Toss Targets Australian Market with Finance Superapp Launch
South Korean fintech unicorn Toss is preparing to debut its finance superapp in Australia within 2024, marking its first expansion beyond domestic borders. The company’s CEO, Lee Seung-gun, emphasized the opportunity to replicate Toss’s success in South Korea, where it has amassed over 30 million users since its 2015 launch.
Lee highlighted that many users globally manage multiple bank accounts and fintech applications, creating demand for a unified platform. Australia’s fragmented banking system and regulatory environment present a favorable setting for Toss’s integrated financial services.
Leveraging Australia’s Open Banking Ecosystem
Toss has already established an Australian subsidiary and plans to roll out core functionalities, including peer-to-peer money transfers, by the end of the year. The company is also evaluating expansion into additional markets.
Australia’s Consumer Data Right (CDR) mandates banks to share customer data with accredited third parties, facilitating account aggregation services like those offered by Toss. Furthermore, the New Payments Platform (NPP) supports instant peer-to-peer payments and request-to-pay features, aligning with Toss’s offerings.
With the average Australian holding approximately 2.4 bank accounts, according to ABC News, Toss aims to streamline financial management for users navigating multiple accounts.
Plans for Korean Won-Backed Stablecoin
In parallel with its international push, Toss is preparing to issue a Korean won-backed stablecoin pending regulatory approval in South Korea. CEO Lee confirmed ongoing discussions with local regulators and expressed confidence in launching the stablecoin once permitted.
South Korea’s Financial Services Commission (FSC) announced plans to formalize a regulatory framework for won-backed stablecoins by October 2024. This initiative has attracted interest from major financial institutions, including Kakao Bank, Kookmin Bank, and the Industrial Bank of Korea, all of which have filed trademarks related to stablecoins.
The stablecoin development coincides with the administration of South Korea’s 21st president, Lee Jae-myung, who campaigned on a pro-cryptocurrency platform, including support for a national stablecoin.
Outlook
Toss’s dual strategy of international expansion and stablecoin issuance reflects broader trends in fintech innovation and regulatory evolution in Asia-Pacific. The company’s success will depend on navigating regulatory landscapes and user adoption in competitive markets.
FinOracleAI — Market View
Toss’s announcement signals a positive development for the company’s growth trajectory, leveraging Australia’s supportive open banking infrastructure to gain foothold in a mature fintech market. The planned stablecoin issuance aligns with regulatory progress in South Korea, potentially positioning Toss as a key player in digital currency adoption domestically.
Key risks include regulatory delays in stablecoin approval and competitive pressures in both Australian and South Korean markets. Investors should monitor regulatory developments closely, particularly the FSC’s framework rollout and user reception of Toss’s superapp abroad.
Impact: positive
