Fintech

PREDICT 2025: What the National Payments Vision means for the UK

Thu, 06 Feb 2025 17:00:00 +0000

What can the industry expect from the post implementation review of the APP fraud reimbursement rules?

Behavioural biometrics: Meeting the deployment challenge

Tue, 04 Feb 2025 15:00:00 +0000

How should financial institutions deploy behavioral biometrics?

Trusted Transactions: The Future of Risk-Based Authentication

Tue, 28 Jan 2025 15:00:00 +0000

Why should issuers and processers use AI to embed trust in the transaction lifecycle?

Beyond Open Banking – Exploring the Move to Open Finance

Thu, 23 Jan 2025 15:00:00 +0000

What do companies operating under open finance rules need to consider when sharing financial data with third-party providers?

Next Gen payment processing: How banks can embrace the future

Thu, 16 Jan 2025 15:00:00 +0000

How are payment processing needs changing?

PREDICT 2025: The Future of Faster Payments in the US

Tue, 14 Jan 2025 17:00:00 +0000

Which applications of Faster Payments in the UK are transferrable to the US?

PREDICT 2025: The Future of AI in the US

Thu, 12 Dec 2024 17:00:00 +0000

How will the results of the 2024 US Election impact use of AI in 2025?

2025 Fraud Trends: Synthetic Identity, AI and Incoming Mandates

Tue, 10 Dec 2024 15:00:00 +0000

What do banks need to do to detect and prevent APP scams in real time?

Unifying card programmes: The cost-reduction imperative

Thu, 05 Dec 2024 15:00:00 +0000

How can banks unify their card programmes?

Reaping the benefits of hyper-personalisation with AI and application modernisation

Thu, 28 Nov 2024 15:00:00 +0000

How can organisations effectively modernise to leverage hyper-personalisation?

AI adoption in UK FS sector grows but understanding lags

Fri, 22 Nov 2024 00:01:00 +0000

Three quarters of financial services firms in the UK are already using artificial intelligence, yet nearly half of these users have only a "partial understanding" of the AI they are deploying, according to a Bank of England and FCA survey.

Esma calls for 2027 EU T+1 migration

Fri, 22 Nov 2024 00:01:00 +0000

The European Securities and Markets Authority (Esma) has called for the EU to migrate to a T+1 settlement cycle by October 2027, ensuring coordination with the UK.

One Inc and US Bank team on insurance payments

Thu, 21 Nov 2024 21:33:00 +0000

One Inc, the leading payments network for the insurance industry, announced today a partnership with U.S. Bank aimed at delivering a comprehensive, unified payment experience for Property & Casualty (P&C) and Life insurers.

Finix and Sift introduce AI-powered advanced fraud monitoring

Thu, 21 Nov 2024 21:29:00 +0000

Finix, the full-stack payment processor enabling businesses to accept and send payments online and in-store, today unveiled Advanced Fraud Monitoring, a new no-code capability powered by Sift to help businesses better detect, monitor for, and prevent fraudulent transactions.

LendingTree Taps Coverdash to Launch Small Business Insurance Offering

Thu, 21 Nov 2024 19:05:58 +0000

LendingTree has partnered with insurtech Coverdash to integrate small business insurance into its platform.
Adding insurance solutions complements LendingTree’s existing SMB loan products by helping insured businesses qualify for more financing due to their lower risk profile.
The partnership also strengthens LendingTree’s position as a one-stop shop for SMB financial needs, while helping Coverdash expand its reach through a trusted, established brand.

Online loan marketplace LendingTree has partnered with SMB-focused insurtech broker Coverdash to offer LendingTree’s business clients small business insurance. The ability to add Coverdash’s insurance options will be embedded into LendingTree’s platform.

This partnership strengthens LendingTree’s connection with small business owners by broadening its SMB offerings beyond loans to include insurance solutions. LendingTree anticipates that this product expansion will complement its existing SMB loan products, as insured businesses typically present a lower risk profile, enabling them to qualify for additional financing. For Coverdash, today’s partnership with a trusted, established brand like LendingTree will broaden its reach and cement its role as a small business insurance provider.

“We’ve always played an integral role in helping small businesses get off the ground with our loans and financing programs, so offering business insurance was the natural next step,” said LendingTree General Manager, Small Business & Student Loans, Jenn Ash. “This partnership with Coverdash deepens our commitment to supporting our customers’ growth, reinforcing our position as their trusted, long-term partner for all of their financial services needs.”

North Carolina-based LendingTree maintains a marketplace of over 600 financial partners that offer a wide range of personal loans, mortgages, auto loans, and credit cards, and more. By enabling consumers to compare competitive rates and terms, LendingTree empowers individuals to make informed financial decisions. Since it was founded in 1998, the company has served over 120 million customers.

“LendingTree’s legacy in financial services is unmatched, and we’re incredibly proud to have our embedded experience power their expansion into business insurance,” said Coverdash Co-founder and CEO Ralph Betesh. “Meeting financial requirements while starting a business is complex – our partnership lets business owners easily access trusted resources in one place at every stage of their company’s life cycle.”

