Author: Julie Muhn (@julieschicktanz)

Clair Brings Earned Wage Access To Gusto Clients

Clair Brings Earned Wage Access To Gusto Clients
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, Gusto
  • Earned wage access fintech Clair has partnered with payroll, benefits, and HR management solutions company Gusto.
  • Under the agreement, employees at many of Gusto’s 300,000 supported businesses will be offered access to On-Demand Pay via Gusto Wallet.
  • Gusto is Clair’s first partner to announce participation in the new embedded EWA product.

Embedded earned wage access provider Clair and payroll, benefits, and HR management solutions company Gusto are teaming up this week. The partnership will allow Gusto to offer earned wage access (EWA) to their small business clients.

Founded in 2019, Clair offers an embeddable EWA tool. Clair’s clients, which include Trinet, 7Shifts, syncHR, use the EWA tool to help their combined 12,000 business customers offer their employees earlier access to their paychecks with no interest. Once employees set up a Clair spending account, they can receive a paycheck advance at any time for hours they’ve already worked.

Clair offers end users banking services powered by Pathward, N.A., including a virtual and physical Mastercard debit card, access to fee-free ATMs, and does not charge monthly service fees or require a minimum balance.

“Emergency expenses often arise and employees need a secure and convenient way to cover those unexpected costs,” said General Manager and Head of Product at Gusto’s Members business unit Dan Loomis. “Due to these needs, we decided to add an on-demand pay offering to Gusto Wallet and knew it would be crucial to find the right partner to bring it to life in a seamless, compliant way. We evaluated all the major players in the EWA space and Clair stood out as our ideal partner, bringing both the compliance framework and technical capabilities we need to offer wage advances right inside our existing app. We’re proud of this industry-leading collaboration that expands the possibilities of embedded financial wellness benefits.”

Under today’s partnership, employees at many of Gusto’s 300,000 supported businesses will be offered access to sign up for On-Demand Pay via Gusto Wallet. The company anticipates the move will help employees increase prosperity by delivering not only earlier access to their pay, but also to financial and work productivity tools. Gusto is Clair’s first partner to announce participation in the new embedded EWA product.

Gusto was founded in 2011. Originally known as ZenPayroll, Gusto provides a cloud-based payroll, benefits, and HR management solution. The company’s tools help businesses with things like time and attendance, hiring and onboarding, talent management, and more. Company co-founder Joshua Reeves is CEO.

Photo by Karolina Kaboompics

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FIS Taps Lendio to Facilitate SMB Lending

FIS Taps Lendio to Facilitate SMB Lending
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Alumni profile, FIS, Lendio
  • FIS has partnered with online lending marketplace Lendio.
  • Under the agreement, FIS will leverage Lendio’s technology to fuel its new Digital Lending solution.
  • FIS’ Digital Lending tool aims to streamline and automate the lending process for financial institutions.

Payment, banking, and investment systems provider FIS has teamed up with online lending marketplace Lendio. The core banking giant is leveraging Lendio’s technology to launch its new SMB Digital Lending solution.

FIS’ new SMB Digital Lending solution seeks to offer small and medium-sized businesses (SMBs) easier access to capital by streamlining and automating the lending process for financial institutions. The new lending tool provides fully automated decisioning by combining big data and machine learning with underwriting expertise.

Leveraging Lendio’s technology, FIS’ Digital Lending solution will help banks source, underwrite, and fund SMB loans, making them more affordable for the borrower. By leveraging embedded transaction analytics, FIS’ Digital Lending will also offer lenders a holistic view of borrower health, pre-qualify SMB depositors, and help them create targeted marketing and sales campaigns.

“By partnering with Lendio, we are leveraging our unmatched scale and reach in the banking industry plus Lendio’s advanced small business underwriting technology and empowering financial institutions to profitably serve their small business customers,” said FIS Lending SVP Division Executive Steve Sabin. “The expansion of our digital banking capabilities illustrates FIS’ commitment to serving the entire money lifecycle—whether at rest, in motion, or at work—and I look forward to seeing the positive impact the solution brings.”

