The TOP100 programme, created by e27 to provide early-stage startups with access to a platform that facilitates connections for partnerships, funding opportunities, and more in the Asia Pacific, returns this year.

Since its inception, the TOP100 pitching competition has brought the best-in-class early-stage startups to showcase and pitch onstage across various cities in Southeast Asia.

Past winners and participants include 99.co, Softinn, and Carousell.

After a three-year hiatus, the 2023 programme will evolve and leverage on e27’s Pro Connect platform, which has powered close to 20,000 online connections between startups and investors since 2020.

The 2023 TOP100 programme and meetups will adopt a hybrid format of conducting the application and scoring online while retaining an element of evening networking offline in major Southeast Asia cities.

Two key updates would include a special category for disaster tech (D-Tech) solutions as partnered and supported by Prudence Foundation’s SAFE STEPS D-Tech Awards, and the second being the inclusion of Web3.0 startups, particularly projects targeting Web2.0 tech companies as their users or customers.

Also Read: Sarawak shows off startup scene in final TOP100 stop

Thaddeus Koh, Co-Founder of e27, said: “Expanding our reach beyond key cities, TOP100’s decision to conduct the initial pitching and showcase elements online opens up a world of opportunities for startups across Asia. This shift allows us to showcase a wider range of innovation and technology and provide resources and fundraising opportunities to startups that may have been previously out of reach. We’re excited to bring the spotlight to startups from all corners of the region and highlight their solutions to the world.”

Throughout the selection period, all TOP100 participants will have e27 Pro Connect access, which allows them to connect with and pitch to 500+ verified investors on the e27 platform.

From the participants, 100 best-in-class startups will be selected to showcase at Echelon Asia Summit 2023 to exhibit in the TOP100 section and pitch in the crowd-favourite TOP100 Stage. Many will proceed to raise additional rounds of funding in the next 18 months to achieve their growth-stage status.

“TOP100 has always been a programme that facilitates startups’ connections with stakeholders who can best help their business. By giving the participants access to e27 Pro Connect and showcasing the semi-finalists during Echelon, we aim to help kickstart and boost their fundraising journey,” said Koh.

Interested startups can first apply through the TOP100 website.

Echelon Asia Summit is bringing together APAC’s leading startups, corporates, policymakers, industry leaders, and investors to Singapore. The conference is scheduled from 14-15 June in Singapore. In 2023, the two-day conference is expected to draw in crowds of over 5,000 to discuss the latest in innovation, entrepreneurship, funding and more.

Echelon Asia Summit is e27’s flagship tech conference, bringing APAC’s startup ecosystem together to gain insights, build connections and meet talent from all over Asia. Explore how startups, investors, corporates and government bodies work together across borders to tackle similar challenges and pressing issues and empower the larger ecosystem to build the Future of Asia. Gather meaningful insights from industry leaders and stakeholders through stage discussions; build connections within the industry with over 300 exhibition booths. As Asia’s leading platform for tech startups and investments for 13 years now, Echelon Asia Summit will take on cross-border engagements, talent growth, and showcasing APAC’s emerging and leading companies from the heart of Singapore.

Founded in 2007, e27 has a strong mandate to give all entrepreneurs a winning chance to succeed, providing them with relevant tools and resources to build and scale their companies in Asia’s tech ecosystem. e27 provides a go-to platform for connections, insights, funding, and more — everything you need to build a billion-dollar company.

For media queries, please contact The Echelon Team.

Email: echelon@e27.co

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SEA is one of the fastest-growing regions in the world, with a population of over 650 million people and a GDP of US$3.3 trillion in 2021, which corresponds to 3.4 per cent of the global GDP. It is projected that by 2025, digital financial services will generate around US$38 billion. This accounts for 11 per cent of the entire financial services industry.

Waking an economic sleeping giant

But upon closer look, a massive potential in Southeast Asia (SEA) still remains untapped. The forecast shows that SEA, in 2025, has a full revenue potential of US$60 billion, around 58 per cent more than the expected revenue potential of US$38 billion.

The latest figures show that SEA still has ways before it reaches a truly cashless, all-digital, and accessible financial environment. 70 per cent of the adult population in the region remains either “underbanked” or “unbanked”.

To reach this potential, national governments must facilitate in release and implementation of strong and supportive regulatory policies and frameworks for digital financial services players.

