PaymentGenes’ Post

𝐓𝐡𝐞 𝐔𝐧𝐛𝐮𝐧𝐝𝐥𝐢𝐧𝐠 𝐄𝐯𝐨𝐥𝐮𝐭𝐢𝐨𝐧 𝐢𝐧 𝐅𝐢𝐧𝐭𝐞𝐜𝐡 𝐂𝐨𝐧𝐭𝐢𝐧𝐮𝐞𝐬 𝐨𝐧 𝐚𝐥𝐥 F𝐫𝐨𝐧𝐭𝐬 𝐚𝐧𝐝 𝐆𝐥𝐨𝐛𝐚𝐥𝐥𝐲 The Fintech landscape is undergoing a new phase of unbundling, driven by increasing competition and maturation in key verticals like #Payments and #Wealthtech. But this unbundling looks different than the initial wave of Fintech disruption. In the first phase, Fintechs unbundled services from traditional banks, offering standalone solutions for payments, lending, investing, and more. Established Fintechs are now unbundling their offerings, selling API access to specific capabilities rather than requiring customers to use their full stack. Two recent examples illustrate this trend: 1.  Fidelity Investments's eMoney unit is beginning to sell API access to individual features of its financial planning software, allowing RIAs to private-label capabilities and craft their own planning experience. 2.  Stripe has decoupled its payments API from the rest of its platform, enabling customers to use its other tools (fraud detection, invoicing, etc.) without having to process payments through Stripe. We've seen a similar pattern in Asia.  Grab, the Southeast Asian super-app, has unbundled its fintech arm into a separate entity (GrabFin) and is now selling API access to its capabilities in payments, rewards, lending, and more to other businesses. This unbundling was not driven by regulatory pressure (like Ant Group`s unbundling). What's driving this new wave of unbundling? As fintech verticals mature and competition intensifies, companies need to differentiate. Selling best-in-class point solutions via API allows them to monetize their tech while giving customers more flexibility. For customers, the ability to pick and choose capabilities is powerful. They can create tailored solutions by combining top offerings, without getting locked into a single vendor's platform. Plaid and Adyen have been leading on this front with the Plaid Portal and the Modular Offering by Adyen. Expect to see more companies carving out their best features and selling them à la carte. 𝑰'𝒅 𝒍𝒐𝒗𝒆 𝒕𝒐 𝒉𝒆𝒂𝒓 𝒇𝒓𝒐𝒎 𝒚𝒐𝒖: - What other examples of fintech unbundling have you seen recently? - Which areas of fintech do you think are most ripe for this type of unbundling? 𝑫𝒓𝒐𝒑 𝒚𝒐𝒖𝒓 𝒕𝒉𝒐𝒖𝒈𝒉𝒕𝒔 𝒊𝒏 𝒕𝒉𝒆 𝒄𝒐𝒎𝒎𝒆𝒏𝒕𝒔 𝒃𝒆𝒍𝒐𝒘! Mediterranean a la carte 😉 #fintech #modular #API #unbundling #Saas #efiinsights

As the fintech sector continues to innovate and grow, some companies are truly standing out. According to a recent article by Bobsguide, here are 𝘁𝗵𝗲 𝘁𝗼𝗽 𝟭𝟬 𝗳𝗶𝗻𝘁𝗲𝗰𝗵 𝗰𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 𝗺𝗮𝗸𝗶𝗻𝗴 𝘄𝗮𝘃𝗲𝘀 𝗶𝗻 𝟮𝟬𝟮𝟰: 1. Ant Group 2. Stripe, Inc. 3. Revolut 4. Chime Financial, Inc. 5. Rapyd 6. Plaid 7. Brex, Inc. 8. GoodLeap 9. Bolt 10. Checkout These companies are revolutionizing the industry with their innovative approaches to digital payments, financial services, and customer experience. Read more about their success stories and how they're leading the way in fintech: https://lnkd.in/eFDdfpkD #fintech #innovation #digitaltransformation #quantumsoftware #fintechleaders

