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Finovate Global France: Automating Payments, Extending Loans, and Collaborating on Crypto

Finovate Global France: Automating Payments, Extending Loans, and Collaborating on Crypto
By David Penn Posted on
Categories: Finovate Global, iProov, Mambu, MasterCard, Numeral, PaySend, Revolut, VISA

This week’s edition of Finovate Global takes a look at recent fintech developments involving companies headquartered in France.

First up is news that European Buy Now, Pay Later firm Alma has partnered with BNP Paribas and new Finovate alum Numeral to automate payments.

“As part of our goal to create the most fluid and seamless experience for both merchants and customers, paying our 11,000 and growing merchants reliably and efficiently is critical,” Alma COO and co-founder Guillaume Desloges said. “Numeral enables us to scale with confidence and focus on our core business.”

Alma Finance and Strategy Senior Manager Simon Shohet explained that the integration of Numeral into both its systems as well as BNP Paribas’ systems, audit trails, and approval rules will enable automation of the process of managing “thousands of daily payments at scale.” Shohet added, “Thanks to Numeral, we can focus on the most critical incidents and rapidly solve merchant’s issues.”

Alma plans to eventually use Numeral’s platform to become a SEPA participant via BNP Paribas. This would enable Alma to issue IBANs in its own name, a strategic advantage for the firm.

Numeral made its Finovate debut at FinovateEurope in London earlier this year. At the conference, the Paris-based company showed how financial institutions can leverage Numeral’s platform to automatically send, receive, and reconcile SEPA payments. The platform also enables financial institutions to manage payment errors via SEPA R transactions. The company is on track to process €5B in 2023.

Also this week, we learned that Revolut will begin offering customer credit products in France at the end of the month. The company announced that consumer loans will be available to Revolut’s more than two million French users starting on May 30th.

Revolut currently offers lending products in other European markets. These markets include Ireland, Lithuania, and Romania. Mortgage products are not part of the current package. But Revolut VP of Growth Antoine Le Nel said that these products are in the pipeline.

Thanks to Revolut’s embrace of open banking, prospective borrowers will be able to apply for loans without having to deal with hardcopy paperwork. Instead, applicants will get virtual “instant feedback” on their loan requests. Loans come with zero opening fees and are available from as low as €1,000 to as high as €50,000. Terms range from three months to 84 months and interest rates range from a low of 3.9% to 21.12%.

France has earned a reputation for being friendly to the cryptocurrency industry. This week’s news of a partnership between Canada’s Advanced Payment Solutions (APS), Cyprus’ Armenotech, and France’s Tempo France is another modest testament to this.

Back in at the beginning of the year, Armenotech and payments company Tempo Finance teamed up to develop an ecosystem supported by the Stellar blockchain. This week, we learn that London-based Advanced Payment Solutions has joined the pact.

APS CEO Serik Igbayev highlighted the importance of giving businesses the ability to work with traditional and digital assets. And in a statement, Igbayev praised the partnership with Armenotech for playing a key role in making this happen. “Clients increasingly demonstrate a demand for services that would enable them to operate both traditional and digital assets, combining various payment methods,” Igbayev said. “We have successfully been using state-of-the-art Armenotech solutions to meet this demand.” These solutions included tools that facilitate the conversion between fiat and digital assets, as well as products for fraud protection, security, KYC, and ALM.

Tempo France is serving as the corporate payment operator for the alliance. Founded in 2008 and headquartered in Paris, Tempo France provides a fast and secure bridge between cash and cryptocurrencies. The company offers online, offline, and digitally backed remittances to nearly 100 countries with more than 300 physical agent locations. Alla Zhedik is CEO.

Here is our look at fintech innovation around the world.

Sub-Saharan Africa

Central and Eastern Europe

Middle East and Northern Africa

Central and Southern Asia

Latin America and the Caribbean

Asia-Pacific

Photo by Chait Goli

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Revolut Launches in Brazil, its First Latin American Country

Revolut Launches in Brazil, its First Latin American Country
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Alumni profile, Revolut

Global financial services innovator Revolut is becoming a bit more global today. The London-based company announced today it has expanded into Brazil. Today’s move of launching multi-currency account and crypto investments in Brazil, marks Revolut’s first expansion into a Latin American country.

Revolut’s expansion efforts into Brazil began last March. The company not only brought on Glauber Mota as CEO of its Brazil operations, but it also opened up a waitlist in the region. “There’s a lot of appetite for Revolut and digital banking services in Brazil,” said Mota. “Recent surveys show that more than 45% of Brazilians already use digital accounts as their primary account, and use more than five different applications to manage payments, transfers, and investments.”

The company will begin its Brazil expansion via a phased rollout, during which time it will continue adding to its waitlist. In addition to being available in Brazil, Revolut’s accounts are available to residents of the European Economic Area (EEA), Australia, Singapore, Switzerland, Japan, the U.K., and the U.S.

