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Finovate Blog
Tracking fintech, banking & financial services innovations since 1994
Paysafe and Eightcap are expanding on their partnership to offer an Embedded Trading Wallet solution.
The Embedded Trading Wallet brings Paysafe’s digital wallet infrastructure together with Eightcap’s trading technology to create a white-label wallet for their shared partners and merchants.
Paysafe and Eightcap first partnered in 2016.
Global payments provider Paysafe has expanded on its partnership with online trading platform Eightcap to launch an Embedded Trading Wallet solution.
Under the agreement, the two will offer an embedded finance solution for Eightcap’s and Paysafe’s shared partners and merchants. The Embedded Trading Wallet combines Paysafe’s digital wallet infrastructure with Eightcap’s trading technology to create a white-label, plug-and-play trading and payment wallet for their retail traders.
“We’re delighted to be embarking on this strategic partnership with Eightcap and facilitating its embedded trading wallet solution through white labelling our products and services,” said Paysafe SVP of Crypto and Digital Assets Micah Kershner. “Embedded finance is the future, and we believe this solution will revolutionize the trader’s experience.”
U.K.-based Paysafe was founded in 1996. The company now offers payment processing, digital wallet, and online cash solutions connecting businesses and consumers across 250 payment types in over 40 currencies around the world. Paysafe has processed $130 billion in transactions. The company is publicly listed on the New York Stock Exchange under the ticker PSFE and has a market capitalization of $816 million.
Eightcap, which first teamed up with Paysafe in 2016, facilitates retail derivatives trading for investors in more than 120 countries. The company’s B2B embedded trading API allows partners to offer over 1,000 tradable instruments in stocks, indices, crypto, FX, and commodities.
“We are extremely excited to be entering into this new phase of our partnership. This solution will enable unparalleled payment capabilities for our global partners and traders,” said Eightcap Director of UK Patrick Murphy.
Environmental, social, and governance– better known as ESG– initiatives are hot topics across the fintech and banking sectors. And as a fintech and banking conference, we’ve taken a look at our own operations to improve our environmental, social, and governance practices.
Below is a breakdown of each ESG aspect, and what we are doing at FinovateFall this year to support and promote a healthier environment.
Environmental responsibility
Reducing carbon emissions We’re reducing carbon emissions not only in the way we conduct FinovateFall, but also in how we travel to the event by carpooling and taking public transportation when possible.
Environmental sustainability content FinovateFall will host dedicated on-stage content on environmental sustainability in fintech. In addition to featuring demos from fintechs supporting sustainability, we’re hosting a keynote by Greg O’Gara, Lead Analyst, Wealth Management at Javelin Strategy & Research on Climate Change, ESG & Financial Services, What Do Wall Street & Your Customers Want?
Sustainable development
Sustainable Fintech Scholarship With our demo scholarship program, Finovate will spotlight underrepresented founders and startups tackling climate change, diversity, and financial inclusion. The program will also help us expand our demo line ups to include more voices, more perspectives, and more cutting-edge thinking within fintech.
Sustainable development goals Our aim is for FinovateFall to promote long-term sustainable development – in the way that we run the event but also in how it’s implemented in the market as a whole. We are committing to:
Using our content to support the sustainability of the fintech market
Developing close partnerships with charities, companies and associations and giving them a platform to promote their work in the field
Facilitating discussions on pertinent topics including diversity and inclusion, gender balance, sustainability trends, the impact on the environment, and more.
Governance
Operation Backpack We are supporting Operation Backpack, a Volunteers of America non-profit that provides brand new backpacks and grade-specific school supplies to children living in homeless shelters throughout the five boroughs of New York City. Please help us support this important work by making a donation. Even a small contribution will help!
Diversity and inclusion content We’re hosting a fireside chat on diversity, and one on financial inclusion. Jim Perry, Senior Strategist at Market Insights will discuss why diversity matters and Melissa Koide, CEO of FinRegLab will talk about driving purpose and profit through financial inclusion.
