- April 22, 2020
- Global Payments Knowledge, Newsletter
- Acquisitions, Contactless, Digital Payments, FinTech, payments
PayX Payments Market Analyst News
40 Remarkable Fintech Statistics That Will Shape 2020 and Beyond
For years now, global finance leaders have regarded fintech as the great disruptor, a digital force that threatened to bring unprecedented changes to the industry. Time has proved their fears justified, as the last decade has seen more progress in finance technology than the past hundred years. Fintech firms represent some of the fastest-growing companies in the world, and established old banking institutions are being pushed to invest in the technology themselves.
Contactless Payments Skyrocket Because No One Wants to Handle Cash
As more people worry about catching coronavirus from touching cash and credit-card terminals, a onetime niche technology is roaring into the mainstream. Use of contactless mobile payments — services that once struggled to catch on in the U.S. — is surging as people come to see their phones as the safer way to pay. They’re also using mobile apps tied to payments, such as Amazon Prime Now, to place delivery or pickup orders for groceries.
MyCrypto investigates fraudulent Google Chrome e-wallet extensions
MyCrypto, US-based e-wallet provider, has identified fake wallet Google Chrome extensions while Google has removed 49 of them from its Chrome Web Store. The fake extensions misrepresent legitimate wallets, leaking personal information inputted by users, such as private keys and passwords, to the hacker, who can then drain balances in a matter of seconds.
Worldline Agrees €7.8 Billion Deal to Acquire Ingenico
Worldline announced it is set to acquire French peer Ingenico for €7.8 billion, creating a European payments powerhouse and the fourth-largest player in payment services worldwide.
Revolut becomes UK’s most valuable fintech startup
Revolut has raised £387 million at a valuation of £4.2 billion, double the £2 billion price tag attached to rival neobank Monzo. The investment round was led by Technology Crossover Ventures, an early backer of companies including Airbnb, Netflix and Spotify.
Intuit to Acquire Credit Karma
Combined Companies to Create Consumer Finance Platform That Works Like a Personalized Financial Assistant Companies Aim to Transform FinTech, Power the Economy and Help Consumers Make Financial Progress
JPMorgan Chase To Open UK Digital Bank By Year’s End
JPMorgan Chase is taking steps to open a digital bank in the U.K. by the end of the year. The operation will likely include savings and lending products, and it comes just two years after U.S. bank Goldman Sachs launched a digital bank called Marcus in the U.K.
LendingClub Buys Radius Bank Marking First Fintech Purchase
LendingClub, a trailblazer in online lending, made its first fintech acquisition, spending $185 million in cash and stock to acquire Radius Bancorp. Through the acquisition, LendingClub gets access to Radius Bank, the popular digital bank operating in the U.S. with about $1.4 billion in assets. LendingClub is the first fintech to buy its way into banking, eschewing the process of applying for a national bank charter, which a handful of other fintechs have chosen to do.
Ramp Aims to Disrupt the Corporate Credit Market
Ramp, a company bank card startup based by the staff behind Paribus, a client finance agency acquired by Capital One in 2016, has raised $25 million in funding and signed up almost 100 companies for its launch. Ramp is taking purpose at a market dominated by the likes of American Categorical and new fintech companies equivalent to Brex.
Starling Bank raises another £60M from existing backers
Starling Bank, the U.K.-based challenger bank founded by banking veteran Anne Boden, has raised another £60 million from its existing investors Merian Global Investors and Harry McPike’s JTC. The investment brings the total raised by Starling to £323 million and follows two funding rounds of £105 million in aggregate led by Merian in 2019.
Banking and Payments predictions 2020: Digital banking
Listed below are the top digital banking predictions, as identified by GlobalData.
Incumbent banks will continue the battle cries of “we’re spending X amount on transformation,” but few will realise the true goal of digital transformation – digital reinvention. Most will end up digitising an existing analogue business rather than building new digital capabilities to reimagine what banking means for a digital age.
Another major fintech exit as SoFi acquires banking and payments platform Galileo for $1.2B
The fintech wars continue to heat up with another major exit in the space. Consumer financial services platform SoFi announced today that it is acquiring payments and bank account infrastructure company Galileo for $1.2 billion in total cash and stock. The acquisition is dependent on customary closing conditions.
Defining principles to win in the new era of payments
We do not need a crystal ball to determine the future of payments, it can be summed up in a few words: speed, transparency, personalisation, choice, and safety. The evolution of entities in the payments ecosystem in the last decade – whether traditional banks, payment processors, fintechs, or merchants – points to the fact that we are moving to a model where the transfer of money will be instant, frictionless, and omni-channel.
US banks have an opportunity to be ‘heroes’ in the coronavirus crisis, fund manager says
Speaking to CNBC’s “Street Signs Europe,” Nick Ford, co-manager of the U.S. Opportunities Fund and U.S. Smaller Companies Fund at Premier Miton Investors, said there was a “big silver lining” for lenders, despite the pandemic piling pressure on their operations. “Bear in mind that banks are the transmission for the systems getting money to people in difficulty,” he said. “I think there’s a huge opportunity for the U.S. banking system to come out of this as very much the good guys — as the heroes.”
How is coronavirus impacting the financial sector – and how are brands responding?
The effects of the ongoing coronavirus crisis are being felt in almost every sector. From retail and consumer packaged goods to entertainment, sports, and of course travel and leisure, every sector is being impacted in a different way and is facing down its own unique challenges. The financial services sector is currently facing challenges on multiple fronts: shelter-in-place and social distancing requirements mean that few customers are able to be served in a physical branch, putting additional strain on channels like telephone support, online and social media.
79 Key Fintech Statistics 2020: Market Share & Data Analysis
Just how worried or excited should you be of fintech? Just this year, 64% of consumers have used two or more fintech services or platforms, which will only increase in the coming years based on recent fintech statistics (Ernst & Young). With cutting-edge hardware, software, and networks, fintech entices consumers to flock to its camp in droves, and incumbents are forced to follow suit.