Author: Fintech News America

Amazon launched its latest payment technology using a new biometric system that uses palm recognition, allowing its users to do everyday activities like paying at a store, presenting a loyalty card, entering a location etc. The service, called Amazon One, is designed to be highly secure and uses custom-built algorithms and hardware to create a person’s unique palm signature. This will be available in select Amazon Go stores, where Amazon One will be added to the store’s entry gate as a convenient choice for customers to use to enter the store to shop. In most retail environments, Amazon One could…

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US based Volante Technologies, cloud payments and financial messaging solution, announced a collaboration with Goldman Sachs for the Goldman Sachs Transaction Banking Platform. Voltane will provide the payment technology underpinning the bank’s recently launched digital transaction banking service built entirely from scratch in the cloud. The platform is fully API-enabled and incorporates analytics, liquidity management, virtual accounts, and payments. At the core of this platform is Volante’s cloud-native VolPay, providing unified end-to-end processing of domestic and international payments, including foreign exchange/FX, across U.S. wires, ACH, SWIFT cross-border payments, and other payment rails. Uday Thakur, Co-founder & CTO, Volante Technologies said,…

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Rapyd, a fintech-as-a-service company, announced a major expansion of its European platform, adding end-to-end card acquiring capabilities to its payments capabilities. Rapyd now offers a full stack payment acceptance capabilities in Europe including card acceptance through Mastercard and Visa, and support for local Alternative Payment Methods (APM’s) in over 100 countries, all accessible from a single platform and managed from one contract reconciliation process. The Rapyd platform offers an easy way for European businesses to expand globally online. This also gives merchants the ability to extend their existing point-of-sale (POS) systems to deliver an integrated omni-channel commerce experience as business…

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A new working paper by the Bank for International Settlements (BIS) looks at the state of central bank digital currency (CBDC) projects around the world. According to the study, as of mid-July 2020, at least 36 central banks had published retail or wholesale CBDC work. At least three countries, namely Ecuador, Ukraine and Uruguay, had completed a retail CBDC pilot, and six retail CBDC pilots were ongoing in the Bahamas, Cambodia, China, the Eastern Caribbean Currency Union, South Korea, and Sweden, the research found. Meanwhile, 18 central banks had published research on retail CBDCs, and another 13 had announced research…

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Sequoia Capital, 500 Startups, Ribbit Capital, Accel and Global Founders Capital (GFC) were the five most active fintech venture capital (VC) investors in deal count from Q2 2019 to Q2 2020, according to an analysis by CB Insights. Sequoia Capital Sequoia Capital, which includes its US, China, and India funds, was the most active VC investor across this time period, inking deals to startups including online payment processing startup Stripe, which raised a US$600 million Series G in April, retail trading platform Robinhood, which raised US$280 million in a Series F funding round in May, and Brazil-based challenger bank NuBank,…

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Google is expanding its plans to offer digital banking services in the United States (U.S.) by partnering with several banks to offer digital checking and savings accounts to Google Pay users which will be available in 2021. The 8 banks in question are Citi, SFCU, Bank Mobile, BBVA USA, BMO Harris, Coastal Community Bank, First Independence Bank and SEFCU. It was reported that Google intends to form more partnerships with other financial institutions in the future. The Wall Street Journal was the first to announce in November last year of Google’s plans to dive into the financial services via an…

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Consumers around the world are switching to contactless to help with social distancing, accelerating the adoption of contactless payments that was already under way With 15% penetration, contactless still has potential for further growth RBR’s Global Payment Cards Data and Forecasts to 2024 report reveals how increased contactless card issuance and acceptance combined with changes in consumer behaviour are driving growth in contactless payments. In 2018, the number of contactless payments worldwide increased by 72% to reach 70 billion. This accounted for 15% of the world’s card payments, a share which will increase significantly over the next few years, with…

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Community banks and credit unions are struggling to keep up with the pace of innovation due to limited capacity, lack of skills, and limited budget. Given these limitations, smaller lenders must collaborate with fintech companies to meet fast-changing customer demands and rapidly adopt fintech innovation, according to a new white paper by financial software provider Finastra. Customers, especially younger, digital-savvy ones, are demanding seamless digital experiences, and personalized services delivered at their fingertips. According to a ABA/Morning Consult survey released in November 2019, nearly three quarters of Americans (73%) most often access their bank accounts via online and mobile channels, with mobile…

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Payments company Stripe has rolled out a new card issuing product in the US, allowing businesses to create, manage and distribute tailored virtual and physical cards to their customers and employees, the company announced on April 23. Stripe Issuing is an API that allows businesses to issue cards “on a self-serving basis,” a first in the sector, John Collison, Stripe’s co-founder and president, said in an interview. These “programmatic cards” can be set up quickly and come packed with capabilities to give maximum flexibility and cater to different needs. Zipcard, Stripe’s first customer for this offering, will be using Stripe…

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Throughout the years, the US has produced some of the world’s leading fintechs including popular names such as Acorns, Affirm, Betterment, Credit Karma, Hippo Insurance, Lemonade and Stripe. But the country is also home to a large community of young, early stage fintech startups with great potential. To keep with this rapidly evolving landscape, we look today at eight undiscovered, early stage fintech startups from the US to keep a close eye on this year. All of them are rapidly attracting the attention of investors, and recently raised seed funding to fund growth and expand their teams. Oxygen Founded in…