Founded in 2022, Coverdash is a newcomer to the insurtech space, which is typically dominated by more established companies. Based in New York, Coverdash is licensed in all 50 U.S. states to provide insurance solutions tailored to small businesses, including freelancers, e-commerce operations, and startups. Its offerings span general liability, workers’ compensation, cyber insurance, and more. Earlier this year, the company secured $13.5 million in Series A funding, bringing its total funding to $16 million, according to Crunchbase.

Photo by Ivan Samkov

The post LendingTree Taps Coverdash to Launch Small Business Insurance Offering appeared first on Finovate.

Nayax self-service payments tech comes to El Salvador

Thu, 21 Nov 2024 18:33:00 +0000

Nayax (Nasdaq: NYAX; TASE: NYAX), a global commerce enablement and payments platform designed to help merchants scale their business by simplifying payments and maximizing loyalty, today announced that it will launch its end-to-end automated self-service payment solution across El Salvador, enabling consumers to make secure cashless payments at automated machines with VPOS Touch™ devices.

Finastra investigates data breach, prioritising customer communication

Thu, 21 Nov 2024 17:00:00 +0000

Fintech firm Finastra has shared further detail on the investigation process following a data breach that occurred earlier this month.

Spendesk embeds with Adyen

Thu, 21 Nov 2024 16:49:00 +0000

Adyen, the financial technology platform of choice for leading businesses, has today announced its long-term strategic partnership with Spendesk, the complete spend management platform for medium-sized businesses.

Tide debuts carbon calculator

Thu, 21 Nov 2024 16:48:00 +0000

Tide, the leading business financial platform in the UK, has launched an automated carbon calculator developed in partnership with carbon measurement pioneer Connect Earth.

CFPB expands oversight of Big Tech payment apps

Thu, 21 Nov 2024 15:40:00 +0000

The Consumer Financial Protection Bureau (CFPB) has finalised a rule that will see it supervise tech giants such as Apple and Google that offer digital payment apps and wallets.

Interface.ai unveils device biometric authentication and GenAI bot training products

Thu, 21 Nov 2024 15:37:00 +0000

interface.ai, the leading provider of agentic AI solutions for community banks and credit unions, has unveiled its latest industry-leading innovations as part of its Fall 2024 product release.

Montenegro and Albania join Sepa payment schemes

Thu, 21 Nov 2024 15:34:00 +0000

Today the European Payments Council (EPC) Board has approved the inclusion of Montenegro and Albania in the geographical scope of the Single Euro Payments Area (SEPA) payment schemes.

Cashflows moves into programmable payments with Raimac Financial Technology

Thu, 21 Nov 2024 14:19:00 +0000

Raimac Financial Technology, a game-changer for companies looking to offer flexible payments, has today announced a strategic partnership with Cashflows, the platform that makes it easy for businesses to accept payments.

ICapital opens exposure to private markets

Thu, 21 Nov 2024 14:17:00 +0000

iCapital, the global fintech platform driving the world’s alternative investment marketplace for the wealth and asset management industries, today announced the launch of a new iCapital Growth Model Portfolio, which enables advisors to easily integrate exposure to private equity investments with traditional public market investments.

Mastercard MTN connects to JP Morgan's Kinexys Digital Payments for settlement

Thu, 21 Nov 2024 14:00:00 +0000

Mastercard has connected its Multi-Token Network (MTN) to JPMorgan's Kinexys Digital Payments rail for B2B cross-border payments settlement.

Chainlink consortium to test trade finance app using Brazil's digital Real

Thu, 21 Nov 2024 13:42:00 +0000

Microsoft Brazil, 7COMm and Chainlink are to work with Banco Inter on a trade finance application as part of the second phase of the central bank's trials of its digital currency, Drex.

Zimswitch taps ACI Worldwide for fraud protection

Thu, 21 Nov 2024 13:36:00 +0000

ACI Worldwide (NASDAQ: ACIW), an original innovator in global payments technology, have announced that Zimswitch, Zimbabwe’s national electronic payments switch and a leading payments technology company, has chosen ACI’s Fraud Management and Payments Intelligence solution to enhance its fraud prevention and management capabilities.

Tell.money selected as open banking gateway provider for Monese

Thu, 21 Nov 2024 13:33:00 +0000

tell.money, a leading provider of open banking solutions, today announces its appointment as the official open banking gateway provider for Monese, the award-winning mobile money app.

Lloyds Bank adds Benefit Calculator to mobile app

Thu, 21 Nov 2024 11:36:00 +0000

Lloyds Bank has launched a new tool to help customer claim welfare and other government-sponsored payments they may be missing out on.

The Future of Payment Authentication

Thu, 21 Nov 2024 11:23:00 +0000

In this PREDICT 2025 USA interview, Andrew Shikiar, Executive Director and CEO, FIDO Alliance, discusses how the industry has been exploring the death of the password for decades, how this conversation has evolved and where we are with passkeys today – pinpointing why making progress with eliminating dependence on passwords is of paramount importance.

