Author: David Penn

Microsoft, Nationwide Invest $12 Million in SME Lender BlueVine

Microsoft, Nationwide Invest $12 Million in SME Lender BlueVine
By David Penn Posted on
Categories: BlueVine, Funding

Small business financing specialist BlueVine has raised $12 million in new funding. Combined with the $60 million investment the company picked up last month, BlueVine’s Series E amounts to $72 million, and takes the company’s total funding to $590 million. Of this amount, $185 million represents equity financing.

This week’s investment comes from Microsoft’s venture fund, M12, and the venture arm of insurance and financial services company, Nationwide. M12 partner Elliott Robinson praised BlueVine’s “market traction to date,” while Nationwide Ventures’ Erik Ross highlighted the funding as emblematic of Nationwide’s commitment to serving SMEs. “This investment aligns with our strategy to co-create value for our members to help them protect what’s most important and to plan for a secure financial future,” Ross said.

BlueVine provides working capital to small and medium-sized businesses, offering lines of credit up to $250,000 and invoice factoring up to $5 million. With rates as low as 4.8% and approvals as quick as 20 minutes, the company recently surpassed $1 billion in total funding volume.

“We had very limited resources when we began and we were up against bigger and more established competitors,” said BlueVine CEO and founder Eyal Lifshitz, who reflected on the company’s fifth anniversary as well as this week’s funding. He credited the company’s “cutting edge technology and product innovation” for its success and added, “these new investments will help us offer more financing to even more entrepreneurs.”

Founded in 2013 and headquartered in Palo Alto, California, BlueVine demonstrated its SME online lending platform at FinovateFall 2014. This spring, BlueVine partnered with cross-border payments specialist, Veem, to make the process easier and less expensive for SMEs. Named one of the top 360 entrepreneurial companies in the U.S. by Entrepreneur, BlueVine added Women in Fintech Powerlist member Ana Sirbu as its new Chief Financial Officer at the beginning of the year.

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Finovate Alumni News

By David Penn Posted on
Categories: BlueVine, Coinbase, CurrencyFair, FIS, Gusto, Kofax, Prosper, Tavant, Thomson Reuters

On Finovate.com

  • Microsoft, Nationwide Invest $12 Million in SME Lender BlueVine.
  • Gusto Brings in $140 Million, Doubling Valuation to $2 Billion.
  • Tavant Technologies Powers New Personalized Mortgage POS System from Ditech.

Around the web

  • Coinbase taps Jeff Horowitz as its next Chief Compliance Officer.
  • Thomson Reuters announces strategic partnership with global cryptocurrency market data aggregator, CryptoCompare.
  • FIS and blockchain platform Billon sign letter of intent to pursue joint product development.
  • Prosper surpasses 1 million loans have been originated, totaling about $13 billion.
  • Kofax enters sales agreement with JIEC to deliver RPA and digital transformation solutions.
  • CurrencyFair surpasses milestone: €7 billion traded.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

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ebankIT to Power Digital Banking for Coast Capital

ebankIT to Power Digital Banking for Coast Capital
By David Penn Posted on
Categories: ebankIT

Canada’s largest credit union by membership has partnered with ebankIT to overhaul its digital banking offerings. Coast Capital Savings, with $13 billion ($17 billion CAD) in assets, will leverage ebankIT’s omni-channel digital banking platform to power both the credit union’s online and mobile banking channels, as well as its website.

“With ebankIT’s versatile platform and award-winning digital banking experience, we will be able to offer a wide range of exciting new features to Coast Capital members in the future, along with rich security and personalization features,” Chief Transformation Officer for Coast Capital Savings Jeff Wong said. He also praised the way the platform supports integration with third-party technologies, “which will enable Coast Capital to drive ongoing digital channel innovation.”

ebankIT’s omni-channel banking solutions empower FIs to deliver a cutting edge, technology-enabled solutions to their customers. The company is an innovator applying many of the latest technologies – including augmented reality, beacons, and voice – to both traditional and emerging banking channels like mobile and wearables.

ebankIT’s Diana Winstanley (Business Solutions Manager) and Pete Atkinson (VP Sales U.K. & Ireland) demonstrating the company’s digital banking platform at FinovateEurope 2018.

“Our vision at ebankIT is to help organizations like Coast Capital tap the full potential of all the fast-paced innovations available in the quickly shifting technological landscape of banking,” Renato Oliveira, a member of ebankIT’s board of directors, explained. “As we embark on our North American expansion, the ebankIT team is thrilled to support Coast Capital with a robust and scalable platform, featuring our award-winning next generation solutions, coupled with an engaging user experience.”

