Author: Fintech News America

Digital payments company Square announced that it has agreed to acquire Australia’s Buy Now, Pay Later (BNPL) firm Afterpay in a in an all-stock deal worth approximately US$29 billion. The closing of the transaction is expected in the first quarter of 2022. Square had recently announced that its financial arm has begun its banking operations in the US to offer business loan and deposit products, beginning with underwriting and originating business loans for Square Capital’s existing lending product. The acquisition of Afterpay will allow Square to expand its offerings to include that of consumer lending as well. Square plans to…

Robinhood, the US startup that pioneered commission-free trading, is seeking a market valuation of up to US$35 billion in its upcoming initial public offering (IPO) on July 29. In its submission to the US Securities and Exchange Commission (SEC), the company said it will be offering 55 million shares and will aim to sell them at a range of US$38 to US$42 apiece to raise as much as US$2.3 billion. Robinhood will be reserving 20% to 35% of its IPO shares for its own clients in what CEO and founder Vlad Tenev expects will be one of the largest retail…

New York-based digital asset custodian Fireblocks announced that it has raised US$310 million in a Series D funding round, boosting the company’s valuation to US$2 billion. The round was co-led by Sequoia Capital, Stripes, Spark Capital, Coatue, DRW VC and SCB 10X, the venture arm of Thailand’s Siam Commercial Bank, whose investment marks the third global bank to invest in Fireblocks alongside BNY Mellon and SVB Capital. While continuing its strategic expansion, Fireblocks intends to scale all business lines, adding more customers and partners to its ecosystem. Since its inception in 2019, Fireblocks has raised a cumulative total of US$489…

When the global pandemic struck last year, millions of people transitioned from working in physical offices to working from home, within the span of a few weeks. Physical meetings turned to video calls and break-time interactions moved to online messaging platforms. While several major economies are lifting movement restrictions, it is clear that remote work is here to stay. Several employees and companies are exploring either fully remote or hybrid working structures owing to the flexibility that comes with working remotely. Therefore, there is a growing demand for remote working tools and software that allow remote teams to function effectively…

With digital payments picking up pace across the globe, social media giant Facebook is extending its payment services to online retailers. Shopify has become the first e-commerce platform to sign up for Facebook Pay. This will allow Shopify merchants to offer Facebook Pay as a payment option during checkout, eliminating the need to re-enter payment information for every transaction. Prior to this, Facebook Pay, which was launched in 2019, was available for its main platform, as well as WhatsApp and Instagram. The feature will be expanded across more platforms in the US starting this August. The development comes not long…

Circle and Mastercard announced an engagement to use the USD Coin (USDC) to facilitate crypto-to-fiat conversions in a pilot programme to expand the ability of issuers and crypto businesses to enable customers to spend their crypto assets. The engagement will test using USDC as a means for card issuers to more easily settle payments to Mastercard, helping accelerate the world towards greater use of internet-native financial infrastructure. “The engagement between Circle and Mastercard reinforces how USDC is growing its role in payments and commerce on the internet, while building a vital bridge between digital currency payment systems and large, established…

M1 Finance, an all-in-one money management platform, announced that it has secured US$150 million during a Series E funding round, the firm is now valued at US$1.45 billion. SoftBank’s Vision Fund 2 led the round, with participation from existing investors. After raising a Series B through D in the past twelve months, M1’s total funding is now over US$300 million, and its total assets under management is reportedly over US$4.5 billion. The new capital will allow M1 to focus on delivering an optimal client experience through new products and features, platform innovation, enhanced customer service, and hiring top talent to…

Over the last few years, digital banking in Latin America (Latam) has experienced extraordinary growth on the back of changing customer needs, expanding technological penetration and rapidly evolving regulatory standards. Since 2017, the number of digital banks has more than doubled, reaching 52 independent neobanks in 2021, according to a new report by Swiss digital banking tech provider Banking, Payments: Context (BPC) and Dutch fintech consultancy firm Fincog. Brazil leads the region both in terms of sector development and consumer adoption. Out of the 52 neobanks identified, 24 players are from Brazil, and out of a pool of 77 million…

LoanPro, a SaaS-based loan management, servicing and collections platform for alternative, fintech and traditional lenders, announced it has raised a US$100 million growth equity investment in a Series A funding round from FTV Capital, a growth equity investor. As part of the transaction, Robert Anderson, who led the investment for FTV Capital, will join LoanPro’s board of directors. Through this capital raise, LoanPro will enhance its platform functionality, enter new lending verticals, and further invest in client-centric growth initiatives. LoanPro was founded in 2014 by three brothers, to enable lenders to take back operational control and enhance real-time data insights…

Argentina’s booming fintech industry boasts over 300 companies that employ nearly 15,000 people. This year, the sector is expected to create more than 5,600 positions, reflecting on the industry’s massive growth and traction, according to data from Cámara Argentina de Fintech (the Argentine Chamber of Fintech). Results of a research shared in May 2021 by the organization show that 20% of all Argentine fintech companies currently in operation were founded just last year, showcasing the accelerated growth the sector witnessed during the global pandemic. Between 2017 and 2020, direct employment in the fintech sector grew at a sustained rate of…

