Over an extended period, Laos has stood as the sole landlocked nation in Southeast Asia, with its economic development trailing significantly behind the regional average. As of 2021, Laos reported a GDP of $18.8 billion, whereas in the same year, six other Southeast Asian countries boasted GDPs surpassing the $100 billion mark. Notably, Indonesia’s GDP reached a staggering $1.19 trillion, while Thailand’s exceeded $500 billion.

The introduction of the Laos-China railway, along with the expansion of the Vientiane — Vang Vieng Expressway and the establishment of the Saysetha Economic Zone, has sparked a significant increase in international business activities within Laos. Simultaneously, the demand for robust digital economic infrastructure in Laos has grown substantially, setting the stage for the creation of NewPay. These infrastructure initiatives signify a growing momentum in the country’s development. There’s also a remarkable rise in the demand for robust digital economic infrastructure within Laos. It’s within this dynamic context that NewPay was founded, poised to play a pivotal role in shaping Laos’ digital economic landscape.

NewPay’s Impactful Contributions to Laos

Established in March 2020, NewPay stands as Laos’ first fintech company. Collaborating with prominent entities such as the Lao Development Bank (LDB) and Banque pour le Commerce Extérieur Lao (BCEL), NewPay offers digital payment services to both enterprises and the great residents of Laos. It stands out as Laos’ exclusive digital ecosystem and the first third-party payment provider, officially authorized by the Bank of Laos. NewPay holds a prominent position as a leading tech representative in the country.

NewPay leads the way in Laos as the pioneer of payment solutions and internet lifestyle platforms. Their mission, as designated by the Lao National Government, is to drive the digitization of Laos, foster mobile payments, consumer finance, enhance government services, facilitate Internet use, and promote the development of the Lao online economy.

Additionally, NewPay is collaborating with the Lao National Digital Technology Group to develop an integrated payment ecosystem. This ecosystem will introduce the ASEAN Digital Stablecoin, known as ASEAN USD, catering to the entire ASEAN region. It will facilitate the seamless integration of stablecoin payments with traditional mobile internet payments within the ecosystem.

The NewPay Idea

NewPay has evolved into a pivotal component of Laos’ digital economy infrastructure. With its user-friendly and secure payment app at the forefront, NewPay is dedicated to promoting technological innovation and inclusive finance. Their goal is to establish Laos as a leading fintech service platform, enhancing user convenience while supporting the growth of local small and medium-sized businesses.

A One-Stop Financial Management Service

For C-end users, NewPay offers a range of digital payment services supporting multiple currencies (including USD, Kip, Thai Baht, Renminbi, and the ASEAN USD stablecoin) through QR code scanning. Additionally, NewPay provides consumer finance services based on its credit scoring system. Users can also access multi-currency financial management services through the BalanceGo feature and engage in online social activities using their NewPay accounts.

For B-end users, NewPay offers a variety of enterprise financing channels, including accounts receivable financing, prepay, and inventory management. With NewPay’s corporate credit system, companies can apply for business loans. NewPay also facilitates one-click payroll processing, ensuring easy and efficient salary disbursements.

The Minds Behind NewPay

The diverse Newpay team consists of local Laotians with extensive experience and education:

Notable members include Ms. Sengaloun Souphanouvong, a significant figure in the founding of the Lao People’s Democratic Republic, who represents the influential Souphanouvong family and serves as Chair of the Lao National Women and Children Foundation. Another prominent team member is Dr. Phommaly Meksavang, a well-established Laotian entrepreneur. NewPay takes pride in its diverse staff which brings a blend of global perspectives and local expertise.

NewPay is headquartered in Vientiane, Laos, and maintains offices in Singapore, Thailand, and China. The NewPay research and development team comprises more than 100 professionals hailing from diverse countries and backgrounds. They bring extensive expertise in project management and possess a profound understanding of blockchain development and operations.

Market Overview

① Current Market Analysis

Laos offers an ideal market environment for collaborative fintech product development, with a growing population (annual growth rate of 1.48) ranking second in Southeast Asia. The majority of the population is youth-oriented and receptive to Internet products. Furthermore, Laos is at the initial stages of its internet development, providing a favorable entry point, and the absence of major internet players ensures a competitive landscape for small and medium-sized enterprises (SMEs).

Currently, NewPay has surpassed 600,000 users and collaborates with over 10,000 merchants. As of the end of February 2023, the average monthly payment volume through NewPay has reached 17 million US dollars.

② Revenue Outlook

2.1 Exclusive railway ticket sales

Before December 2022, Laos was missing a comprehensive online ticketing infrastructure for its transportation infrastructure. However, a significant milestone was achieved when the government formally entrusted NewPay with exclusive online ticketing privileges for the Laos-China Railway, Laos-Thailand Railway (scheduled to start operations in 2026), and Laos-Vietnam Railway (anticipated to start operations in 2027). In response, NewPay introduced a convenient online ticketing system in Laos, for purchasing train, bus a plane tickets.

In 2023, NewPay is scheduled to open three ticket pickup points in Vientiane, Luang Prabang, and Muang Xay. According to data provided by the Laotian Ministry of Transportation, the annual growth rate of online ticket sales was 20% in 2022. Forecasts suggest that the ticket sales from the Laos-China Railway segment are poised to outperform, reaching an estimated annual revenue of $13.7 million within the coming 3–5 years. As we look ahead to the launch of both the Laos-Thailand Railway and Laos-Vietnam Railway in 2026–2027, it’s anticipated that the annual revenue over the subsequent 3–5 years will double, surpassing the $27.4 million mark.