Adding a lending solution to its portfolio that focuses specifically on SMBs will complement FIS’ existing banking tools that cover both retail lending and commercial lending. FIS may be most well-known for its core banking services, but the firm also supports digital banking, payment processing, merchant acquiring services, consulting services, and more. Headquartered in Jacksonville, Florida, FIS has a current market capitalization of $42.8 billion.

“We are thrilled to partner with FIS, a global leader in financial technology, to help bring this SMB lending platform to banks across the country,” said Lendio CEO and Co-founder Brock Blake. “Our mission at Lendio is to fuel the dreams of small business owners by simplifying small business lending. FIS SMB Digital Lending is a perfect fit for that mission, as it enables banks to offer a fast, easy, and transparent loan process to their small business clients. Together with FIS, we are creating a win-win situation for banks and small businesses, and we look forward to expanding our reach and impact through this partnership.”

Lendio was founded in 2011, and has since helped to match small businesses seeking capital with suitable lenders. Businesses in need of funds can submit a single loan application to Lendio, tapping into its network of over 75 lenders. The platform then pairs each business with a suitable lender from the company’s in-house network.

Photo by Bench Accounting on Unsplash

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BNP Paribas Partners with Ant International

BNP Paribas Partners with Ant International
By Julie Muhn (@julieschicktanz) Posted on
Categories: Daily news
  • BNP Paribas has partnered with Ant International on multiple initiatives.
  • Among the projects, BNP Paribas will allow its merchant clients to accept payments via Ant International’s Alipay+, BNP Paribas will sponsor Ant International’s WorldFirst to participate in the Single Euro Payments Area (SEPA) scheme, and BNP Paribas will leverage Ant International’s Whale platform to explore opportunities in tokenized deposits.
  • Ant Group, which was originally an affiliate of Alibaba, created Ant international to foster international expansion efforts.

French bank BNP Paribas announced this week it has teamed up with Ant Group subsidiary Ant International. The two agreed to work together on four projects to help BNP Paribas foster its digital payment initiatives.

For the first collaboration, BNP Paribas will work with Ant International’s Alipay+, a cross-border mobile payment solution. The partnership will allow BNP Paribas’ merchant clients that use its acquiring service across Europe to accept payments from more than 25 international mobile partners via Alipay+.

The two will also work to help WorldFirst participate in the Single Euro Payments Area (SEPA) scheme. WorldFirst, which is Ant International’s digital payment and financial services platform for global businesses, aims to reinforce its participation in SEPA to help businesses make online cross-border payments and fund transfers within the SEPA Zone. Under the agreement, BNP Paribas will sponsor WorldFirst’s participation in the SEPA scheme, allowing WorldFirst to expedite its integration and onboarding onto SEPA. Ultimately, WorldFirst’s clients will be able to access SEPA payment schemes in real-time and automate treasury payments.

Additionally, BNP Paribas will leverage Ant International’s Whale platform to explore opportunities in tokenized deposits for global treasury management. In turn, Ant International will use BNP Paribas’ infrastructure to build out its Whale platform further.

The Whale platform leverages the blockchain to facilitate commercial digital payments and financial services on a global scale. The treasury management tool offers cross-border payment solutions that leverage tokenized deposits, support for digital wallet functionality integrated into Alipay+, and provide data analytics tools that offer insights into customer behavior and transaction patterns, and more.

“Through our collaboration with a leading industry partner, we will bring together digital payments and innovative technology solutions from Ant International, with BNP Paribas’s depth of experience in the European market, to deliver greater connectivity and make global travel and trade more convenient,” said Ant International President Douglas Feagin.

Ant International is headquartered in Singapore. The firm’s parent company Ant Group, which was originally an affiliate of Alibaba, created Ant international to foster international expansion efforts. In addition to Alipay+ and WorldFirst, Ant International’s other brands include Antom, Anext Bank, and Bettr.

BNP Paribas operates in 63 countries and has about 183,000 employees, including more than 145,000 in Europe. The bank was officially established in May of 2000, after the merger of France-based BNP and international investment bank Paribas.