California-based fintech Willa announced that it has secured US$18 million during a Series A funding round. The round was led by New York-based Fintech Collective, including additional investments from Entrée Capital and EQT Ventures. With the investment, Willa is gearing up to expand its invite-only beta to a waitlist of 150,000+ freelancers in the United States. The latest funding will also allow for the company to grow its active user base and keep up with demand and a rapidly growing waitlist. A debit card and additional services centered around financial wellness for freelancers are planned later in 2021. Willa also…

Visa revealed that its customers had spent more than US$1 billion on its crypto-linked cards in the first half of 2021. The payments giant reported that it had partnered with 50 leading crypto platforms on card programmes that make it easy to convert and spend digital currency at 70 million merchants worldwide. Visa had previously announced in March 2020 that it will allow the use of USD Coin (USDC), a stablecoin backed by the US dollar, to settle transactions on its payment network over Ethereum. The company has been expanding partnerships with digital currency platforms such as FTX, Coinbase, Crypto.com,…

Though the growth of fintech in Latin America (Latam) started later than in other region, it quickly picked up stream. Today, Latam is experiencing an explosion of fintech activity that’s being fueled by rising demand for online banking tools, encouraging demographics, and a significant underserved population. Since 2016, more than US$7 billion has been invested into Latam financial services companies, according to Crunchbase data. Funding activity accelerated in 2019, jumping from US$600 million in 2018 to US$1.5 billion. As of June 2, 2021, total investment dollars invested in the sector were already neck-and-neck with last year’s total, indicating that 2021…

JPMorgan Chase has entered into an agreement for a 40% ownership stake in Brazilian digital bank C6 Bank for an undisclosed sum. Launched in 2019, C6 Bank has reportedly amassed more than 7 million customers on its digital platform. C6 Bank offers a full suite of products including multi-currency checking and savings accounts, debit and credit cards, travel and loyalty programs, investment and lending products for individuals as well as banking and payments products for small businesses. Brazil is one of the largest retail banking markets in the world where unprecedented regulatory reform and infrastructure modernisation has led to increased…

Cross border payments specialist Payoneer announced that it has completed its merger with the FTAC Olympus Acquisition Corp. (FTOC), a special purpose acquisition company, to become a publicly traded company. As a result of this merger, a new public entity under the name Payoneer Global Inc., and its common stock and warrants, will begin trading on the Nasdaq stock market under the ticker symbol “PAYO” and “PAYOW”, respectively. Payoneer’s global management team, led by Scott Galit, Chief Executive Officer, Michael Levine, Chief Financial Officer, and Keren Levy, Chief Operating Officer, will continue to lead the company. The transaction includes a…

A world leader in tech innovation, it comes with little surprise that the US has produced some of the world’s biggest fintech companies with widely renowned names including PayPal, Square and Stripe. Today, the country hosts some of the largest and most established fintech hubs that have benefited from the presence of world leading universities, abundant tech talent pool, and finance expertise to establish some of the world’s top fintech ecosystems. Using a number of research papers including the Global Fintech Ecosystem Report 2020 by Startup Genome, the Global Fintech Hub Report 2020 produced by top Chinese Universities and government…

Brazil, the largest fintech market in Latin America (Latam) and the fifth in the world with more than 750 fintech companies, had a glorious year 2020, and the momentum is expected to continue in 2021. Investment in Brazilian fintech companies totaled US$1.7 billion in 2020, up 86% from US$910 million in 2019. 2020 also saw the fintech sector welcome several important regulatory and infrastructure developments including the new regulatory sandbox, open banking regulation, and the launch of Pix, Brazil’s instant payment system. Riding on this momentum, fintech funding in Brazil continued to accelerate this year, with two of the top…

As Miami rapidly becomes a central destination for technology development and a symbol for the tech exodus from Silicon Valley, fintech companies are flocking in the city, looking to leverage its Latin American (Latam) ties and crypto-friendly political environment. This year, Fortu, a digital bank focused on Latino and Hispanic US residents, chose Miami to base its headquarters, deeming it “the highest profile American city with a Latino majority and home to the most exciting emerging technology hub.” Former PayPal and Intuit CEO Bill Harris said in May that he had moved to Miami to launch its new venture, Nirvana…

Credijusto, a Mexican lending platform for small businesses, announced the acquisition of a local bank Banco Finterra which specialises in financing solutions for small businesses and the agriculture sector. According to Reuters, Credijusto acquired the regulated bank in a deal for under US$50 million, becoming the first Mexican fintech to do so. This move allows Credijusto to become a neobank in Latin America that is focused on serving small and medium-sized enterprises (SMEs). “Our acquisition of Banco Finterra creates the first truly digital banking platform for Mexican SMEs. This acquisition marks a major milestone in Mexico and the region,…

EBANX, a Brazilian cross-border commerce platform, announced an investment of US$400 million from Advent International and an additional commitment of US$30 million to the company’s planned IPO in the U.S. Advent has made investments in Vantiv, Worldpay, Nets, Nexi, Planet, Xplor Technologies, Prisma, Concardis, Monext, and Stone. The firm joins FTV Capital as a minority investor in EBANX. For the first time, all four of Advent’s funds, including Latin American Private Equity Fund (LAPEF), Global Private Equity (GPE), Advent Tech and Sunley House Capital, are participating in the same investment. The investment will be used to continue funding EBANX’s aggressive…