Also Read: How technology has revolutionised operational efficiency in consumer finance

This untapped and massive digitalisation and financial inclusion potential can be further accelerated by bridging the gap between public and accessible retail credit. This is especially applicable to emerging SEA markets such as the Philippines.

Bridging the credit gap

Despite 90 per cent of Filipinos owning a smartphone with mobile internet, the Philippines has generally been a cash-centric society. Based on a study by McKinsey, only two per cent of Filipinos used credit cards.  An archipelago with over 7,000 islands, the country had suffered from limited accessibility from conventional, paper-based payment infrastructures.

This all changed during the pandemic, which jumpstarted the digitalisation journey and changed Filipinos’ behaviours forever: they created and transacted using e-wallets, purchased goods and services on e-commerce websites, and started saving their hard-earned money in digital banks.

Based on the 2021 Financial Inclusion Survey conducted by the Philippines’ central bank, formal account owners nearly doubled from 2019 to 2021 with 29 per cent and 56 per cent, respectively.

The pandemic may have paved the way towards digitalisation, yet four out of 10 Filipinos remain sceptical about the safety of online banking. From the same survey, what is interesting to note is that from 19 per cent in 2019, there was only a minor increase to 25 per cent for formal credit. In the country, informal credit has culturally been more popular than formal credit, wherein borrowers would seek credit from family and friends and informal loan providers.

Regarding formal credit, traditional or digital banks only ranked among institutions at a meagre four per cent in 2021. An insight in the same survey showed that informal credit sources were preferred due to their relative convenience, as little to no documents were required. Despite the need for quick credit, borrowers found the process in banks tedious, preferring informal credit sources that can disburse funds attached with higher interest rates.

This thought process is prevalent not just in the Philippines but across SEA. 2021 figures collated from World Bank, Euromonitor, Global Data, Bain, and Temasek reveal that consumer credit in the region, as a percentage of GDP, is at 13 per cent vis-à-vis to the US benchmark of 24 per cent of the US.

Building the road to credit inclusion

With online transactions ramping up exponentially because of the massive popularity of e-commerce and e-wallets, more users will become aware and interested in the plethora of financial services available. It is only a matter of time before accessible and digital credit becomes the preferred way for customers moving forward.

Governments across the region are becoming more supportive, with innovations such as a national and standardised QR code for mobile payment, digital bank licenses now being offered and granted, and national ID systems. Regulators, after seeing the success of digital financial services players in their shared vision of the digitalisation of the banking industry.

Also Read: ‘Neobanks can create a better digital CX by leveraging AI, blockchain’: banco CEO

Digital financial service providers must gain the public’s trust and confidence by ensuring all steps in the customer’s journey must be quick without sacrificing security and confidentiality. A company I co-founded, Singapore-based FLOW, was instrumental in redefining credit management by using professional, ethical, and highly efficient practices.

At present, we at Tonik are leading the way in driving financial freedom in the region. We provide Filipino customers a market-competitive, highly secure, and bespoke all-digital credit product range. In doing this, we empower Filipinos to use their available credit for various purposes, whether for their dream purchases and experiences, home improvements, or tuition fees, among others.

The sky is the limit when opportunities that are accessible, quick, and secure are presented.

By harnessing top-line and innovative technology with world-class fintech vendors, digital financial service providers can disrupt and change how people view money. What was once a far-fetched dream is now rapidly turning into reality. No longer are people confined to working for money; now, money works for us in pursuing our plans, goals, and dreams.  That is what true financial freedom is all about.

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Singapore-based SwipeRx, which owns and operates an online pharmacy platform in Southeast Asia, has secured US$10 million in a Series B extension round.

Global pharma company Sanofi’s Global Health Unit and Cercano Management (formerly Vulcan Capital, launched by Microsoft co-founder Paul Allen) invested in this round.

Existing investors SIG, Johnson & Johnson, and Patamar Capital also participated.

With the fresh funds, SwipeRx will expand its B2B commerce platform for the pharmaceutical industry in key markets. It will also invest in specialised healthcare logistics and financing, grow its pharmacy network in these markets and strengthen its advanced data teams.

Also Read: Where is Southeast Asia’s digital healthcare headed?

SwipeRx is a digital community for pharmacy professionals with an all-in-one B2B commerce capability. It provides the digital tools and information they need to serve patients better and manage their pharmacies.