Startup Booster FinovateFall’s Startup Booster program offers smaller fintechs a voice in front of a large investor audience. The program is limited to fintech and tech startups who are less than five years old and have raised, at most, Seed capital. Participants will attend a 60-minute reception that will offer face time with investors, as well as a dedicated cocktail table and sign at the event.
Our driving force
Overarching all of this is our initiative called FasterForward, our parent company Informa’s program that embeds sustainability into everything we do and aims to help our customers do the same. With FasterFoward, we are striving to achieve nine specific goals:
Become carbon neutral as a business and across our products by 2025
Halve the waste generated through our products and events by 2025
Become zero waste and net zero carbon by 2030 or earlier
Embed sustainability inside 100% of our brands by2025
Help and promote the achievement of the UN’s Sustainable Development Goals through our brands
Enable one million disconnected people to access networks and knowledge by 2025
Contribute $5bn per year in value for our host cities by 2025
Contribute value of at least 1% of profit before tax to community groups by 2025
ThetaRay raised $57 million in a round led by Portage.
The funds bring the company’s total funding to $112 million.
ThetaRay will use the funds to fuel global expansion.
Financial crime fighting fintech ThetaRayannounced today it has received $57 million. The growth round, which boosts the company’s total funding to $112 million, was led by Portage, with contributions from existing investors JVP, OurCrowd and others.
Israel-based ThetaRay will use the funds to accelerate global growth. “Guided by the adept leadership of Peter Reynolds, the resolute ThetaRay team stands ready to expand its financial technology footprint across continents – spanning North America, South America, Europe, Africa, and Asia – and venture into uncharted realms of innovation,” said ThetaRay Founder and Chairman of JVP and Chairman of ThetaRay Erel Margalit.
“Global payment infrastructure too often fails to accurately differentiate between perfectly legitimate transactions and ones from bad actors dealing with illicit funds,” said ThetaRay’s recently appointed CEO Peter Reynolds. “We’re proud to be at the forefront of the revolution to make global transactions easier, safer, and cheaper and are keenly aware of the massive vote of confidence this investment is in both our technology and our team.”
Founded in 2013, ThetaRay leverages AI to monitor 11 billion transactions valued at $15 trillion on an annual basis. The company’s AML transaction monitoring and screening solution, SONAR, helps banks and fintechs screen both cross-border and domestic payments for money laundering. When compared to rule-based systems, SONAR results in 99% fewer false positives. Among the company’s clients are ClearBank, Travelex Bank, and Santander.
OneID raised $1.3 million (£1 million) in funding.
The funds come from ACF Investors.
OneID has a unique approach on digital identity verification. It uses consumers’ existing banking relationship to authenticate their identity.
U.K.-based OneID announced it raised $1.3 million (£1 million) in funding. The Seed round, which marks the company’s second investment round, comes from ACF Investors. OneID also counts 170 angel investors among its backers.
“The investment from ACF Investors is a coming together of similar interests and visions,” said OneID CEO Paula Sussex. “As the world increasingly becomes digital-first, we aim to minimize fraud, enhance online experiences, and make the world a safer place.”
OneID, which will use today’s investment for product development, was founded in 2020 with a unique take on digital verification. The company leverages consumers’ existing bank accounts to authenticate them. After receiving consent from the consumer, OneID contacts the bank to verify their identity.
By leveraging consumers’ existing bank relationship, OneID eliminates the need for consumers to undergo a registration process, take a selfie, provide paper documents, or travel to a physical location. It also means that OneID does not need to store any sensitive data.
Sussex sees the round as a “vote of confidence” in the company’s efforts to make digital identification accessible and available to more U.K. citizens.
“We’re constantly monitoring businesses that have the potential to enhance the lives of the British people and redefine the future of the U.K., said ACF Managing Partner Tim Mills. “OneID, with its simple, trustworthy, and effective solution to a pressing problem, could touch some 50 million U.K. citizens and make bank-verified digital identification the norm in the UK.”
The company is making the auto loans available to a wide range of consumers, even those with FICO scores as low as 580.
The move comes as others are pulling out of auto lending or tightening lending restrictions.
Digital bank Upgrade announced this week it now offers auto loans. The California-based company plans to originate the loans via car dealers and re-sell the debt to its network of banks.