We know you're busy, so here’s a quick overview of some recent developments in the fintech industry from the past two weeks: ◙ Stripe is reportedly in advanced talks to acquire Bridge, a stablecoin infrastructure startup, in a deal potentially worth $1 billion. This acquisition would enhance Stripe's capabilities in the burgeoning stablecoin market. ◙ Canva has partnered with EBANX to offer local payment options for customers in Latin America, highlighting the growing importance of localized payment solutions in global markets. ◙ Barclays has signed an agreement to become the exclusive issuer of General Motors' credit card program in the U.S., replacing Goldman Sachs. This move is part of Barclays' strategy to expand its credit card portfolio. ◙ Mastercard has agreed to acquire Swedish fintech Minna Technologies, which specializes in subscription management. This acquisition aims to enhance Mastercard's subscription services by integrating Minna’s payment-scheme agnostic solutions. ◙ Klarna has sold its UK loan portfolio to Elliott Advisors for £30 billion, freeing up funds as Klarna prepares for a potential stock market debut next year. ◙ Zepz, an international money transfer service, has raised $267 million in a Series F funding round led by Accel. The funds will be used to expand into new markets and develop new products like the Zepz Wallet. ◙ Abhi, a UAE-headquartered fintech, secured $15 million in credit financing to scale its operations and expand its earned wage access solutions. Read more here. ◙ FintechIO, a UK-based startup, launched Blip-Pay, an account-to-account (A2A) payments platform. This platform aims to leverage real-time financial data to offer secure and efficient transactions, potentially reducing transaction fees significantly. ◙ The Financial Conduct Authority (FCA) fined Starling Bank £29 million for failing to adequately screen for financial crime risks associated with high-risk customer accounts. ◙ TSB Bank was fined £10.9 million by the FCA for not ensuring fair treatment of customers in arrears, highlighting issues with their systems and controls. ◙ The first Hamburg Fintech Day was held recently, focusing on challenges such as regulation and scalability for fintechs. The event emphasized the importance of innovation and collaboration between fintechs and traditional financial institutions to overcome these challenges. Links & more - https://hubs.li/Q02Vtyyy0 #Fintechnews #Fintech #Payments

🚀 Top #Fintech Innovators of 2024: Part 2 - Continuing the Journey 🚀 Thrilled to share that our first part on the #Top10 Fintech Companies of 2024 garnered over 1,000 views in just 24 hours! Your enthusiasm fuels us, and I’m excited to dive into the next set of game-changers as highlighted by Forbes. 🌍 Rapyd (Israel) - With a $5B valuation, #Rapyd’s dynamic payments infrastructure is enabling seamless global transactions across 100+ countries. 🔗 Plaid(USA) - Valued at $13.4B, #Plaid powers financial connectivity, linking bank accounts to over 11,000 fintech apps, including Venmo and Robinhood. 💼 Brex (USA) - With a $12.3B valuation, #Brex is transforming corporate finance with tailored solutions for startups, attracting over 50,000 clients. 🌱 GoodLeap (USA) - Facilitating over $7B in sustainable home improvements, #GoodLeap is leading the charge in green finance. 🛒 Bolt (USA) - Valued at $4B, #Bolt’s one-click checkout reduces cart abandonment by 60%, serving 300,000+ e-commerce businesses. 💳 Checkout.com (UK) - A global payments giant with a $40B valuation, processing $1B+ in daily transactions across 150 countries. At DayOne Technologies, we’re inspired by these innovators and proud to build fintech solutions that empower businesses globally. Whether it's optimizing payments, developing seamless checkouts, or facilitating sustainable finance, we’re here to help your business grow. 👉 Missed Part 1? Check it out and stay tuned for more insights! #Fintech #Innovation #DayOneTechnologies #ForbesTop10 #GlobalFinance #Sustainability #Ecommerce #FinancialConnectivity