Photo by Floriane Vita on Unsplash

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Ascend Money Lands $195 Million from MUFG

Ascend Money Lands $195 Million from MUFG
By Julie Muhn (@julieschicktanz) Posted on
Categories: Daily news, Funding
  • Ascend Money has received a $195 million investment.
  • The funding round was led by Mitsubishi UFJ Financial Group (MUFG) Bank with contributions from Finnoventure Private Equity Trust I.
  • The Thailand-based fintech will use the funds to build inclusive financial services in the region.

Thailand-based Ascend Money announced this week it has received $195 million in funding from Mitsubishi UFJ Financial Group (MUFG) Bank. The bank led the round, and Finnoventure Private Equity Trust I fund managed by Krungsri Finnovate Co. also contributed.

“This is a significant milestone for Ascend Money, which not only validates our commitment to innovation and financial inclusion in Thailand but also demonstrates a growing interest and confidence in Ascend Money’s potential,” said Ascend Money Founder and Chairman Suphachai Chearavanont.

Ascend Money anticipates the funds will help it accelerate its mission to provide inclusive financial services for underserved consumers and small businesses and ultimately foster economic growth and financial well-being in Thailand.

Ascend Money is Thailand’s largest digital financial services provider, with a presence in seven countries across Southeast Asia. The fintech’s TrueMoney platform offers e-payment, lending, BNPL, investment, and insurance. Ascend Money has 30 million active users in Thailand and serves its customers through its network of leading corporations, businesses, and merchants.

“MUFG considers the Asia Pacific its second home market, and as part of our commitment to this region, we have been making  strategic investments in leading digital finance players in the region,” said Senior Managing Corporate Executive, Head of Global Commercial Banking Business Group Yasushi Itagaki. “Ascend Money is a promising fintech player in Thailand with widespread penetration in the country’s consumer segment and deep understanding of their daily payments and financial requirements. With this investment,  we are making a significant contribution to the ongoing development of Thailand’s digital economy and financial inclusion, further underscoring MUFG’s commitment to the sustainable development of the country and the broader region as a whole.”

Ascend Money was founded in 2013 and has since processed $14 billion in the region. In 2021, the company received a $1.5 billion during its $150 million funding round.

“We are confident that Ascend Money’s strong growth trajectory, combined with MUFG’s expertise and network, will enable us to create a more inclusive and vibrant financial ecosystem to accelerate both regional and local digital transformation, benefiting millions of people and contributing to the country’s economic development,” said Chearavanont.

Photo by Dan Freeman on Unsplash

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U.S. Marshals Service Selects Coinbase to Hold & Trade Digital Assets

U.S. Marshals Service Selects Coinbase to Hold & Trade Digital Assets
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Coinbase, Daily news
  • The U.S. Marshals Service (USMS) has selected Coinbase Prime to hold and trade the agency’s “Class 1” (large cap) digital assets.
  • The agency will use Coinbase Prime for asset seizure and forfeiture, evidence management, and to support in financial investigations.
  • Coinbase Prime launched in 2021 and currently safeguards $330 billion worth of digital assets.

The U.S. Marshals Service (USMS) announced it has selected Coinbase to hold and trade the agency’s “Class 1” (large cap) digital assets. The USMS will use Coinbase Prime to centrally manage these Class 1 digital assets to facilitate various law enforcement activities.

The USMS, a federal law enforcement agency within the Department of Justice, holds multiple roles within the U.S. judicial system. The agency may be able to use Coinbase Prime the following instances:

  • Asset seizure and forfeiture: The USMS often seizes digital assets from criminals as part of legal proceedings. Coinbase will help the agency manage the assets in a way that they are preserved, can be liquidated, and that the proceeds can be used to fund law enforcement activities or be returned to victims.
  • Evidence management: Digital assets often serve as evidence in investigations or court cases. Coinbase will help to ensure the assets are properly managed to maintain their integrity and will ensure they are easily accessible for legal processes.
  • Supporting financial investigations: By handling large cap digital assets in a central location, Coinbase can help the USMS track and analyze transactions related to criminal activities to aid law enforcement in combating financial crimes such as money laundering, fraud, and cybercrime.

