SentBe Bets on FX Infrastructure to Stay Competitive

As global e-commerce steadily approaches an estimated $32.9 trillion by 2031, the international payments and settlement sector is experiencing slower growth, with projections of only a 5% annual increase. This is attributed to rising regulatory costs, legacy infrastructure burdens, and diminishing returns from past digitization efforts. In this environment, SentBe, a Seoul-based FX and payments company, is attempting to establish a niche by simplifying cross-border fund flows for financial institutions and global businesses interacting with the Korean market.

The Challenge: Cost Pressure in a Commoditising Industry

The payment processing industry is becoming increasingly commoditised, prompting cross-border players to reassess their value propositions. According to the Boston Consulting Group's 2024 Global Payment Report, the industry is nearing the peak of its digital transformation curve. Future gains will rely more on operational efficiency and scale than on basic digitization. This evolution pressures traditional revenue streams such as FX spreads, remittance fees, and B2B payment handling. With the global market consolidating around a few dominant infrastructure providers, mid-sized firms must either specialize or scale rapidly. SentBe has chosen to specialize, focusing on foreign companies operating in Korea and non-bank financial institutions seeking an integrated approach to managing FX, local collections, and international settlements.

A Local Focus with Global Implications

SentBe's enterprise payments platform, SentBiz, claims to have assisted over 900 Korean businesses in reducing costs and managing international flows more efficiently since its launch. The company reports cumulative savings of $76 million in fees between 2020 and 2023, although these figures are self-reported and lack independent verification. Recently, SentBe introduced the SentBiz KRW Collection, an API-based tool designed for overseas financial firms needing to settle Korean won payments and disburse funds in multiple currencies. Covering 31 currencies and 174 countries, the solution aims to consolidate a process often fragmented by multiple intermediaries.

Moving from FX Niche to Infrastructure Scale

CEO Alex Seong-Ouk Choi aims to position SentBe as a global partner to banks, money transfer operators (MTOs), and payment gateways. However, the company's success may depend more on partnership depth, licensing reach, and regulatory compliance than solely on technological capability. As markets tighten scrutiny on cross-border payment flows, SentBe must demonstrate that it can scale responsibly and efficiently. The company faces a credibility challenge, competing against global infrastructure giants and regional players like Nium and Airwallex, which requires trust and visibility in a complex regulatory environment.

Conclusion

SentBe's strategic focus on FX infrastructure and specialization in the Korean market offers potential for growth in a challenging industry landscape. While the company has the tools to transition from a tactical FX provider to a recognised cross-border infrastructure player, its future success will hinge on building strong partnerships and maintaining regulatory compliance. As SentBe navigates this competitive environment, it must convince partners and clients of its ability to scale responsibly and deliver on its promise of simplifying cross-border fund flows.