Founded in 1940, British Columbia-based Coast Capital now has 52 branches and 555,000 members. Named one of Canada’s Most Admired Corporate Cultures, the credit union invested $5.6 million in local communities last year to help empower and engage youth. This month, Coast Capital earned “B Corporation” certification from nonprofit B Lab, an acknowledgement that it has met the standard for social performance, transparency, and accountability.

The partnership news from ebankIT comes just a few weeks after the company announced that it was teaming up with fellow Finovate alum unblu. The joint venture will integrate unblu’s co-browsing, live chat, and video technology into ebankIT’s digital banking platform. “Joining forces with unblu was a natural fit for us,” ebankIT CEO Joaquin Santos said in a statement, “because both companies are aligned in how they want to transform the future of banking.”

ebankIT demonstrated its digital banking platform, including new applications of voice technology, at FinovateEurope 2018 in March. The company also participated in our inaugural FinovateMiddleEast conference in February. Founded in 2014 and headquartered in Porto, Portugal, ebankIT was featured in Accord Market’s Global Digital Banking Multichannel Integration Solutions Market Status Report earlier this month. This spring, ebankIT celebrated the launch of Kuwait International Bank’s retail banking app, which was implemented using ebankIT’s digital banking platform. Also this year, ebankIT announced a partnership with Cyprus-based GCC Computers.

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Finovate Alumni News

By David Penn Posted on
Categories: AlphaPoint, CoverHound, ebankIT, Fiserv, i-exceed, Insuritas, Kasasa, Ledger, LenddoEFL, mBank, NIIT Technologies

On Finovate.com

  • CoverHound to Help Intelligent Customers to Shop Around for Renter’s Insurance.
  • AlphaPoint to Power DCEX, an XRP-Based Currency Exchange.
  • ebankIT to Power Digital Banking for Coast Capital.

Around the web

  • Fiserv forges strategic alliance with cybersecurity firm, BlueVoyant.
  • mBank and Commerzbank to launch pan-European challenger bank.
  • Gartner recognizes i-exceed as a “Niche Player” in its Magic Quadrant for Mobile Application Development Platforms (MADP).
  • Finance Magnates features a profile on the Ledger Nano S hardware wallet.
  • Caja Sullana leverages credit scoring from LenddoEFL to provide young entrepreneurs access to credit.
  • Insuritas to launch a member owned insurance agency for America’s Credit Union and its 47,000 members.
  • NIIT Technologies recognized as ‘Star Performer’ on the 2018 Everest Group PEAK Matrix Insurance Application Services.
  • Glassdoor ranks Kasasa CEO Gabe Krajicek 45th in the Top 50 CEOs at Small and Medium Companies in the United States.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

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Coinbase Enables European Customers to Buy Virtual Gift Cards with Crypto

Coinbase Enables European Customers to Buy Virtual Gift Cards with Crypto
By David Penn Posted on
Categories: Coinbase

Coinbase has enabled its European and Australian customers to use their hard-minted cryptocurrencies to buy virtual gift cards from more than 120 retailers.

“Making crypto easier to use, trade and spend is a core part of our efforts to improve the customer experience,” Coinbase U.K. CEO Zeeshan Feroz wrote at the company blog. “With the launch of e-gift cards, customers now have the option to spend their crypto balances, realizing its value to buy tangible things or experiences.”

The new offering comes courtesy of a partnership with U.K.-based WeGift, and lets Coinbase customers to use their cryptocurrencies to buy e-gift cards from retailers including Google Play, Nike, Uber, Tesco, Ticketmaster, and more. Customers in the U.K., Spain, France, Italy, the Netherlands, and Australia can take advantage of the feature now. Feroz indicated that additional retailers and markets will be added over the next three months. The company hopes to expand the service to customers in other countries “soon after.”

Coinbase is a digital asset wallet and platform that enables consumers and merchants to transact in cryptocurrencies including Bitcoin, Ethereum, and Litecoin. With more than 20 million users and $150 billion transacted to date, Coinbase’s solutions include Coinbase Pro, a cryptocurrency trading platform for individual investors (formerly GDAX); Coinbase Prime, the company’s professional treading platform for institutional customers; and Coinbase Commerce, a solution to enable businesses to easily and securely accept cryptocurrency payments.  In addition to offering a digital API for developers, Coinbase maintains a venture fund, Coinbase Ventures, to support crypto-based startups.