According to Bloomberg, which broke the news, the company will target a range of consumers– even those with sub-prime credit– and plans to extend loans to consumers with FICO scores as low as 580.
This announcement comes at a time when many consumers are underwater on their auto loans, triggering higher delinquencies. According to Edmunds.com, the average U.S. consumer’s monthly payment reached $733 in July, marking a record high.
Because of this, multiple lenders have either exited auto lending in some capacity, or have tightened their lending standards. This has left a “void in the market,” according to Upgrade Co-founder and CEO Renaud Laplanche. “It’s great to be in that position to lower the cost of auto lending at the time it’s really needed,” he said.
Where others are backing out, however, Upgrade is doubling down. The company claims to have a competitive advantage over other lenders because it taps multiple sources of funding– from banks, to credit unions, to asset managers– which purchase the loans after Upgrade has originated them.
While Upgrade already offers auto loan refinancing as part of its banking product suite, this is the company’s first foray into auto loan origination. The company refinances auto loans at 5.24% to 17.94% APR on cars less than 10 years old with mileages under 130,000.
A group of 30 car dealers in California and Oregon are piloting Upgrade’s auto loans, which went live with the loans earlier this week.
Last month’s launch of FedNow has sparked discussions on the future of real-time payments and their implications on banks and fintechs. In an interview with ConnexPay Founder and CEO Bob Kaufman, we look at the introduction of FedNow and how it stands to impact competition and adoption across the sector.
The interview also sheds light on the shift away from checks and cash, looks at the impact real-time payments will have on banks, and offers insight into strategies to stay ahead of the curve.
How will FedNow’s recent launch impact competition and adoption across the sector?
Bob Kaufman: In my view, FedNow effectively bridges the gap that exists between the traditional ACH infrastructure and the Federal Reserve’s payment rails. While ACH offers a reliable solution for high volumes of payments, its drawback lies in its lack of real-time processing. Even with the introduction of same-day ACH, there remains a risk of funds being reclaimed within a short span. This limitation becomes evident in situations such as property purchases where swift transactions are crucial – a circumstance for which the wire network was established. However, the wire payment system comes with its own set of drawbacks, notably its high cost and the manual intervention required.
What are the current barriers to mass adoption of real-time payments?
Kaufman: FedNow targets small-dollar peer-to-peer transactions and operates solely within the United States. In contrast to card-based transactions, there also appears to be a lack of a robust dispute resolution process for FedNow, although there have been discussions about implementing one. When we consider the present use of credit cards, it’s interesting to note the confidence we place in the act of handing our cards to unfamiliar entities. This applies particularly to transactions involving businesses we’ve never engaged with before. We readily input those 16-digit card numbers without dwelling on the potential consequences if the purchased items fail to materialize at our doorstep. This level of assurance stems from the knowledge that, should an issue arise, we can promptly contact our bank, initiate a dispute, and subsequently reclaim our funds. This chargeback process is a fundamental reason why credit cards remain a prevailing payment method.
The dominance of Visa and Mastercard in the market is largely attributed to their establishment of a highly effective chargeback mechanism. This tried-and-true approach provides a reliable means of resolving transactional disputes that isn’t as well-developed within alternative payment avenues.
What impact will real-time payments have on banks?
Kaufman: I believe that the banking sector stands to benefit from addressing the current shortcomings within the ACH and wire transfer systems. While ACH transactions work seamlessly for many B2B payments due to their scalability, they each have limitations when it comes to P2P and certain other transaction types. ACH will undoubtedly continue to serve a purpose for pre-authorized payments, enabling businesses to initiate ACH transfers to designated recipients when there’s an assurance of incoming funds.
However, ACH encounters challenges, especially in terms of data handling. In contrast, credit card transactions provide an array of comprehensive details, including Level 3 data, allowing for precise identification of invoices and the nature of the payment. This wealth of information ensures clarity in understanding the purpose of a transaction. The reconciliation process poses a significant issue with ACH transactions, particularly for the CFOs of large corporations. Their checking accounts could be inundated with hundreds of ACH records on a daily basis, often without clear indications of their corresponding purposes. This discrepancy creates a reconciliation nightmare that doesn’t arise when utilizing credit card transactions, where the associated data provides a more transparent overview of each transaction.
