Author: Fintech News America

PayPal announced the launch of Checkout with Crypto, where US customers will be able to choose to check out with crypto seamlessly. Building on the ability to buy, hold and sell cryptocurrency with PayPal, customers using Checkout with Crypto can check out safely and easily, converting cryptocurrency holdings to fiat currency, with certainty of value and no additional transaction fees. Checkout with Crypto will automatically appear in the PayPal wallet at checkout for customers with sufficient cryptocurrency balance to cover an eligible purchase. All transactions are settled in USD and converted to the applicable currency for the business at the…

Visa announced 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, an open-source blockchain. Visa said that it is piloting the capability with Crypto.com, a crypto platform and a Visa partner, and plans to offer the USDC settlement capability to additional partners later this year. Working with Anchorage, a digital asset bank and an exclusive Visa digital currency settlement partner, Visa has launched the pilot programme with Crypto.com. Visa’s standard settlement process requires partners to settle in a traditional fiat currency, which can…

Adoption of open banking is catching in the US on the back of rising customer demand and competitive pressures, according to a new report by Financial Technology (FT) Partners. In a paper titled Open Banking: Rearchitecting the Financial Landscape, the fintech-focused investment bank gives an overview of the open banking landscape in the US and introduces some of the companies leading the space. According to the report, US consumers are becoming increasingly awareness and receptive of open banking with younger generations in particular being the most interested in the potential for more flexible and transparent financial offerings. Higher-income consumers tend…

Feedzai, an American cloud-based financial risk management platform, announced that it has secured $200 million during a Series D investment round, valuing the startup at more than $1 billion. The funding round was led by leading global investment firm KKR, with participation from existing investors Sapphire Ventures and Citi Ventures. Feedzai said that the new investment will be used to accelerate the company’s global expansion, further develop its product offerings, and boost its partner strategy to strengthen its position in the market. Feedzai’s platform is used by financial institutions, payment providers, and merchants to manage the risk of financial crime…

The open banking movement has reached Latin America (LatAm) on the back of a booming fintech sector. The growth of fintech in LatAm started later than in other regions but quickly picked up steam. From 2017 to 2019, fintech investment in LatAm grew more than 100% while the number of deals increased by 28%, according to a November 2020 paper by the Bank for International Settlements (BIS). In 2019, Brazil was the largest fintech market in terms of investment, volume of alternative finance and number of deals, while Colombia had the second highest volume of investment, and Mexico had the…

Dutch payment news and intelligence the Paypers has released an updated version of its infographic of the global open banking ecosystem in 2021, mapping key solution providers and their core offerings and solutions. The map categories open banking companies in eight segments depending on their offerings. Some companies such as Ndgit (Germany), Tide (UK) and Tink (Sweden) fall into multiple open banking categories because they offer several different solutions. The first segment, open banking enablers, comprises companies either building PSD2 – the European Union (EU)’s revised Payment Services Directive – and open banking-enabled propositions, providing developers and payment services providers…

Neobanks and digital banks have set new standards in customer experience and expectations, pushing incumbents to get out of their comfort zone and innovate. After accumulating an estimated 39 million users worldwide, neobanks are now coming after the next generation, launching child- and teen-focused offerings. Fintech intelligence startup WhiteSight identifies more than 50 neobanks providing products and services targeted at an audience below the age of 18 years old. The group includes over 40 ventures that focus solely on children and teenagers. The rest cater to broader customer segments but have launched kids-focused digital offerings. These include Current (USA), Naraja…

Stripe, an Irish-American payment processing platform, has raised $600 million (€500 million) during a funding round, pushing its valuation to $95 billion (€80 billion). Primary investors include Allianz X, Axa, Baillie Gifford, Fidelity Management & Research Company, Sequoia Capital, and Ireland’s National Treasury Management Agency (NTMA). The company will use the capital to invest in its European operations, and its Dublin headquarters in particular, support surging demand from enterprise heavyweights across Europe, and expand its Global Payments and Treasury Network. Of the 42 countries in which Stripe powers businesses today, 31 are in Europe. And many of the continent’s largest…

PayPal announced that it has agreed to acquire Curv to accelerate and expand its initiatives to support cryptocurrencies and digital assets. Curv is a provider of cloud-based infrastructure for digital asset security based in Tel Aviv, was founded in 2018 by CEO Itay Malinger and CTO Dan Yadlin. In October 2020, PayPal announced its commitment to help shape the role that digital currencies will play in the future of financial services and commerce. To drive sustained growth and innovation in this area, the company recently created a business unit focused on blockchain, crypto and digital currencies. Curv will join the…

Square, a US-based mobile payment company, announced that its subsidiary Square Financial Services, has begun operations. The launch follows Square Financial Services’ completion of the charter approval process with the Federal Deposit Insurance Corporation (FDIC) and the Utah Department of Financial Institutions. Headquartered in Salt Lake City, Utah, its primary purpose will be to offer business loan and deposit products, beginning with underwriting and originating business loans for Square Capital’s existing lending product. Moving forward, Square Financial Services will be the primary provider of financing for Square sellers across the U.S. Square Financial Services said that it will continue to…