New Africa Technology adds physical and virtual prepaid cards to digital wallet

Thu, 21 Nov 2024 11:16:00 +0000

New Africa Technology (NAT), a fintech company based in Senegal, joins forces with Mastercard to introduce a virtual and physical prepaid card for individuals through NAT’s existing digital wallet solution, ‘’Flash’’.

Australian banks pilot fraud intelligence sharing network

Thu, 21 Nov 2024 00:01:00 +0000

Australia's top banks are piloting a fraud and scams intelligence-sharing network using behavioural- and device-based technology from security vendor BioCatch.

ING rolls out up-to-the-minute credit assessment tool for business clients

Thu, 21 Nov 2024 00:01:00 +0000

ING has rolled out a new digtial tool that helps businesses in The Netherlands more accurately assess the creditworthiness of their customers and suppliers.

Caixabank to invest $5 billion in technology over the next three years

Thu, 21 Nov 2024 00:01:00 +0000

Caixabank has outlined plans to spend more than $5 billion on technology over the coming three years to boost digital sales and launch new products and services.

Asset Manager Amundi Acquires Aixigo in $157 Million Deal

Wed, 20 Nov 2024 23:38:53 +0000

Amundi Technology has agreed to acquire aixigo in a deal valued at $157 million.
Amundi will leverage the acquisition to strengthen its role as a leading technology and services provider in the asset management space.
Aixigo last demoed its technology on the Finovate stage at FinovateFall 2018 in New York.

Amundi Technology, an asset manager based in France, has acquired German wealth management platform provider aixigo. The transaction has been valued at $157 million (€149 million).

The acquisition is designed to help banks and financial institutions integrate technological solutions into their IT infrastructures faster. Adding aixigo will help Amundi develop further as a technology and services provider, enabling the firm to offer a more comprehensive range of services. The acquisition will also expand Amundi’s geographical reach thanks to aixigo’s customer base in Germany, Switzerland, and the U.K.

“Joining Amundi Technology presents aixigo with a unique opportunity to expand our service offerings and leverage Amundi’s expertise, allowing us to become the undisputed European leader before gradually extending our reach into Asia, a vision that perfectly aligns with our values and ambitions,” aixigo CEO Arnaud Picut said.

Founded in 1999, aixigo offers modular, intuitive wealth management technology. The company’s aixigo:BLOXX wealth management platform is a fully customizable solution that enables financial services providers to design wealth management services that fit their specific requirements and preferences. Portfolio analysis and reporting, digital portfolio management, risk management, financial planning, and investment advice are among the features of aixigo’s high-performance, API-based platform.

With a staff of 150, aixigo serves more than 20 clients representing more than $1.05 trillion (€1 trillion) in assets under management. The company reports that 60,000 advisors use aixigo’s technology on a daily basis for everything from client onboarding to report generation. Amundi is a leading European asset manager with 100 million retail, institutional, and corporate clients. A subsidiary of the Crédit Agricole Group, Amundi manages $2.3 trillion (€2.2 trillion) in assets.

“With the addition of new expertise, which has already been adopted and recognized by leading financial firms, we will continue to roll out new innovative services, and play an active part in the development of the financial advisory and wealth management sector,” Amundi Chief Executive Officer Valérie Baudson said. “This transaction will create significant value for our clients, partners, and shareholders.”

Headquartered in Aachen, Germany, aixigo made its Finovate debut at FinovateEurope 2017. The company most recently demoed its technology before Finovate audiences at FinovateFall 2018 in New York.

Photo by Kai Pilger

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Google Pay Adds AfterPay and Klarna to BNPL Options

Wed, 20 Nov 2024 21:24:28 +0000

Google Pay is adding Afterpay and Klarna to its checkout flow, complementing its existing partnerships with Affirm and Zip.
Adding more BNPL options at the point of sale will help increase conversion rates and average order values.
By offering four BNPL options, Google Pay solidifies its edge over Amazon, which currently provides Affirm as its sole BNPL provider at checkout.

Google Pay is doubling down on buy now, pay later (BNPL) options at checkout. The company announced today that it is adding Afterpay and Klarna to its checkout flow at select merchants. The move will offer consumers more flexible payment options when they use Google Pay.

“People shop on Google more than a billion times per day, and consumers are increasingly looking for more choice and flexibility when it comes to their payment options,” said Google Pay Senior Director Drew Olson. “By teaming up with pay over time providers like Klarna, we are able to give Google Pay users more payment options when checking out, while providing merchants with another tool to drive growth.”

Adding Afterpay, which has 24 million active users, and Klarna, which has 85 million active users, will not only offer more ways to pay but may also lead to increased conversion rates and higher average order values. Customers are more likely to make larger purchases when offered flexible payment solutions.

“Afterpay’s integration with Google Pay comes at the perfect time as next-gen shoppers are fueling mainstream use of BNPL, mobile commerce, and digital wallet use,” said Afterpay and Cash App Head of Global Partnerships Tanuj Parikh. “We are excited to expand our BNPL to Google’s network, creating the best and most streamlined customer shopping experience that meets all the needs of this younger consumer set.”

While Afterpay is now available on Google Pay, Klarna will launch with select merchants in 2025. The company aims to expand the BNPL options to more merchants in the future.

