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Finovate Blog
Tracking fintech, banking & financial services innovations since 1994
PayPal is boosting its humanitarian efforts in Ukraine.
The payments company is expanding upon its P2P money transfer services, waiving fees, and facilitating funds transfers to payments cards.
These efforts are being made in addition to the company’s Cash Pick-Up and Mobile Phone Reload tools.
Citizens across the globe have donated millions of dollars in aid to the people living in Ukraine since the Russia invasion last month. And financial services provider PayPal is paying attention. The San Francisco-based company announced three new moves yesterday that will help people living in the region access humanitarian funds.
Peer-to-peer payments expansion
PayPal is expanding upon its existing money transfer services. The company is enabling Ukrainian PayPal accountholders to send and receive peer-to-peer (P2P) payments in four currencies– USD, CAD, GBP, and EUR.
Waiving fees
PayPal is waiving its own fees until June 30 for customers sending funds to Ukrainian PayPal accounts or receiving funds into Ukrainian PayPal accounts. Additionally, PayPal’s international remittance service, Xoom, is waiving transaction fees sent to recipients in Ukraine.
Funds transfers
PayPal will allow Ukrainian accountholders to transfer funds from their Ukrainian PayPal Wallet to an eligible Mastercard or Visa debit or credit card. Once the transfer has taken place, the money will be available in the currency associated with the payment card.
In addition to these new efforts, PayPal also offers Cash Pick-Up, a feature that enables digital money transfers to be sent to be picked up at physical locations throughout Ukraine such as Oschadbank, Privatbank, and Ukrgasbank; and Mobile Phone Reload, a tool to reload mobile phone airtime at five telco carriers.
PayPal is among many other fintechs making technological efforts to stem the violence in Ukraine and bring aid the country’s citizens. And as Russia’s war crimes continue and the situation worsens, we expect to see more fintechs rise to the occasion.
Global payments platform Nium unveiled a new payments solution.
The new solution helps international banks increase the speed and reduce the cost of settling transactions to select U.S. brokerages.
Leveraging the tool, financial institutions can save up to 90% in settlement fees.
Global payments platform Niumunveiled a new payments solution that will help international banks increase the speed and reduce the cost of settling transactions to select U.S. brokerages. As a result, international financial institutions will be able to more easily invest in U.S. equities.
“AtNium, we are constantly seeking to empower growing businesses with global reach to move money in smart, fast, and safe ways,” said Nium Chief Revenue Officer Frederick Crosby. “Our new payments solution for FIs that send money to brokerages allows their retail customers to invest in U.S. equities – fast and simple.”
The new payments tool saves Nium clients up to 90% in settlement fees when compared to SWIFT. “Nium’s new solution dramatically lowers the expense of these transactions, allowing FIs to either share cost savings with their customers or re-invest profits in the business,” added Crosby.
Additionally, the tool increases the potential for new clients by leveraging Nium’s network, decreases investment friction for end users, and does not require Nium clients to undergo new technology integrations.
Nium’s new release comes at a good time. The new decade’s digital-first customers now not only expect to conduct most of their financial activity online, they also expect things to be near-instant. Additionally, retail investors have expressed an increased desire to invest in overseas markets.
Singapore-based Nium was founded in 2015. The company serves over 130 million end customers and helps businesses pay out in more than 100 currencies to over 190 countries– 85 of those in real time.
Open finance company Plaid and money management solutions provider Green Dot entered into a partnership this week.
Green Dot will help its GO2bank customers connect to more than 6,000 apps and services powered by Plaid.
The partnership leverages Plaid Exchange, the company’s open finance API solution.
Open finance expert Plaid and money management solutions provider Green Dot have teamed up this week. The two are tapping the power of open finance to offer GO2bank customers more seamless data connectivity among and between their financial apps.
Leveraging Plaid’s open finance API solution Plaid Exchange, Green Dot will help its GO2bank customers securely connect to more than 6,000 apps and services powered by Plaid. The move ultimately offers end users access to a wider range of financial tools, which is critical for underbanked consumers.