Revolut counts 29 million retail customers across the globe making 330 million transactions each month. The company debuted its multi-currency account at FinovateEurope in 2015 and also offers a peer-to-peer trading, an early wage access tool, an account for users under the age of 18, stock trading, business cards, commercial spend management tools, and more.

Revolut has raised around $2 billion since it was founded in 2015. While the company was once considered one of Europe’s most valuable fintechs, Revolut took a hit last week when company shareholder Schroders Capital Global Innovation Trust disclosed a $5.8 million (£4.7 million) writedown, shaking the value of its stake from $12.6 million (£10.1 million) in 2021 to $6.7 million (£5.4 million) in 2022.

Despite the valuation woes, however, Revolut continues to expand. The company launched credit cards for its Ireland user base earlier this year and is planning to launch a car insurance service in the region. Additionally, Revolut is working on expanding to more geographies, including Ecuador, Mexico, India, New Zealand, and Oman.

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5 Tales from the Crypto: Revolut, Paxos, and the Impact of the Cryptocurrency Crisis on Communities of Color

5 Tales from the Crypto: Revolut, Paxos, and the Impact of the Cryptocurrency Crisis on Communities of Color
By David Penn Posted on
Categories: Cryptocurrency, Daily news, Diversity in Fintech, Revolut

Bitcoin While Black: The impact of the cryptocurrency crisis on communities of color

One of the relatively underreported stories of 2022 – at least in the fintech press – was the impact of the cryptocurrency crisis on communities of color – especially African-American communities. At first glance, this might appear to be an odd take: why – and how – would a community that has historically been more un- and underbanked than the population at large end up being especially affected by a crisis in such a niche area of contemporary finance?

As Annie Lowrey wrote in a comprehensive article for The Atlantic back in November, it was years of “neglect” from the traditional financial system that made African Americans especially vulnerable to the appeal of cryptocurrencies as an alternative. Add to this the post-George Floyd “racial reckoning” and renewed emphasis on ethnic identity among many African Americans, and it is easy to see how many came to see investment in cryptocurrencies as a way of building the kind of generational wealth that has eluded black Americans for, well, generations.

And there was no lack of enthusiasts encouraging black Americans to pursue this path, either. For much of 2021 and into 2022, my inbox was filled with queries and requests for interviews from entrepreneurs eager to make the case that cryptocurrencies were the ticket to take black Americans to, if not wealth, then at least a greater sense of financial independence and empowerment. Books like Bitcoin & Black America and Bitcoin for Black People, as well as events like the Black Blockchain Summit all helped encourage African Americans to believe that they could do things with digital assets that too few had been able to accomplish via the world of traditional banking and fiat currencies.

I’ll leave it up to Lowrey to describe what went wrong – though the perennial problem of investors arriving late to a booming market helps explain a lot of it. Whether the cryptocurrency bust of 2022 sours African American investors on digital assets in an enduring way remains to be seen. But Bitcoin won’t be the last boom to come knocking on the doors of the African American community – after it has already visited every other neighborhood in town.

Revolut introduces crypto staking

Revolut announced this week that it is giving its customers in the U.K. and Europe the opportunity to earn cryptocurrency rewards if they allow financial institutions to “stake” their coins as part of a blockchain transaction verification process. Staking, as explained by Revolut’s Kirsty Daniel this week, involves participating in proof-of-stake blockchains which, like mining, help support the security of the overall network. Only certain coins are available for staking – Ethereum, Cardano, Polkadot, and Tezos, for example (not Bitcoin), and individuals who participate in staking can earn a significant percentage return for their (or the blockchain’s) efforts. Daniel noted that cryptocurrency stakers can earn up to 11.65% APY in crypto rewards by staking qualified crypto holdings.

Read more about staking in this extensive explainer provided by Coinbase. What is staking?

Among the risks to staking are the fact that there tends to be a “lockup” or “vesting” period during which the cryptocurrency cannot be transferred. This can be a challenge because holders are not able to trade staked coins during this period – even in the event of a major market disruption. Revolut’s decision was seen by analysts as an affirmation of the company’s commitment to supporting cryptocurrencies as the industry has been rocked by scandal in recent months.

Blockchain infrastructure platform Paxos opens R&D center in Israel

Blockchain and tokenization infrastructure platform Paxos announced last week that it was launching an engineering research and development center for security and cryptography in Israel. The center will house senior, staff, and principal engineers that have specialized skills in enterprise-grade security, applied cryptography, and blockchain technology. Paxos expects the R&D center to serve as an incubation hub for research into building security and cryptography solutions on top of the blockchain.

