Singapore Life buys payments app amid fintech consolidation

Singapore

THERE are some bubbling signs of consolidation in the fintech space, as Singapore Life - an insurer largely distributing products online - snaps up payments service firm Yolopay's assets to broaden its suite of services in the finance space.

The Business Times understands that Singapore Life paid less than S$2 million to buy up the technology behind Yolopay's mobile application aimed at parents who want to control the pocket money used by their children. The mobile application, known as Canvas, is due to be launched middle of this year on Android and iOS devices. It holds a pre-paid Visa card on which parents can load pocket money for their children's use.

The app allows parents to track expenditure on the pre-paid card and manage spending limits. Parents can turn off the spending option when the kids burst their curfew, or when they should be doing their homework.

BT understands that Yolopay was unable to raise enough capital to take its payment app to full launch this year.

Speaking to BT, Singapore Life's new chief marketing officer and head of its new fintech venture division Liam McCance said that while the Singapore fintech scene has generated a lot of energy and enthusiasm, "not all of them will pass threshold" when it comes to raising funds.

Mr McCance was formerly a partner at Yolopay.

Singapore Life is now looking at how to have the app used for public transport, as some 70 per cent of teenagers' expenses are for travelling.

It is also working to connect with existing mobile wallets such as Apple Pay, said Mr McCance. He added that this latest acquisition of Yolopay's assets is part of a broader strategy to expand itself into wealth solutions.

The platform will allow Singapore Life to target parents who may be looking for insurance, providing a form of "relationship acquisition" for Singapore Life.

There are also increasing opportunities to buy assets - including licences and proprietary technology - at a time of fintech consolidation, added Mr McCance.

In a press statement to BT, Walter de Oude, Singapore Life's founder and CEO, called the acquisition a "tactical initiative". "Along with our increasing number of wealth-centric product verticals, Canvas is a great addition to the Singapore Life family and adds payment functionality to our core offerings," he said.

Singapore Life has raised nearly US$100 million in capital through several strategic investors. These include Aberdeen Standard Investments and US insurer Aflac.

Late last year, British tycoon Michael Spencer also bumped up his stake in Singapore Life to a controlling shareholding of about 60 per cent, buying another 30 per cent in the fintech from a Hong Kong-based financial group.

Singapore Life at the start of 2018 acquired the business portfolio of Zurich Life Singapore, taking over all the policies of Zurich Life Singapore's customers.

The portfolio amounted to about S$6 billion in coverage for life, critical illness and disability benefits.