Technologies

From Acquisition Talks to Rivals: How Stripe and Airwallex’s Paths Diverged

Once on the verge of a $1.2 billion acquisition by Stripe, Airwallex founder Jack Zhang rejected the deal to pursue a long-term vision, now positioning the company as a formidable rival in the global payments infrastructure space.

Jack Zhang, a 34-year-old entrepreneur who had been leading his startup for three and a half years, found himself in a pivotal meeting with Michael Moritz, a prominent investor from Sequoia Capital. Invited to Moritz’s San Francisco residence, which offered stunning views of the Golden Gate Bridge, Zhang was presented with an offer: Stripe intended to acquire Airwallex for $1.2 billion. At that moment, Airwallex was generating approximately $2 million in annualized revenue, making the valuation seem incredibly lucrative. Moritz emphasized that Patrick Collison, Stripe’s founder, was a visionary leader, suggesting the acquisition could lead to extraordinary growth. Zhang spent two weeks in San Francisco grappling with the decision, eventually agreeing to the deal.

Yet, he soon flew back to Australia, nearly 8,000 miles away. Reflecting on the decision, Zhang explained, ‘I had to delve into my core motivations for building Airwallex. I was only three and a half years into the venture, which had grown exponentially in 2018. I had just begun to experience the thrill of entrepreneurship, which is what I had always dreamed of.’

Two of his co-founders opposed the acquisition, which influenced his choice. However, Zhang cited a clearer moment of clarity when he looked at the whiteboard in his office. The unfinished vision remained: to create financial infrastructure enabling businesses to operate globally as if they were local entities.

This decision appears increasingly justified. Airwallex now reports over $1.3 billion in annualized revenue, growing 85% annually, and processes nearly $300 billion in transaction volume. Zhang attributes this success to the deliberate challenges they faced.

Zhang’s journey began in Qingdao, China, and he moved to Melbourne at 15 with minimal English, living with a host family. After his family’s financial struggles, he worked multiple jobs to fund his computer science degree at the University of Melbourne, including bartending, dishwashing, gas station shifts, and farm work. He later worked in trading code development at an Australian investment bank, a role that paid well but lacked personal fulfillment.

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Before founding Airwallex, Zhang launched approximately 10 ventures, including a magazine at 14, a real estate development firm, import-export businesses dealing in wine and olive oil between Australia and Asia, textiles in the opposite direction, and a burger chain.

The concept for Airwallex emerged while Zhang ran a Melbourne coffee shop. When attempting to pay suppliers in Brazil, Indonesia, and Guatemala, co-founder Max Li observed payments vanishing into correspondent banking systems, often flagged or frozen by U.S. intermediary banks enforcing OFAC sanctions. ‘This prompted me to investigate correspondent banking and SWIFT systems to build our own global money movement network,’ Zhang noted.

That vision has scaled significantly. Airwallex now holds nearly 90 financial licenses across 50 markets, far exceeding Stripe’s estimated half. Acquiring these licenses required immense effort; in Japan, it took seven years. In some emerging markets, the company acquired shell companies with outdated licenses and rebuilt their technology from scratch.

‘You can’t just vibe-code an integration with Mexico’s central bank,’ Zhang remarked. ‘Access requires a secure room and biometric scans.’ These licenses are not merely regulatory formalities. In Japan, for example, Stripe and Square must transfer funds immediately to merchants’ bank accounts, whereas Airwallex, holding a fund transfer operator license, retains funds within its ecosystem. This allows customers to issue bank accounts, cards, and spend locally without funds leaving the platform.

The foreign exchange advantages are significant. A U.S. merchant settling transactions in Australian dollars avoids the 2% to 3% conversion fees typically charged by processors like Stripe to move funds back to U.S. dollars. Instead, they can use local balances to pay vendors, manage payroll, and cover digital marketing at interbank rates.