“We’re redefining financial markets and we believe our next generation of both software and hardware technical experts call Israel home,” Paxos Senior Director of Engineering Vitaliy Liptchinsky said. “As a safe, regulated platform that has continuously and steadily grown amidst all past digital asset market volatility, Paxos offers talented developers the opportunity to join a strong team uniquely positioned to serve some of the most sophisticated global enterprises.”

Paxos’ infrastructure reaches more than 400 million users. The largest issuer of regulated, transparent stablecoins, Paxos uses technology to tokenize, trade, settle, and maintain custody of digital assets. The company has developed blockchain solutions for institutions like fellow Finovate alums PayPal, Mastercard, and Nubank; and has raised more than $540 million in funding. Charles Cascarilla is co-founder and CEO.

Cointelegraph unveils its list of the Top 100 “crypto heroes and villains” for 2023

For the fourth year in a row, Cointelegraph has released its list of the Top 100 most influential people in the cryptocurrency and blockchain industry. The publication will reveal the list in its entirety over the next three weeks.

Starting with #100 through #91, some of the more interesting – and unexpected – entries so far include Russian tennis star Maria Sharapova at number 96 (“Sharapova has been involved in a series of investment ventures in recent years, including in the cryptocurrency and blockchain industries, and is currently an investor in MoonPay, a blockchain payments company …”) and “Artificial Intelligence” at #93.

Writing on request about AI’s presence on the list, ChatGPT opined: “… it is expected that artificial intelligence will have a signifiant impact on the cryptocurrency and blockchain industry … one of the main ways that AI will impact the cryptocurrency and blockchain industry is through the use of smart contracts.”

The rise of AI-focused cryptocurrencies

Speaking of the relationship between cryptocurrencies and AI, CoinDesk published an interesting article this week on the way AI-focused cryptocurrencies have outperformed Bitcoin. “Vastly” in the words of author Shaurya Malwa.

What tokens are we talking about? In recent weeks, tokens for platform like Alethea’s artificial liquid intelligence (ALI) and Image Generation AI (IMGNAI) have turned in the kind of performances that have cryptocurrency investors and traders buzzing. Malwa noted that while Bitcoin and ether have returned a more-than-respectable 30% each over the past month or so, these AI-focused upstarts are producing returns that dwarf those – and in less time.

Malwa seems to suggest that much of what is driving these new assets is the same combination of novelty and opportunity that initially drove Bitcoin and ethereum. Malwa quotes Ravindra Kumar, founder of crypto wallet Frontier, who credited “early interest, potential, and hype” for the outperformance of AI-focused cryptocurrencies, but still observed that there are some “innovative and compelling use cases” emerging.

Photo by Anna Shvets

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Revolut Turns to Cross River to Power U.S. Expansion

Revolut Turns to Cross River to Power U.S. Expansion
By David Penn Posted on
Categories: Alumni News, Daily news, Revolut
  • Revolut announced a partnership with fintech technology infrastructure company Cross River.
  • The partnership will enable Revolut to offer personal loans to its customers in the U.S.
  • The announcement comes in the wake of Cross River’s announcement that it raised $620 million in March.

International superapp Revolut has partnered with fintech infrastructure provider Cross River to help it build and scale its business in the U.S. The collaboration will facilitate the first personal loans for Revolut’s U.S. customers and, courtesy of Cross River’s technology infrastructure, will be followed by additional credit solutions to be launched later this year.

“At Revolut, we’re building the world’s first global financial superapp so the move into credit and personal loans is a natural next step,” Revolut U.S. Head of Lending Tarun Bhushan said. “Revolut has developed technology to provide loans instantly to approved customers, with no origination fees – so customers can get the credit they need, when they need it.”

In addition to the absence of origination fees, the partnership means that Revolut borrowers will also be liberated from late fees and prepayment penalties, as well. Potential borrowers can also use the Revolut app to check their rates without affecting their credit score. Revolut’s “near-instant” and same-day loan funding solution means that users receive their funds in their Revolut wallet accounts within minutes of approval. Customers can also establish automatic loan repayments using the app’s AutoPay feature.

“At Cross River, we’re always looking for new and innovative ways to provide access to credit,” EVP and Head of Fintech Banking at Cross River Adam Goller said. “Our partnership with Revolut is instrumental in facilitating responsible financial solutions to consumers, and we’re excited to be powering Revolut’s U.S. expansion.”

Loans from Revolut are currently available only to the company’s U.S, customers. Revolut expects to be able to make the personal loans available to all U.S. consumers “in the coming months.”

Revolut’s partnership news comes as the company makes headlines for both personnel moves and expansion into new markets. This spring, Revolut appointed a new APAC General Manager, a new CEO for Brazil ahead of its expansion into that Latin American country, as well as a new General Manager and a new Head of Growth to support Revolut’s move into the U.S. market.

