Digital payments alone could become a $100 trillion industry, according to PwC. And that’s just one component of the global Fintech industry. This channel tackles the lenders and buyers, the obstacles and achievements, and the trends and trend makers leading the ongoing technological evolution in global finance.
Visa (NYSE: V) and Lloyds Bank (LON: LLOY) have joined forces to introduce a cutting-edge virtual card solution, designed to cater to businesses of all sizes. This innovative product, known as Visa Commercial Pay, is now accessible to Lloyds Bank customers. It addresses a range of challenges faced by businesses in payment and procurement administration, including spend control, process simplification, invoice reconciliation, and expenditure reporting.
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More Stories on FinTech
Ledger and PayPal (NASDAQ: PYPL) have joined forces to simplify the process of entering and transacting in the world of cryptocurrency. The integration allows users to conveniently and securely transact cryptocurrencies through the Ledger Live companion app.
FinTech: UK Establishes New £1B Fund To Maintain Fintech Lead And Provide Growth Capital To UK Startups
The UK has launched a £1 billion fintech investment fund, supported by companies including Mastercard (NYSE: MA), Barclays (LON: BARC), Natwest Group (NYSE: NWG), Peel Hunt (LON: PEEL), and the London Stock Exchange Group (LON: LSEG). The Fintech Growth Fund aims to provide capital to growth-stage financial technology companies that struggle to reach scale and pursue public listings.
Stellar, a cross-border cryptocurrency payments network, has strategically invested in MoneyGram International, a prominent money transfer company, solidifying their years-long collaboration. Although the exact monetary value remains undisclosed, this move accentuates Stellar’s dedication to digital advancements in the fintech realm.
d.light, a global provider of affordable household products and financial solutions for low-income households, has successfully secured a $30 million securitization facility from the Eastern and Southern African Trade and Development Bank Group (TDB Group), with the potential to acquire up to $125 million of receivable assets.
Mastercard (NYSE: MA) is set to acquire a minority stake in the financial technology division of MTN (JSE: MTN), South Africa’s largest mobile company, which focuses on payments and remittances. The valuation of this division is over $5 billion. The investment is expected to be finalized soon and is seen as a significant step in MTN’s fintech services expansion.
African-founded mobility fintech, Moove, has secured a substantial investment to further its mission of revolutionizing financial services for mobility gig workers. The company has raised a total of $76 million in new funding, comprising $28 million in equity from both existing and new investors, $10 million in venture debt from funds managed by BlackRock, and an undisclosed $38 million raised over the past year.
SumUp has introduced a novel cash advance solution for merchants to address the escalating costs of running their businesses. This offering, known as SumUp Cash Advance, involves the repayment of advances through transactions carried out on SumUp’s card readers. To facilitate the launch and implementation of this initiative, SumUp has secured a credit facility of $100 million from Victory Park Capital (VPC), an alternative investment firm.
Sweater, a pioneering fintech company, has unveiled an innovative venture, the Public VC Funds platform, which marks a breakthrough in the traditional venture capital landscape. This groundbreaking offering enables qualified partners to establish their own venture capital funds, opening the doors for participation by their communities and the general public, regardless of accreditation status.
Vijay Shekhar Sharma, Chairman and CEO of Paytm (NSE: PAYTM), is set to acquire a 10.3% stake worth $628 million in the company he founded. The stake is being purchased from an affiliate of Chinese fintech giant Ant Financial. This move will make Sharma the largest shareholder in Paytm, with a total holding of 19.42%.
PayPal (NASDAQ: PYPL) has introduced a stablecoin called PayPal USD (PYUSD), which is backed by U.S. dollar deposits, short-term U.S. treasuries, and similar cash equivalents. The stablecoin can be redeemed 1:1 for U.S. dollars. This move is aimed at harnessing the potential of stablecoins in web3 and digital native environments. PayPal USD is designed for digital payments and Web3 compatibility and will be accessible on various platforms.
Mastercard (NYSE: MA) has introduced CVC-less (Cardholder Verification Code) online transactions for tokenized debit and credit cards in India. This move aims to enhance security and streamline the payment process. CVC is the three-digit number printed on the back of debit and credit cards.