‘You no longer operate like a traditional U.S. company,’ Zhang explained. ‘You function as a global entity without the need to physically establish offices worldwide.’ This strategic approach, which Zhang calls the ‘path of maximum resistance,’ has created competitive barriers. ‘It took us six and a half years to reach $100 million in annual recurring revenue,’ Zhang stated. ‘But after that, it took just over three years to hit a billion.’ The competitive logic, in his telling, is clear.

Technologies

Trump Maintains US‑Iran Negotiations Continue Amid Tehran’s Denials of Duplicity

President Trump insists that US‑Iran talks are ongoing despite Tehran’s denial of any negotiation plans, while warning that only a deal or total surrender will allow passage through the Strait of Hormuz. Conflicting statements from both sides have heightened uncertainty as the conflict enters its sixth month.

On Monday, President Donald Trump asserted that negotiations between the United States and Iran are still taking place, even after Tehran stated it has no intention of engaging in direct talks with Washington.

In a fiery Truth Social post, Trump labeled Iran’s leaders “unbelievably duplicitous,” claiming they are lying about ongoing peace talks “whether Iran wants to admit it or not.” He repeated his assertion that the United States completely controls the Strait of Hormuz, despite maritime traffic through the crucial route lingering at only a small fraction of pre‑conflict levels.

He wrote, “Nothing reaches Iran unless we allow it, and nothing will pass unless a deal—or total surrender—is achieved.”

Earlier that day, Iranian Foreign Ministry spokesperson Esmail Baghaei told reporters there is no imminent plan for U.S.–Iran negotiations, contradicting Trump’s earlier comment that talks would resume Monday afternoon. Baghaei added that Iran’s only current discussions are with Oman concerning the Strait of Hormuz.

The conflicting statements have heightened uncertainty over the peace‑talk process and the broader conflict, now in its sixth month.

Trump’s assertion about new negotiations came a day after he said on Truth Social that he had agreed to cancel a massive strike against Iran “subject to being able to rapidly make a DEAL.” He said in the same post that Iran and other Middle Eastern countries had asked him to hold off on that attack because “the perimeters of a deal has been agreed to.”

Trump has claimed dozens of times throughout the more‑than‑five‑month‑long war that a deal is at hand. No permanent deal has been signed, and a temporary ceasefire reached in June has fallen apart.

Trump has also repeatedly threatened to launch devastating strikes against Iran before backing off. After the latest example, oil prices on Monday fell and stocks surged.

BMI, a research unit of Fitch Solutions, said in a note Monday that a broader diplomatic understanding on reopening the Strait of Hormuz is still achievable this quarter, while raising the probability of its escalation scenario to 35% from 25%, citing mounting military, diplomatic and economic signs of rising U.S.-Iran tensions.

“Diplomatic progress is likely to be punctuated by periodic military flare-ups, while miscalculation by either side could trigger a renewed escalation,” BMI analysts wrote in a note. The firm said the key issue to watch is the future governance of the strait, as the Iran-Oman talks — potentially backed by Gulf states, China and the U.S. — point to efforts to build a post-conflict shipping framework.

Shipping risks persist even as diplomacy appears to be advancing. The United Kingdom Maritime Trade Operations Centre said it received a report of an incident 20 nautical miles (23 miles) northeast of Khasab, Oman — at the mouth of the strait — with a tanker’s master reporting an explosion in close proximity to the vessel at about 20:37 UTC Sunday (4:37 pm ET). The vessel and crew were safe and authorities are investigating, UKMTO said, advising ships to transit with caution.

The proposal Trump announced over the weekend calls for the U.S. and Iran to return to negotiations and continue ironing out some of the thorny issues that had derailed diplomatic efforts, according to The Associated Press, citing a regional official involved in the mediation efforts.

The official said the proposal also includes a reopening of the Hormuz Strait and halting attacks across the region, including by Iranian-backed militias in Iraq on the Arab Gulf countries and Jordan.

