With support from Goldman Sachs, Canadian payments innovator nanoPay has raised $10 million in new funding. The Series A also featured the participation of APAGM Services, Jarnac Capital Management, and Rohatton. nanoPay said the investment will help it develop business partnerships in advance of a larger rollout of its MintChip digital currency technology. The funding will also help nanoPay build additional complimentary services for both the B2B and B2C markets.
nanoPay CEO Laurence Cooke elaborated on on this point, saying that in the wake of MintChip’s successful deployment in Canada this summer “our focus is now on expanding the platform beyond digital cash to a broad range of B2B uses cases that have global applications.” Cooke referred to both B2C disbursements and cross-border payments as examples.
Pictured: nanoPay founder and CEO Laurence Cooke demonstrating MintChip at FinovateFall 2016 in New York.
Developed by the Royal Canadian Mint and purchased by nanoPay in 2015, MintChip is a cloud-based currency that can be used to securely store and transfer digital value instantly, without third party intervention. The technology provides for final, irrevocable transactions in real-time that are cryptographically secured. For consumers, MintChip provides a faster checkout process that combines both loyalty programs and payments, and works online as well as in-person. With its open API platform, MintChip has potential applications beyond commerce, including in telecommunications, central bank operations, and for acquirers.
Founded in 2011 and headquartered in Toronto, Ontario, Canada, nanoPay demonstratedMintChip at FinovateFall 2016. Earlier this month, the company announced that Liberty Village would serve as a “working lab” for its digital currency. In July, nanoPay added Tracy Molino as general counsel and chief compliance officer and, in June, the company partnered with Ingenico Group to enable merchants to accept MintChip via their Ingenico Group smart terminals.
Every now and then a useful term comes into widespread use and it can be hard to decide whether it’s a fad (eg. home banking) or something that will be around for decades (e.g., ATM). Dashboard is one that we are seeing more and more of. While it’s too soon to say if it will still be used next decade, let alone in 50 years, it’s a good word and widely used in consumer and business services today (see definition below).
Redfin, for example, sends new homeowners an email suggesting they log in to the Owner’s Dashboard of their new property. Redfin must be matching homebuying records to its user database to make the connections. It’s nice touch. Who wouldn’t want to sit in the virtual driver’s seat of their most important asset and get a look around. And with home prices appreciating in most parts of the country, it’s a mighty fine view. In the example, the home value is up almost 15% since February.
Banks should consider using similar language for their advanced digital banking services. Instead of calling it some fancy name that leaves consumers confused, use Dashboard, which is easy to remember, and has all the right connotations. One major bank already doing so is BB&T (see below), with its unique customizable mobile and desktop service, U. Another is Ohio-based First Financial Bankas well as $88 million Gateway Community Bank(screenshot below).
Bottom line: The name of a digital service isn’t going to make or break it. But as we struggle with educating users on the features and benefits, the use of known terms can ease the learning curve.
As we approach the home stretch with just under two weeks to FinovateAsia 2016, we’re thrilled to announce the full presenter roster. This list includes 36 presenting companies and 252 minutes of the most cutting edge innovations in fintech—all in just one day.
The full presenter roster is on our website and below:
U.S. P2P lending giant Lending Club has been offering car buyers an alternative borrowing experience since it launched ten years ago. Today, the company announced it is bringing that same transparent experience to the auto refinancing industry.
In its press release, the company cited data from the Center for Responsible Lending, which states that consumers pay as much as $25 billion in interest payments every year due to “dealer mark-up” of their interest rate. Lending Club’s new Auto Refinancing product offers a solution that gives qualified borrowers a more affordable monthly payment and interest rate.
The California-based company, which already offers credit card debt refinancing, hopes to tap into the $1 trillion auto loan market. Consumers can apply online with no hard credit inquiry and compare refinancing offers against their existing auto loan. Lending Club will pilot Auto Refinancing to California residents with FICO scores above 640, but plans to expand geographically and to people with lower FICO scores.
At launch, the company is not using its marketplace lending model to fund the auto debt. Instead, the company itself will buy the debt. However, according to Lending Club CEO Scott Sanborn, the leverage of the company’s balance sheet is only temporary and will be immaterial.
Stakeholders seem to be responding well to today’s news; Lending Club’s stock is up 1.64% to $4.95. This is still below the company’s $15 IPO price, however. Lending Club’ stock dipped in May after its then CEO Renaud Laplanche stepped down amid accusations of loan-documentation errors.