Today’s news comes about a year after Google unveiled that it partnered with Zip and Affirm, two other major BNPL players, to offer Google Pay users BNPL options. While offering four BNPL options at the online point of sale sounds excessive, not all merchants offer every BNPL option at checkout. The selection of BNPL providers is dictated by the agreements between Google Pay, the BNPL services, and the individual merchants.

By expanding its roster of BNPL options, Google Pay strengthens its competitive edge against Amazon, which currently limits point-of-sale BNPL offerings to Affirm. While the exclusivity agreement between Amazon and Affirm ended last year, Amazon has yet to collaborate with additional BNPL providers. Google Pay’s strategic decision to double its BNPL offerings may prompt Amazon to diversify its own consumer payment options.

The post Google Pay Adds AfterPay and Klarna to BNPL Options appeared first on Finovate.

Nubank in talks over domicile switch to UK

Wed, 20 Nov 2024 20:34:00 +0000

Brazilin digital banking giant Nubank is working with the new British government on plans to move its legal domicile to the UK, according to Bloomberg.

5 Tales from the Crypto: Acquisitions, New Markets, New Rules, and New Tools

Wed, 20 Nov 2024 19:09:21 +0000

This week in 5 Tales from the Crypto we look at a pair of acquisitions, an expansion into a new market, new guidelines for crypto providers, and a new solution for executing cryptocurrency swaps.

Crypto.com acquires Australia’s Fintek Securities

Cryptocurrency trading platform Crypto.com has acquired brokerage service and trading company Fintek Securities. Terms of the transaction were not disclosed.

The acquisition will help Crypto.com extend its services to crypto traders and investors in Australia. Fintek Securities holds an Australian Financial Services license and is regulated by the Australian Securities and Investments Commission.

“The path of the Crypto.com roadmap is to ambitiously expand our offering by providing customers (with) the most comprehensive set of financial services, and this acquisition is the latest step in that journey,” Crypto.com CEO Kris Marszalek said. “The goal is to create one destination for all financial services where users can simplify their experience and maximize rewards.”

Crypto.com offers eligible customers financial products including deposits, derivatives, securities, foreign exchange, managed investment schemes, and more. Investors and traders on its platform can buy Bitcoin, Ethereum, and more than 350 other cryptocurrencies. They can also access, manage, and spend their funds at any time using their Crypto.com Visa Card, which offers 5% cash back on all purchases.

Founded in 2016, Crypto.com has its corporate headquarters in Singapore and American headquarters in Tyler, Texas. The company serves more than 100 million customers around the world, and is a leader in regulatory compliance, security, and privacy in the crypto space. Crypto.com’s latest acquisition comes less than a month after it announced the purchase of SEC-registered broker-dealer Watchdog Capital. In August, Crypto.com added PayPal as a payment method to fund cryptocurrency purchases on its platform.

Cryptocurrency platform Gemini goes live in France

Virtual Asset Service Provider (VASP) license in hand, cryptocurrency platform Gemini has gone live in France. The platform secured its VASP registration earlier this year, and this week announced that it is taking advantage of growing interest in crypto in France to begin operations in the country.

Gemini Head of Europe Gillian Lynch wrote on the company’s blog that the percentage of crypto owners in France has grown to 18%, a two-point increase since 2022. Gemini’s 2024 Global State of Crypto report further revealed that trust in crypto is higher in France (23%) compared to both the U.S. (21%) and the U.K. (19%). Additionally, most crypto owners in France (62%) are so-called HODLers who see their holdings as part of their long-term investments rather than as short-term trading vehicles. Nearly half of those responding bought their first crypto assets more than three years ago.

“Gemini’s entry into France is a strategic choice for our next phase of growth,” Lynch wrote. “France’s proactive engagement with and support of the crypto sector has fostered the development of a crypto hub, making it a key market for us.”

Lynch credited regulators for much of the positive sentiment in France toward crypto. Specifically, Lynch pointed to France’s VASP regime, as well as the European Union’s passage of the Markets in Crypto Assets regulation (MiCA) in 2023. MiCA provides a comprehensive framework and regulatory guidance for E.U. companies involved in digital assets.

“We believe in empowering individuals through crypto, and our expansion into France marks a significant milestone in our mission to make crypto accessible to everyone,” Lynch said. “Gemini’s research into the French market shows its growing interest in digital assets. (A) robust regulatory framework presents a unique opportunity to introduce our platform to the trading community and extend our presence in the European market over the coming months.”

Founded in 2015, Gemini is headquartered in New York.

EBA publishes new regulations for crypto providers

The European Banking Authority (EBA) has issued two sets of guidelines that specify measures that Crypto Asset Service Providers (CASPs) and Payment Service Providers (PSPs) must adhere to when transferring funds or cryptocurrencies. In effect as of December 30, 2025, the regulations will require CASPs and PSPs that transfer funds or crypto assets to use a reliable screening system that will ensure compliance with their “restrictive measures” obligations.

“These Guidelines clarify how restrictive measures policies and procedures interact with financial institutions’ wider governance and risk management frameworks, to avoid operational and legal risks for financial institutions and ensure an effective implementation of restrictive measures,” the EBA wrote.