Launched in 2021, Coinbase Prime is a full-service prime brokerage platform with everything that institutions need to execute trades and custody assets at scale. Coinbase Prime currently has $171 billion in institutional assets under custody and safeguards $330 billion worth of digital assets.

Coinbase began supporting law enforcement agencies in 2014 when it founded its law enforcement program. The California-based company currently works with every major U.S. federal, state, and local law enforcement agency, as well as multiple international agencies.

“Growing the cryptoeconomy means promoting safe and efficient markets,” the company said in its blog post announcement, “and these partnerships are critical to our mission.”

Coinbase was founded in 2012 and is currently under fire from another U.S. governmental agency, the Securities and Exchange Commission, for allegedly operating as an unregistered securities exchange. Earlier this week, Coinbase sued the SEC and FDIC, demanding more transparency when it comes to crypto regulations.

Photo by Zach Lisko on Unsplash

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State Bank of India Launches SME Lending Solution

State Bank of India Launches SME Lending Solution
By Julie Muhn (@julieschicktanz) Posted on
Categories: Daily news
  • State Bank of India unveiled MSME Sahaj, a digital lending solution for micro, small, and medium enterprises (MSMEs).
  • The tool leverages data from the applicant’s Goods and Services Tax Identification Number, bank statements, and credit card payment histories to underwrite a loan for short-term, working capital.
  • MSME Sahaj will be available on State Bank of India’s YONO digital banking app.

State Bank of India (SBI), the nation’s largest bank, announced a new digital lending solution for micro, small, and medium enterprises (MSMEs) this week. The new offering, MSME Sahaj, is a web-based digital business loans solution for MSMEs’ invoice financing.

“The launch of MSME Sahaj aims to provide the fast and most intuitive lending solution, further solidifying our position as the leading MSME lender in the country,” said SBI Chariman Dinesh Khara.

MSME Sahaj is what the SBI is calling a “data-driven invoice financing credit assessment engine.” The holistic tool will allow MSMEs to apply for and receive a loan within 15 minutes. The system will also automatically close the loan on the due date.

Leveraging data from the applicant’s Goods and Services Tax Identification Number, bank statements, and credit card payment histories, MSME Sahaj allows businesses to take out a loan against their GST registered sales invoices of up to around $1,200 (₹1 lakh).

“MSME Sahaj – Digital Business Loans for Invoice Financing will offer a proposition to our existing Micro SME units who are part of the GST regime to get immediate on tap short term credit for working capital requirement through digital mode on SBI’s Yono app,” said SBI MD – Retail Banking & Operations Vinay Tonse.

SBI said that the purpose of the loans is to offer businesses a quick way to access short-term credit on its digital banking platform, YONO. YONO, which stands for, “You Only Need One” is a mobile app designed to meet a variety of customer needs, including banking, investment, insurance, travel booking, and daily shopping needs.

Photo by cottonbro studio

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The Evolution of the Customer Experience Discussion in Fintech

The Evolution of the Customer Experience Discussion in Fintech
By Julie Muhn (@julieschicktanz) Posted on
Categories: Streamly

The conversation around customer experience in financial services pre-dates fintech. And while the topic surged after the great digitalization of services took place in 2020, conversation about customer experience in banking and fintech has once again slowed.

This regression is taking place not because we’ve perfected the customer experience or because the topic is no longer relevant. Rather, it is because other topics, like the inclusion of GenAI or the consideration of multiple, new regulations have taken the spotlight. These two factors, however, are contributing to a change in how we discuss customer experience in banking and fintech. That’s because we are now leveraging GenAI tools to use data analytics and behavioral insights to respond to and anticipate customer needs. Regulatory compliance factors, such as new privacy acts, have also caused conversations around the customer experience to mature.

At FinovateSpring earlier this year, we spoke with multiple experts to better comprehend how the conversation around the customer experience has evolved, to grasp where we are now, and to understand where the concept is headed in the future.