Petal, a credit card and financial technology company, has secured a $200 million debt facility from Victory Park Capital (VPC), an alternative investment firm. Additionally, Petal has obtained a new term loan facility with Trinity Capital (NASDAQ: TRIN) for up to $20 million and raised $20 million in equity funding from existing investors. The influx of capital will support Petal’s expansion and growth as the U.S. open banking sector emerges.
Melio, a leading B2B payments platform for small businesses, has introduced a new product called “Pay Over Time,” offering flexible payment terms to help small businesses pay vendors and bills. Powered by Credit Key, the service allows eligible small businesses to access up to $50,000 in capital instantly through their Melio account. With Pay Over Time, business owners can choose to pay their bills in monthly installments over an extended period, while ensuring their vendors receive full and timely payments.
Fintech-as-a-Service provider Rapyd has acquired PayU Global Payment Organisation (GPO) from Prosus for $610 million excluding its India, Turkey, and Southeast Asia operations. PayU GPO offers payment solutions in emerging markets across more than 30 countries.
The Small Business Administration (SBA) is making significant changes to its federal program for small-business lending, the most extensive overhaul in decades. The reforms, effective August 1, aim to simplify loan requirements, automate processes, and expand the pool of nonbank lenders authorized to issue SBA loans, particularly benefiting financial-technology firms.
FastaMoni Technologies, a Nigerian fintech startup, has recently introduced EduPali, an innovative online platform aimed at addressing the significant challenges associated with high education expenses and limited educational access in Africa.
Lvrch Capital Advisory, a prominent investment firm, has achieved a major milestone by successfully raising $400 million in a Series D funding round, further cementing its position as an innovation leader in the financial industry. Building on its prior success of securing $200 million in the Series C funding round, the firm is now focused on adapting its investment approach to meet evolving market conditions and ensure long-term financial stability for investors while delivering exceptional results.
TIFIN and J.P. Morgan (NYSE: JPM) have announced the launch of TIFIN.ai, a platform dedicated to conceiving and developing a new cohort of AI-powered fintech companies. Building upon the success of TIFIN Studios, which created five companies between 2018 and 2021, TIFIN.ai aims to accelerate thematic AI-powered fintech innovation in wealth management across various use cases, including client portfolio insights, alternative investing, workplace wealth management, and insurance.
Cross River Bank, a provider of technology infrastructure and embedded financial solutions, has announced an extension of its partnership with Plaid, a data network that supports the digital financial ecosystem. Together, they aim to offer multi-rail payment solutions to businesses and customers in the United States.
Shopify (NYSE: SHOP) has introduced a new business credit card, Shopify Credit, exclusively for its merchants. The card is powered by Stripe and issued by Celtic Bank, accepted everywhere Visa is.
Despite a downturn in the market, bunq has managed to secure €44.5M in growth capital, adding up to a total of almost €100M in funding raised this year. The significant injection of fresh capital enables the mobile bank, currently the second largest neobank in the EU, to push forward with its international expansion plans and sustain its rapid growth. Notably, existing investors Ali Niknam, Pollen Street Capital, and Raymond Kasiman showed confidence in the company’s potential by participating in the funding round, valuing bunq at €1.65 billion.
Mastercard (NYSE: MA) has launched a new automated solution called Mastercard Receivables Manager, aimed at streamlining businesses’ acceptance and processing of virtual card payments. As virtual cards gain popularity in B2B transactions, the need for an efficient and secure payment processing solution has grown.
TP24, a fintech company specializing in flexible revolving business credit, has secured £345m in debt funding from Barclays Bank Plc (LON: BARC) and M&G Investments, both based in the UK. Out of this funding, £240m will be allocated for lending to SMEs in the UK and the Netherlands. Barclays is contributing up to £200m as warehouse financing, while M&G is providing up to £40m as mezzanine funding.
Klarna, a global payments network and shopping destination, has partnered with the Money Adviser Network to offer free and impartial debt advice to its consumers. Klarna, as the pioneering Buy Now Pay Later (BNPL) provider to collaborate with the Money Adviser Network, will guide its customers to debt advice services offered by the network’s members, ensuring round-the-clock support for individuals seeking credit advice.