Further, CASPs and PSPs must screen relevant information to manage the risk that entities or individuals could violate the EU’s restrictive measures or seek to circumvent them.

The new compliance requirements are designed to address perceived vulnerabilities in the banking system that can lead to both legal and reputational risks for financial institutions. This can weaken the effectiveness of the E.U.’s restrictive measures regime and, ultimately, destabilize the region’s financial landscape.

The regulations build on legislation first issued in 2021 by the European Commission as part of a reform of the EU’s Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) program. These regulations, adopted in June of last year and going into effect on December 30 of this year, include a proposal for new rules with regard to fund and crypto asset transfers.

Coinbase acquires Utopia Labs

Digital currency wallet and platform Coinbase announced that the team from Utopia Labs will join its efforts to enhance Coinbase’s onchain payments roadmap within Coinbase Wallet.

“The Utopia team has been on the ground floor building onchain payments products for years. We’re pumped for them to join us to accelerate our goal of bringing low-cost, fast, and global payments to everyone around the world,” Coinbase Head of Base and Coinbase Wallet Jesse Pollak wrote on the company’s blog. “Together, we’ll create a future where individuals and businesses large and small use onchain payments to make their lives better every day.”

Specifically, the Utopia Labs team will join Base, Coinbase’s decentralized Ethereum Layer 2 scaling network. Base provides a secure, low-cost, and developer-friendly way to build decentralized apps onchain. Coinbase Wallet enables users to store and manage all of their digital assets — from cryptocurrencies to NFTs — as well as multiple digital wallets in a single location. The wallet provides support for hundreds of thousands of coins, as well as many decentralized apps, and can readily be funded from bank accounts, local payment options, or card payments in more than 130 countries.

As Pollak explained, the connection between the acquisition, Base, and Coinbase is a strong one. “There’s a natural flywheel here,” Pollak said. “Base is supporting developers who build onchain apps, those apps attract users onchain, Wallet onboards those users, and in turn more users incentivizes more developers to build onchain.”

Operating in more than 100 countries, Coinbase supports $185 billion in quarterly volume traded on its platform, and safeguards $273 billion in assets. The company was founded in 2012 and made its Finovate debut at FinovateSpring 2014. Brian Armstrong is CEO.

Earlier this month, Coinbase launched a new engineering hub in Singapore to support the local developer community. Also in November, Coinbase introduced USDC Rewards for Coinbase Wallet users. The new program enables them to earn 4.7% APY by holding USDC onchain in their wallets. Rewards are paid directly into user wallets on Base every month. Currently available “in most regions” around the world, U.S. Coinbase Wallet users are gaining access to the service this week.

Nubank introduces cryptocurrency swap tool

Brazilian fintech giant Nubank has introduced a new solution to help simplify cryptocurrency transactions for its customers. The new tool enables Nubank customers to trade Bitcoin, Ethereum, Solana, and Uniswap for the digital dollar USDC and vice versa.

“Swap is in demand by customers as they start including crypto assets into their strategies,” Nubank Executive Director of Cryptocurrencies and Digital Assets Thomaz Fortes said. “The initial implementation involving USDC and the four most popular cryptos is a way to ensure potential profits from value appreciation without losing market position and with a lower fee compared to selling for value in reais.”

Integrated into the firm’s Nubank Cripto solution, the new functionality will be released over the coming weeks. Additional token pairs will be introduced within the next few months.

Founded in 2013 and headquartered in São Paulo, Brazil, Nubank made its Finovate debut at our developers conference, FinDEVr New York in 2016. Today, Nubank offers one of the largest digital banking platforms in the world. In fact, the company’s swap tool news arrives a few days after it reported reaching the 100 million customer milestone in Brazil. This figure represents 57% of the country’s adult population. Nubank also recently noted major gains in other Latin American markets, reporting nearly nine million customers in Mexico and more than two million in Colombia.

Photo by Michel Meuleman

The post 5 Tales from the Crypto: Acquisitions, New Markets, New Rules, and New Tools appeared first on Finovate.

Beacon launches digital wallet for immigrants to Canada

Wed, 20 Nov 2024 16:13:00 +0000

Canadian startup Beacon has opened the waitlist for its purpose-built digital wallet for immigrants moving to the country.

Best 5 White-Label Neobank Solutions in 2024

Wed, 20 Nov 2024 13:03:07 +0000

Neobanks continue to face a unique challenge in 2024: standing out in a market dominated by traditio...

Online Checkout and Payment Security – Balancing Act and Moving Target?

Wed, 20 Nov 2024 11:53:00 +0000

In this FinextraTV interview, Mark Barnett, President Europe, Mastercard and Alexa von Bismarck, President EMEA, Adyen, explain how the payments industry must strike a balance between providing an efficient consumer experience and a secure experience. From Chip and PIN to Tap and Pay to using a device to pay to purchasing online now – where most of the security issues sit – the pair discuss how tokenisation could be a solution for mitigating the moving target of fraud and friction.