LeanData’s Matt Lyman on LeanData’s approach to transforming CRM in financial services

Next Step’s Shirin Oreizy on unlocking behavioral insights in financial services marketing

Beyond the Arc’s Steven Ramirez on revolutionizing customer experience with AI and embedded finance

SVB’s Christopher Hollins on personalizing the banking experience

EMARKETER’s Tiffani Montez on BaaS in financial services

Photo by Jon Tyson on Unsplash

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Monzo Unveils Unique Fraud Controls

Monzo Unveils Unique Fraud Controls
By Julie Muhn (@julieschicktanz) Posted on
Categories: Daily news
  • Monzo is implementing new security controls to limit fraud occurring from stolen devices.
  • In order to transfer funds over a user-designated amount, users can implement one of three security controls, including authorizing funds from a specific geolocation, asking a friend or a family to confirm the transfer, or photographing a printed QR code.
  • The new controls will be implemented in addition to Monzo’s biometric and PIN authentication fraud checks.

U.K.-based digital banking platform Monzo announced some new security controls today. Writing in the company’s online community forum, representatives from the Monzo’s product security team unveiled a new security feature and three new, user-imposed controls to further protect consumers.

“We wanted to tell you about some new controls we’ve been working on that we’ll be launching soon,” the team said. “The security feature will let you add an extra layer of protection on payments and pot withdrawals over a daily allowance – to help stop fraudsters in their tracks, even if they get hold of your phone.”

Monzo built the new security feature in light of the fact that many users manage their financial lives on their phones, and devices are often lost or stolen. According to the BBC, one mobile phone is stolen every six minutes in London.

The new, optional security feature will allow users to set up daily allowances for sending bank transfers and withdrawing money from an Instant Access Savings Pot. If users want to move money that amounts to over their daily allowance, they will undergo an extra security check that will be comprised of one of three suggested controls. The controls will be implemented in addition to Monzo’s biometric and PIN authentication fraud checks.

The three new controls include:

  • Known locations
    Users choose a specific location from which they plan to send large sums . Monzo recommends users use their home, office, or any location that fraudsters may not be able to access.
  • Trusted contacts
    Users will ask a close friend or family member who also uses Monzo to double check bank transfers and savings withdrawals that total more than the user’s daily allowance. The user will need to consent to their selected friend or family member seeing some details about their funds transfer. After consent is received, Monzo will ask the friend or family member to confirm the user’s identity and verify that it looks safe by calling the user.
  • Secret QR codes
    Monzo will email the user a confidential QR code to print out and keep in a safe digital location, or store digitally on a stationary device. The QR code includes a high-security password that only works with their account and does not include any personal information.

While users will only need to use one of these methods to move money over their daily allowance, Monzo is requesting that users set up at least two of these three controls so that they have a backup. In the event a user cannot pass any of the three extra security controls, they will still be able to make the payment and access their money by confirming their identity with a short selfie video.

Users will also be subject to additional security checks in the event they want to change their controls or modify their allowance amount.

“Our aim with these new controls is to create an experience that’s both secure and simple – so we wanted to delve deeper into how we approached the design and product development process,” the security team explained. “We had to think carefully about how to add a new layer of (optional) friction over our existing security measures, to help stop fraudsters and reassure customers. While still making sure people can make payments and move money in a way that’s easy to use and convenient.”

While these extra controls add a necessary layer of fraud protection, they also add a considerable amount of friction for users. I can’t imagine asking a friend or family member to take time out of their day for a call in order to get their permission to use my own money. I’d rather default to Monzo’s fail-safe option– confirming my identity with a selfie video. That said, the fraud controls could come in handy for limiting very large transfers or for putting funds on hold when traveling.

Photo by Fernando Arcos

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Fintech Rundown: A Rapid Review of Weekly News

Fintech Rundown: A Rapid Review of Weekly News
By Julie Muhn (@julieschicktanz) Posted on
Categories: Fintech Rundown

We’ve made it to the halfway mark of 2024, which leaves us six months to finish off our 2024 initiatives. While the news usually slows down in July, however, some of the drama between banks and regulators is heating up. Stay tuned to read this week’s news as we post updates and evolutions.

Wealth management

BlackRock to buy U.K. data group Preqin for $3.2 billion.