Its digital network has over 250,000 professionals and 50,000 pharmacies. It works with leading pharmaceutical companies, governments and NGOs to connect the entire pharmaceutical ecosystem.

Indonesia is its largest market, with over 12,000 retail pharmacies (a quarter of all pharmacies in the country) SwipeRx. About 8,000 of them are also on its B2B commerce platform.

In addition, SwipeRx recently launched a new point of sale and inventory management system that has onboarded over 1,000 pharmacies in Indonesia.

In May 2022, SwipeRx raised a US$27 million Series B round led by Indonesia’s MDI Ventures with participation from Bill & Melinda Gates Foundation, Johnson & Johnson Impact Ventures, and SIG.

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In its recent report on the state of Southeast Asian (SEA) fintech companies, Robocash Group revealed that alternative lending and payments were two of the most dominating categories of fintech services in SEA and South Asia in 2022.

The report was based on the data gleaned from analysing the number of fintech companies operating in various countries in the region: India (541 companies or 43.1 per cent), followed by Indonesia (165 companies or 13.2 per cent), Singapore (162 companies or 12.9 per cent), the Philippines (125 companies or 10 per cent), Malaysia (84 companies or 6.7 per cent), Vietnam (78 companies or 6.2 per cent), Pakistan (51 companies or 4.1 per cent), Sri Lanka (27 companies or 2.2 per cent), with the smallest being Bangladesh (21 companies or 1.7 per cent).

Based on the data, the largest number of companies are focused on the Alternative Lending sector (544 companies or 43.4 per cent), followed by Payments & Transfers (496 companies or 39.6 per cent), E-Wallets (118 companies or 9.4 per cent), with the smallest being Digital banking (96 companies or 7.7 per cent).

It also highlighted the progression of fintech industry in the region based on the sheer number of companies operating: As of the end of 2022, there are 1,287 companies in the nine countries and four sectors studied, of which 1,254 (15.4 per cent of the total number of total active fintech companies, not just the four sectors under consideration) have the status of not Undefined (lacking data from the open sources).

“In the period from 2000 to 2022, the total number of companies increased by 3,588 per cent – from 34 to 1,254. The largest increase occurred in the period from 2015 to 2020, which marked the foundation of approx. 62 per cent of all existing companies from the four sectors under consideration,” the report stated.

Also Read: Understanding the role of fintech, blockchain in transitioning to net zero

On raising money and making revenue

In addition to looking at the number of companies operating in the region and the funding that they had raised in the past years, the report also looked at other factors, such as earnings, to determine the state of the fintech industry.

It evaluated the amount of funds raised for the entire period from the date of the company’s foundation to December 31, 2022 and the amount of revenue made in 2021.

“The volume of revenue will be perceived by us as the volume of transactions related to the primary activity of the company,” the report explained.

“Over the entire history, fintechs in the four studied sectors have raised a grand total of US$53.3 billion and earned US$17.8 billion. Roughly speaking, their total rate of return (Total Revenue / Total Funding) is approximately 33.4 per cent, which means that for every dollar attracted, fintechs earn an average of 33.4 cents per year on transactions related to their activities,” it continued.

As the country with the most amount of funding raised with US$25.6 billion (48 per cent), India tops the list of the countries with most earning with US$10 billion (57.2 per cent) in 2021, followed by Indonesia with US$2.4 billion (13.7 per cent), Singapore with US$1.9 billion (10.6 per cent).

Also Read: Grooming local fintech talent at Airwallex

“However, in terms of return on investment (Total Revenue / Total Funding), the most effective country is, oddly enough, Bangladesh (7840.9 per cent), then Pakistan (686.4 per cent),” the report stressed.

In SEA, Vietnam tops the list (117.6 per cent) followed by Indonesia (68.7 per cent) and Malaysia (48.5 per cent).

“Such extreme values in the first two countries (Bangladesh and Pakistan) are due to near-zero fundraising rates, while their revenue level is still below the SEA average,” the report closes.

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Fundraising or preparing your startup for fundraising? Build your investor network, search from 400+ SEA investors on e27, and get connected or get insights regarding fundraising. Try e27 Pro for free today.

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Late last month, Japanese conglomerate Mitsubishi UFJ Financial Group’s subsidiaries, MUFG Innovation Partners and MUFG Bank, established a US$100-million fund in partnership with Indonesia’s commercial bank Danamon.

