Global FinTech | 2022 #14
Weekly news up to Tuesday, April 5th, 2022
REPORT
The rise of alternative payments in four charts
Cash or card? The future of payments is likely to be neither.
The rise of smarter smartphones and booming eCommerce are putting plastic cards’ dominance at risk.
Calls for less risky and more convenient payment methods have led to the rise of digital-first alternative payment methods — online bank payments, digital wallets and buy now, pay later (BNPL) being the top three.
👉 Read the full Sifted article here.
👀 NEWS HIGHLIGHT
Apple is developing its own payment processing technology and infrastructure for future financial products, part of an ambitious effort that would reduce its reliance on outside partners over time, according to people with knowledge of the matter.
A multi-year plan would bring a wide range of financial tasks in-house, said the people, who asked not to be identified because the plans aren’t public.
That includes payment processing, risk assessment for lending, fraud analysis, credit checks, and additional customer-service functions such as the handling of disputes.
👉 Read the full Bloomberg article here.
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📊 INFOGRAPHIC
👉 Find the Top DeFi Projects 2022 this DeFi Projects Ecosystem Database and Map here.
📰 ARTICLE
Gone are the days when whipping an Amex out of your wallet was a status symbol and racking up air miles seemed cool.
It’s time for a new kind of credit card loyalty program, and three alumni from credit score startup Clearscore think they have the answer.
Their new credit card startup, Yonder, is emerging from stealth today.
It’s targeting professional millennials (can’t you tell from that familiar pink hue in the marketing photos?) and it’s even won backing from Rio Ferdinand — making it the third European fintech the retired footballer has backed after Sorare and Sokin.
👉Read the full article by Amy O'Brien here.
💡INSIGHTS
DataPro, a technology-driven credit rating agency (CRA), has launched an artificial intelligence (AI) tool called ‘Tigran’ to boost access to credit in Nigeria.
The product was launched in Lagos on Thursday in partnership with Modefinance International, a subsidiary of Modefinance Group.
Speaking at the launching, Abimbola Adeseyoju, managing director, DataPro, said ‘Tigran’ will deliver debt capacity simulation, probability of default modelling, and expected credit loss modelling.
“It’s a game-changer,” Adeseyoju said. “It will revolutionise rating in Africa. It brings transparency and trust to automation. These have been the encumbrances.”
He said new technologies such as artificial intelligence (AI), machine learning, blockchain, and data analytics would fasten the processes and make them more efficient.
👉Read the full The Cable article here.
🎤 PODCAST
Listen to Carol Hamilton, SVP Global Solutions at Provenir, talking about Harnessing AI and machine learning to improve credit risk decision-making in a podcast hosted by IBS Intelligence Podcasts.
👉 Listen to the full podcast here.
NOW, ON TO THE SUMMARY OF LAST WEEK'S NEWS
🌎 FINTECH HIGHLIGHTS
⭐️ Payments giant Adyen is moving into providing banking services. Link here.
⭐️ Credit card giant Visa has launched an NFT creator program in an effort to bring small businesses into the digital economy. Link here.
⭐️ Mercuryo, a leading crypto payments company, has announced its integration with renowned cryptocurrency derivatives exchange BitMEX. Link here.
⭐️ Klarna is best known for riding the crest of ‘buy now, pay later’ wave but its booming open banking business is its new move. Link here.
PAYMENTS
The Saudi Central Bank (SAMA) announced the licensing of three new companies specializing in finance and electronic payments, during the Global Entrepreneurship Congress sponsored by His Royal Highness Mohammad bin Salman, the Crown Prince, Deputy Prime Minister, and Minister of Defense. Link here.
Ratepay, part of leading European PayTech Nexi Group, becomes the exclusive payment by invoice partner for "PayPal Checkout" in Germany. Link here.
Fiserv, Inc., a leading global provider of payments and financial services technology solutions, announced the completion of its acquisition of Finxact. Link here.
Airwallex, a cross-border payments company, announced the launch of its cross-border payment services in Malaysia. Link here.
South Africa’s Apollo Fintech has tapped ThetaRay for its AI-powered cross-border payments monitoring technology Sonar. The tech will be deployed to monitor and screen transactions on its new Knox Wire service, a bank-to-bank cross-border payments system. Link here.
OPEN BANKING
Bahrain Fintech Bay, a fintech hub spearheaded by the government, has identified open banking APIs, artificial intelligence (AI), customer-centric models, and fintech as infrastructure as the four key trends in the domestic fintech ecosystem expected to boom this year on the back of regulatory initiatives and market developments. Link here.
CRYPTO
It became known that the popular cryptocurrency wallet MetaMask intends to expand the list of services and opportunities for its customers. In particular, the statement says that the developers intend to add the integration of the Apple Pay payment gateway. This will diversify the list of supported methods for purchasing digital assets for Apple gadgets holders. Link here.
Luno, a regulated digital asset exchange in Malaysia, shared that its female users have grown from 16,000 in 2020 to more than 120,000 in 2021, an increase of more than sevenfold. Link here.
BTC Markets, an Australian cryptocurrency exchange, has partnered with Mastercard to enable consumers to acquire bitcoins straight from the platform via direct debit, prepaid, or credit card payments. Link here.
BLOCKCHAIN / DEFI
Some of Canada’s biggest crypto, blockchain, and FinTech companies have teamed up to launch a new non-profit trade association—the Canadian Web3 Council (CW3). The group aims to “position Canada as a leader in Web3 technology such as blockchain and cryptocurrency.” Link here.
INVESTMENT
Seedrs, Europe's leading private investment platform with over £1.8BN investments recorded to date, has integrated Banked’s Pay by Bank checkout solution into their platform, making investing easier. Link here.
German fintech start-up SaveStrike, founded by Jan Wedemeyer, Konrad Krappen and Anton Engelhardt in February 2022, is developing a new mobile banking app designed to help millennials invest in capital markets. Link here.
DriveWealth and SproutFi (YC S21), a social-first investment platform that offers securities through its affiliate Northbound Securities LLC, announced a partnership to expand affordable access to investing in the U.S. markets to everyone in Latin America. Link here.
FRAUD PREVENTION
According to the latest study from Provenir, fraud prevention is the biggest driver for investments in AI-enabled risk decisioning this year. Link here.
MOVERS & SHAKERS
Mastercard announced that Chad Wallace has joined the company’s Global Product and Engineering organization as Executive Vice President of B2B Solutions and a member of the company’s Management Committee. Link here.
Provenir announced that it is a finalist in the “Fintech Innovator of the Year” category for the 2022 Leaders in Lending Awards by the Canadian Lenders Association (CLA). Link here.
Buy-now, pay-later app Klarna has appointed MediaCom as its global retained media agency of record, following a competitive pitch. Link here.
OPPORTUNITIES
Crypto exchange Bybit on Monday said it will open its global headquarters in Dubai and crypto platform Crypto.com said it would establish a regional hub there, the latest moves in the UAE's drive to become a centre for the virtual asset sector. Link here.
Nium last year bought 2 companies - UK travel payments specialist Ixaris, for £15 million (S$26.69 million) in cash, and an Indian unit of fraud-hit Wirecard for an undisclosed sum. And it may not be done shopping. Link here.
FINTECH MAPS
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