Robinhood acquires AI-driven investment-advice platform Pluto.

intelliflo redblack named WealthTech Provider of the Year by InvestmentNews.

Payments

Comfi secures $5 million debt facility to expedite BNPL plans.

Conotoxia adds the next currencies, HUF, RON and AED, to its multi-currency cards.

Wise customers may be impacted by Evolve Bank & Trust data breach.

Fraud and identity management

KarmaCheck raises $45 million.

Evolve Bank & Trust hit by ransomware attack, confirms customer data stolen.

Digital banking

Nubank acquires Hyperplane to accelerate AI-first strategy.

Flybits partners with Logicom Solutions.

Plaid has grown its enterprise customer base to over 1,000.

Revolut reaches record profit of $545 million, confident of U.K. bank license approval.

Former Backbase exec Mark Geneste joins Mambu as Chief Revenue Officer.

Bling raises $12 million to scale its family super-app.

DeFi and crypto

Coinbase sues SEC, FDIC over FOIA requests, says federal regulators trying to cut out crypto.

Paxos gains Singapore approval for stablecoin issuance, DBS to provide custody.

Banking-as-a-Service

Thread Bank receives FDIC consent order to increase BaaS oversight.

Small business finance

U.K. fintech Triver lands £2.5 million to provide working capital to SMEs.

Photo by fauxels

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Sezzle Expands Loyalty Program to Canadian Users

Sezzle Expands Loyalty Program to Canadian Users
By Julie Muhn (@julieschicktanz) Posted on
Categories: Daily news, Sezzle
  • Sezzle is expanding its Payment Streaks loyalty program to Canada.
  • The program uses a gamified approach to reward shoppers for on-time payments.
  • The program is not available in Quebec.

Just in time for Canada day (which is July 1, for those who may not celebrate), buy now, pay later (BNPL) technology provider Sezzle announced it is expanding its Payment Streaks loyalty program to users in Canada, with the exception of shoppers in Quebec.

Sezzle launched Payment Streaks in May of this year to reward consumers for consistent and timely payments. Through the gamified approach, when users consistently make their payments on time over the course of 90 days, they qualify to advance through to the next loyalty tier. The loyalty tiers offer a range of benefits to users, including entries in monthly giveaways and bonuses for friend referrals.

“Launching Payment Streaks for our Canadian users is a game-changer in promoting financial responsibility and customer satisfaction,” said Sezzle Canada GM Patrick Chan. “By turning on-time payments into a rewarding journey, we’re empowering users to manage their finances wisely while enjoying exclusive perks.”

Failed or rescheduled payments, or payments associated with refunded or canceled orders, do not qualify for streaks. Long-term financing payments and payments charged back by banks are also excluded from streaks. In the case of a failed payment, however, Sezzle allows users that resolve the issue within the same day to stay in their existing loyalty tier.

“By gamifying timely payments, we’re not only encouraging smart spending habits but also creating a more engaged community of shoppers. For merchants, this means stronger customer loyalty and trust, ultimately driving growth and success.” said Chan. “As we introduce Payment Streaks to Canadian users, we are reinforcing our commitment to shaping a future where financial empowerment is accessible to all.”

As one of the original BNPL players, Sezzle was founded in 2016. The company went public on the Australian Stock exchange in 2019 and shortly thereafter benefitted from the BNPL growth of 2020. Sezzle listed on the Nasdaq in August of 2023 and has a current market capitalization of $464 million.

Photo by Hermes Rivera on Unsplash

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Chime Acquires Salt Labs, Launches Chime Enterprise

Chime Acquires Salt Labs, Launches Chime Enterprise
By Julie Muhn (@julieschicktanz) Posted on
Categories: Daily news, Mergers & Acquisitions
  • Chime plans to acquire Salt Labs, an employee savings and rewards program to help companies motivate their workforces.
  • Along with the acquisition, Chime is launching Chime Enterprise, a new business unit that will help Chime grow users via the employer channel.
  • Salt Labs Founder and CEO Jason Lee will lead Chime Enterprise.