Founded in 2012, Coinbase demonstrated the Instant Exchange feature of its cryptocurrency platform at FinovateSpring 2014.  Instant Exchange enables merchants to accept Bitcoin payments with zero exchange rate risk. Merchants instantly sell the Bitcoins they receive as payment throughout the day to Coinbase at the market exchange rate at the time of the transaction. Less a 1% exchange fee, Coinbase clears the dollar sum total for all sales by ACH transfer at the end of the day.

Earlier this month, Coinbase announced general availability for its Coinbase Custody solution, which combines a cold storage for crypto assets, an institutional-grade broker-dealer and reporting services, and a client coverage program. In June, the company opened its crypto index fund to accredited investors in the U.S., unveiled a new office in Portland, Oregon, and announced a new Japan CEO as part of an expansion into Asia. This spring, Coinbase introduced a variety of solutions geared toward helping institutional investors take advantage of digital assets, and hired its first Chief Technology Officer, Balaji Srinivasan.

With more than $225 million in funding and a valuation north of $1.6 billion, Coinbase is one of fintech’s more recent unicorns (companies with a valuation of more than $1 billion). Its U.K. office serves the hub for its Coinbase’s European operations, and is one of the company’s main engineering facilities outside of San Francisco. Brian Armstrong is CEO and co-founder.

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Yoyo Tops One Million User Milestone

Yoyo Tops One Million User Milestone
By David Penn Posted on
Categories: Yoyo

Congratulations to Yoyo! The U.K.-based mobile payments and loyalty marketing platform topped its one million user mark this week. Surpassing this milestone comes less than a month after the company announced a new strategic partnership with Visa to enable consumers to earn their loyalty program benefits when using their Visa card with Yoyo-partnered merchants.

Yoyo commemorated the occasion in part with an interview with  its one millionth customer – a Londoner who downloaded the app “a couple of weeks ago” – at the company’s blog. Asked what she has purchased most frequently with her Yoyo app so far, Gloria responded “Definitely coffee!”

Simon Moran (Chief Commercial Officer) and Dave Nicholson (Co-Founder and VP Strategic Partnerships) demonstrating Yoyo’s platform at FinovateEurope 2018.

“Crossing the 1 million user hurdle is something we at Yoyo are immensely proud of,” said Michael Rolph, who was promoted to company CEO in December. “What makes our user metrics even more impressive is the fact we have done it completely organically, whilst building a sustainable and scalable business model.”

Founded in 2013, Yoyo demonstrated its retailer-specific bank card loyalty solution at FinovateEurope 2018. The company’s technology matches card transactions with retailer’s till transactions in real time, linking the customer’s cart with their card payment. Yoyo then applies its loyalty engine to the customer’s cart and seamlessly applies any relevant rewards as if the consumer had used the Yoyo app.

Saying that Yoyo is “truly unlocking the power of payment data,” Rolph put the company’s innovations into an even broader perspective. “We believe the future is about bank enablement, rather than disruption and have some big announcements to come.” Rolph underscored the company’s partnership with Starling Bank and Visa, calling it “proof that the banking sector is beginning to see the need to deliver a Yoyo-powered experience to their customers – watch this space.”

Last month, Yoyo announced a partnership with Preoday, a digital ordering and pre-payment technology company. Through the agreement, consumers can use their Yoyo wallet to pre-order food and beverages at participating retailers. Also in June, the company earned a finalist spot in the TechCrunch Europas Awards in June, and unveiled a quarterly tracker to monitor customer purchasing trends in closed catering environments like workplace cafeterias. Named Best Mobile Payment Solution at the MPE Awards this spring, Yoyo has raised more than $30 million in funding, and includes SOSV among its investors.

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Feedzai to Help Credorax Fight Merchant Fraud

Feedzai to Help Credorax Fight Merchant Fraud
By David Penn Posted on
Categories: Feedzai

A new partnership between financial services risk management solutions provider Feedzai and Credorax is designed to help merchants better protect themselves against fraud.

“Feedzai and Credorax will provide the best solution for merchants that need a powerful risk management and fraud prevention platform to protect their customers in a seamless way,” Feedzai CEO Nuno Sebastiao said. “With Feedzai technology backing Credorax, we are helping to keep payments safe, while ensuring real-time processing – which is especially important in a world where digital means now.”

A technology company founded in 2008 that was among the first to transition into a fully-licensed commercial bank, Credorax credits itself as the first bank designed for e-commerce. A specialist in merchant acquiring, the firm has merchant acquiring banking licenses in 32 countries in Europe.

“Credorax is proud to partner with Feedzai to market AI solutions that better safeguard merchants and their customers,” Credorax CEO Igal Rotem said. “We continue to dedicate significant resources to help solve complex issues and are confident that, working together, we will fuel growth in the digital economy.”

