Tencent-Backed Airwallex Seeks Funding at $6 Billion Value
Weekly news up to Tuesday, 5th of November 2024
👀 NEWS HIGHLIGHT
The FinTech funding landscape has hit a pause, marking the fourth consecutive month of calm. While this trend echoes globally, the industry is buzzing with exciting developments, particularly in the realm of AI innovations.
Be sure to catch our monthly Highlight Podcasts with FinTech Daydreaming, where we deep dive into some news stories of the month.
📰 ARTICLE OF THE WEEK
ACI Worldwide Study reveals Real-Time Payments to boost Global GDP By $𝟮𝟴𝟱.𝟴 𝗕𝗶𝗹𝗹𝗶𝗼𝗻, Create 𝟭𝟲𝟳 𝗠𝗶𝗹𝗹𝗶𝗼𝗻 𝗡𝗲𝘄 𝗕𝗮𝗻𝗸 𝗔𝗰𝗰𝗼𝘂𝗻𝘁 holders by 2028.
💡INSIGHTS
Success With Subscriptions: How businesses can meet customer expectations. Solidgate’s latest survey, featuring insights from 1,000 subscription customers, provides a deeper understanding of what customers truly value—and what frustrates them. Explore now
NOW, ON TO THE SUMMARY OF LAST WEEK'S NEWS
🌎 FINTECH HIGHLIGHTS
⭐️ Affirm expands to the UK in first major international foray.
⭐️ Lili launches embedded finance tool Lili Connect
⭐️ Top Estonian FinTech reassesses London as a possible new global HQ following budget tax rises.
⭐️ Mexico’s Klar Sets $500 Million Revenue Goal for IPO.
Stay Updated on the Go. Join my new Telegram channel for daily updates and real-time breaking news. Stay informed and connect with industry enthusiasts —subscribe now!
FINTECH
Airwallex seeks funding at $6 billion value. Airwallex is in talks to raise about $200 million to support growth, targeting a $6 billion valuation. The firm hit $500 million in annual revenue in August and aims to close the funding round by year-end, according to sources.
BNPL provider Scalapay strikes a deal with BNL BNP Paribas to finance up to $3 billion of current and new credits. Scalapay’s CEO Simone Mancini said: “We aim to become the most user-friendly financial platform in Southern Europe.”
Finastra extends strategic partnership with DXC Luxoft and RightClick Solutions to offer best-in-class managed services for Summit customers. This collaboration accelerates strategic outcomes and reduces risk for Finastra's treasury and capital markets clients with top-tier managed services and specialized regional resources.
ConnectPay recently introduced the European FinTech Index (EFI), a comprehensive data tool providing key insights into Europe's FinTech market. Originally developed as an internal market research project, it was later expanded into a country ranking of key FinTech attractiveness indicators. Explore more
DriveWealth advances global expansion plans with European brokerage license from Bank of Lithuania. This license marks DriveWealth's entry into its third regulatory region, expanding its international presence across the United States, Singapore, and the European Economic Area.
Zing launches automatic and one tap top-ups for all members. These frictionless top-up features, available to all members through Visa’s open banking platform, Tink, allow for direct linking of banking apps to Zing wallets. Read on
GenTwo officially launches UK operations, bringing innovative assetization platform to London. This marks a major milestone in GenTwo's global expansion, enabling access to a key financial center as part of its broader growth strategy, with plans to enter the U.S. market by 2025.
Square introduces Square Card giving UK businesses instant access to funds. This business spending card helps companies manage cash flow by eliminating the wait time between making a sale and accessing funds. Discover more
PAYMENTS
Mollie and Hyvä announce strategic partnership, launching Hyvä Commerce. With Mollie’s backing, the launch of Hyvä Commerce will resolve common issues businesses using Magento face today by adding modern features to the admin panel and the store side, as well as committing to the platform's updates.
Solidgate partners with Nova Post to power its international expansion. Through its partnership with Solidgate, Nova Post now offers EU clients a seamless payment experience, allowing secure one-click payments with high acceptance rates.
Tribe Payments partners with PhotonPay for issuer processing. As a trusted payments solution provider, Tribe meets PhotonPay's needs for flexibility, scalability, and customization. Tribe’s developer-led APIs allowed PhotonPay to launch a pilot in weeks, making Tribe a key partner for global deployment.