“Our focus at Green Dot is giving all people the power to bank seamlessly, affordably, and with confidence,” said Green Dot Chief Product Officer Abhijit Chaudhary. “Through this partnership with Plaid, we are enabling real change in the industry by delivering an on-ramp for consumers who can benefit from simple, secure access to digital solutions.”
Launched in 2021, GO2bank was created to help Americans living paycheck to paycheck. The digital bank aims to offer a seamless and affordable experience that provides users with tools to serve their unique needs. For example, GO2bank offers up to $200 overdraft protection, high-interest savings accounts, credit building tools, and early wage access.
GO2bank parent company Green Dot was founded in 1999 and has since served more than 33 million customers. The company considers itself a branchless bank with more than 90,000 retail distribution locations across the U.S. In addition to its direct-to-consumer model, Green Dot also offers banking-as-a-service that enables banks and fintechs to leverage its bank charter, APIs, and cash deposit network to build out their own offerings.
With $734 million in funding, Plaid helps 12,000+ FIs offer their customers access to third party financial services via a suite of APIs to connect consumers, financial institutions, and developers. The company also offers a suite of analytics products that provides further insights into transactions. Plaid was founded in 2013 and is headquartered in San Francisco, California.
MeridianLink will leverage StreetShares’ Atlas Platform, an embeddable digital lending environment for banks.
Terms of the deal were not disclosed.
Cloud-based software solutions firm MeridanLinkacquired small business lending technology provider StreetShares this week. Terms of the deal were not disclosed.
StreetShares was founded in 2014 to serve as an alternative lending option for military veteran-owned small businesses. In 2019, the Virginia-based company pivoted, launching digital small business lending technology for banks and credit unions after piloting the offering with USAA in 2018.
The new tool, the Atlas Platform, enables banks to embed a digital business lending environment in 45 days or less. The platform enables community lenders to leverage their data to deliver a digital banking product experience to their small business customers. StreetShares built the platform specifically to serve the unique needs of small businesses and assist lenders with challenges such as underwriting.
“StreetShares’ commitment to providing lenders across the U.S. with state-of-the-art business lending capabilities, including business loans, automated decisioning, and business lines of credit, aligns with our focus on empowering more banks and credit unions to better serve consumers and communities,” said MeridianLink CEO Nicolaas Vlok. “Adding the StreetShares team, technology, and strong partnerships with organizations like Fiserv to the MeridianLink family will accelerate our small business lending capabilities and further strengthen our MeridianLink One platform.”
MeridianLink, which is owned by private equity firm Thoma Bravo, was founded in 1998 and offers cloud-based technology to its 1,900 financial institution clients. Nicolaas Vlock is CEO of the firm, which is listed publicly on the New York Stock Exchange under the ticker MLNK and has a market capitalization of $1.47 billion.
A look at the companies demoing at FinovateEurope on March 15 digitally and in London on March 22 and 23, 2022. Register today and save your spot.
SmartStream’sSmartStream Air is cloud native, behaves like a consumer app, requires no training or IT skillset to use, and is the fastest AI and machine learning data quality application available today.
Features
Web based, ready to go, no installation
AI delivers immediate results
Cloud native, fully SaaS compliant
Why it’s great
The first and fastest AI data quality application that outperforms matching rates of anything available on the market today.
Presenter
Jethro MacDonald, Product Manager MacDonald brings over 10 years of experience in the financial services industry and has worked across multiple trading platforms and regulatory reporting systems, with a focus on credit/equity derivatives. LinkedIn
A look at the companies demoing at FinovateEurope on March 15 digitally and in London on March 22 and 23, 2022. Register today and save your spot.
Persistent Systems and Mambu will demo an intuitive solution that gives customers the ability to manage multiple financial accounts and enables seamless transfers to and from accounts using different currencies.
Features
Consolidated account balances from multiple accounts and currencies
Transfer of funds from one currency account to another
Transfer to third party accounts
Why it’s great
Customers are seeking digital wallets to hold and spend in different currencies. The Persistent solution and Mambu integration enables multi-currency wallets, quickly and globally.