Blackhawk Network Teams with Mastercard to Add Paper Prepaid Products

Tue, 19 Nov 2024 20:20:02 +0000

Blackhawk Network (BHN) is transitioning Mastercard’s open-loop prepaid products from plastic to paper-based materials, aligning with Mastercard’s goal to eliminate PVC plastics from payment cards by 2028.
As of 2022, 60% of BHN’s physical cards were already paper-based, with the company aiming for 75% by the end of 2023, supported by collaborations with global partners.
Today’s collaboration follows a similar partnership with Visa that was formed in 2023.

Branded payments provider Blackhawk Network (BHN) announced this week it is partnering with Mastercard, transitioning its network-branded open-loop prepaid products from plastic to paper-based materials.

The move will help support Mastercard’s commitment to remove first-use, PVC plastics from payment cards on its network by 2028. It also supports BHN’s sustainability efforts. The California-based company has offered paper-based and recycled products since 2017, and made a pledge in 2022 to convert most of its own original card products to digital or paper.

“Since making our 2022 pledge, we have moved at lightning speed to deliver—and have successfully done so,” said BHN CEO and President Talbott Roche. “As of the end of last year, 60% of the physical cards in our network had been transitioned to paper-based materials, and we are well on our way to achieving our original goal of converting 75% by the end of this year. Taking those initiatives a step further, we are continuing to seek out collaborations with partners like Mastercard, banks, merchants, other card issuers, and manufacturers that operate on a global scale.”

BHN reports that paper-based cards still offer convenience and reliability while posing minimal disruption to consumers, retailers, and issuers. The company is continuing to invest in research and development that will enable the use of paper materials in other channels, including print-on-demand production formats.

“Mastercard’s reach, combined with our own, puts us in a rare position to not only reduce our footprint, but also to lead by example for other companies. We will continue to encourage more businesses to join our efforts and responsibly reduce the environmental impact of the products we use and consume,” added Roche.

The move toward sustainability isn’t the first effort from BHN or major card companies. Last year, BHN announced a partnership with Visa where BHN was helping the card giant transition its open-loop prepaid cards from plastic to sustainable paper-based materials.

Swapping out plastic in favor of paper cards is a good move for prepaid cards, which are often used once or twice and then disposed of. However, it is unlikely we will ever see paper credit or debit cards. Even if they are made to be durable enough to withstand daily transactions, consumers seem to favor thicker plastic and even metal cards, which offer a sense of status and exclusivity.

Photo by DS stories

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Collabria Financial Services Taps Trulioo for Digital Identity Verification

Tue, 19 Nov 2024 18:54:20 +0000

Credit union credit card issuer Collabria Financial Services has teamed up with digital identity verification fintech Trulioo. The Canada-based card issuer will leverage Trulioo to streamline the verification process for new cardholders.

With Trulioo’s verification capabilities, Collabria will enhance its ability to provide fast, compliant, and automated onboarding experiences. Trulioo will fully automate Collabria’s Know Your Business (KYB) review process, complementing its existing Know Your Client (KYC) workflows.

This is particularly impactful given Collabria’s vast reach, serving 98% of Canadian credit unions, which means the benefits of this partnership will extend to millions of credit union members

“The partnership with Trulioo marks a pivotal step forward in enhancing our security measures, while delivering a more streamlined, customer-centric process,” said Collabria CEO Jean-Marc Handfield. “With their cutting-edge technology, we’re elevating our measures against fraud and ensuring a faster and most importantly, safer, more secure experience for our cardholders.”

Trulioo helps organizations verify over 5 billion people by providing real-time verification for a range of identification documents and business entities. Its platform supports more than 13,000 ID documents and 700 million business entities across 195 countries. Additionally, Trulioo conducts checks against over 6,000 watchlists to ensure comprehensive verification.

“At Trulioo, our focus is on providing industry-leading solutions that meet the evolving needs of the payments industry,” said Trulioo CEO Steve Munford. “By combining our intelligent technology with Collabria’s expertise, we’re confident in our ability to enhance their verification processes, improve onboarding outcomes, and open windows of possibilities for their partners and members.”

Earlier this year, Trulioo partnered with Mastercard to integrate Mastercard’s identity solutions into its Person Match and Risk Intelligence products. This collaboration provides Trulioo with access to identity and risk scores through a customizable, user-friendly dashboard, expanding its offerings beyond API-based products and further streamlining its onboarding processes.

Headquartered in Canada and founded in 2011, Trulioo has raised $475 million. The company has demoed at 10 Finovate events, most recently showcasing its identity platform at FinovateEurope 2023.

Photo by cottonbro studio

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Immediate Generative AI Use Cases in Banking and Financial Services

Tue, 19 Nov 2024 14:46:00 +0000

Roshan Shetty, BFSI & Public Services Head – Americas, Tech Mahindra and Michael Ruttledge, Chief Information Officer, Head of Enterprise Technology & Security, Citizens Bank, join FinextraTV to opine progress since ChatGPT was launched two years ago. Despite dominating headlines, only 6% of the banking, financial services and insurance industries have truly leveraged generative AI algorithms for business models, while 46% are merely passive observers. Work is being done in terms of concepts being considered and pilots being pushed through, but the reality – as the pair explain – is that these sectors are heavily regulated and change management and data privacy must be prioritised to ensure the appropriate guardrails are in place so that the industry can indeed move forward from this test and learn era of generative AI.