PayPoint announces new partnership with Leeds Credit Union. The partnership allows LCU customers to access their cash and savings at any of PayPoint's 29,000 UK retailers, expanding access beyond LCU’s four branches for the first time.
Orange Middle East and Africa and Mastercard partner to digitize payments for millions across Africa by 2025. This collaboration, one of the largest in the region, will enable millions of Orange Money users to access digital payments via Mastercard’s global network by 2025, starting in seven countries.
Klarna and Worldpay expand partnership to unlock global merchant network. Under the expanded partnership, Klarna will be a preferred payment method for Worldpay’s merchants worldwide, alongside traditional card payments. Read on
PayPal sees a 20% increase in BNPL revenue and more than one million debit card accounts added. The company reported a 9% year-over-year increase in total transaction volume for Q3, reaching $422.6 billion, largely due to growth in Venmo and PayPal digital payments.
European Payments Council issues Verification of Payee API standards. These guidelines focus on standards for VOP communications, governing Requests and Responses between Payment Service Providers (PSPs). The specifications are part of an effort to create uniformity within inter-PSP communications across the European market.
Emerchantpay expands its global acquiring capabilities with Visa. This collaboration expands emerchantpay’s global acquiring capabilities and reach, providing access to integrations with established technology and infrastructure providers through a single connection.
Klarna and Zoom announce global launch of Flexible Payments in 16 Markets. Customers in 16 countries can now use Klarna to manage Zoom Workplace subscriptions, with Pay Now available in all countries and Pay Later options in the US, Sweden, and Germany.
DIGITAL BANKING
Visa and ClearBank form real-time payments partnership. By leveraging ClearBank’s cloud-native banking infrastructure, Visa aims to benefit from real-time payment processing, improved transaction visibility, and streamlined reconciliation. Read more
Banco Santander, Lloyds Banking Group, and UBS successfully settle pilot uncleared margin transfers in the Sterling Fnality Payment System. This proof-of-concept demonstrates Fnality’s use of £FnPS for bilateral margin payments, marking the first regulated DLT system for settling inter-bank derivatives margin.
Lunar and Saldo Bank forge partnership to transform Nordic banking and payment solutions. The new partnership allows Saldo Bank to access Sweden’s local payment systems via a single API, facilitating seamless transactions in local currency and reducing friction in inbound and outbound payments.
CRYPTO
Italy's finance minister defends tax hike on cryptocurrencies amid party spat. Minister Giancarlo Giorgetti defended a proposed tax increase on crypto capital gains, arguing that savers should distinguish between traditional investments, which support tangible projects, and cryptocurrencies, which he claims lack underlying asset value.
Coinbase wants to turn every FinTech into a crypto company. CFO Alesia Haas emphasized that while speculative use of crypto may be declining, its utility in payments is on the rise. "Our goal is that every finance, every FinTech company, will eventually become a crypto company," she stated.
DONEDEAL
Revolut: US investor tried to scoop up cheap shares with Budget tax warning. Jamba Europe, controlled by New York-based HOF Capital, advertised a secondary offer to nearly 3,500 investors in the British banking app this month through the Republic trading platform. The FCA halted the offer due to concerns it could be seen as a "financial promotion," requiring regulatory approval.
Israeli FinTech Melio secures $150m led by US company Fiserv. The financing, which values Melio at $2bn, comes as a resurgence following layoffs and a failed sale, according to Globes. The firm has demonstrated a tenfold increase in revenue, showcasing its potential resilience and growth within the FinTech sector.
Nick Candy-backed VibePay scoops £5M and pinches Klarna executive. The funds will be used to find its new insights unit and other product development. VibePay, which combines messaging with open banking-powered peer-to-peer payments, has appointed Klarna executive Conor Tiernan to head up its new insights unit.
M&As
Last week, First Data Corporation and CCV Group submitted a request to the Netherlands Authority for Consumers and Markets (ACM) for approval for the takeover of CCV by First Data. This potential acquisition could represent a major shift in the payments industry, given the importance of the POS payment terminals that CCV manages in the Netherlands.
MOVERS & SHAKERS
Gemini appoints Claudio Bedino as Head of Consumer Growth, Europe. Claudio brings a wealth of knowledge and a proven track record of success. Based in Italy, Claudio will be instrumental in advancing the presence of Gemini in Italy and wider Europe.