💡 Fintech Growth vs. Profitability: A Balancing Act In the fast-paced world of fintech, growth often comes at a price. TrueLayer, a UK-based payments company backed by Stripe, exemplifies this reality with its remarkable 2023 results. Despite trebling its revenue to £12.4m and doubling its gross profit to £7.78m, the company faced pre-tax losses of £55.6m—a 38% increase year-on-year. 📈 Signs of Progress Amid Challenges Revenue growth of 200%—a testament to its market positioning. Operational losses reduced, signaling a shift towards more sustainable practices. Achieved a major milestone of 1m+ variable recurring payment transactions per month. Yet, the narrative isn’t all rosy. Open banking, a transformative technology TrueLayer champions, still captures only 7% of global e-commerce transactions, far behind digital wallets (50%) and credit cards (22%). 🔍 What does this mean for the fintech ecosystem? Scaling innovative solutions like account-to-account (A2A) payments requires significant upfront investment, often leading to temporary profitability challenges. Rising interest rates and inflation put extra pressure on payment startups, especially those unable to leverage interest income as neobanks do. Despite these hurdles, TrueLayer’s progress in open banking adoption and its strengthened partnership with Stripe reflect its commitment to shaping the future of payments in Europe and beyond. 🚀 Key takeaway for fintech leaders: Balancing growth and operational efficiency is critical. The road to profitability may be long, but a focus on innovation and strategic partnerships can pave the way. What’s your perspective on the profitability vs. growth debate in fintech? Is prioritizing market share over immediate profit the right approach? Read more about TrueLayer’s journey here: https://lnkd.in/eGJxUtMe #Fintech #OpenBanking #PaymentsInnovation #GrowthStrategy #TrueLayer #MarketInsights

🚀 Issue #132 of Fintech Radar is live! Here’s what we’re covering this week: 💸 Banked makes an early land grab in Australia with its acquisition of Waave, aiming to strengthen its position in the growing Pay-by-Bank market. With action initiation regulations finally passed and Australia’s instant payment network maturing, Banked seems well-positioned in the market. 🏦 Plaid continues its push into payments with a Pay-by-Bank product for U.S. bill payments. As I said in last week's issue of FR, every open banking provider is a payments company — they just don’t know it yet. 🌏 Alipay+ sees overseas use of its payment partner apps triple in 2024. With international travel back and expansion via local payment networks, Chinese fintech’s resurgence is looking like a major theme for next year. 💸 Pockit acquires Monese, despite Monese’s £30.5m loss last year. It’ll be interesting to see how they integrate and invest up to £15m for growth. 📊 HubSpot adds to its Commerce Hub with the acquisition of Cacheflow, aiming to streamline B2B billing and subscription management as they lean into the growing complexity of pricing models. 💡 Plus: AI-driven health insurtech startup Qantev raises €30M, and accounting startup Numeric grabs $28M to automate month-end closings. Check out all the insights and trends here: https://lnkd.in/gHgyHw23 #Fintech #Payments #OpenBanking #AI #Insurtech #FintechRadar #Funding #Growth

Big news in payments: Nuvei to be acquired for $6.3bn Canadian payments company Nuvei will be taken private in an all cash transaction led by Advent International, a premium of 56% of its price on the NASDAQ at market close. The company reported US$1.2 billion in revenue in 2023 on a total processed volume (TPV) of $200bn. Philip Fayer will continue to lead Nuvei as Chair and Chief Executive Officer. Nuvei founded in 2003 operates in 200 markets, does local acquiring in 50, and supports 680 payment methods. 🧠 6x revenue doesn’t immediately feel huge. When you compare this to the ZIRP phenomena and multiple payments that Fintech companies were getting, it feels “small.” But to be fair, it’s closer to the long-term mean. It makes you wonder what Stripe would IPO at (although I doubt they ever will at this rate). 🧠 This is about being able to invest in growth rather than share price growth. Nuvei has been the quiet innovator while everyone focussed on Adyen or Stripe. In true Canadian style, they’ve consistently grown and delivered a modern set of platforms and capabilities. 🧠 I worry about them moving into their M&A era. They’ve started acquiring companies to get into new verticals and markets. That will drive revenue growth, but it’s also how companies gradually become in-efficient and slow. If they can keep bringing everything into a single platform they could create an interesting new chapter. #payments #banking #fintech