Challenger bank Chime made an acquisition today that will help it expand into the enterprise arena. The San Francisco-based digital bank announced today that it has acquired Salt Labs, an employee savings and rewards program to help companies motivate their workforces.

Salt was founded in 2022 to offer enterprises a new way to incentivize their hourly employees. The company helps mitigate turnover while engaging employees by allowing workers to earn one “Salt Asset” for each hour they work. If they stay with the company for long enough, employees can exchange accumulated Salt Assets for a special purchase, college fund distribution, or an investment.

Until now, Chime has strictly offered services directly to end consumers. With the acquisition of Salt, however, Chime will make a move to acquire new users through their employers. Salt Founder and CEO and Founder of DailyPay Jason Lee will lead Chime’s new business unit, Chime Enterprise, to help Chime grow its client base via the employer channel.

“This is a one-of-a-kind opportunity for Chime to acquire an innovative employee rewards company that has key employer relationships, and a founding team that has created some of the most disruptive technology in the enterprise earned wage access space,” said Chime COO Mark Troughton. “Through this acquisition, we will aim to partner directly with employers to reach millions of consumers and introduce them to the Chime platform. We look forward to leveraging Salt Labs’ existing relationships with employers and building upon the Chime MyPay earned wage access platform to further address the needs of everyday people.”

Chime is well known in fintech for offering tools and services that cater to its low-to-middle income target market. In addition to its earned wage access tool that allows users to receive their paycheck up to two days earlier when they set up direct deposit, Chime also offers a credit-building tool and a feature that will spot users up to $200 to avoid account overdrafts.

Chime did not publicly disclose the acquisition amount. However, some sources report that the deal, which is expected to be finalized later this week, could close for as much as $173 million after Chime provides an up-front payment of $14 million.

“We’ve always believed that financial progress begins with employment and should be centered around the primary financial account,” said Lee. “We are thrilled to be part of this next stage of growth at Chime and to build Chime Enterprise alongside the incredible team at Chime.”

Photo by Jason Tuinstra on Unsplash

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Adyen Brings Near-Instant Settlements to SumUp Clients

Adyen Brings Near-Instant Settlements to SumUp Clients
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, SumUp
  • SumUp and Adyen have joined forces to bring faster payouts to small-to-medium sized enterprises (SMEs).
  • The partnership will help SumUp offer more of its SME clients access to funds within minutes of a sale.
  • Faster access to funds will help reduce SMEs’ reliance on large working capital reserves and will improve their cash flow.

Payment acceptance company SumUp and payments technology company Adyen have joined forces this week to offer near-instant settlements to more small and micro merchants in Europe and the U.K.

The partnership will help SumUp bring same day settlements to even more of SumUp’s small-to-medium sized enterprise (SME) clients, offering them the access to funds within minutes of a sale. The companies anticipate that the faster access to funds will help reduce SMEs’ reliance on large working capital reserves and will improve their cash flow.

“This partnership is one of a kind as we join forces as major payments players to give SMEs the ability to settle at incredible speeds,” said Adyen President EMEA Alexa von Bismarck. “Cash flow is of the utmost importance for small business owners, and we are proud of being selected by SumUp as their partner on this mission.”

Adyen was founded in 2006 and brings end-to-end payment capabilities, data enhancements, and financial products in a single solution. The company, which processed $820 billion (€767.5 billion) in volume in 2022, serves a range of businesses across the globe, including Facebook, Uber, H&M, eBay, and Microsoft.

SumUp’s platform includes many of the business financial management tools and services that small businesses need to manage and run their businesses, including in-person and remote payment acceptance, card terminals, point-of-sale registers, a business account and card, online store hosting, and invoicing tools. Founded in 2012, SumUp serves 4 million merchants in 36 markets.

“Over the last 10 years, we established the de facto market standard for card acceptance and financial technology for merchants in 36 markets,” said SumUp Co-founder and COO Marc-Alexander Christ. “This partnership will allow us to keep pushing boundaries and continue providing our merchants with the best solutions to manage their business, be it payments, software or financial services. We are excited to amplify our ecosystem of tools and services for small, medium and even enterprise merchants.”

Photo by Djim Loic on Unsplash

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