Will the real-time payments boom in the U.S. lead to the end of checks and cash payments?
Kaufman: Throughout my tenure in this industry, the consensus has been that checks are steadily fading into obsolescence. Admittedly, it’s been quite some time since I’ve personally written a check, and even my 20-year-old children are unfamiliar with the concept. In that regard, checks have essentially become a thing of the past.
While checks are dwindling, they persist in B2B payments, constituting nearly half of such transactions. COVID-19 impacted cash usage, yet it remains for businesses lacking stable internet connectivity. The complications of cash management and the IRS’s stance on it provide incentives to phase it out.
At ConnexPay, our objective is to serve as a comprehensive solution for inbound and outbound funds for companies that operate as intermediaries (such as travel agencies, Doordash, Uber Eats, and ecommerce marketplaces), rather than producing their own goods or services. We’re committed to addressing the diverse payment requirements that these businesses demand. This is precisely why we offer options like push-to-card, ACH, and wire transfers.
What is ConnexPay doing to stay ahead of the trends in the industry?
Kaufman: ConnexPay was established with a vision to address the fragmentation in the payments industry. Our goal is to streamline the payment process for companies by offering both incoming and outgoing payment solutions. Unlike our competitors, we provide a unified approach, resolving pain points like cash flow issues. Our real-time access to funds sets us apart.
We are agile in responding to customer needs and rapidly implementing new solutions. For instance, consider companies like AirBnB – although they are not yet our clients, such firms have expressed a need to compensate consumers rather than businesses on the opposite end of a transaction. These companies prefer not to rely on credit cards; instead, they appreciate the benefits of real-time access and the potential data insights associated with such transactions. To address this requirement, we recently introduced Push-to-Card Payouts. A similar scenario could arise with FedNow. However, it’s worth noting that we currently serve 250 clients, and none of them have indicated a desire for ConnexPay to provide this particular offering.
PhonePe has launched a stock broking app, Share.Market.
The app facilitates intraday trades and allows users to purchase stocks, mutual funds, ETFs, and WealthBaskets.
The launch comes as PhonePe is more than three-quarters of the way through its recent $1 billion capital raise target.
Mobile payments app PhonePe announced today that its subsidiary, PhonePe Wealth Broking, has launched a stock broking app called Share.Market.
The new tool, which is available as a mobile app or web platform, enables retail investors and traders to purchase stocks, mutual funds, and ETFs. Share.Market will also offer WealthBaskets– curated collections of stocks/investment products that align with specific themes, sectors, or market trends– and will facilitate intraday trades.
PhonePe anticipates that, thanks to PhonePe’s existing reach and distribution, Share.Market will help more Indians build wealth. That’s because PhonePe has around 480 million registered users, accounting for one in four adult Indians.
“We are delighted to launch Share.Marketwhich further enables our vision of driving Financial Inclusion at a population scale,” said Share.Market CEO Ujjwal Jain. “Our goal is to offer the benefits of discount broking while creating lasting value for our customers as they invest and trade.”
The app will embed real-time, value-rich insights into its products and will offer DIY tools that help investors make informed decisions. There is also a Markets section that enables users to track the stock market, indices, individual stocks, and sectors.
“We will continue to invest in advanced technology, data, research, and immersive experiences to offer these benefits at scale and drive this new era of Value led Discount Broking coupling intelligence with Broking,” Jain added.
The launch of Share.Market comes in the midst of PhonePe’s recent capital-raising streak. Since 2021, the company has brought in $850 million from General Atlantic and Walmart, pushing PhonePe close to the $1 billion capital raise target it announced earlier this year.
PhonePe, which launched in 2015, began offering investing tools, mutual fund products, and insurance tools in 2017. In the six years since, the company has launched several mutual funds and insurance products. PhonePe was most recently valued at $12 billion earlier this spring.
Bank of America is launching Global Digital Disbursements for commercial clients in Canada.
The launch in the Canadian market is facilitated via a partnership with Canadian interbank network Interac.