“It’s an exciting time to be joining Revolut as we further establish and grow our brand in the U.S.,” new Revolut General Manager for the U.S. Yuval Rechter said in March. “The pandemic has supercharged the digitalization of banking and Revolut is the best answer for U.S. consumers seeking greater value, transparency, and flexibility in how they manage their money.”

Cross River made fintech headlines less than a month ago with the news of its $620 million capital raise led by Eldridge and Andreessen Horowitz. The funds will be used to accelerate the company’s tech-focused growth strategy which consists of projects in embedded finance – including payments, lending, and crypto – as well as investments in “people and communities,” plans for international expansion, and “bolstering strategic partnerships.”

“Cross River is powering the future digital economy and changing lives by reinventing the way financial services are accessed,” Cross River founder, President, and CEO Gilles Gade said last month with the financing was announced.

Photo by Johannes Plenio

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Fintech Merger and Acquisition Activity Starts Strong in Q1 2022

Fintech Merger and Acquisition Activity Starts Strong in Q1 2022
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alkami Technology, Azimo, BeSmartee, FIS, Fiserv, HooYu, Mergers & Acquisitions, Mitek, MoneyGram, Plaid, Revolut, SecureKey, Segmint, Sezzle, StreetShares, Taulia, Trulioo, Wealthfront

While 2021 was a record year for fintech merger and acquisition (M&A) activity, 2022 is off to a great start.

According to FT Partners, there were 1,485 M&A deals in the fintech space totaling $348.5 billion in 2021. As Square’s $29 billion takeover of Afterpay demonstrated, last year’s massive volume is partially thanks to multiple large deals.

This quarter, only eight of the 21 deals initiated disclosed financial details. Of those, the deal volume added up to almost $5 billion.

January

February

March

While experts predict that 2022 M&A activity will likely see momentum from 2021, there are two aspects to watch out for this year. First, we will not see as many SPACs as we saw last year. This may decrease the number of companies choosing to exit this year. Second, fintech valuations are deflating after experiencing huge rises over the course of the past two years. While the loss in value won’t directly impact the number of M&A deals, it will decrease the deal volume.

Photo by Martin Lopez

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Ukraine Legalizes Crypto; Nordigen and Efigence Announce New Partnerships

Ukraine Legalizes Crypto; Nordigen and Efigence Announce New Partnerships
By David Penn Posted on
Categories: Efigence, Finovate Global, Nordigen, Revolut, Scalable Capital

As more and more fintechs add their support to the people of Ukraine and create new pathways for individuals and organizations to contribute financially, the Ukrainian government has had to adapt in order to make some of these contributions not just possible, but legal.

This week, Ukrainian president Volodymyr Zelenskyy, signed month-old legislation to provide a legal framework for the buying and selling of cryptocurrencies in the country. Per the new legislation, cryptocurrency exchanges and other companies dealing in digital assets will be able to register with the Ukrainian government in order to operate in the country. Additionally, the new law will allow banks to open accounts for cryptocurrency companies.

Going forward, Ukraine’s National Securities and Stock Market Commission will set the country’s policies on cryptocurrencies and other digital assets, issue licenses, and serve as a regulatory watchdog over the fledgling industry. The law is the second bite of the apple for Ukraine’s cryptocurrency advocates; the Ukrainian parliament voted to legalize cryptocurrencies last fall, but the legislation was vetoed by Zelenskyy, who cited the cost of creating a new regulatory entity to govern cryptocurrencies.

Ukrainian interest in cryptocurrencies certainly predates the Russian invasion of the country; a New York Times feature in November 2021 ran the headline “The Crypto Capital of the World” with the subhead “It has to be somewhere. Why not Ukraine?” But that interest has spiked since then as the country reportedly has received “tens of millions of dollars” in cryptocurrency donations to help Ukrainians cope with the devastation of their country at the hands of the Russian military.

Nordigen partners with French fintech Saveengs, U.K. lender Mallard Finance

Latvian open banking platform Nordigen has announced a pair of new partnerships this week. Saveengs, a French startup that specializes in helping people with little or no savings build a strong financial foundation, will work with Nordigen to help users find ways to save better. Nordigen’s technology will enable the Saveengs app to analyze the user’s finances to find opportunities to save in small amount, typically in increments of 20 euros.

“While the amount of money saved seems small at first, it definitely adds up,” Saveengs CEO Mourad Ketir said. “Open banking enables the app to perform financial analysis on our users’ existing funds and transactions quickly and easily, allowing the process of saving to start as soon as possible.”

Meanwhile across the channel, U.K.-based independent lender Mallard Finance has chosen Nordigen as its Account Information Service Provider (AISP). A specialist in providing financing for automobile purchases, Mallard Finance will leverage its new partnership with Nordigen to access financial data directly from borrower bank accounts during the application process. This will give the lender, which serves both individuals and businesses across the credit risk spectrum, a more exacting and accurate view of the applicant’s financial status.

