Klarna Goes Live with SAP’s Smart AFI

Klarna Goes Live with SAP’s Smart AFI

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Online payment-solutions company Klarna has made a move that furthers its goal to become “the world’s favorite way to buy.” The Ohio-based company has gone live with SAP’s Smart Accounting for Financial Instruments, (Smart AFI).

The new solution, which is compliant with International Financial Reporting Standards (IFRS) and U.S. GAAP standards, comes as a part of SAPs Bank Analyzer 9.0 release. Using the new offering, Klarna will supply a centralized sub-ledger for banks that integrates directly into a company’s accounting-documentation chain. The facilitated integration will allow for easier geographical expansion, since it can handle multiple GAAP policies and the ability to offer more products.

“Our growth necessitated a centralized accounting system, one that gave us visibility across regional lines of business,” says Klarna VP Max Fischer. “We were concerned that getting that visibility would take a substantial amount of time and resources, but with SAP we were able to do it in only three months and with zero lag time in operations. It’s had a positive impact on our business.”

Klarna serves 45 million customers and works with 65,000 ecommerce merchants. At FinovateSpring 2012, the company demoed its technology that offers after-delivery payment, which ensures buyers receive the goods they ordered before the payment is due. As a perk to retailers, Klarna assumes the credit and fraud risk of a transaction to ensure retailers receive payment. Spotify, Disney, and Samsung are among the company’s clients.

Founded in Stockholm in 2005, and making its U.S. debut just one year ago, the company is headquartered in Columbus, Ohio, and has offices in San Francisco and New York City. Klarna raised $35 million bringing its total funding to $291 million from 12 investors.

SocietyOne Strikes Up Partnership with Beyond Bank, Reeling in $1.5 Million

SocietyOne Strikes Up Partnership with Beyond Bank, Reeling in $1.5 Million

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Australia-based P2P lender SocietyOne announced a new bank partner today. The company has teamed up with Beyond Bank Australia, a $4.8 billion customer-owned financial institution.

Beyond Bank Australia has contributed $1.5 million for an equity stake in SocietyOne and has increased its funding commitment in personal loans on the site to $10 million. The bank anticipates the investment will expand its footing in the fintech sector; CEO Wayne Matters describes the partnership as a “perfect example of our approach to innovation, customer service and new product opportunities.”

This isn’t the first time SocietyOne has received funding from a bank. In 2014, the company received $5 million from Reinventure, a VC management company funded by Westpac Bank. Westpac was believed to be the first bank to take an equity stake in a P2P lending organization.

SocietyOne’s online platform uses risk-based pricing to connect borrowers and investors to loans using its ClearMatch technology, which it launched at FinovateAsia 2012 (Finovate returns to Asia this year: Hong Kong on November 8). ClearMatch allows investors to bid together at different interest rates and amounts against a single loan.

In August, SocietyOne announced it had facilitated $38 million in personal loans in 2016. Since the company was founded in 2013, it has facilitated $150 million total. In April, SocietyOne announced it brought on a new CEO, Jason Yetton, and a new CFO, Anna Harper. The company has raised almost $55 million from eight investors.

Inside Expensify’s New Concierge Bot

Inside Expensify’s New Concierge Bot

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Online expense-report processing company Expensify launched a new bot this week. Her name is Concierge—yes, they gave their bot a gender—and she is an “intelligent, virtual assistant” that combines Expensify’s data of billions of dollars of expenses with real-time pricing data of every flight, car, and hotel across the globe.

The automated intelligence bot uses machine learning to assist with new user onboarding, outstanding task notification, customer service, and other tasks and processes. In a blog post announcing Concierge, Expensify highlighted one feature in particular, Scheduled Submit.

After customers use SmartScan to upload their receipts into Expensify, Concierge reads and categorizes those receipts, then adds the data to the user’s expense report. The bot even knows if transactions fall within company policy, and if they do, it sends the expense report to the user’s manager on their behalf. When combined with Expensify’s next-day reimbursement, users can have the funds back in their bank account the day after incurring the expense.

Expensify explains that “it’s not worth anybody’s time to manually transcribe, submit, review, and approve a ton of tiny receipts, and Concierge is there to take all that drudgery off your team’s plate.”

Founded in 2008, Expensify demoed Expensify Invoices at FinovateSpring 2013. Next month, on October 18 & 19, the company will present at FinDEVr Silicon Valley in Santa Clara, Calif. Discounted tickets for the event are still available through tonight. Register today to save.

See What You Missed at FinovateFall: Demo Videos Now Available

See What You Missed at FinovateFall: Demo Videos Now Available
29175062613_79b8fac89a_kAbove: MX jumps for joy to celebrate the company’s Best of Show win.

I should start this post by admitting that I missed FinovateFall this year. My wedding was the weekend after the show and there was no way to swing both. While I think I chose wisely, I certainly felt FinovateFall FOMO after reading Twitter highlights and press coverage.