2.2 Exploring the Laos-Thailand Railway Station Logistics Zone

In 2022, amid the pandemic, the Laos-Thailand Railway Station Logistics Park, operated by the Laotian National Railway Company, played a pivotal role in facilitating trade with a remarkable $2.8 billion in total import and export transactions. This figure exhibited a robust annual growth rate of 20%. Starting in January 2023, NewPay secured exclusive rights to manage the commercial amenities at the newly erected Laos-Thailand Railway Station and the Laos-Thailand Logistics Park, overseeing operational activities and trade settlements. It is projected that the annual revenue generated from trade settlements alone will reach an impressive sum of approximately $41 million.

2.3 Cross-Border Payment Collection

Before December 2022, Laos didn’t have the infrastructure for cross-border payment collection, making it unable to offer such services. However, in December 2022, NewPay entered an exclusive partnership for cross-border payment collection with top payment companies from Thailand and China. According to data from the Laotian National Planning and Investment Department, it’s estimated that the average annual revenue will be approximately $27.4 million.

2.4 Cross-Border Renminbi Transactions

Laos has encountered obstacles in establishing a robust digital economic framework at the national level. These challenges have impeded the widespread adoption of digital customs clearance, online transactions, and the implementation of universal credit certificates for trade settlements. Additionally, this deficiency has created difficulties in monitoring the movement of funds and transaction amounts, ultimately contributing to a decrease in tax revenue.

In October 2022, Laos and China agreed to use Renminbi (RMB) for cross-border transactions, which is an important move for Laos’ plan to modernize its “Industry 4.0”. NewPay, working together with China’s Yunnan Fudian Bank, has started offering cross-border Renminbi settlement services to support online trade and trade at the border between Laos and China.

According to Fudian Bank, in 2022, due to the impact of the pandemic, the cross-border RMB settlement between Laos and China reached $2.2 billion. With the opening of the Laos-China Railway, it is expected to increase annually at a rate of 20%, resulting in an annual revenue of $17 million.

2.5 Consumer Finance and Credit Loans

Laos experiences a notably high rate of borrowing among its residents, but the absence of a country-wide credit reporting system has led to a disorganized lending market, where interest rates can reach as high as 80% annually.

In October 2022, NewPay got the green light from the Bank of Laos to start a test program for credit loans. They’re using NewPay Credit, which is the first-ever extensive big data credit reporting system in Laos. To minimize risks, NewPay has teamed up with the central bank, the Ministry of Public Security, and the courts to create a thorough system for giving out credit, managing loans afterward, and collecting debts. Furthermore, NewPay has plans to set up a microfinance company that will offer credit loans to all NewPay users and provide financial services for shoppers on the LaoLife online store.

Based on data analysis, it is projected that the scale over the next three years will range from $68 million to $136 million. Calculated at an annual interest rate of 20%, the revenue is estimated to fall between $13.7 million and $27.3 million.

2.6 Stablecoin Mobile Payments

Laos has around 4.7 million people using the internet, which is about 62% of the total population. However, only 1.38% of the population owns cryptocurrency, which is much lower than the average in ASEAN countries. On a global scale, cryptocurrencies already have a well-established reputation and trading platforms. Given that ASEAN countries frequently engage in cross-border transactions, the growing adoption of cryptocurrency stablecoins will accelerate their progress toward a unified digital economic transformation.

In 2023, with support from the Laotian government, NewPay is teaming up with the Laotian National Digital Technology Group (LADT) to create a payment system that blends Web2 and Web3 technologies, using the ASEAN USD stablecoin. This project aims to serve the sizable ASEAN population of 660 million people. ASEAN USD is projected to attract about 17 million to 40 million mobile payment users in the coming years, bringing in an expected yearly income of roughly $12 million.

NewPay’s Strategic Vision

① Building an Internet Economy Infrastructure: NewPay is working on constructing a complete financial framework that provides services for both individuals and corporate clients.

② Building a Digital Ecosystem: Leveraging technology and financial resources, we combine a range of scenarios to construct a versatile digital environment. This includes a wide range of services, including bill payments, e-commerce, local service payments, medical insurance, and more.

③ Developing Comprehensive Financial Initiatives in Laos: By Strengthening the core of the digital economy, we’re establishing a digital environment that offers a variety of practical scenarios to efficiently serve users who require financial services.

④ Creating an ASEAN Stablecoin Payment System: Based on secure stablecoins, we’re constructing a payment system that integrates Web2 and Web3 technologies, addressing a wide range of scenarios within the ASEAN region. The objective is to facilitate more convenient cross-border mobile payments and digital economic services for ASEAN member states.

Leading the Way in Laos

NewPay envisions a prominent role within Laos’ digital economy, reaffirming its leadership position. With robust backing from the Lao central government, central bank, and the United Nations, our goal is to strengthen partnerships with strategic allies across regions. Drawing on our experience in the Laotian market and embracing technologies such as blockchain and AI, we aspire to expand our “Web2+Web3 integrated payment ecosystem” beyond ASEAN’s borders and into global markets. Our mission: Born in Laos, Enriching ASEAN, and Expanding Globally.