“We are thrilled to be partnering with Mallard Finance,” Nordigen CEO and co-founder Rolands Mesters said. He praised both the company’s professional team and its success in serving its customers since 1995. “We are happy to see companies continuing to choose open banking to further enhance their already existing services and internal assessment procedures,” Mesters added.

Nordigen most recently demonstrated its technology on the Finovate stage at FinovateEurope 2019 in London. At the conference, the company demoed its Nordigen Report, which enables banks and lenders to access loan applicant account histories and verify income and other important insights.

Efigence teams up with Polish bank Getin Noble

Getin Noble, a Warsaw, Poland-based banking and financial services company, has partnered with Polish digital banking solutions provider Efigence to help it launch new online banking services. The enhancements, to be introduced modularly, include new functionalities as well as modernization of its online presence.

“Today’s online banking is much more than a financial tool,” Director of Getin Noble Bank’s Electronic Banking Department Marta Dałkiewicz said. “Customers often have contact with it many times a day, so the solutions we propose must be affordable and easy to use.”

Efigence President and CTO Marek Lesiak said that increasing the accessibility of online banking was a major goal for the collaboration. This included design elements for both the web and mobile apps to make banking more convenient for the customer regardless of which channel they used. “Today, finance is connected with almost every sphere of our life,” Lesiak said, “and the use of online banking should be as easy, intuitive and pleasant as if it were part of our DNA.”

A two-time Best of Show winner, earning the honor in both its Finovate debut as well as at our second Dubai-based event in 2019, FinovateMiddle East, Efigence demonstrated the latest improvements to its digital banking platform at FinovateEurope 2020 in Berlin.

Here is our look at fintech innovation around the world.

Central and Southern Asia

Latin America and the Caribbean

Asia-Pacific

Sub-Saharan Africa

Central and Eastern Europe

Middle East and Northern Africa

Photo by Kostiantyn Stupak from Pexels

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Revolut’s Newest Acquisition Accelerates its Move into India

Revolut’s Newest Acquisition Accelerates its Move into India
By Julie Muhn (@julieschicktanz) Posted on
Categories: Daily news, Mergers & Acquisitions, Revolut
  • Revolut has acquired India-based Arvog Forex. Terms of the deal were not disclosed.
  • The purchase will help Revolut launch services in India in the latter half of this year.
  • Arvog Forex has more than 20 branches across India and served more than 15,000 customers last year.

Global financial services innovator Revolut recently acquired Arvog Forex to deepen its roots into India, a region with a population of 1.3 billion and ripe for fintech disruption.

Arvog Forex, an international money transfer and currency exchange company, is headquartered in Mumbai. With more than 20 branches across India, the company served over 15,000 people with its remittances and other forex services last year.

Revolut, which plans to invest $25 million into the Indian market in the coming years, expects the purchase will strengthen its foundation in India. The company initiated its India expansion plans last April after hiring Paroma Chatterjee, a former Flipkart executive, to lead its India operations. Under Chatterjee’s leadership, Revolut plans to launch bespoke financial products that serve the unique needs of Indian consumers.

The company is aiming to launch services in India in the latter half of this year. The Arvog Forex acquisition should streamline this, helping Revolut offer remittances and multi-currency accounts to Indian customers.

Chatterjee calls the buy a “first step” towards the company’s aspiration to usher in a “digital financial revolution” in India. “Our significant investment plans, this acquisition, and the quality of the team we are putting together reflect our intention to rapidly roll out these innovative products and services. India is a key region in our global expansion plan and this acquisition is testament to the rapid strides we want to make here. It is an incredible time to be a fintech company in India and we plan to make the best of this opportunity,” she said.

U.K.-based Revolut was founded in 2015 and has already expanded into other Asia-based countries, including Japan and Singapore, but has yet to enter into China, a market that will prove to be highly competitive. On the other side of the globe in North America, Revolut has applied for a bank charter in the U.S., but withdrew its operations in Canada last March. The fintech plans to reenter the region later this year.

Photo by Aditya Siva on Unsplash

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Beyond Crypto Curious: How Apple, Mastercard, and Revolut Are Embracing Digital Assets

Beyond Crypto Curious: How Apple, Mastercard, and Revolut Are Embracing Digital Assets
By David Penn Posted on
Categories: Apple, List series, MasterCard, Revolut

Three headlines in the cryptocurrency space this week show how seriously Big Tech, Big Fintech, and the world’s largest financial services companies are taking the rise of digital assets. And while each of the three companies listed below varies in the degree to which it is embracing our increasingly crypto-friendly future, their continued interest in the space suggests that the pace of adoption of digital assets – and the proliferation of use cases – is only likely to grow in the months and years to come.

Are Cryptocurrencies Coming to ApplePay? – AppleInsider reported early this week that Apple is considering integrating cryptocurrencies into its Apple Pay solution.

