Company: OWLS
Filing Date: 2025-02-07
Form Type: DRS/A
Source: 0000950123-25-001222
Chunk: 169

Company: OBOOK HOLDINGS INC.
Filing Date: 2025-02-07
Form: DRS/A
Chunk 169
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 and cross-border payment services, reached an all-time high of over US$2.2 trillion in 2022 and will reportedly grow at a
6-8% annual rate after 2023. It is also expected to exceed US$3 trillion by 2027 according to the same report. We believe that cross-border payment dynamics are robust, and according to the 2023 McKinsey
Global Payments Report, global volume of cross-border payment flows from both commercial and consumer transactions reached approximately US$150 trillion in 2022, with revenue from cross-border transactions estimated at around US$240 billion, a
17% increase from the previous year.

Fast-Growing Addressable Payments Markets: Cross-Border Business Payments

OwlPay targets cross-border B2B business payments and B2C payments. According to the 2023 McKinsey Global Payments Report, the global
B2B cross-border payments market has witnessed significant growth and transformation, with cross-border payment revenue totaling approximately US$166 billion in 2022. North America, Latin America and the EMEA experienced double-digit revenue
growth, while the Asia-Pacific region (excluding China) saw a 25% increase in 2023, according to the same McKinsey report.

Along with its
growth, we believe that the B2B payment market is experiencing changes in the form of waves of digitization and innovation. While fintech innovators have accelerated the digitization of B2C/C2C payments, B2B payments remain highly reliant on legacy
systems, leaving payors and payees with significant challenges that include access to fewer correspondent banks, slow settlement, high overall costs and a lack of transparency. Intermediary banking today remains the most prevalent cross-border
payment method. We believe that the total available market size for B2B payments is significant and rapidly expanding as trends towards digitization broaden access to more users. By offering modernized, streamlined end-to-end payment solutions, we believe that we are well-positioned to capitalize on its early mover advantage in the blockchain-enabled payment industry to capture a
meaningful share of the growing B2B and B2C markets.

While traditional trade corridors between major economies (e.g., U.S.-China,
U.S.-EU, intra-EU) continue to have large cross-border transaction volumes due to established trade relationships, payment flows in emerging markets like Latin America are experiencing strong growth and
becoming increasingly prominent. We are prioritizing commercial development in these high growth markets by seeking to obtain regulatory