Called MUFG Innovation Partners Garuda No. 1 Limited Investment Partnership, the fund aims to make strategic investments in local startups that have synergies with Danamon.

“We see Indonesia as one of the best attractive markets for tech investments in Southeast Asia or globally,” says Nobutake Suzuki, President and CEO at MUFG Innovation Partners.

e27 caught up with him to learn more about the new fund, its thesis, plans, and how the Indonesian startup ecosystem survives the current crisis.

Edited excerpts:

What are the key objectives of the fund? How can the fund act as a bridge between Japanese and Indonesian startups?

The key objective of the fund is to invest in startups that can collaborate with MUFG, particularly Bank Danamon. Startups can leverage Bank Danamon’s and MUFG’s assets and networks to grow, through which they would like to grow together.

Also Read: MUFG partners with Danamon to launch US$100M startup fund in Indonesia

We are not particularly missioned to act as a bridge between Japanese and Indonesian startups.

Can you share the investment thesis, ticket-size details, and focus verticals? Have you identified any startups for investment?

We are mainly looking at Series A or above companies with a first cheque size of US$3-5 million. We look for startups in lending, payment, wealth management, marketplace, vertical solution for embedded finance, SaaS/enablers, and ESG.

We have already started conversations with local startups.

How many startups does Garuda No.1 plan to invest in from this fund? Will it consider only startups that have synergies with Danamon?

It is still subject to change due to unforeseeable market conditions, but in principle, we would like to invest in around 15 companies in the next three to four years.

And yes, the synergy with Danamon is considered the prerequisite to investing in startups. It’s not limited to immediate short-term but mid- to long-term synergy.

What opportunities do you see for this fund in Indonesia? How will Garuda No. 1 address the funding gap (due to the winter)?

We see Indonesia as one of the best attractive markets for tech investments in Southeast Asia or globally. It is a high-growth market from a macroeconomic perspective.

At the same time, we cannot forget about the entrepreneurial mindset of people and the digital-savvy young population that fuels the digital economy growth.

We are not particularly designed to be created to address the current funding gap in Indonesia. Still, hopefully, our US$100 million Indonesian-focused fund can act as a catalyst for investors to be confident again and invest more in the market. Also, we aim to bring strategic value to the market other than capital.

How does the overall startup market in Indonesia performing in the recession? Are growth-stage startups struggling to raise follow-on funding? How do they cope with the situation?

We have started seeing the funding gap, especially in the growth to later stages. At the same time, activities in the early stage are surprisingly still vibrant in Indonesia.

In terms of the macro-economy, Indonesia is recession-resilient thanks to its demographic bonus and rich natural resources. These factors will especially give an advantage in this cost-push inflation world.

We believe Indonesia’s overall startup market appreciates these natural macroeconomic advantages and is better positioned to grow further than the startups in the other SEA markets.

Also Read: Mitsubishi arm injects US$200M investment into digital finance platform Akulaku

The funding winter, of course, is a hard time for everyone. However, it would also bring new opportunities for the startups, such as less competition, better hiring, and more time to focus on core product development and refinement. The startups surviving this winter must be stronger than ever before, and hopefully, we can back them up to weather the storm and emerge stronger together.

Given the current situation, will more Japanese companies and funds look to enter Southeast Asia, especially Indonesia?

Southeast Asia as a whole, or Indonesia in particular, are the fastest-growing economic centre in the world which naturally attracts investments and investors from all around the world. We are not in a position to talk about overall Japanese investors’ trends, but for MUFG, we have been actively investing in Southeast Asia and Indonesia.

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Fundraising or preparing your startup for fundraising? Build your investor network, search from 400+ SEA investors on e27, and get connected or get insights regarding fundraising. Try e27 Pro for free today.

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Singapore-based Tazapay, a fintech company specialising in cross-border payments, has received US$16.9 million in its Series A funding round led by Sequoia Capital.

EscapeVelocity, PayPal Alumni Fund, Gokul Rajaram, Foundamental, January Capital, RTP Global, and Saison Capital also participated.

Tazapay will utilise the money to scale its business across Asia and expand in other key regions, such as the Middle East and Europe. This includes the application of payment licenses in major markets that will broaden Tazapay’s payment network globally.

Also Read: Tazapay snags US$3.2M to expand cross-border SMB commerce platform in Southeast Asia

The startup will also improve its core capabilities and add more local payment methods.