Founded in 2008 and headquartered in San Mateo, California, Feedzai demonstrated its Feedzai Fraud Prevention platform at FinovateEurope 2014. The company’s technology leverages Big Data technology to stop payment fraud in real-time, and uses machine learning models to reduce incidents of false alarms.

In April, Feedzai launched OpenML, an open machine learning engine to help data science teams develop tools to combat fraud. The previous month, the company announced a new head of APAC, Steve Liu, and the opening of a new office in Hong Kong. Feedzai’s platform scores $5 billion in transactions daily, with ten of the largest 25 global banks using the company’s technology.

Named to the Forbes Fintech 50 for the first time earlier this year, Feedzai has raised $82 million in funding. The company includes Data Collective, Sapphire Ventures, Citi Ventures, and Oak HC/FT among its investors.

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Switch Brings Voice Technology to its CardSavr API

Switch Brings Voice Technology to its CardSavr API
By David Penn Posted on
Categories: SWITCH

Switch CEO Chris Hopen announced today that the company’s CardSavr API will leverage natural language processing to accelerate the process of managing cards on file and getting new and renewed cards provisioned with merchants. The technology will enable cardholders to use their voice to make commands to update autopay information, add a new card to an online account, and more.

“Switch has been preparing for the convergence of voice and fintech and brings an exclusive approach with our CardSavr API that can advance the evolution of voice technology and fintech,” Switch Co-Founder and CEO Chris Hopen explained. He pointed to the growing use of natural language technology to manage online payments and conduct other financial activities, and highlighted how easy it was for financial institutions to add these technologies to their solutions. “The CardSavr API can be implemented immediately into banking apps, website, and other financial technology platforms, without changing the inherent environment,” Hopen said.

Switch’s announcement came as part of a panel discussion on fintech and voice technologies at the VOICE Summit in New Jersey.

Tailor-made for a world in which the average consumer carries more than three credit cards and an ever-growing volume of commerce is taking place online via credit card, Switch’s CardSavr API empowers card issuers to get new and re-issued cards into circulation with online merchants immediately after activation. The API builds on the company’s previous success in providing solutions for consumers to make it easier for them to manage their credit card accounts.

“Switch offers the only automation platform that can power the entire virtual ecosystem with strategic, voice-first experiences that benefit consumers,” said Weber Marketing Group CEO Mark Weber. He added that the growth of voice payments is likely to “accelerate exponentially faster than mobile payments” and would contribute to both faster profit growth for companies and less friction for consumers.

Founded in 2014 and headquartered in Seattle, Washington, Switch demonstrated its platform at FinovateSpring 2016. Last month, the company, which has raised more than $1.9 million in funding, announced that its CardSavr API could be deployed to help card issuers transition to virtual cards.

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Finovate Alumni News

By David Penn Posted on
Categories: Feedzai, Five Degrees, Flywire, Global Debt Registry, Inc., Kensho, SWITCH, Temenos, YUKKA Lab

On Finovate.com

  • Switch Brings Voice Technology to its CardSavr API.
  • Feedzai to Help Credorax Fight Merchant Fraud.
  • Five Degrees Acquires Icelandic IT Software Company Libra.
  • Flywire Raises $100 Million for Global Expansion.

Around the web

  • Global Debt Registry adds new Chief Financial Officer and new Product Director.
  • Pakistan’s Silkbank upgrades its core banking system with technology from Temenos.
  • ACI Worldwide unveils its UP eCommerce Payments API.
  • Yukka Lab selected to participate in the Swiss Kickstart Accelerator.
  • S&P Global and Kensho Technologies launch Kensho Labs.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

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Zooz Acquired by PayU in Deal Valued at More than $80 Million

Zooz Acquired by PayU in Deal Valued at More than $80 Million
By David Penn Posted on
Categories: Mergers & Acquisitions, Zooz

In an extended post at the Zooz blog, company CEO Oren Levy announced that the eight-year old global payments platform he co-founded had agreed to be acquired by PayU. Financial terms were not disclosed, but Reuters reported that the deal was valued between $80 million and $100 million.

“Although it wasn’t entirely out of the blue, I can honestly say that PayU is a natural buyer for Zooz,” Levy wrote. “It simply makes sense.” He explained that given the options of continuing to raise capital and remain independent or seek the opportunity to grow “under the umbrella of PayU. The choice was clear.”

