HSBC challenges fintech titans with new forex app, Zing

HSBC is gearing up to shake the foundations of the fintech landscape with the imminent launch of Zing, an international payments app poised to rival the likes of Revolut and Wise.

These fintech powerhouses have amassed a substantial customer base with their offerings of cost-effective foreign exchange services.

Initially debuting in the UK, Zing is predicted for a wider rollout across other regions in the coming months, as Europe’s largest bank strategically positions itself to tap into the flourishing market catering to affluent consumers.

Scheduled for release on Apple Inc.’s App Store and Alphabet Inc.’s Google Play platform in the next few days, Zing is looking to break the traditional barriers by being accessible to non-HSBC customers.

The move by HSBC exemplifies the efforts of global financial giants to compete against the wave of startups that have rapidly expanded by offering a range of services, including cross-border payments, savings accounts, and investment products on mobile devices over the past decade.

The announcement has already made waves in the market, as shares of Wise experienced a notable slump of up to 7.6% on Tuesday, marking its most significant intraday drop since April.

Wise, which went public in 2021, witnessed a remarkable surge of over 50% in its stock value last year.

Meanwhile, Revolut, boasting over 26 million users, anticipates a substantial 70% increase in revenue to $2bn in 2023.

HSBC is no stranger to the realm of international payments, with its existing product, Global Money, offering fee-free currency services to its established customer base. Since its introduction in 2020, Global Money has attracted hundreds of thousands of users and processed transactions exceeding $11bn in 2022.

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