If you, like me, missed out, we have the next best thing to being there. All of the 70 demos from FinovateFall are now available for free in our video archives and event photos are posted on Flickr. Also, there’s still time to catch more fintech this fall at our developer’s conference, FinDEVr (October 18 & 19) and our first event in Hong Kong, FinovateAsia (November 8).

The best place to start is by watching the six demos that won Best of Show:

AutoGravity

Backbase

Clinc

MX

Swych

Trusona

Thanks again to all the presenting companies who braved the Finovate stage and to all who attended. We’ll see you next year!

FinDEVr Preview: Modo

FinDEVr Preview: Modo

FinDEVrSV16-withdateFinDEVr Previews highlight companies presenting new developer tools, platforms, and integrations at FinDEVr Silicon Valley 2016, October 18 & 19. Early-bird savings end Friday, so pick up your ticket to save your spot today.

With Modo, you’ll learn how to build brand-spanking-new digital payments experiences that connect to not-so-new (and please, don’t spank them) existing payments systems using Modo COIN Operated Digital Payments Hub.

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Why it’s a must-see

New digital payments experiences need to use existing payments systems for scale, ease of adoption, and regulatory requirements. Don’t re-invent the bank (banks don’t like that). It’s easy to securely request money to move between any existing payments system connected to Modo.


Check out more of today’s FinDEVr Previews:

FinDEVr Preview: Marqeta

FinDEVr Preview: Marqeta

FinDEVr PreviewsFinDEVrSV16-withdate highlight companies presenting new developer tools, platforms, and integrations at FinDEVr Silicon Valley 2016, October 18 & 19. Early-bird savings end Friday, so pick up your ticket today and save your spot.

See how Marqeta’s open APIs are democratizing issuer payment processing by putting customers into the authorization stream.

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Why it’s a must-see

Get the control and insight of an issuer processor without the complexity—all through Marqeta’s API. Fund cards and authorize transactions in real time with JIT Funding. Add your own rules, your own decision engine, and your own data to make transactions happen in real time.


Check out more of today’s FinDEVr previews:

FinDEVr Preview: Lleida.net

FinDEVr Preview: Lleida.net

FinDEVrSV16-withdateFinDEVr Previews highlight companies presenting new developer tools, platforms, and integrations at FinDEVr Silicon Valley 2016, October 18 & 19. Early-bird savings end Friday, so pick up your ticket to save your spot today.

Lleida.net is introducing electronic communication solutions for merchants. These are seamlessly integrated through APIs. Registered email and online contracting provide the required legal evidence thanks to the certificate issued.

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Why it’s a must-see

Communication between merchants and consumers must be clear and provable so merchants are always protected if a breach of contract occurs. Lleida.net provides the definitive tools so that emails and online contracts have all the necessary legal backing to enforce the communication.


Check out more of today’s FinDEVr previews:

CoverHound Launches Insurance for Small Businesses

CoverHound Launches Insurance for Small Businesses

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Online insurance marketplace CoverHound expanded its offerings today. In addition to offering insight into auto, homeowners, and renters insurance, customers now can use CoverHound to find insurance for their small business.

The new business suite allows users to compare rates of custom commercial coverage. Currently, the insurance offerings are targeted toward businesses with fewer than 20 employees, but the company has plans to expand to cover larger companies. At launch, carriers include:

  • Chubb
  • Liberty Mutual
  • Berkshire Hathaway Direct
  • Hiscox
  • Progressive
  • Employers

More carriers will be available in the future. To get a quote, customers start by answering questions on the company’s web or mobile interface. Then they are connected by phone to a licensed insurance adviser to match them with the right coverage, including:

  • General liability
  • Professional liability
  • Business owners policy
  • Commercial auto
  • Cyber insurance

“Having once been a startup ourselves, CoverHound understands the growing pains of a small business,” said CoverHound CEO Keith Moore. “We’ll be there every step of the way to support business owners and ensure they get the coverage they need to satisfy third-party and legal requirements, and protect their property, customers and investment.”

CoverHound CEO and founder Basil Enan and CMO Keith Moore demoed the company’s mobile app at FinovateFall 2013. In 2015 the company closed a $33 million Series C funding round which brought its total funding to $53 million and boosted its valuation to $100 million. Later this year, CoverHound will launch CyberPolicy.com, where small businesses can shop for cyber insurance and cybersecurity tools. The company was founded in 2010.

OurCrowd Pulls in $72 Million

OurCrowd Pulls in $72 Million

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OurCrowd, an equity crowdfunding platform that boasts a network of 15,000 investors to fund U.S. and Israeli startups, raised $72 million. Financial institutions, family offices, and private investors from five continents participated in the Series C round, though most of the investors remain unnamed.