The report is based largely on an interview that Apple CEO Tim Cook had with Aaron Ross Sorkin as part of the DealBook Online Summit sponsored by The New York Times. That said, those looking for a firm commitment from Apple in Cook’s conversation with Sorkin will be disappointed; while Cook expressed interest in cryptocurrencies from a “personal point of view … for awhile” and admitted that he believed that it was “reasonable to own (cryptocurrencies) as part of a diversified portfolio,” the idea of Apple accepting cryptocurrencies as payment for Apple products and services remains just that – an idea. Cook also expressed skepticism toward the notion of Apple investing in cryptocurrencies as part of a corporate investment strategy.

Apple’s relationship with cryptocurrencies has been cautious, to say the least. Back in 2014, Apple removed a number of Bitcoin wallets from its App Store, including one trading and storage app with 120,000 users, and another wallet app from Coinbase. More recently, there has been some softening of Apple’s stance, with Apple Pay VP Jennifer Bailey conceding the the company is “watching” the space and sees “interesting long-term potential” in digital currencies just a few years ago.

It’s worth noting that Apple’s reputation in technology is less as a first-mover and more that of a technology enhancer that often comes along and does a better job at innovations initiated by others. So the idea that Apple’s approach to embracing cryptocurrencies would be similarly slow-rolling is consistent with how the company has long operated. Nevertheless, Apple Pay’s fintech rivals – such as PayPal, Square, and Stripe – have been far more eager to pursue opportunities in crypto. Add to this the fact that Google Pay has teamed up with digital asset marketplace Bakkt in a deal that will enable users to spend Bakkt Card crypto funds directly from their Google Pay accounts. Together, it seems much more likely that a closer relationship between cryptocurrencies and Apple Pay is a question of “when” rather than “if.” As interest in digital currencies accelerate, and the solutions and services from these crypto-friendly fintechs become more widespread and even mainstream, it is hard to imagine Apple Pay remaining on the sidelines.

Revolut Takes Steps Toward Building a Cryptocurrency Exchange – The rumor that aspiring super app Revolut is looking to build a cryptocurrency exchange hinges largely on a job posting at LinkedIn. According to reports, Revolut wants to hire an individual with at least seven years experience in technology and in building order matching engines to lead a technical team to “architect and built Revolut Crypto Exchange.”

The crypto exchange would further establish Revolut as a leading player in the cryptocurrency space and potentially enable the company to diversify its services and create new cash flow, which could help Revolut establish another reliable revenue source going forward. The exchange news also follows reports that Revolut was looking into launching its own crypto token. And while Revolut has not commented on what it has referred to as a “mere rumor”, the report, first shared by Coindesk earlier this fall, does bolster the notion that Revolut is deepening its commitment to digital assets – a space the company has enjoined aggressively since introducing in-app cryptocurrency trading functionality in 2018.

In April of this year, Revolut added 11 new crypto tokens to its platform. The following month, the company launched its public beta for Bitcoin withdrawals. “I said before that 2021 would be the year of crypto and Revolut is here to deliver on that promise,” company Head of Crypto Edward Cooper announced in June when the company revealed that it would add Dogecoin to its current cryptocurrencies offerings for traders. “One of the most popular user requests over the past couple of months has been to add Dogecoin and we have answered the call!”

Revolut has more than 16 million customers around the world, and conducts more than 150 million transactions a month on its platform.

Mastercard Introduces Crypto-Linked Cards for the APAC Region – Also this week, Mastercard announced that it has secured partnerships with a trio of cryptocurrency companies – Amber, Bitkum, and Coinjar – who will issue crypto-funded Mastercard payment cards. The collaboration represents the first APAC-based cryptocurrency service providers (Amber and Bitkum are based in Thailand, Coinjar is headquartered in Australia) to join Mastercard’s Crypto Card Program, an initiative designed to enable companies to offer secure payment cards that meet regulatory requirements with regards to cryptocurrencies.

“Cryptocurrencies are many things to people – an investment, a disruptive technology, or a unique financial tool,” Mastercard EVP for Digital and Emerging Partnerships and New Payment Flows in the Asia Pacific region Rama Sridhar said. “As interest and attention surges from all quarters, their real-world applications are now emerging beyond the speculative. In collaboration with these partners that adhere to the same core principles that Mastercard does – that any digital currency must offer stability, regulatory compliance, and consumer protection – Mastercard is expanding what’s possible with cryptocurrencies to give people even greater choice and flexibility in how they pay.”

Mastercard’s APAC announcement comes on the heels of news that the company will enable the banks and merchants on its payment network to integrate cryptocurrency offerings into their products. The new arrangement comes courtesy of a partnership with Bakkt and will empower bitcoin wallet providers as well as issuers of credit and debit cards that offer rewards in crypto and enable digital assets to be spent. Also benefitting from Mastercard’s plan are those companies that offer loyalty programs that allow points from travel or hotel stays to be converted in to cryptocurrencies.