Global Digital Disbursements enables fast mobile B2C payments, helping businesses replace cash or check payments.
Bank of America has teamed up with Canadian interbank network Interac today. The bank announced today it is launching its Global Digital Disbursements product for commercial clients in Canada.
Global Digital Disbursements enables fast mobile B2C payments for users in multiple industries, such as insurance, healthcare, and education. The solution, which uses a person’s email address or mobile phone number as their identifier, works for companies seeking to replace cash or check payments.
“This is a milestone for Bank of America in Canada, as we continue to meet the evolving digital needs of our multinational clients, providing them with enhanced speed, flexibility and transparency to manage their payment and receipt flows,” said Bank of America Head of Product for Global Transaction Services, Canada Leslie Konecny.
The solution, which is available to Bank of America’s commercial clients that hold deposit accounts at the bank’s branch in Canada, uses Interac’s e-Transfer service, a solution that moves money across Canada to more than 300 other banks.
Unique to the Canadian market, Bank of America is making the Request for Pay feature available with Global Digital Disbursements. This feature enables businesses to text or email customers an invoice that contains a link to pay the required amount, which ultimately results in faster payments.
“The launch of Global Digital Disbursements in Canada follows the bank’s 75th anniversary in the country,” said Bank of America head of GTS Canada Maureen Jarvis. “This much anticipated launch speaks to our commitment to local innovations in financial services that help our clients realize cost savings and a competitive edge.”
Bank of America serves 68 million retail and small business clients through operations across the United States, its territories, and more than 35 countries. The bank is listed on the New York Stock Exchange under the ticker BAC and has a current market capitalization of $232 billion.
Lighter Capital raised a $130 million credit facility.
The company will use the facility to continue funding early-stage companies.
Lighter Capital recently surpassed the milestone of distributing $350 million in growth capital via more than 1,000 rounds of financing.
Revenue-based financing fintech Lighter Capital has closed a $130 million credit facility this week. Today’s funds come from ATLAS SP Partners, i80, the Victorian Government, and iPartners.
The credit facility will be used to fund early-stage companies, something Lighter Capital has been doing since its launch in 2010. In fact, the company recently surpassed the milestone of having distributed $350 million in growth capital to more than 500 startups across the U.S., Canada, and Australia through more than 1,000 rounds of financing.
Lighter Capital’s revenue-based financing model helps startups that offer SaaS, technology services, subscription services, and digital media to access up to $4 million in growth capital without selling equity.
“Lighter Capital’s model is so innovative — a debt provider that’s essentially a VC partner,” said Qnary Founder and Chairman Bant Breen. “We get the financial rigor, network, and strategic guidance that a VC would give us, and that’s been incredibly helpful.”
Recently, the Seattle-based company has opened new offices in Australia, unveiled more non-dilutive funding options, and launched an online networking community for startup CEOs.
“After more than a decade in business, 2022 was our best year in the company’s history,” said company CEO Melissa Widner. “It’s a great privilege to help founders achieve their dreams on their terms by providing funding that doesn’t require selling equity or giving up control.”
Lighter Capital and other alternative financing startups are experiencing a moment in the fintech spotlight. That can be attributed to two factors. First, because VC funding is in decline, it is difficult to obtain equity financing. Additionally, banks have started to tighten their lending standards because of economic uncertainty and decreased collateral values.
An early Finovate alum, Lighter Capital’s most recent Finovate demo was at FinovateFall 2013, where then-CEO BJ Lackland demonstrated how the company’s small business lending platform leveraged CRM data to predict a borrower’s future performance.
FICO and LigaData have partnered on a decision-as-a-service tool.
The two will make the new capabilities available to telecommunications firms in Africa, the Middle East, and Asia.
The decision-as-a-service solutions suite includes mobile lending, price optimization, collections optimization, subscriber segmentation, and fraud detection for communications service providers.
Data and analytics firm FICO and big data analytics company LigaData have come together in a move to bring decision-as-a-service capabilities to telecommunications firms in Africa, the Middle East, and Asia.