Small business loan marketplace Lendioreeled in $20 million in Series D funding today. Leading the round were Comcast Ventures and Stereo Capital. Existing investors Napier Park, Blumberg Capital, Tribeca Venture Partners and North Hill Ventures also contributed, bringing the company’s total funding to $31 million.
The Utah-based company will use the funds to boost Lendio’s growth via marketing, sales, and brand awareness, which should augment its YOY growth, which already sits at 100%. Other growth figures include:
In Q3, Lendio funded $63+ million in loans, up 14% from Q2 2016
In Q3, Lendio funded more than 2,900 businesses, up 22% from Q2 2016
Lendio saw a record number of repeat customers in Q3, up 33% over Q2 2016
Regarding the company’s growth, Lendio founder and CEO Brock Blake said, “Even though we’ve helped facilitate funding for more than 13,000 small business owners, we’re just scratching the surface as to the number of business owners that we can help; our goal is to help Fuel the American Dream for the millions of SMBs that make up the backbone of our U.S. economy.”
Lendio seeks to decrease the time it takes for small businesses to secure loans. The company works on behalf of small business borrowers to match them with the right loan, helping the 75 lenders on its platform reach qualified borrowers. Lendio partnered with American Express in April to power its merchant financing offering. In 2015, the company facilitated $128+ million in financing to more than 5,100 businesses. Lendio debuted at FinovateSpring 2011.
“We are very excited to be investing in and partnering exclusively with Alpha in the Gulf region and selected countries in the Middle East,” First Quay Capital chairman, Talal Yassine said in a statement, calling the company “the next generation of unique, innovative, cost-effective institutional middleware on a revolutionary global platform.” First Quay specializes in investments in high-growth industries such as finance, healthcare, and education. The firm also provides support to companies looking to grow their presence in the MENA (Middle East and North Africa) region.
Pictured: Alpha Payments Cloud CEO Oliver Rajic demonstrating AlphaHub at FinovateEurope 2017.
For the financial sleuths out there, recall that Alpha Payments Cloud picked up an investment from Wells Fargo this summer courtesy of its participation in the bank’s Startup Accelerator program. And while the amount from Wells Fargo was also not disclosed, the company reported that investment took its valuation to $100 million. The fact that First Quay Capital’s investment more than doubles Alpha Payments Cloud’s valuation suggests that it was a significant capital infusion, indeed.
Founded in June 2012 and headquartered in Singapore, Alpha Payments Cloud demonstrated its AlphaHub technology at FinovateEurope 2016. The company’s Payments-as-a-Service technology provides a middleware layer that both “amplifies third party access” while making new vendor selection as easy as “the click of a button.” Via the AlphaHub API, users can access more than 250 third-party solutions, as well as Alpha Payments Cloud’s proprietary technologies to ensure access to “any payment type, any solution provider, anywhere in the world.”
Earlier this month, the company announced a partnership with RS2 Software that would help support banks in Thailand. Recipient of a Best of Show award for its demo at FinovateSpring 2015, Alpha Payments Cloud also this month teamed up with Australian online security innovator, Haventec, and will serve as the startup’s preferred integration provider for its identify authentication and secure payment services, Haventec Authenticate and Secure Wallet, respectively. Alpha Payments Cloud will demonstrate its latest technology at FinovateAsia 2016 in Hong Kong, November 8th. Visit our FinovateAsia 2016 page for more details and information on how to buy tickets and save your spot at this year’s event.
It’s that time again: The application deadline for FinovateEurope 2017 is this Friday, October 28. So if you’re thinking about being a part of the show when Finovate returns to Old Billingsgate Market Hall in London on the 7th and 8th of February, then now is the time to put the finishing touches on that application and send it our way.
So if FinovateEurope sounds like the kind of opportunity you can’t afford to miss, then here’s what you need to know:
Download and review the FinovateEurope 2017 informational PDF for prospective presenters. This document includes background information on the conference itself, our unique demo-only format, as well as an insight into the kind of knowledgable, professional attendees that make up our anticipated audience of more than 1,500, and much more.
If you think your technology has what it takes to wow our crowd and make a real difference in the way we save, spend, invest, and interact with the world of finance, then complete your application at europe2017.finovate.com/application and submit it to us by this Friday, October 28th.*
That’s it! Our team will review your application and contact you in the next few weeks.
Application season is always a great time for us here at Finovate to get a glimpse at the wide variety of financial technologies that have been incubating for months and are now ready for prime-time. If you have any questions about FinovateEurope 2017 or our application process, please get in touch with us at Europe@finovate.com. We’re looking forward to hearing from you!
*Want to apply to FinovateEurope 2017, but still need a bit more time? Email us at firstname.lastname@example.org and we’ll be happy to help.