Back to the Future with Global Payments Trends

Mon, 18 Nov 2024 22:53:19 +0000

Global payments have been gaining popularity in fintech over the past few months. There is increasing demand for faster, safer, and cheaper payment opportunities as cross-border trade activity escalates.

As McKinsey points out, however, payments are becoming disconnected from users’ accounts as platform-as-a-service (PaaS) and embedded payments models rise in popularity. These models, which often provide a more seamless and tailored customer experience, may pose a challenge for banks. That’s because, in many cases, banks may need to build new businesses to keep their existing customers.

In its latest report, McKinsey offers data highlighting the growth of global payments revenues and details six trends that will define the next five years in the global payments landscape. While the report is full of valuable stats. Here are the points that I found most notable.

Historical unicorns prove promising

Over the past 10 years, the number of payments unicorns grew from 39 to 384, a group that boasts a combined valuation of $1 trillion. Though decreased funding and downrounds have slowed the growth of new payments unicorns, their track record has proven that, when the fintech sector begins to boom again, we will likely see a boost in high-value payments fintechs.

Growth of global payments revenue

Last year, the global payments industry processed 3.4 trillion transactions worth $1.8 quadrillion that generated $2.4 trillion in revenue. While this revenue figure has grown 7% each year since 2018, McKinsey estimates the growth will slow to 5% per year for the next five years.

Cash usage tanks

Since 2019, cash usage across the globe has dropped by 20%. The report notes that global cash usage continues to decline at 4% a year, but developing economies are experiencing a faster rate of decline than that of the U.S., where card usage has long been popular. While this report doesn’t mention it, countries with government-led payment schemes such as India (with UPI) and Brazil (with PIX) are also seeing a major decline in cash payments. In India, while cash payments still account for 60% of consumer expenditure, digital payments have doubled in the past three years.

CBDCs are more relevant than ever

According to the report, “More than 90% of central banks are pursuing or considering central bank digital currency (CBDC) projects, and more than 30 have rolled out pilots.” This figure was quite surprising, as I haven’t looked into CBDC projects since 2021, when only 43 countries were exploring the use of a CBDC. Despite U.S. hesitation to pilot a CBDC, I think we’ll see more discussion on the topic in 2025 as crypto grows and the environment becomes more crypto-friendly.

We know fraud is up, but by how much?

McKinsey’s report estimates that losses from global payment card fraud will reach $400 billion over the next ten years. Regulators have stepped up their efforts by increasing pressure on banks to comply, and as a result AML fines reached an all-time high, soaring past $6 billion last year.

Check out the entire McKinsey report for a better picture of today’s global payments landscape. With trends like embedded payments, declining cash usage, the increasing relevance of CBDCs, and the ever-present threat of fraud, players in the payments industry will need to not only innovate, but also to collaborate to remain competitive.

Photo by Aslı Yılmaz on Unsplash

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Insurtech Qover Teams Up with Mastercard

Mon, 18 Nov 2024 19:58:32 +0000

Qover, an insurtech based in Brussels, Belgium, has partnered with Mastercard to provide return shipping cost protection when retailers do not offer free returns.
The service is available to Mastercard credit cardholders in Belgium and Luxembourg; Qover plans to expand the service to additional European countries.
Qover made its Finovate debut at FinovateEurope 2018 in London.

Belgium-based insurtech Qover, which made its Finovate debut at FinovateEurope 2018, has teamed up with fellow Finovate alum Mastercard to enhance the online shopping experience for Mastercard credit cardholders in Belgium and Luxembourg. Via the partnership, Mastercard will leverage Qover’s technology to provide return shipping cost protection to refund shipping fees when retailers do not offer free returns.

Qover’s platform makes return protection both easy and accessible. A combination of automation and advanced data extraction, driven by AI, enables users to find coverage details or submit a claim with just a few clicks and get instant updates on the status of their claim. Mastercard’s return protection reimburses shipping costs for returns, covering up to $31 (€30) per return, with a maximum of three claims or up to $95 (€90) per cardholder per year.

“Embedded protection is becoming a strategic tool for businesses to enhance customer value and build loyalty,” Qover Co-founder and CEO Quentin Colmant said. “We’re honored by Mastercard’s trust and are excited to bring this innovative solution to their cardholders.”

Qover provides an embedded insurance orchestration platform that empowers companies to embed insurance into their core offering. The company’s modular platform can accommodate any product or distribution channel and leverages automation and both GenAI and OCR technology to provide advanced data extraction that streamlines key components of the claims process.

Available in more than 32 countries in Europe, Qover offers a wide range of insurance solutions including accident, mobility, travel, property, and purchase insurance. The company is planning to add trip cancellation and motor third party liability (MTPL), as well as coverage for accidental damage, breakage, or theft of high-value belongings such as mobile devices and appliances, in the near future. The newly announced service is available to Mastercard credit cardholders in Belgium and Luxembourg; Qover plans to expand the service to additional European countries.