Singapore bank UOB Group, however, has come out as a strategic investor to help OurCrowd expand globally beyond the U.S. and Israel. Janet Young, managing director of group channels and digitalization at UOB Group, said, “We look forward to working closely with OurCrowd to further develop their platform to support the startup ecosystem both in Singapore and the broader Asian market. Our investment into this Series C funding for OurCrowd reinforces our commitment to support startups and small businesses.”

According to OurCrowd CEO Jon Medved, the company will use half of the funds to fuel global expansion and build out the product. The other half will be used to match investments made on the platform. This, as Medved explained, will “make sure that each and every company which raises funding on our platform receives participating investment from the General Partner on the same terms as the crowd.” He added the new capital will help achieve their goal of investing $1 billion annually by 2020.

OurCrowd’s funding now totals just north of $100 million. The Jerusalem-based company has facilitated $300 million in funding for the 100 companies in its portfolio. Notable client successes include nine exits, including seven sales and two IPOs.

OurCrowd’s Chief Product Officer Shai Ben-Tovim and VP of Engineering Oshrat Kfir launched the company’s mobile app at FinovateSpring 2016. The app helps investors discover new opportunities and empowers them with information to make better investment decisions.

In June the company partnered with Bayer, Dupont, and FinistereAG to launch an agriculture-focused investment fund, Radicle. That same month, OurCrowd earned a spot on the RedHerring 2016 Europe Top 100 list.

Welcome to FinovateFall!

Welcome to FinovateFall!

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It’s finally here; you made it to FinovateFall!

We have a full show today packed with plenty of fintech to explore. If you can’t make it, but want to come tomorrow, we have special one-day tickets. Buy them online or ask about them at the registration desk.

Here’s today’s lineup:

Registration opens at 8 a.m.

8 a.m. to 8:45: Registration and Continental Breakfast

8:45 a.m. to 10:15:

10:15 a.m. to 10:45 a.m. Intermission & Refreshments

10:45 a.m. to 12:05 p.m.:

Lunch 12:05 p.m. to 1:00 p.m.

1:00 p.m. to 2:20 p.m.:

2:20 p.m. to 2:50 p.m., Intermission & Refreshments

2:50 p.m. to 4:10 p.m.:

4:10 p.m. to 6:15 p.m., Networking, Open Bar & Appetizers
Best of Show winners will be announced tomorrow.

All demo videos will be available for free in a few weeks in our video archives.

Mastercard Says “Me Too” to Visa’s PayPal Partnership

Mastercard Says “Me Too” to Visa’s PayPal Partnership

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Just over a month after PayPal signed a partnership with Visa, the online money-transfer company has inked a deal with Mastercard.

The terms of today’s agreement with Mastercard are similar to those PayPal laid out with Visa:

  • Mastercard will be clearly presented as a payment option within the PayPal app
  • Users will be able to set Mastercard as their preferred payment method
  • Mastercard will help PayPal boost its presence at the point-of-sale (POS)
  • Mastercard’s Masterpass will be available as a payment option for merchants using Braintree
  • Venmo users can withdraw their Venmo balance using Mastercard Send

Also similar to the Visa deal, PayPal will receive volume incentives and will not be charged a digital wallet-operator fee for using Masterpass.

PayPal spun off from parent company eBay last year and has since been focused on growing its presence at the brick-and-mortar POS to help it compete with the growing number of mobile-wallet apps. The company’s recent partnerships with Visa and Mastercard are expected to spur growth in this area.

PayPal debuted Instant Account Creation at FinovateEurope 2012. Justin Woo, the company’s Braintree developer evangelist, presented at FinDEVr New York 2016. Visa has also presented at FinDEVr: M. Tad Tilahun, VP of product development, and M. Tad Tilahun and Alan Johnson, senior director/digital developed markets, presented at FinDEVr San Francisco 2014. Visa previously appeared at FinovateSpring 2010, where it demoed a tool to help consumers collect and organize products. At FinovateFall 2014, Mastercard took the stage to launch Mastercard Pay with Rewards, a solution that allows cardholders to redeem points at the point-of-sale. The company showed off its Developer Zone at FinDEVr San Francisco 2014.

Finovate Alumni News

On Finovate.com

  • FinovateFall: Mapping the Future of Fintech Today
  • Payworks Raises $4.5 Million Series A
  • Mastercard Says “Me Too” to Visa’s PayPal Partnership

Around the web

  • Top Image Systems Signs Two Accounts Payable Automation Deals Valued at Over $480,000
  • EU-based mobile payments company SumUp achieves profitability.
  • Let’s Talk Payments interviews Boku CEO Jon Prideaux.
  • ACI Worldwide brings UP Retail Payments to Erste Bank Hungary.
  • Braintree to offer Visa Checkout.
  • ayondo relaunches website with new design and features to improve trading experience.
  • TransferWise announces tripling of revenues in first public annual report.

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.