PayU will use Zooz’s technology to provide more payment options for its merchants, and help the company expand into cross border payments markets in developing, high-growth areas. This includes building a payment infrastructure with fraud management and smart routing. With a strong presence in India, Netherlands-based PayU currently has operations in 17 markets around the world.

The acquisition of Zooz also represents a win for the company’s open platform approach that gives merchants the ability to connect with a variety of payment providers. “In the choice between building a closed walled garden and an open platform, we decided to go with the second model,” PayU CEO Laurent le Moal told The Indian Wire. “The reality is that you need to be neutral and work with everyone.”

Levy and Zooz CTO Ronen Morecki will join PayU’s leadership team. The company’s 70 employees will also become a part of PayU.

“While Zooz will continue to innovate and further disrupt the payments world,” Levy wrote,” the scale that will be introduced through the sheer number of merchants using the PayU payment solution, coupled with the huge trove of data that can accelerate our analytics and machine learning capabilities, make this an exciting opportunity that we’re eager to explore.”

Zooz demonstrated its Transforming Checkout solution at FinovateFall 2013. Based in Raanana, Israel, Zooz announced a partnership with PayU last year that combined its cross border payment expertise with PayU’s presence in emerging markets. This spring, the company launched its open-payments-platform-as-a-service solution, PaymentsOS.

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Finovate Global: Fintech News from Around the World

By David Penn Posted on
Categories: Finovate Global, Onfido, Personetics, Temenos, Trulioo, VISA

As Finovate goes increasingly global, so does our coverage of financial technology. Finovate Global: Fintech News from Around the World is our weekly look at fintech innovation in developing economies in Asia, Africa, the Middle East, Latin America, and Central and Eastern Europe.

Sub-Saharan Africa

  • Mookh Africa, a fintech startup from Kenya that has developed a social business payments solution, wins Visa’s Sub Saharan Africa Everywhere Initiative contest.
  • Techpoint declares 2018 The Year of the Nigerian Fintech Startup.
  • Temenos taps Alexandre Menage as new Head of Sales for Africa.

Central and Eastern Europe

  • Equities.com reviews the 10 Hottest Places to Launch a Fintech Startup in Central and Eastern Europe.
  • Total Croatia News looks at money transfer startup, Aircash, which has gained 15,000 users in the first 12 months of operation.
  • Ukraine’s Financial Stability Council issues digital currency regulating document as popularity of crytocurrency trading in the country grows.

Middle East and Northern Africa

  • Salaam Gateway discusses how Dubai’s FinTech Hive supports Islamic fintech with the organization’s executive Vice President, Raja Al Mazrouei.
  • UAE-based merchant acquirer Network International introduces e-commerce platform for SMEs.
  • Daily Sabah looks at venture investment in Turkey in the first half of 2018.

Central and South Asia

  • Aurora talks with President and CEO of Telenor Bank, Shahid Mustafa about microfinance and e-commerce in Pakistan.
  • Onfido to Secure Drivers for India’s Largest Rideshare Company.
  • Fortune India interviews PayU India’s CEO Amrish Rau.

Latin America and the Caribbean

  • Incoming cohort for Startupbootcamp FinTech’s second Latin America-oriented program features fintechs from Mexico, Costa Rica, Ecuador, Chile, and Peru.
  • The Sociable profiles Microsoft-backed Imagine Lab Chile.
  • PYMNTS.com looks at how financial institutions in Latin America are coping with cyber fraud.

Asia-Pacific

  • Trulioo extends its identity and business verification service to the Philippines.
  • Personetics Scores Minority Stake Investment from United Overseas Bank.
  • Hong Kong Monetary Authority unveils Open API framework.

Top image designed by Freepik

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Finovate Alumni News

By David Penn Posted on
Categories: ACI Worldwide, Arxan Technologies, Currency Cloud, Figure Eight, IdentityMind Global, Infosys, Prosper, TransferTo, Zooz

On Finovate.com

  • Figure Eight (formerly CrowdFlower) Collaborating with Google Cloud on Machine Learning.
  • Zooz Acquired by PayU in Deal Valued at More than $80 Million.

Around the web

  • Currencycloud announces new CRO Nick Cheetham.
  • Rabobank to leverage ACI Worldwide’s ACI Issuer to manage and modernize its card portfolio business.
  • TransferTo teams up with distributed, open-source blockchain platform, Stellar.org to make cross border money transfers easier.
  • Infosys Finacle to power Ayeyarwaddy Farmers Development Bank’s digital transformation.
  • The Silicon Review names Arxan and IdentityMind Global among 50 best companies to watch in 2018.
  • Prosper moves from providing investors estimated return data to historical return data.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

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