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.
Lloyds Banking Group (LON: LLOY), Britain’s biggest mortgage provider, will acquire a minority stake in loyalty app Bink, according to a report by Sky News for an undisclosed amount that may run into millions of pounds. It was also not known how much the transaction valued Bink.
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Anonymous sources have confirmed to TechCrunch that fintech Brex has signed off on a term sheet for a $300 million fundraise led by Greenoaks and joined by existing investors. The sources said San Francisco-based Brex was valued at $12.3 billion after investors were impressed with its business momentum given that the fintech is expected to double its turnover this year.
Volante Capital, a provider of cloud payment services and financial messaging, announced Wednesday an investment of $10 million by Wells Fargo Strategic Capital. Wells Fargo joins Wavecrest Growth Partners, BNY Mellon, Citi Ventures, PostePay and Visa Inc, the investors in Volante’s previous $35 million round held in August 2020.
PayPal Inc (NASDAQ: PYPL) sounded out Pinterest (NYSE: PINS) recently on a takeover, Bloomberg reported. The two companies are said to have considered a potential price of $70 per listed Class A share.
UP.Partners, a transportation-focused venture firm backed by investors including Alaska Air Group, ARK Invest Founder and CEO Cathie Wood, and Toyota subsidiary Woven Capital, announced its close of the inaugural $230 million early stage venture capital fund.
N26 GmbH, the German fintech that is challenging banks on their turf, announced Monday a raise of over $900 million in a round led by Third Point Ventures and Coatue Management, with participation by Dragoneer Investment Group as well as existing N26 investors. N26 said the “record-breaking” round valued it at more than $9 billion, placing it within the top 20 global fintechs, and the most valuable one in Germany.
AeroPay and Jane Technologies announced Thursday a partnership to enable online payments via AeroPay across 36 U.S. state markets where cannabis is legal. More than 2,100 dispensaries and 300 companies sell through Jane’s online platform.
Standard Chartered Bank (LON: STAN) has dipped its toes into Asian BNPL waters and signed a 10-year collaboration on financial services with Singapore’s Atome Financial, a unit of the Advance Intelligence Group. The Bank is making an equity investment in Atome, a BNPL platform focused on markets in Southeast Asia, as well as in Indonesian digital lending platform Kredit Pintar. It will also provide $500 million in financing to Atome.
Lendable Inc, a fintech that provides credit to fintechs in emerging markets, announced Tuesday the launch of a $100 million closed-ended fund focused on emerging and frontier market fintech investments. The fund would provide credit to African and Asian fintech companies, who in turn offer fair credit facilities to over 150,000 Micro, Small, and Medium Enterprises (MSMEs).
Digital alternative investment platform Yieldstreet announced Thursday the launch of its new venture capital focused platform that allows retail investors exposure to private companies and start-ups that are disrupting existing sectors of creating entirely new ones. The move reflects the increasing demand for alternative investments to be made available easily to retail investors. Returns on venture capital in 2020 were more than 50% and have averaged 32% over the past 25 calendar years.
USA Today broke the story Wednesday that Target Corporation (NYSE: TGT) is offering its shoppers instalment payment (BNPL) options from Affirm (NYSE: AFRM) and Sezzle (ASX: SZL) ahead of the holiday season.
Walmart (NYSE: WMT) launched a Walmart2Walmart money transfer service back in 2014. The service – 50% cheaper than competitors – was a low-cost, white label money transfer service that later forced rivals to lower their remittance fees. The retailer announced today that it has saved customers more than $2.4 billion in fees till date, and more than $6 billion if one included the savings at its competitors through Walmart’s price actions.
Melbourne-based fintech Timelio has raised a $270 million warehouse funding facility led by Goldman Sachs (NYSE: GS) as the senior lender. The facility allows Timelio to scale funding to businesses in need of cash flow, and also lower its overall cost of financing.
Validity Finance is a commercial litigation finance company with nearly $150 million of assets under management. The company has raised a new managed “sidecar” fund of $70 million from a major family office, its existing private equity investors as well as other third-party investors.
Built Technologies, a fintech focused on construction finance, has raised $125 million in a round led by TCV with Brookfield Technology Partners, 9Yards Capital, HighSage Ventures and XYZ Venture Capital participating. Existing investors including Lee Fixel’s Addition, Fifth Wall and Index Ventures also chipped in.
The global craze for buy-now-pay-later has triggered a chain of deal-making from Square-Afterpay, Affirm-Amazon to PayPal-Paidy. On Tuesday, card giant Mastercard (NYSE: MA) announced its “Installments” BNPL solution. So, BNPL is breaking out, and here are some interesting variations on the theme.
Credit cards have a new rival in BNPL, and on Tuesday, global card giant Mastercard announced its own instalments product for the U.S., Australian and U.K. markets. BNPL has become a highly competitive fintech sector marked by extensive deal-making between large companies eager to muscle into the space.
Oraan, which is on a mission to make money simple for everyone, especially women, announced the raise of a $3 million seed round co-led by Zayn Capital and Wavemaker Partners, with participation from Resolution Ventures, i2i Ventures, Hustle Fund, Haitou Global and Plug and Play.
Prodigy Finance has struck a deal with CPP Investments for funding of $500 million to enable loans to students in new countries including China, Bangladesh and Chile. Applications for loans from international students are up 50% year-on-year. The funding will be offered via CPPIB Credit Investments Inc., CPP’s wholly owned subsidiary.
Roundhill Investments will soon launch the Roundhill Digital Payments ETF (PAYY) which will invest in companies that are a part of the so-called “digital-payment universe” as defined by the Roundhill Digital Payments Leaders Index.
Global fintech Klarna and event tickets platform Vivid Seats today announced a partnership to offer a flexible payment facility at checkout to fans buying tickets. The companies are looking forward to a revival in demand for tickets to live, in-person sporting, concert, and entertainment events. A Klarna survey found that 69% of consumers plan to attend in-person events in the next six months and 70% are willing to spend more now than they would have prior to the pandemic to have a memorable in-person entertainment experience.
JPMorgan Chase & Co (NYSE: JPM) has acquired Frank, a very popular college financial planning platform for undisclosed terms. Frank enables students to locate, apply and obtain financial aid, find scholarships, and enroll in online courses. According to CNBC, JPMorgan bought up the fintech to enhance relationships with students and their parents.
Wise (LON: WISE), the UK payments fintech previously known as TransferWise, has taken its first steps into investing solutions. Its Assets product allows users to invest in stocks but also have access to liquidity via a spending limit of up to 97% of the value of the portfolio.
Nigerian startup Infibranches Technologies has received funding of $2 million from All On, an impact investing organization backed by Shell (NYSE: RDS.A). Infibranches will use the funds for customer acquisition, improvement of its product lineup and for introduction of new products and services to address energy distribution issues.