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The challenger bank trend first emerged in Europe and has progressively gained traction in all parts of the world. Today, challenger banks are growing significantly and attracting big money. According to FT Partners’ newly released The Rise of Challenger Banks: Are the Apps Taking Over? research paper, Brazil’s Nubank is currently the world’s biggest challenger bank counting some 15 million users, and the world’s most well-funded challenger bank having raised US$906 million. Founded in 2013, Nubank offers a no-fee MasterCard Platinum credit card that can be managed through a mobile app. Customers can open an account in less than three…

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Fintech is gaining momentum in the US with US$12.9 billion raised so far this year, as of Q3’19, already surpassing 2018’s annual record of US$12.5 billion, according to CB Insights’ Global Fintech Report Q3’19. In Q3’19, the US saw ten so-called mega-round (US$100 million+) investments worth a combined US$1.9 billion. Three of the ten US mega-rounds went to startups outside New York and California, two locations that were drivers for fintech funding in previous quarters. These deals include Root Insurance, an insurtech company from Ohio; C2FO, a working capital lender from Kansas; and Remitly, an online and mobile payment services…

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A few days after receiving an accolade as the «Next Global Hot Thing», Sonect, the pioneer of Virtual ATMs, has announced the completion of an oversubscribed Series A round. Together, all existing investors have contributed CHF8.45 million. Since its foundation in 2016, Sonect provides a location-based matchmaking platform that connects individuals that want to withdraw cash with those who want to deposit cash – typically, a local shop owner. The success of this new business model can be evidenced by the company’s exponential growth. Since 2018, Sonect has established the largest network of cash withdrawal points in Switzerland and Portugal,…

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On the global fintech scene, the US has been amongst the top leaders, accounting for 57% of the fintech market in 2018, according to a Mordor Intelligence research. Consumers in the country have realized the key benefits of fintech solutions such as lower rates and fees, convenience, simplicity, transparency and personalization, and on average, it is estimated that one out of three digitally active consumers uses two or more fintech services. Fintech continues its momentum this year, with investment in US fintech companies surging to US$12.7 billion in the first half of 2019. That represents a 60% increase in value…

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The stablecoin market is obviously gaining popularity, growing from 1% of all crypto in 2018 to almost 3% today. Global stablecoin trading volume increased from $12.5 billion in 2017 to $82 billion in 2018, according to Chainalysis. Furthermore, the 24-hour trading volume for Tether, one of the most popular stablecoins, recently exceeded Bitcoin’s. But it’s a slow and complex process for large centralized exchanges to adopt this kind of currency. They already have the option to use Tether, and in the absence of user demand, they see no reason to list alternatives. Today we’re discussing these issues and trends with…

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Divvy, an US based in spend and expense management tool, claims that they closed a $500 million purchase agreement with Credit Suisse. The agreement gives Credit Suisse the right to buy up to $500 million in future Divvy receivables over the next two years. It gives Divvy more lending power to help customers grow their businesses—adding $500 million in debt capital to the $250 million they received from Waterfall Asset Management in January 2019. Divvy’s goal is it to modernize the way companies manage spending by fusing financial management software with a smart corporate card. Divvy gives real-time visibility into the…

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Dynatrace, a cloud computing firm backed by Private Equity firm Thoma Bravo, launched a successful initial public offering (IPO) on August 1, 2019, raising roughly US$570 million. The stock rose 49% in its market debut on the New York Stock Exchange, closing at US$23.85 on Thursday, August 1, from its offer price of US$16, giving the company a market value of US$6.71 billion. Dynatrace sold 34 million shares. Owners of stocks uploaded another 1.6 million shares. According to IPO filings, private equity firm Thoma Bravo will remain Dynatrace’s controlling shareholder, owning 71% of the company’s stock, or 200 million shares.…

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PitchBook, a software-as-a-service company that delivers data, research and technology covering the private capital markets, has released its list of the ten most valuable fintech startups in North America and Europe. These tackle a broad range of areas including cryptocurrencies, payments, credit, investment and trading. Among the ten fintech startups, PitchBook notes two main trends: the removal of traditional banking fees such as Credit Karma’s free credit and financial management platform, and Robinhood’s commission-free trading platform, as well as the elimination of geographical limitations and complex processes in traditional credit and money services like Opendoor’s instant home buying service. The…

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The following are 26 of the top fintech, digital finance-focused events and conferences taking place in the coming months in the US: #PAY Symposium & Exposition August 20 – 21, 2019 Caesars Palace, Las Vegas #PAY Symposium & Exposition, a C-Level event, will address the entire spectrum of the payments industry – from banking to blockchain and beyond, and provide the opportunity for leaders in the industry to showcase their brand to key decision makers. With over 50,000 square feet of conference and exhibit space, #PAY Symposium & Exposition will focus on the tidal wave of transformation that is…

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Last year, the UK’s Financial Conduct Authority (FCA) expressed intentions about launching a global sandbox, and just a few months later, announced a collaboration with regulators around the world to create that sandbox for innovative fintech firms to interact with regulators. Fintechs across the globe face key issue at a point in their growth: scaling. Or specifically, expanding into other jurisdictions with vastly differing laws and ensuring compliance. The programme, christened the Global Financial Innovation Network (GFIN), aims to mitigate those issues, and saw the participation of 17 regulators. Since the announcement, 44 unique applications came to GFIN’s network of regulators.…

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