PayPal announced the launch of PayPal Galactic, an initiative that addresses the issues to help make universal space payments a reality. PayPal Galactic brings together leaders in the scientific community, including the SETI Institute and Space Tourism Society, to prepare and support the future of space commerce. Already the need for a galactic payment system exists as astronauts inhabiting space stations still need to pay for life’s necessities from their bills back on Earth to their entertainment, like music and e-books, while in space. Space Tourism Society said that “within five to ten years the earliest types of ‘space hotels’…

Personetics, a Tel Aviv-based global provider of data-driven personalisation and customer engagement solutions for banks and financial services providers, announced it has raised $75 million in funding from Warburg Pincus LLC, a leading global private equity firm focused on growth investing. Personetics is backed by Viola Ventures, Lightspeed Ventures, Sequoia Capital and Nyca Partners. Banks use Personetics’ agile tools and its low-code engagement builder, a creation and management console, to quickly modify hundreds of pre-programmed insights and build customised user journeys. This enables banks to share real-time personalised insights and advice, as well as automated, self adjustable financial wellness programmes…

A new survey conducted by Juniper Research has found that more than 50% of US consumers wanting to change banks would consider a digital-only bank, with the same finding reflected in a similar UK survey. However, the findings showed that banks need to be more than technologically competent as users’ top priorities include sign-up benefits and good rates, which are often more important than digital features. Banking Basics Still Important in a Digital World The new report, Digital Commerce Survey: Consumer Attitudes to Mobile Banking, mCommerce & Contactless Report, noted that there are marked differences between US and UK consumers…

64% of financial institutions in Latin America will be increasing investment in retail payments over the next two years, according to a survey conducted by OpenWay, a global vendor of digital payment software, and technology analyst house Omdia. Banks and fintechs in the region are looking to improve their customer experience by focusing on mobile wallets, digitalization of back-office operations and use of cloud technologies. The economic landscape of Latin America has always been varied. But regardless of differences in financial inclusion, use of cash, and development of digital payment infrastructure, the pandemic has strongly affected financial institutions across the…

South America has seen an exceptionally dynamic evolution of its neobanking landscape, with now more than 30 live neobanks and digital banks that serve over 50 million customers out of the region’s 430 million+ population (+11%), data from Dutch fintech consultancy firm Fincog show. These new entrants are now present across the whole region, with the exception of Venezuela, Guyana, Suriname, French Guinea, Ecuador, Bolivia and Paraguay, which have yet to welcome their first homegrown neobank, the research found. Brazil: South America’s neobanking hub Unsurprisingly, Brazil stands as the hub for neobanking in South America, counting 19 players among which…

The COVID-19 pandemic has shifted US consumers’ attitudes towards banking and financial services, accelerating the adoption of digital financial services and bringing fintech into the mainstream, surveys McKinsey conducted found. In an article titled How US customers’ attitudes to fintech are shifting during the pandemic, the consulting firm shares findings from research conducted monthly between March and November 2020, that measure financial sentiment, behaviors, needs and expectations among household financial decision makers. Among all financial decision makers polled in the US, 42% said they used at least one fintech solution. More than 6% of them became fintech users during the…

In 2021 we will harvest the seeds of the accelerated adoption and development in technology that 2020 forced upon us. The fintech industry took a leap forward with the user base growing significantly. This will lead to more demands for additional features and pressure for profitability from the market. We expect to see two trends as the Covid pandemic flattens out in Mexico and ends in the developed world. First, we will see people returning to offices, restaurants, bars, clubs, parties, while traveling and socializing with others. At the same time, the behavior instilled during the pandemic will also lead…

Fintech intelligence startup WhiteSight has released its selection of 2020’s top 20 neobanks based on growth and valuation. The list features 20 independent digital banking companies from Europe as well as North and South America which made notable strides last year, continued to expand their customer base, and launched new products and services. Top 20 most valuable neobanks Out of the 20 most valuable neobanks, eight are from the US, making it the most represented country in the list. The US is followed by the UK with five and Brazil with three. Other countries featured include Germany, Australia and Argentina.…

The global nature of the blockchain ecosystem is adding a layer of complexity in the fight against crypto-related crimes. Against this backdrop, the US Department of Justice (DOJ) is calling for international, federal, state and public-private cooperation to improve the regulation and policing of cryptocurrency activity. On October 8, 2020, the US Attorney General’s Cyber-Digital Task Force released a new report addressing the emerging threats and enforcement challenges associated with cryptocurrencies. In the Cryptocurrency Enforcement Framework, the task force says that while it recognizes the “breathtaking possibilities [of distributed ledger technology] for human flourishing,” citing areas including supply chain transparency…

So-called digital banking champions are delivering the best UX in account opening, transfers and buying a credit product. They are also leading their peers in products and personal finance management, as well as in expanding their digital functionalities to provide the widest range of products, according to a new report by Deloitte. In its Digital Banking Maturity 2020 report, the firm shares findings from the largest global benchmarking of digital retail banking channels, and provides an overview of the areas where digital champions are putting their focuses on. According to the report, digital champions, which offer a wide range of…