“Mastercard is committed to offering a wide range of payment solutions that deliver more choice, value, and impact every day,” Mastercard EVP for Digital Partnerships Sherri Haymond said. “Together with Bakkt and grounded by our principled approach to innovation, we’ll not only empower our partners to offer a dynamic mix of digital assets options, but also deliver differentiated and relevant consumer experiences.”

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Revolut Reigns as UK’s Most Valuable Fintech; Indian Payments Innovators Go Public

Revolut Reigns as UK’s Most Valuable Fintech; Indian Payments Innovators Go Public
By David Penn Posted on
Categories: Finovate Global, Revolut

Financial superapp Revolut secured $800 million in funding this week. Softbank Vision Fund 2 and Tiger Global were the investors in the Series E round, which gave the London-based fintech a valuation of $33 billion. Both Softbank Vision Fund 2 and Tiger Global are new investors to the company.

Company founder and CEO Nikolay Storonsky said that the investment was an endorsement of Revolut’s goal of building a “global financial superapp” that enables users to meet all of their financial needs via a single platform. “We want our global superapp to offer our customers 10x better value and 10x better service and security than they can achieve anywhere else,” Storonsky said. He emphasized the value of personalization in delivering a superior customer experience, as well as the importance of transparency and keeping costs low.

Storonsky also noted that the investment makes Revolut the most highly-valued fintech in the U.K. which he said “demonstrat(ed) investors confidence that we can deliver products that raise the bar for customers’ expectations across the whole financial services industry.”

Since demonstrating its personal money cloud at FinovateEurope in 2015 and making its name as a money transfer and exchange specialist, Revolut has grown into a multi-service fintech company with more than 16 million personal and business customers around the world. The company offers wealth management, spending, and payments solutions for individuals; and gives business owners tools and services ranging from smart company cards to multi-currency accounts with support for more than 28 different currencies.

Revolut launched its long-awaited expansion to the U.S. last spring.

Indian Payment Rivals Take IPO Plunge

The Indian payments industry continues to be one of the most vibrant aspects of fintech in the country.

This week we learned that two of India’s bigger rivals in the payments space – Paytm and MobiKwik – are taking their businesses to the public markets. MobiKwik will seek to raise $255 million in its initial public offering, while Paytm announced plans to raise $2.2 billion when it offers shares to the public.

Paytm, one of the most highly-valued startups in India, was founded in 2009 to enable consumers to make digital payments from their phones. The company currently operates a payments gateway, an e-commerce marketplace, and also offers products and services like ticket booking, insurance, and digital gold. Led by Vijay Shekhar Sharma, Paytm plans to use the capital from the IPO – and from a pre-IPO round the company is discussing with Goldman Sachs and Fidelity – to add to its payments offering, explore acquisitions, and launch new initiatives.

MobiKwik offers a mobile wallet service that enables users to make digital payments and, like Paytm, also helps consumer secure insurance products and access personal financing. With more than 101 million registered users, MobiKwik also offers credit cards courtesy of a partnership with American Express. Founded in 2009 and headquartered in Gurgaon, India, MobiKwik includes both Sequoia Capital India and Abu Dhabi Investment Authority among its investors.

Here is our look at fintech innovation around the world.

Central and Eastern Europe

Middle East and Northern Africa

Central and Southern Asia

Latin America and the Caribbean

Asia-Pacific

Sub-Saharan Africa

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Public and Private Investors Boost Latin American Fintech

Public and Private Investors Boost Latin American Fintech
By David Penn Posted on
Categories: ACI Worldwide, Evo Snap*, Finovate Global, Nordigen, Nubank, Revolut

It’s a good week to be a fintech in Latin America. Uruguay-based fintech dLocal made its Nasdaq debut, raising more than $617 million in an IPO that gave the firm a valuation of $6 billion. The company, founded five years ago, offers a payments platform that enhances the ability of global merchants to operate in emerging markets. With customers ranging from Amazon.com to Uber, dlocal will use the capital from the IPO to add new features to its platform as well as enter new markets, according to an interview with Reuters.

Also this week, Latin American open finance API platform Belvo announced that it had secured $43 million in Series A funding. The round featured participation from new and existing investors – including investment angels like David Vélez, founder and CEO of Brazilian fintech Nubank. Belvo will use the new capital to “scale and enhance” its data enrichment solutions in particular, as well as launch its bank-to-bank payment initiation offering in both Mexico and Brazil. Adding to its 70-person workforce is also part of the company’s plans, with a goal of doubling headcount by the end of the year and “hiring more than 50 engineers in Mexico and Brazil in the coming months.”