Tazapay enables companies to do cross-border payments. It provides checkout, payment links, and escrow solutions to simplify international transactions and help reduce the risk for buyers and sellers online.

The firm has card coverage in over 170 markets and local payments collection coverage in 85 markets. This allows businesses to accept low-cost and secure payments from their customers without having to create local entities everywhere.

The company plans to expand its real-time local collection channels to above 100 by year-end. It serves enterprises across cross-border e-commerce, edutech, SaaS, and travel.

Its customers include IndiaMART, BrightCHAMPS, WTX, Rezlive, and Advantage Club. In addition, Tazapay has also partnered with Standard Chartered to offer innovative commerce-enabling payment solutions for enterprise marketplaces.

In March 2021, Tazapay secured US$1.75 million on top of its original round of funding of US$3.2 million announced in early 2021.

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Fundraising or preparing your startup for fundraising? Build your investor network, search from 400+ SEA investors on e27, and get connected or get insights regarding fundraising. Try e27 Pro for free today.

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Dr Carl Jones is Managing Director (Southeast Asia) at SAP Concur. He leads a multinational cross-functional team with sales, pre-sales, client success and cloud channel partnerships, ensuring alignment for strategic projects within SAP Concur.

An industry veteran, Jones has held various regional leadership roles in Asia Pacific countries, including Singapore and Thailand. He has 20 years of experience in Asia’s travel and payments industry.

Jones is a regular contributor of articles for e27 (you can read his thought leadership articles here).

In this candid interview, he talks about his personal and professional life.

How would you explain what you do to a five-year-old?

Imagine going to a park with your aunt, and she wants to have some ice cream with you, but she forgot her purse. So, you pay for the ice cream first with your pocket money and expect her to pay you back.

Similarly, I ensure employees get their money back when they go somewhere for work and pay for work-related things.

Note: SAP Concur helps companies manage travel, expense, and invoicing.

What has been the biggest highlight/challenge of your career so far?

My biggest challenge was managing the business through the pandemic and maintaining our business when travel almost completely stopped. It was tough seeing colleagues around the industry, particularly the travel industry, being heavily impacted. Thankfully, I stayed focused and kept my spirits up to motivate the people around us.

Also Read: Being a first-class listener will serve you best: Jon Howard of Bud Communications

How do you envision the next five years of your career?

I’m fortunate and excited to work at SAP, which gives employees various career options to explore and grow in different roles. For the next five years, I hope to continue to grow as an individual and maintain success for the team I represent and the company.

What are some of your favourite work tools?

I must admit that I didn’t initially appreciate Microsoft Teams when the pandemic struck, but I now love it despite its one or two shortcomings. What I’ve enjoyed most about Teams is its ability to allow us to strike a balance between virtual and hybrid work arrangements. Technology has enabled us to blur the lines between working from home and working from the office, which is very useful.

When I travel, I use Concur TripIt. It is my favourite work tool because it keeps me up-to-date in terms of itinerary changes. It’s especially handy when I am overseas.

What’s something about you or your job that would surprise us?

Most people are surprised to hear that I have been to nearly 100 countries. This includes North Korea. That was a personal trip back in 2005 when I travelled there to watch the World Cup qualifying match between North Korea and Iran.

However, the match was moved to Bangkok at the very last moment. I didn’t manage to catch the game live, but I did spend ten days in North Korea, across various locations and landmarks. It was fascinating.

Do you prefer WFH or WFO, or hybrid?

Hybrid. I love the flexibility hybrid gives me in my role — partly because I have many calls during unsocial hours, such as late at night and when I travel. I like the fact that hybrid has now extended to conferences and webinars, too, meaning in-person and virtual together. 

SAP Concur held many online conferences during the pandemic, and we are now running events in a hybrid fashion, where people can choose to attend physically or remotely. Technology has advanced so much in the last couple of years to allow this to be still effective.

What would you tell your younger self?

Always be adventurous and inquisitive. I am where I am because I took risks with my career in my 20s and 30s. For instance, moving overseas from the UK in my late 20s was a risk that I took. I ended up in Asia because I got a one-way ticket to Hong Kong with no firm plans, job, etc.

Also Read: Be hungrier and bolder to explore a variety of industries: Sharina Khan of Thoughtworks

From there, I ended up living in China and stayed there for a year, studying the Chinese language. I didn’t know how things would pan out because there wasn’t a plan, but I followed my passion. I did what I wanted to do, and I have been very fortunate with how they have played out.