TrueLayer Secures $50M Funding Round as It Charts Path Toward Profitability TrueLayer, Europe’s leading pay-by-bank network, today announces the successful close of its latest funding round, raising $50 million in an extension of its $130m Series E. The funding round was led by Northzone with participation from existing investors Tencent, Tiger Global, Temasek and Stripe. It marks a significant endorsement of TrueLayer’s mission to reshape the digital payments landscape and pioneer pay by bank payments. Over the past 12 months, TrueLayer has made significant strides, consolidating its position as the European leader in pay-by-bank payments. TrueLayer’s revenue grew by 200% in 2023, as the company continues to expand its customer base, deepening partnerships across the industry, including Stripe and lastminute com. Its customer base also includes Revolut, Zopa, Coinbase and Robinhood. Today, TrueLayer processes more than $50bn in total payments volume and 150 million transactions annually, and recently surpassed 1 million variable recurring payment transactions per month, the first to achieve this milestone globally. Commenting, TrueLayer Co-Founder and CEO Francesco Simoneschi: “This funding is yet another vote of confidence in our company, our technology, and is testament to the foundational infrastructure we’ve created. Reaching this scale and position required a lot of time, capital, and commitment. We’ve built a unique ecosystem connecting banks, merchants, and consumers. This investment enables us to continue to challenge the status quo in payments and grow our presence in areas like e-commerce. The growth of pay-by-bank helps merchants reduce their cost of payments and puts money back in consumers’ pockets.” “We have built a payment network that is used by millions of people every day at the same time as maturing our business model and building trusted partnerships with some of the largest merchants in the world.” 👉 Subscribe for more news https://lnkd.in/d94JgWBU Source FFnews #fintech #funding #openbanking

🚀 **#Fintech Forward: Mastering Business Development in the Digital Age** 🚀 The fintech sector is uniquely positioned at the intersection of technology and financial services, driving unprecedented growth and innovation. As we navigate this dynamic field, here are key strategies for effective business development: 1. **Targeted Market Segmentation**: Understanding your audience is more than just market research; it's about segmenting the market to pinpoint who can most benefit from your innovations. For instance, companies like Revolut and Chime have successfully tailored their services to tech-savvy millennials, offering mobile-first banking solutions that resonate with this demographic's lifestyle and preferences. 2. **Strategic Partnerships**: Collaborations can unlock new markets and technologies, accelerating growth. A prime example is the partnership between Stripe and Amazon, which leveraged Stripe's payment processing capabilities to enhance Amazon's ecommerce ecosystem, demonstrating the power of strategic alliances in expanding service offerings and improving customer experiences. 3. **Navigating Compliance Proactively**: In fintech, regulatory compliance is not just a necessity but an opportunity. Adapting to regulations like the EU's PSD2 has allowed companies like Klarna and Adyen to innovate while maintaining compliance, using these regulations as stepping-stones to further innovation and market trust. 4. **Ethical Innovation**: Trust is the cornerstone of financial services. Fintech companies must prioritize security and data privacy to build customer confidence. Consider how blockchain technology is being employed by firms like Ripple to offer transparent, secure transactions, showcasing responsible innovation. 5. **Data-Driven Decision Making**: Leveraging big data and AI can provide insights that drive more personalized, efficient services. Companies like Zest AI are transforming lending practices by using machine learning to analyze borrower data more accurately, reducing risk and broadening credit access. Integrating these sophisticated strategies into your business development plans can prepare your fintech firm to lead and innovate in this evolving landscape. #FintechInnovation #StrategicGrowth #DigitalFinanceLeadership

Honoured to Share Pluto Money’s Recognition Among 2024’s Emerging Fintech Brands! Thrilled to share that Pluto Money has been featured in the Economic Times Now article "Emerging Fintech Brands and Their Leaders of 2024" alongside some incredible companies that are reshaping the financial ecosystem.As the fintech sector continues to innovate, brands like BranchX, Debt Nirvana, Indiagold, Purpleplum, and others are driving change—from transforming retail operations to simplifying education finance and enhancing digital banking experiences. It’s inspiring to be part of such a dynamic industry!At Pluto Money, we’re tackling one of the biggest challenges young Indians face: navigating complex financial decisions. Our platform provides personalized financial guidance tailored to each individual’s goals, ensuring they feel confident and in control of their financial journey. As our founder Danish Mohd. puts it, "Our mission is to bring thoughtful financial support to every individual, helping them make informed decisions without the guesswork."This recognition is a testament to the hard work and dedication of our amazing team, led by our visionary founders, Danish Mohd 🇮🇳(CEO) and Reev Ranj(CTO). Together, we’re making financial well-being accessible to everyone.Check out the full article to see how Pluto Money and other amazing brands are transforming the fintech space:  Link to the article - https://lnkd.in/ga3tn-X6 #PlutoMoney #EmergingFintech #FinancialInclusion #EconomicTimesNow #Innovation