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Finovate Blog
Tracking fintech, banking & financial services innovations since 1994
MoneyGram is launching a non-custodial digital wallet.
The wallet will help users move funds from fiat to digital currency and back again.
MoneyGram is leveraging the Stellar Development Foundation’s open-source public blockchain Stellar for the launch.
When you think of the top crypto players in fintech, MoneyGram may not come to mind. However, the 83-year-old company continues to position itself at the forefront of the crypto space. As evidence of this, MoneyGram unveiled its non-custodial digital wallet today.
MoneyGram will launch the non-custodial digital wallet in the first quarter of next year. The wallet will help MoneyGram users leverage stablecoins to move funds from fiat to digital currency and back again. The new wallet will effectively serve as a bridge between international money transfers and blockchain payments.
With the non-custodial digital wallet, users will be able to cash out their digital asset holdings at physical MoneyGram locations, making their funds more liquid than before. The wallet, which will leverage MoneyGram’s compliance screening capabilities, will also offer account-to-account money transfers, allowing users to send digital assets to other users in the wallet.
The wallet leverages MoneyGram’s partnership with the Stellar Development Foundation (SDF), the organization behind open-source public blockchain Stellar that allows money to be tokenized and transferred globally. MoneyGram and SDF originally partnered in October of last year, when the two piloted the cash-to-crypto functionality.
“Through the services we provide in partnership with SDF, MoneyGram has made strides to create equitable access to the global financial system, having become the single largest fiat on and off-ramp provider offering blockchain access worldwide,” said MoneyGram CEO Alex Holmes.
The “non-custodial” element of MoneyGram’s wallet is notable because it will offer users control over their own private keys, which can offer more security. And because users don’t rely on a third party to manage their funds, they are less dependent on centralized institutions, which makes the wallet more decentralized, and ultimately offers a higher level of anonymity because they don’t need to provide personal information when creating or using the wallet.
After its launch, MoneyGram’s non-custodial digital wallet will be fee-free until June of 2024. The company also notes plans to expand the wallet’s capabilities with new features next year.
MoneyGram first launched its fiat on-and-off-ramp service for digital wallets in 2022 and has since expanded the service to eight digital wallets on the Stellar blockchain. Today, consumers can cash-out in 180+ countries and cash-in in 30+ countries around the world.
Goalsetter has partnered with MSU Federal Credit Union’s (MSUFCU’s) Reseda Group this week.
As part of the partnership, Reseda Group has invested $1 million in Goalsetter, bringing its total funding to $20.5 million.
MSUFCU will white label Goalsetter’s youth banking platform for its members and will deploy the company’s classroom curriculum across local communities.
MSU Federal Credit Union’s (MSUFCU’s) Reseda Group is taking a step toward helping members and their families create better financial futures. The group announced today it has partnered with financial literacy platform Goalsetter.
The aim of the partnership is to help members and their families build better spending, saving, and investing habits. To accomplish this, Reseda Group will offer Goalsetter’s financial education tools and resources to members and their families.
There are three significant pieces to note from today’s deal. First, Reseda Group invested $1 million in Goalsetter, boosting the New York-based company’s total funding to $20.5 million. President and CEO of Reseda Group and MSUFCU April Clobes said that Reseda Group invested in Goalsetter because it is the “best solution for credit unions that want to attract and retain the next generation of members.” She added that integrating Goalsetter’s offerings can help credit unions “increase brand affinity with Gen Z members, deposits, and overall membership numbers.”
The second big piece for Goalsetter is that MSUFCU has agreed to white label Goalsetter’s youth banking platform for its members. Thirdly, MSUFCU will deploy the Goalsetter’s classroom curriculum in local school systems and community organizations across its branch locations.
“The award-winning, proven Goalsetter platform focuses on providing financial tools, education, and innovative financial wellness content built around pop culture, memes, GIFs, and game-based learning that resonates with young consumers. It will enable MSUFCU to effectively engage with younger consumers and provide them with the personalized services they seek,” said Goalsetter CEO Tanya Van Court. “We are proud to bring these solutions to the MSUFCU member community alongside Reseda Group, an organization that has been instrumental in the growth and ongoing success of the Goalsetter platform.”
Goalsetter was founded in 2016 and helps families offer their kids a NCUA-insured savings account where they can receive allowance, a Mastercard debit card with parental controls, game-based financial education quizzes, and more.
Goalsetter fits into the same category as Greenlight, which facilitates banking services through Community Federal Savings Bank, and GoHenry, which was acquired by Acorns earlier this year.
The financial technology landscape is ever-evolving, with innovation and creativity driving the industry forward. It’s in this dynamic environment that the Finovate Awards stand as a testament to excellence. We are thrilled to present this year’s Finovate Award winners.
The Finovate Awards honor both established institutions and rising stars that have made significant strides in delivering cutting-edge products and services to the financial sector. From breakthrough banking platforms to revolutionary AI-powered solutions, these winners have not only adapted to the demands of the modern financial world but have also set new standards for innovation and customer-centricity. Each winner was selected from the a group of finalists that demonstrated exceptional contributions to society and developed groundbreaking solutions that have reshaped the fintech landscape.
Without further ado, let’s celebrate the visionaries and innovators who have earned their place in the spotlight as this year’s Finovate Award winners.
Quadient has integrated REPAY’s embedded payments technology into its Accounts Payable automation solution.
The embedded payments capabilities will enable Quadient clients to pay vendor and supplier invoices using digital payment methods.
By including embedded payments in the accounts payable process, companies save time, reduce costs, and benefit from increased visibility around their expenses.
Customer experience expert Quadient has teamed up with payment processing company REPAY to create a better user experience around its Accounts Payable automation solution.
Under the partnership, REPAY’s embedded payments technology will be available to companies using Quadient’s Accounts Payable automation solution. The integration will enable Quadient clients to pay vendor and supplier invoices using digital payment methods, including virtual card, ACH, Enhanced ACH and Real-Time Payments. As a result, companies save time, reduce costs, and benefit from increased visibility around their expenses.
“Both Quadient and REPAY are committed to the ongoing evolution of embedded payment solutions that drive automation while simplifying and optimizing the accounts payable process,” said REPAY EVP, Business Payments Darin Horrocks. “We’re thrilled to join forces with Quadient and look forward to working together on new ways to optimize payments and integrate our technologies for improved cash flow, streamlined internal processes, and increased customer and vendor satisfaction.”
Quadient, formerly known as GMC Software, was founded in 1924 to offer companies mailing solutions and business supplies. Over time, the company transitioned into the digital world, and now– in addition to paper mailing solutions– offers both accounts payable and accounts receivable automation tools, as well as customer communication technologies.
Atlanta, Georgia-based REPAY was founded in 2006 and offers payment processing tools to its 24,500 clients. The company, which processes $27.2 billion each year, counts clients across a range of industries, including healthcare, banking, education, automotive, and more.
While much of the talk around embedded finance centers around the end consumer, there is a lot of room for embedded finance tools in the enterprise space. Embedded payments solutions, specifically, remove friction, speed up processes around invoice payments, and create a better overall user experience.
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.