Can you describe yourself in three words?

Energetic, resilient, and, I hope, fun!

What are you most likely to be doing if not working?

Ideally, hanging out with my wife and dog, Pinot. Pinot is a Singapore special. My wife and I got her from Singapore Action for Dogs four years ago. She was only three months old when she was found on the streets as a stray in Jurong.

We adopted her, and she’s beautiful! I also like to travel with my wife; we just returned from Croatia, having spent a week on a sailboat in the Croatian Islands, which was fantastic!

What are you currently reading/listening to/watching?

I’m currently reading a book titled On Roads that Echo by Charlie Walker, where the author penned his adventures in cycling across Asia and Africa. He spent four years cycling around the world because he wanted to see the world, and I find it inspiring.

I’m a cyclist, too, and a budding adventurer. I cycled 1,600km from Laos to Cambodia a few years ago for three weeks. I aspire to be like Charlie Walker and would like to bike around the world when I retire, particularly the Andes.

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Remember the “information superhighway”? How about “New Media”? They sound quaint now, but this is how the internet (which, incidentally, was spelt with a capital “I” back then) and digital media/online content, respectively, were hyped back in the late 20th century. 

The same thing will happen to Web3. When we look back years from now, we will also cringe at how we referred to many things related to Web3. Especially by how people talked and acted to show they’re part of the Web3 in-crowd and that they’re so much cooler and smarter than “normies”.

It’s this kind of us-versus-them effect, to use the psychological term, that we need to guard against in our efforts to make Web3 more mainstream and extend its benefits to more people. It’s one thing to embrace Web3 and champion it. It’s quite another to alienate the very people we’re trying to educate and onboard by talking over them and turning them off with technical jargon and toxic behaviour.

For Web3 to truly become mainstream, it must disappear into the background and become integrated with the way we work and play. Just like what happened with Web1 in the first place. Once upon a time, email and websites were frighteningly new and complicated platforms for the average user, but thanks to advances in technology and better user interfaces, we now just take them for granted. 

Here are three ways we can help make Web3 disappear.

Embrace what’s good, discard what’s bad 

As I’ve said in a previous article, I’m firmly in the camp of Web3 revolutionaries. This doesn’t mean, however, that I will condone the toxicity of some Web3 people, particularly on crypto Twitter. 

We can embrace the Web3 ethos of decentralisation, empowerment, transparency, and community without adopting the excesses of the internet subculture that has sprung up around cryptocurrency.

Obviously, it’s not limited to crypto Twitter, but it’s also true that many crypto bros revel in toxic masculinity. It’s actually quite laughable how content and engagement on crypto Twitter have been reduced to memes and tropes, which everyone then wants to emulate.

Also Read: Web3 marketing: Building a cult-like community

Becoming a Web3 builder involves more than creating memes, shitposting, calling people MFers, saying this project will go to the moon, and so on. Social media has always been a form of performance art, but it’s become even worse on Web3, especially when it comes to NFT projects that are vaporware relying on the cult of personality and shilling powers of the founders. 

It would be sad if Web3 ended up replicating the bad practices of Web2 marketing, such as paying influencers, using bots, and buying followers. As individuals and as communities, I believe we can learn from both Web2 and Web3, adapt what’s useful, and discard what’s not. 

The so-called conflict between Web2 people and Web3 people is based on two extreme views, both of which are wrong. 

On the one hand, it’s the mistaken belief of Web2 people that they can just waltz in and succeed in Web3. And on the other hand, it’s the misconception of Web3 people that they have nothing to learn from Web2 people.

If we truly want more people to embrace Web3, however, then we have to set aside our egos and work together. Again, let’s get rid of the us-versus-them mentality.

Keep it simple, stupid

One of the biggest challenges to onboarding the general public to Web3, however, is that the process is too complicated and tedious for the average user. 

Imagine being excited to play a Web3 game. Only realize that you first have to buy NFTs to play the game. But wait, you need to connect your crypto wallet first to buy the NFT. So you create a crypto wallet, going through each step of the tedious process, including writing down your seed phrase.

So now you can finally play the game, right? Nope, now you have to load your wallet with cryptocurrency to buy the NFTs. You have to understand which blockchain the game is using, as that will determine the cryptocurrency you need to buy, as well as the gas fees. 

