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.
Fintech presents a treasure trove of opportunities for disruptors. Steve Sloane, who is a partner at Menlo Ventures and runs the firm’s “Inflection Fund,” shared his vision for the fintech sector in an article.
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Wahed, the ethical investment fintech for Muslim investors, announced that it has raised $25 million in venture funding. The proceeds will be used to ensure people can invest their money into a diversified portfolio consisting of stocks, commodities, real estate, and Halal-focused asset ownership certificates known as Sukuk. Wahed Prepares for Mainstream The funding round…
Are you one of the following and struggling to get a bank account? Freelancer, tech startup, crypto or blockchain-related business, e-Residency business, a charity organization, blogger, influencer, expat? Well, worry no more. Digital bank Arival will help you (because the bank reads abnormal as above-normal). Digital bank Arival announced its beta launch on Thursday of an online bank account that caters to the above kinds of abnormal customers that are sometimes shunned by the legacy banking system.
Challenger bank Varo, raised a further $ 241 million in a series D funding round co-led by existing investor The Rise Fund, and new investor Gallatin Point Capital. Other investors included movie producer Jeff Skoll, HarbourVest Partners, Progressive Insurance and U2 lead singer Bono.
Venture Capital: Fintech and Healthtech Startups To Get a Leg Up From London Stock Exchange and Global Accelerated Ventures
ELITE, the London Stock Exchange Group’s (LON: LSE) international business support platform, and Global Accelerated Ventures have launched a post-Covid-19 fundraising program. It will help fintech and healthtech firms with additional capital needs that may arise after the end of the pandemic.
Mastercard (NYSE: MA) announced Tuesday the launch of its Fintech Express, a program to facilitate the launch and expansion of emerging European fintechs through tailor-made solutions.
A Bloomberg report says Western Union has made a takeover offer for MoneyGram.
If the transaction succeeds, the two biggest players in the money transfer business in the US would combine. However, the matter is not yet officially public, and Bloomberg quoted a person who asked not to be identified.
In a blog post on Friday, Brex co-founders Henrique Dubugras and Pedro Franceschi announced the company was laying-off 62 workers. They attributed the decision to a re-orientation of the company’s products required due to the impact of COVID-19 on its customers.
PruPay is a specialty fintech company that provides easy payment solutions for merchants and consumers. The U.S.-based company announced Thursday its collaboration with PayPal (NASDAQ: PYPL) for the launch of touchless payments via text messaging. The facility of paying without having to touch another surface, device, or currency is especially useful amidst fears of rampant infection from the coronavirus.
Stripe, the San-Francisco headquartered online payment platform provider, announced its official launch in the European countries of Czech Republic, Romania, Bulgaria, Cyprus, and Malta. The COVID-19 crisis has placed a focus on digital payments and there is a sharp spurt in the growth of Europe’s online economy. Businesses in the new countries will benefit from the $35 billion fintech’s technology-rich platform.
Dan Carroll, founder and Chief Strategy Officer of legacy fintech Wealthfront is candid that the traditional banking industry stood exposed when the COVID-19 outbreak hit.
Banks had to shut down branches and call centers. But they faced the monumental question of how to service their customers. Their digitization efforts, clunky and low-priority, were suddenly put on full-speed-ahead. However, it’ll be a while before they achieve meaningful traction.
Swiss banking giant UBS Group AG (NYSE: UBS) is planning to invest hundreds of millions of dollars in upstart fintechs through a proposed corporate venture capital fund. According to a Bloomberg report, the bank is seeking to jump-start its digitization by investing in high tech startups that are threatening banking incumbents.
Global analytics firm GoodData announced it had received an investment from Visa Ventures, the corporate venture investment division of payments giant Visa (NYSE: V). GoodData also said the two companies entered a collaboration to offer Visa’s customers and partners better access to data and analysis.
Geidea achieved the distinction of being the first fintech company to obtain a payment license from the Saudi Arabian Monetary Authority. As a payments processor, it can now operate in the Saudi banking market as a non-banking financial company and commands a 70% market share in POS terminals sold through banks. Geidea announced the launch of BETA testing of a complete range of products and solutions designed for the SME sector in Saudi Arabia.
Brex, the fintech which sells credit cards to startups, eCommerce companies, and life sciences companies, raised $150 million from Lone Pine Capital and a group of existing investors led by DST.
British fintech startup Fly No Pay Later’s innovative and quite literally “grab your bags and go” product allows travelers to pay for their trip over up to 12 months. Once travel restrictions ease, travelers eyeing mouth-watering flight and hotel offers, therefore, have no excuse. Unsurprisingly, Fly Now Pay Later found investors out there who were willing to bet $43 million on its product for the virus-battered, given-up-for-dead travel industry.
Banks and credit unions in the U.S., eyeing the sharp rise in the deposits market following stock market turmoil, can use Raisin’s Savings-as-a-Service. The software is a tailored business solution that can bring “private banking like experience” to retail deposits. Banks can boost their deposits, all the while keeping costs within their control.
Kabbage, the online fintech lender for small businesses, announced Monday that it processed more than $3.5 billion in SBA-approved PPP funding to 110,000 small businesses. It claimed the loans helped restore over half a million jobs at America’s smallest businesses.
“Life after Covid-19: Financial Technologies,” a report issued by the Dubai Future Foundation, examines the impact of the pandemic on the UAE and the Arab world, and in particular, the fintech sector. The report reassuringly concludes that the sector would emerge stronger from the crisis as people take to digital services to run their lives.
Digital challenger bank Oxygen is bringing an all-new digital banking platform to freelancers and small businesses. The capabilities of the new platform, taken with the reach, capabilities, and security of the Visa (NYSE: V) network, will make it a valuable asset to hard-pressed freelancers.
Anyfin is a fintech that refinances consumers’ loans and is regulated by the Swedish Financial Supervisory Authority. It refinances consumer credit loans up to 200 000 kr, such as unsecured debt, payments, credit cards, installments or other credits. However, mortgages are not included. The firm raised $30 million in a Series B funding round led by EQT Ventures.
According to Reuters, Brazilian digital wallet PicPay expanded its user base to 20 million customers in early May as lockdowns and social distancing compelled people to run their lives digitally. Gueitiro Genso, CEO of PicPay, said the rate of opening of new accounts had spiraled by 6X following the closure of thousands of stores in Brazil since March.
PayPal Holdings Inc. (NASDAQ: PYPL) on Monday raised $1 billion in corporate bonds priced at 160 bps over Treasuries and yielding 2.3%. According to MarketWatch, the pricing is even less than what PayPal charges U.S. merchants for sales on its platform. PayPal also raised another $1 billion each in 3-year bonds with pricing aimed at a yield of $1.35%, 5-year bonds with a yield of $1.65%, and 30-year bonds with a yield of 3.25%.
Judo Bank, an Australian bank has a mission to make it easier for Australian SME businesses to get funding starting from $250,000. The bank offers business loans, line of credit, equipment loans and finance lease. It announced Thursday its third equity funding round of $250 million at a post-money valuation of well over $1 billion. Judo did not release details of its latest valuation.
On Thursday, Paypal (NASDAQ: PYPL) declared its first-quarter numbers. President and CEO Dan Schuman’s remarks on the earnings call regarding PayPal’s post-quarter performance gave an insight into how the fintech’s fortunes are changing due to the COVID-19 crisis and shelter-in-place rules. His comments propelled the stock to a 14% gain for the day and an all-time high.