The two California-based companies will offer solutions that leverage data to help telcos increase revenues, decrease costs, and expand their offerings. Tools included in the decision-as-a-service solutions suite are mobile lending, price optimization, collections optimization, subscriber segmentation, and fraud detection for communications service providers.
“Together we plan to also help communications service providers grant loans in emerging markets, making it easier for consumers while increasing the digitization of the economy,” said FICO Vice President of Global Partners & Alliances Alexandre Graff.
FICO and LigaData envision that the tool will help telcos add new revenue streams and ultimately expand financial inclusion in emerging markets. “Our partnership with FICO will give communications service providers new tools to expand and compete in a data-driven marketplace,” explained LigaData CEO Bassel Ojjeh. “In addition, we will be bringing to market new solutions that can help communications service providers serve the large number of unbanked and underbanked communities in Africa, the Middle East, and Asia.”
LigaData’s name follows the naming convention of major soccer teams such as Bundesliga, La Liga, and Liga MX and is a reference to the company’s league of data experts. LigaData offers two main products, Data Fabric, which helps telcos leverage data better understand their customers by breaking down silos, and Flare, which serves as a decisioning engine that breaks down the data to provide operational and subscriber insights. These solutions are used by over 30 mobile network operators, supporting over 350 million subscribers around the world.
Founded in 1956 and headquartered in California, FICO offers decisioning tools used by more than 650 clients, including nine of the top 10 U.S. banks and eight of the top 10 EMEA banks. The company was recently named Best Technology Provider for Data Analytics at the 2022 Credit Awards, and was identified as a leader in The Forrester Wave: AI Decisioning Platforms, Q2 2023 report.
Fall is coming, and with the changing of the season comes an increase in activity in the fintech world as organizations work to launch their latest initiatives before the end of the year.
Fortunately, our friends at FintechFutures have asked all the right questions in their latest video interview series. The clips below cover the current economic climate, fintech trends, and future industry technologies. These are all worth watching as you prepare your fourth quarter initiatives.
Fiserv and Akoya announced a partnership this week.
Fiserv will have API access to consumer data from Akoya’s network of financial organizations.
Akoya will utilize Fiserv’s AllData Connect to access consumer data held at financial institutions.
Digital banking and payments solutions company Fiserv has partnered with consumer-permissioned data company Akoya this week. Under the agreement, the two will facilitate financial data sharing among banks, their end customers, and the third party apps the customers engage with.
Fiserv will have API access to consumer data from Akoya’s network of financial institutions and brokerage firms, while Akoya will utilize Fiserv’s AllData Connect to access consumer data from more than 2,800 financial institutions.
“Fiserv and Akoya are empowering consumers to share their data by creating a broader and more secure data access network,” said Fiserv President of Digital Payments Matt Wilcox. “Direct access to data facilitates more integrated digital experiences for consumers and improves the security of the financial ecosystem.”
Akoya’s APIs can create secure, permissioned access to consumers’ account data across Fiserv’s client base of banks, fintechs, and merchants. This free flow of information across the network can help reduce risk related to account opening, funding, and account-to-account transfers. On the merchant side, consumers can opt to transact using a Pay by Bank option in which consumers link their bank account to the merchant’s wallet or app to make direct payments to the merchant.
Ultimately, the partnership will help consumers choose what financial data from their bank they want to share with third party providers.
“This will help consumers manage exactly who they give their data to and understand how their data will be accessed and used,” said Akoya CEO Paul LaRusso. “100% of Akoya’s traffic to financial institutions goes through APIs. Akoya doesn’t ask for consumers’ passwords, and it doesn’t screen-scrape. All consumers deserve this protection and control.”
In the U.S., where open banking regulations do not exist, partnerships like these are key to empowering consumers with control over their financial data. In addition to helping end customers, this open structure also creates efficiencies by empowering organizations with more data, reduces fraud by eliminating screen scraping, and reduces errors that come with manual data entry.
Founded in 1984, Fiserv’s solutions are used in nearly six million merchant locations and almost 10,000 financial insitution clients. The company powers 12,000 financial transactions each second. Fiserv is listed on the NASDAQ under the ticker FI and has a market capitalization of $73.6 billion.