Yes, play-to-earn showed us that the prospect of earning money could motivate people to put up with horrible user onboarding experiences and technical jargon. But as the subsequent decline of play-to-earn proved, this is hardly sustainable–and will not allow Web3 gaming to become mainstream.

The reality is that most gamers aren’t motivated by chance to earn money but see games as a form of entertainment. Which they are and should be. So we need to focus on making fun games and providing a good user experience to the players who are migrating to Web3. 

This is why educating people about Web3 is not enough. Why are we putting the burden on users and requiring them to know how to create a crypto wallet and buy cryptocurrency? Instead, we should simplify the process. 

Also Read: The future of lifestyle tech: How Rebase is leveraging Web3 to enhance real-world interactions

Thankfully, this is already happening with the second generation of Web3 games. For instance, some of them have a free-to-play option so that people won’t be required to buy NFTs before finding out if the game is actually fun. Also, some games automatically create a wallet for the player and allow them to pay via credit cards or other non-crypto means.

Focus on customer benefits, not technology

When we withdraw from the ATM, we don’t care about learning the technology that makes this possible. All we want is to get our money. The same thing goes for switching on the TV, using our mobile devices, or buying things online.

Sure, we may occasionally geek out over gadgets. But generally, as consumers, we don’t really care about knowing the technology behind the things we buy and use. And we shouldn’t have to. Because what we are concerned with is what benefits we’ll get from using these devices, not which microprocessor is powering them or what technology was used for higher-resolution video quality.

This is the mistake many Web3 companies make when they focus on talking about their technology instead of communicating the customer benefits. 

As Reddit Head of Global Client Solutions Neal Hubman said, what made the Reddit NFT launch wildly successful was that they didn’t refer to them as NFTs and made the backend technology invisible to their users.

“‘The consumer doesn’t care about [jargon],’ Hubman said. ‘The industry will continue to evolve and make it easier to onboard to Web3 whether they know it or not. I’d just like to encourage everyone to remove the jargon and speak like a normal human or brand, and you’ll be a lot more accessible and approachable.’”

Another great example is Starbucks Odyssey, which seamlessly integrates Web3 into its existing Starbucks Rewards loyalty program. Their customers get to enjoy new gamified experiences and unlock digital collectibles that come with real-world benefits. All without having to worry about technical jargon. 

Web3 is the future. It will shape society in ways we might not even be able to imagine for now. But this will only happen when Web3 disappears and becomes part of everything we do.

Now, isn’t that more meaningful than diamond hands and laser eyes?

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Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic

Join our e27 Telegram group, FB community, or like the e27 Facebook page

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Ouch!, a next-gen, tech-enabled insurance platform in Malaysia, said today it has secured an undisclosed sum in a pre-Series A round of investment.

Neither the names of the investors nor the size of the investment hasn’t been disclosed.

Following the investment, Ouch! will look to acquire the final approval from Bank Negara Malaysia (BNM) to operate in its regulatory sandbox.

Founded in September 2019, Ouch! utilises technology to make the insurance process pain-free — from plans purchasing, claims, and managing policies. It offers insurance solutions across life, home, travel and motor, all powered by an app platform that makes the process and tracking easy and transparent.

Also Read: Ethis Group, Gobi Partners to launch Shariah-compliant US$20M seed fund

The startup’s mission is to become Malaysia’s first digital Takaful operator with the planned launch of its new digital Takaful product within the first quarter of 2023.

“Providing a painless insurance service is our ultimate goal — breaking the norms of this long-established industry to cater to a new generation of consumers. With the impending introduction of the first pure tech-enabled Takaful solutions provider, this successful round of funding will allow us to deliver affordable cover at a bigger and wider scale,” said Shazy Noorazman, CEO of Ouch!

Ouch! also aims to obtain a Digital Insurers and Takaful Operators license which will be open for application later this year. “Obtaining the license will expand our market and, thereby, potential. This is all in line with our ambition to be a first-of-its-kind digital Takaful operator, especially focusing on the younger generation bringing our signature approach to insurance to a new space,” added Noorazman.

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A new report jointly produced by McKinsey & Company, Elevandi and the Monetary Authority of Singapore (MAS) reveals that fintech companies could play a significant role in helping to mobilise the capital required to create global sustainability, particularly in the effort towards decarbonisation (net zero).