“We’re excited to unveil this new solution in collaboration with the rising star of European insurtech, Qover,” Mastercard Belgium and Luxembourg Country Manager Henri Dewaerheijd said. “This unique protection reinforces the value of Mastercard credit cards for online purchases and enhances the online shopping experience for our Belgian and Luxembourg cardholders.”

Founded in 2016 and headquartered in Brussels, Qover made its Finovate debut at FinovateEurope 2018. More recently, Qover was featured in CNBC and Statista’s roster of the world’s top 150 insurtechs. This summer, the company announced its entry into the motor insurance market in Ireland. Qover has raised more than $71 million in funding, according to Crunchbase. The firm includes Zurich Global Ventures and BlackRock among its investors.

Photo by Fuad Udemans

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Revolut Earns U.K. Trading License from the FCA

Mon, 18 Nov 2024 19:50:54 +0000

Revolut has received FCA approval to offer U.K. and E.U.-listed stock and ETF trading.
The new service is expected to roll out in 2025 for its nine million U.K. customers.
Revolut’s U.K. stock trading offering will allow it to compete with established platforms like Trading 212, Freetrade, Hargreaves Lansdown, and AJ Bell.

Global challenger bank Revolut announced today that the U.K. Financial Conduct Authority (FCA) has granted it a license to offer trading services on U.K. and E.U.-listed stocks and ETFs.

Revolut, which cemented its reputation as Europe’s most valuable fintech after receiving a $45 billion valuation, launched in 2014. The company initially launched stock market trading capabilities for U.S. stocks in 2019.

Revolut’s U.K. trading service will roll out in 2025 for its nine million U.K. customers. Once the service is launched, the company will compete against Trading 212, Freetrade, Hargreaves Lansdown, and AJ Bell; which all offer U.K. trading stock trading services.

Today’s news comes three months after Revolut received its banking license from the U.K. Prudential Regulation Authority (PRA). The long-awaited license allows the fintech to take and hold deposits, as well as sell financial products such as loans, credit cards, overdraft protection, and savings accounts to U.K. consumers.

Previously, Revolut was able to offer an investment service to its U.K.-based traders which allowed its 650,000 users to trade U.S. stocks through fractional shares using Revolut’s app. That service was made possible via a partnership with DriveWealth, a U.S.-based fintech that facilitates investing-as-a-service for third party companies.

U.K.-based Revolut chose to launch equities trading in the U.S. over the U.K. likely because of the higher demand for U.S. stocks such as Apple, Amazon, and Tesla. These companies have captured the attention of global retail investors because of their significant growth. By prioritizing U.S. equities, Revolut capitalized on this demand and aligned its offering to suit the interests of its tech-savvy user base.

Adding U.K. trading will offer Revolut another cross-sell opportunity, helping it to further compete with traditional financial institutions that are able to help users manage multiple facets of their clients’ lives. The move not only diversifies its product portfolio but also strengthens its position in an increasingly competitive fintech market.

Photo by energepic.com

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Understanding the Advantages and Current Challenges of Digital Banking Transformation

Mon, 18 Nov 2024 17:14:22 +0000

Key Takeaways: The banking industry is evolving digitally, driven by AI adoption, economic uncerta...

Fintech Rundown: A Rapid Review of Weekly News

Mon, 18 Nov 2024 16:18:40 +0000

This week’s Fintech Rundown begins with a handful of stories about partnerships in wealth management and lending, as well as moves by banks to bolster their fraud prevention capabilities. Check back all week long for updates and more fintech news!

Wealth management

1 fs Wealth, a global wealth intelligence provider, announces a strategic partnership with Apex Group.

Lending

Secured finance technology provider Lendscape teams up with Express Trade Capital.

Fraud prevention

CommBank introduces three new security features on its app to help users defend themselves against scams.

Westpac unveils new resources — Westpac Verify and SaferPay — to make it easier for customers to report fraud.

Digital banking

Vietnam’s Maritime Commercial Joint Stock Bank deploys Backbase’s Engagement Banking Platform.

Crypto

Acuity Trading forges strategic partnership with multi-licensed broker, OneRoyal.

Xapo Bank introduces bitcoin beneficiary solution.

Payments

TransferTo inks Memorandum of Understanding with pan-African financial institution, Ecobank Group.

Payment processing platform Solidgate launches its AI Dispute Representment solution to automate the dispute management process

Trust Payments introduces new Chief Executive Officer Laurence Booth.

Photo by Pixabay

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The State of Open Banking Across the World

Mon, 18 Nov 2024 12:00:00 +0000

Jess Turner, EVP, Global Head of Open Banking and API, Mastercard, speaks to FinextraTV on the week of Sibos, where she dove into the role AI plays in financial services, including open banking. Market maturity for open banking varies in different regions, but it is becoming increasingly evident that interconnectivity can support with global scale and allow users to leverage their own data for their own benefit. AI, used responsibly, plays a key role in advancing and securing the open banking ecosystem by enriching and anonymizing consumer-permissioned data so that consumers and small businesses can share with confidence.