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.
Proxy advisory firm Institutional Investor Advisory Services India Ltd. (IiAS) has issued a note ahead of PayTM’s (NSE: PAYTM) annual shareholders’ meeting on August 19 calling for the replacement of Sharma by a professional.
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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.
Financial technology specialist Black Knight Inc. (NYSE: BKI) reported robust earnings during the first quarter. Earnings per share of $ 0.34 beat estimates by $ 0.08. Revenue of $ 290.8 million, which was up 2.7% year-on-year, beat estimates by $ 4.21 million. However, the fintech factored in the impact of COVID-19 and lowered its annual guidance.
Franklin Resources, Inc. [NYSE: BEN], a global investment management organization operating as Franklin Templeton, has acquired AdvisorEngine Inc. AdvisorEngine is a digital wealth platform and provider of technology and consulting services to more than 1,200 financial advisory firms. These firms manage over $600 billion in assets.
Nikolay Storonsky, chief executive of British challenger bank and fintech unicorn Revolut, says his company has “a real opportunity” to benefit from the pandemic. Speaking to the Financial Times, he revealed plans to use his cash hoard to buy corona-strapped, tech rivals.
Robinhood Markets Inc, the pioneer of app-based, commission-free trading, homed in on two lucrative targets Monday. The fintech raised a $280 million series F funding at a valuation of $8.3 billion. The round was led by existing investor Sequoia Capital, with participation from existing and new investors including NEA, Ribbit Capital, 9Yards Capital, and Unusual Ventures.
Chinese tech, gaming and social media giant Tencent (HKG: 0700) has bought a 5% stake in “buy-now-pay-later” company Afterpay (ASX: APT). Users on Tencent’s instant messaging platform WeChat can make payments, and book hotels and flights. In a media release, fintech Afterpay said it was pleased to welcome Tencent as a “substantial shareholder.”
Interviews at financial services firms are up 39% since January 1, according to data from HackerRank quoted by Crunchbase. Even in the depths of the coronavirus crisis, fintech Stripe managed to raise an additional $600 million, garnering a better valuation to boot. SoFi went shopping to bag Galileo for $1.2 billion earlier this month. The SBA allowed fintechs to make loans under its Paycheck Protection Program. What’s working for fintechs?
FIS, the financial technology company, has established a venture arm. Known as FIS Ventures, the new unit has the mandate to invest across the world in fintech startups. The primary investing focus will be on early to growth-stage firms with a target to deploy $150 million within three years.
Credibly announced Monday that it had facilitated $500 million in relief funding to SMBs after it was approved by the Small Business Administration (SBA) for PPP lending. Credibly moved fast when the second tranche of PPP forgivable loans of $310 billion was released by the government on Monday at 10:30 am EST. It processed more than 10,000 PPP applications aggregating over $500 million in requested funding.
Home-bound Americans stepped up in-app purchases during COVID-19, says a report.
Digital banking apps saw a surge in revenue of 17% over the past two weeks. Digital banking app downloads shot up 60% as more and more U.S. citizens resorted to online banking. The social distancing norms and lockdowns discouraged Americans from visiting banks’ physical branches, according to a study by mobile attribution and marketing analytics firm AppsFlyer.
UK fintechs hope to reach coronavirus loans, introduced by the government as a business relief measure, to struggling businesses quicker than traditional lenders. They have approached the British Business Bank (BBB) for authorisation to lend under the U.K.’s Coronavirus Business Interruption Loan Scheme (CBILS).
Coronavirus-related market volatility lent a huge boost to the lending activity of crypto lender dYdX. About 70% of the total amount of $ 1.14 billion which it lent over the past 12 months was borrowed during the virus-stricken months of February and March.