The U.S., for its part, will end its naval blockade on Iran and allow Tehran to export its oil, the official said, adding that no deal has been reached, although the mediation efforts remained underway.

Trump’s weekend reversal has lowered the temperature after days of escalating attacks across the Gulf. Kuwait said Saturday that Iranian forces launched a wave of drones within its airspace, with its military destroying multiple aircraft after Iran targeted critical infrastructure in the country’s north.

A parallel track with Muscat is also advancing. Iranian diplomats said Tehran was close to reaching a new arrangement with Oman to manage shipping through the Strait of Hormuz, a deal critical to preventing the war from escalating further, according to the Financial Times.

Iranian officials said negotiations over future management of the Hormuz Strait with Oman, which sits on the opposite shore of the waterway, are in their final stages. The agreed shipping route would be different from those used before, according to Iran’s Foreign Ministry spokesperson, Baghaei, adding that the new route was separate from the issue of the strait’s reopening or continued closure.

Technologies

Oil Prices Slide as Trump Halts Planned Iran Strike

Oil prices dropped after Trump cancelled a planned strike on Iran, with WTI down about 5% and Brent near 5% lower. He said the move followed requests from Tehran and regional allies for a pause while a deal shaping the Strait of Hormuz and Iran’s nuclear program is negotiated.

Oil prices fell on Monday after President Donald Trump announced he had cancelled a planned strike on Iran. WTI futures dropped roughly 5% to $80.34 a barrel, while Brent slipped about 4.7% to $83.77 a barrel.

Trump said early Sunday he called off the strike after Iran and several Middle Eastern nations asked him to hold off, noting that the outlines of a deal had been agreed upon. He added that the prospective accord would entail the immediate, full opening of the Strait of Hormuz and an end to Iran’s nuclear ambitions, according to his Truth Social post.

The president had been considering another round of strikes as diplomatic hopes waned since the conflict began on February 28. He said the U.S. and Iran would meet for talks on Monday, but Iran denied any scheduled negotiations with Washington, citing PressTV. Iran’s foreign‑ministry spokesperson Esmaeil Baghaei clarified that Tehran was only discussing shipping routes through the Strait of Hormuz with Oman. In a follow‑up Truth Social message, Trump insisted that, regardless of Iran’s acknowledgment, the United States is indeed discussing a solution to a long‑standing problem created by Iran.

Technologies

Oil Prices Drop as Trump Cancels Planned Attack on Iran

Oil prices fell sharply after President Trump announced the cancellation of a planned strike on Iran, citing a new deal that would open the Hormuz Strait and end Iran’s nuclear threat.

Oil prices fell sharply on Monday after President Donald Trump announced that he had called off a planned strike on Iran.

West Texas Intermediate futures, the U.S. benchmark, slipped roughly 5% to close at $80.34 per barrel, while Brent crude, the international benchmark, declined 4.7% to settle at $83.77 a barrel.

Trump made the announcement early Sunday, saying he had canceled the strike following requests from Tehran and other Middle Eastern countries.

In a Truth Social post, he wrote: “We have just been asked by Iran, and other Middle Eastern Countries, to hold off any attack in that the perimeters of a deal has been agreed to.”

The president indicated that the proposed agreement would include the immediate, complete, and total opening of the Hormuz Strait, as well as an end to Iran’s nuclear threat.

Trump had been weighing additional strikes amid diminishing prospects for a diplomatic resolution to the conflict that began on Feb. 28. He stated that the U.S. and Iran would hold negotiations on Monday.

Tehran denied that talks were planned with Washington, according to state news outlet PressTV.

Iran’s Foreign Ministry spokesman Esmaeil Baghaei said Tehran was only holding talks with Oman regarding the routes ships can use through the Strait of Hormuz.

In a subsequent Truth Social post, Trump added that whether “Iran wants to admit it or not, we are, in fact, talking of a solution to a problem that they have caused for decades.”