1/ $SE a thread🧵on the evolution of SeaMoney, Sea’s digital financial services (DFS). Things are about to get interesting: critical pieces ♟ are now falling into place + incremental monetization can begin at scale ⬇️⬇️⬇️
2/ What is SeaMoney? It includes payments services such as ShopeePay (e-wallet) + AirPay (reverse ATM), nascent digital 🏦 in 🇸🇬 + 🇮🇩 + a range of consumer/SMB financing products inc. BNPL (SPayLater) + seller loans (SPinjam) ➡️ services are launched/adapted at country level $SE
3/ Rivals - Grab + Gojek are regional rivals. Sea’s advantages include access to funding, its regional network + superior use-case (🛍). Multiple players can be successful + niche specialists will emerge $SE
4/ Slow burner - SeaMoney + its legacy services have been around awhile: AirPay launched in 2014 to facilitate e-payments for Garena. Until 2020, DFS took a back-seat as Sea slowly built out its payments infra, formed 🤝 with 🏦 + let comps spend on CAC + educate populations $SE
5/ 2020 inflection point - in Q3’20, >30% of orders on Shopee 🛍 went through ShopeePay. I expect this to rise to >50% + $5b in quarterly TPV ($2.1b in Q3’20) in 2021. Rev contrib for this piece at maturity should be in the 1-2% range (of transaction value) $SE
6/ Offline push - $SE has been spending big on promos, ads + cash-back at offline 3P vendors (🥡 + 🧋). The reason is simple ➡️ attractive CAC + potential to sell high margin products/services when its digital banks 🏦 come online, as illustrated by Ark: 
7/ Why digital 🏦 licenses are imp - Singapore + Indonesia are 2️⃣ 🔑 markets for DFS. 🇸🇬 is the regional financial hub + 🇮🇩 is the largest market. It will take time for these 🏦 to grow but $SE will eventually provide loans using balances w/o 3P 🏦 + manage risk using data
8/ $SE already offers a solid range of DF services. All of these are exploratory + small in scale currently. BNPL is perhaps the most interesting now but lending more widely related to Shopee🛍 has significant LT rev potential
9/ $SE End Game - expect to see gradual ramp of services across SEA + further digital 🏦 license apps. The 🎯 is to offer consumers + Shopee🛍 sellers an integrated digital financial dashboard. The value per customer in EMs is more modest, but the model is the same / END
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