“Fintech could play a significant role in helping to mobilise the capital required to create global sustainability. So far, only a very small portion of the total need is covered through financing. In recent years financing for projects targeting reduced emissions grew, but remained well short of the total needs,” the report states.

There are several ways that fintech companies can contribute to the move towards net zero. This includes the companies’ technological know-how that is believed to be “pivotal” in developing and funding innovations related to carbon capture or the protection of natural resources.

Fintech companies can also play the role of educators in educating clients on the implications of the climate transition for their businesses and helping them move forward.

Also Read: ‘There’s a lack of urgency among companies in achieving net zero targets’: Unravel Carbon’s Grace Sai

The report lists specific activities in the fintech industry’s effort to support sustainability which encompasses six identifiable themes:

Sustainable everyday banking
Products and services that match customers’ environmental values, such as rewards for responsible shopping.

Impact fundraising
Raising funds for environmental and social causes.

ESG intelligence and analytics
Sustainability-related data and analytics, ESG ratings and research services.

Impact investing and retirement
Opportunities that generate social and environmental impact along with financial returns.

Green and accessible financing
Financing for sustainability projects and providing credit access to underserved groups.

Carbon tracking and offsetting
Tracking individual and corporate carbon footprints based on financial transactions and identifying ways to offset them.

What blockchain can do

As one of the most talked-about subjects in the tech industry today, naturally one would be curious about the role that blockchain can play in meeting net zero goals. According to the report, blockchain can play a significant role in the matter of deconstructing and securing data.

Also Read: Fireside chat: Racing to net zero with the voluntary carbon market

“Given that ESG data is fundamental to sustainability investment and lending decisions, there must be a way to deconstruct the data and verify its integrity. Otherwise, decisions based on this data have the risk of being illinformed and companies remain open to accusations of greenwashing. Blockchain technology could address this challenge,” it explains.

But this technology is not without criticism. Cryptocurrencies, as the most popular implementation of blockchain technology today, are known for their massive electricity use and eventual environmental impact.

There have been several initiatives to help reduce the environmental impact of cryptocurrencies, such as through “The Merge” for Ethereum. The switch saw the cryptocurrency moving to a new algorithm Proof of Stake which is said to reduce power consumption by almost 100 per cent.

Apart from that, AI and machine learning are also the technologies that have been named to help in the process of vouching for the validity of data. “They could seek out and identify data abnormalities that could call into doubt the sustainability claims of particular instruments,” the report says.

Moving towards net zero

The report stressed that in our effort to transition towards decarbonisation (net zero), by 2050, the global economy will require “the greatest reallocation of capital since World War II coupled with a massive influx of financial innovation.” But as stated earlier, to date, financial mobilisation towards the goal still leaves much to be desired.

“In its January 2022 report, the McKinsey Global Institute (MGI) calculated that capital spending needed for the transition would total US$275 trillion between 2026 and 2050 or about US$9.2 trillion a year … The need represents
an average increase in annual spending of about US$3.5 trillion or, for illustration, an amount equal to about half the annual global corporate profits,” the report elaborates.

Also Read: BillionBricks closes US$2.45M seed round to build affordable net-zero homes

The details are described in the following illustration:

There are also other factors that make the prospect seem darker when it comes to fulfilling net zero goals, at least temporarily. This includes the COVID-19 pandemic and other recent global crises which may force investors to take the safer, more careful approach when it comes to investing.

” … the geopolitical shocks of 2022 might tempt many to set aside sustainability goals at least temporarily in favour of tried-and-true fossil fuel-based operations, for example stopping or delaying investment in renewable energy sources. This might especially be true for the manufacturing, transportation, and energy sectors,” the report states.

However, it highlights that this approach might be a “false trade-off.”

“Companies can be flexible and maintain a long-term focus on sustainability while creating the necessary resilience to withstand shocks. Indeed, continued efforts toward sustainability can build energy independence and add substantially to resilience,” it stresses.

Also Read: Singapore’s climate change: Moving towards net-zero through greener buildings and emerging technology

In order to reach the goals of decarbonisation through this dual-focus approach, companies are encouraged to explore materials transition and other green business approaches early to secure access to the most promising innovations, according to the report.

It stated that while the risks may be significantly higher for first-movers in the field, the rewards are also said to be “proportionally higher”.

“For example, early investors can benefit from policy incentives, skilled talent attracted to cutting-edge employers, partners who are equally willing to explore the potential, and securing a place in emerging value chains,” the report stresses.

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