Elsewhere in Latin America, Mexican payment gateway Prosa is reportedly considering a sale that could bring the company a valuation of more than $1 billion. The firm is one of the region’s biggest payment processors, facilitating more than 4.5 billion transactions in 2020. Also this week, EVO Payments announced that it had agreed to acquire Chilean e-commerce payment gateway Pago Fácil.

As Angela Strange and Matthieu Hafemeister noted this spring in their report Latin America’s Fintech Boom, “there is an enormous amount of untapped opportunity in Latin America for financial services of all types.” The authors cite five reasons to be optimistic about the demand for financial services, factors ranging from the region’s size to the opportunity to replace largely cash-based systems, as well as four reasons why Latin American fintech may be at a “tipping point.”

“As is often the case,” the authors wrote, ” growth appears gradual for a long while, then happens suddenly, seemingly all at once. Latin America is currently experiencing an explosion in fintech activity, and this is just the beginning.”

Here is our look at fintech innovation around the world.

Middle East and Northern Africa

Central and Southern Asia

Latin America and the Caribbean

Asia-Pacific

Sub-Saharan Africa

Central and Eastern Europe

Photo by Juan Cruz Palacio from Pexels

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Revolut Adds Invoicing Capabilities for Business Banking Clients

Revolut Adds Invoicing Capabilities for Business Banking Clients
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, Revolut

Global financial services company Revolut added an invoice creation tool for its Revolut Business clients today. The added capability enables businesses to create, send, and reconcile invoices from within the Revolut app.

By using Revolut’s invoice tool, the fintech’s business banking clients are able to send their customers professional-looking invoices with customized branding. The tool also offers customers more payment options, including credit card, bank transfers, and Apple Pay. Once payment is made, the business receives the funds faster– directly into their Revolut Business account.

One of the biggest benefits of Revolut’s invoices is that it helps with heavy lifting on the administrative side of things. For example, businesses can use Revolut to monitor invoices and receive real-time tracking and notifications.

The new development comes on the heels of the company’s rollout of currency forward contracts in the U.K. that enables companies to set their fixed future FX rate online to help manage market risk. It also closely follows the launch of QR code payment capabilities for businesses. Both of these features make Revolut an increasingly robust option for companies seeking a banking option. As a result, the Revolut app is even more sticky for business users.

Photo by Mikhail Nilov from Pexels

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Europe’s Robinhood Brings in the Bucks with $80 Million Investment

Europe’s Robinhood Brings in the Bucks with $80 Million Investment
By David Penn Posted on
Categories: Currency Cloud, Finovate Global, Fintech OS, Moven, Revolut, Tinkoff Bank, VISA

In a round led by Prosus Ventures and Tencent, Amsterdam-based fintech BUX has secured $80 million in funding that will fuel both international expansion and new product development. The investment also featured a change in the leadership ranks at the company, with founder Nick Bortot handing over the CEO reins to COO Yorick Naeff.

“With this new funding round, BUX will continue to spearhead innovation by implementing advanced features to further shape the future of how Europeans invest,” Naeff said. We are extremely grateful to have top tier investors like Prosus Ventures and Tencent onboard to support us in our mission.”

With half a million customers in the Netherlands, Austria, Belgium, France, and Germany, BUX enables investors to buy and sell shares and exchange-traded funds (ETFs), without having to pay commissions. Dubbed the “Robinhood of Europe”, BUX is a response to what Naeff said is a growing awareness of the importance of investing by younger Europeans. Naeff underscored financial uncertainty as a major concern among the younger generation and credited them for realizing that investing is “one of the few viable ways left” to manage that uncertainty. The self-directed nature of investing on BUX’s platform – for shares and ETFs, as well as cryptocurrencies on its BUX Crypto app, and CFDs on its BUX X solution – is another appealing aspect, Naeff said.

“Traditional financial market investing comes with a lot of friction and we firmly believe in the democratization of access to financial services for the next generation of investors,” Head of Europe Investments for Prosus Ventures Sandeep Bakshi said. “The existing solutions are expensive, complex and not designed for younger generations.” Alex Leung, Assistant GM at Tencent, Strategic Development, noted that Bux’s business model does not depend on some of the revenue-raising strategies that have been criticized at rivals like Robinhood. “BUX is the only neo-broker in Europe that offers zero commission investing without being dependent on kickbacks or payments for order flow,” Leung said. “This ensures that its interests are fully aligned with its customers.”

No valuation information was provided as part of the funding announcement. The company noted that its signature BUX Zero solution “has more than doubled its assets under management” in the past three months.

Here is our weekly look at fintech around the world.

Central and Southern Asia

Latin America and the Caribbean

Asia-Pacific

Sub-Saharan Africa

Central and Eastern Europe

Middle East and Northern Africa

Photo by HoliHo from Pexels

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