% of Airwallex's customers initially adopt their business account product, with payments and spend management following naturally. Over half of their customer base now uses multiple Airwallex products. However, this dynamic is rapidly shifting. As Stripe deepens its push into international markets, and Airwallex makes its strategic first moves into the United States, the competitive overlap is intensifying.
Zhang is candid about the challenges that lie ahead. Perhaps the biggest is Stripe's revered status as Silicon Valley's "golden child," a privately held titan whose shares have minted millionaires across the tech industry. This comes with an inherent brand gap. Airwallex needs to embed itself in the minds of engineers and developers, not just finance teams, so that new founders instinctively reach for its solutions. "Our brand is just not there yet," he admitted. "That's a harder competition to win." This escalating rivalry is being closely watched across the industry. Sequoia, through its China arm (now Hongshan), was an early backer of Airwallex and remains one of its largest shareholders. Greenoaks Capital also holds stakes in both fintech giants. Zhang, however, shrugged off any notion of awkwardness, noting that investors are ultimately betting on the sheer scale of the global financial market. The valuation question, however, remains pertinent, with Stripe valued at a staggering $159 billion in a recent tender offer.
Jack Zhang's journey with Airwallex is a powerful narrative for aspiring entrepreneurs, particularly those in India and Southeast Asia, demonstrating that true value is built through relentless commitment to foundational infrastructure, not quick exits. His unwavering belief in a long-term vision, even when faced with a multi-billion dollar offer, serves as a compelling reminder that the "path of max resistance" can lead to unparalleled competitive advantage and enduring impact, fundamentally transforming how businesses across our region and the world operate and connect.
Frequently asked questions
Why did Airwallex reject Stripe's acquisition offer?
Airwallex's CEO, Jack Zhang, chose to reject Stripe's $1.2 billion acquisition offer to pursue an independent path. He aimed to build a global fintech powerhouse, focusing on creating comprehensive financial infrastructure.
What is the current relationship between Stripe and Airwallex?
Stripe and Airwallex are now direct competitors in the global fintech market. Once considered for acquisition, they now vie for market share, especially in cross-border payments and financial infrastructure.
How much is Airwallex processing annually?
Airwallex is currently processing nearly $300 billion annually, demonstrating its significant growth and impact in the global fintech landscape.
Who is Jack Zhang?
Jack Zhang is the co-founder and CEO of Airwallex. He is known for his vision in building a global fintech company and famously turned down a $1.2 billion acquisition offer from Stripe.
What services does Airwallex offer?
Airwallex offers a range of financial services including global accounts, cross-border payments, multi-currency cards, and embedded finance solutions, primarily for businesses.
What was Stripe's acquisition offer to Airwallex?
Stripe reportedly made a $1.2 billion acquisition offer to Airwallex, which was ultimately rejected by Airwallex's leadership.