Presenters
Rowhit Bhosale, Digital Banking Specialist at Persistent Systems Bhosale is a digital banking specialist with over 10 years experience working in the financial services sector, evangelizing and supporting transformative initiatives for the global enterprises. LinkedIn
Harjit Kang, Account Executive at Mambu Focusing on supporting financial organisations to break away from monolithic managed services and move towards a best of breed composable ecosystem. Having been an early joiner at Mambu, Kang has real life use cases of such journeys. LinkedIn
A look at the companies demoing at FinovateEurope on March 15 digitally and in London on March 22 and 23, 2022. Register today and save your spot.
mmob makes embedded finance easy. The company connects digital brands with financial products to deliver great customer experiences and promote innovation.
Features
An ecosystem of financial products ready to be embedded
Integration within hours with low-code requirements
An analytics dashboard for acquiring customers and driving sales
Why it’s great
mmob’s solution allows any business to embed financial products. Embedded finance is not a future concept, but an opportunity for the audience right now.
Presenters
Irfan Khan, CEO and Founder Khan is the CEO and Founder of mmob, using his 15 years of experience within fintech and traditional finance to impact the industry through embedded finance. LinkedIn
Jake Figg, Product Manager Figg is a Product Manager at mmob, helping to develop the embedded finance platform. He previously worked in product at a property investment platform. LinkedIn
The metaverse, decentralized finance (DeFi), and crypto are rising up to become some of the hottest themes in fintech this year, taking the place of AI, digitization, and customer experience.
So how should firms in the traditional finance (TradFi) realm prepare for the road ahead? We spoke with NimbusPlatform CEO Alex Lemberg to get his thoughts on the intersection of DeFi and TradFi.
What changes will we see in crypto and DeFi this year in comparison to years past?
Alex Lemberg: A month ago my answer to this question would have been slightly different than today. We still believe that a great deal of capital inflows will come more and more from financial and institutional organizations. This will cover the gambit from high net worth individuals to hedge funds and family / PE offices alike. We are now also witnessing major use cases related to regions in conflict and faced with sanctions. Also the advent of SWIFT as a new means of restrictions will make sovereign groups look closer to crypto markets as well in the future.
How can traditional financial institutions prepare themselves for these changes?
Lemberg: Financial institutions are extremely well prepared to handle both client activities in the space as well as their own. The main precursor is better understanding of filing and reporting requirements to regulators. I strongly believe that even though most of the innovations we are seeing do come from private markets, the largest impact will come from institutions beginning this year.
The U.S. recently issued a discussion paper on a government-issued CBDC. What do you envision the role of TradFi will be if the U.S. government issues a CBDC?
Lemberg: It is too early to discuss impact, as too many things are still in discussion regarding structure. It could eventually provide some upheavals in the payments space and user data controls which are both quite ripe for it.
Does the recent rise in DeFi indicate an end to paper and coin currency?
Lemberg: Absolutely not in the immediate future, nor do I believe would it be the case for quite some time. That said, let us remind ourselves that 90% of the world’s currency is digital and has been for some time. Yes, this will add to that digital transactional landscape, but certainly as an addition and not a replacement of any meaningful sort.
The digital economy is rapidly growing. With the pandemic accelerating the urgency for agility, adaptability and transformation, traditional business models are being disrupted. It’s estimated that over the next 10 years, 70% of new value created in the economy will be based on digitally-enabled platform business models.
Meanwhile, research regarding global GDP is forecasting that digitally transformed enterprises will reach 53.3 trillion USD by 2023, making them account for more than half of the overall nominal GDP. As the digital economy continues to revolutionize the way we do business, companies are looking to optimize their onboarding workflows for a seamless user experience while continuing to meet Know Your Customer, Anti-Money Laundering and other regulatory and fraud prevention requirements.
With blue ocean opportunities for global growth and prosperity on the horizon, it’s clear that digitally-enabled business models will soon reign supreme in the global economy.
Elevating identity programs with advanced orchestration
By next year, it’s estimated that 75% of organizations will be using a single vendor with strong identity orchestration capabilities for identity proofing and affirmation, which is up from less than 15% in 2021. At a time when securing digital identities is a greater challenge than ever before, this sharp increase in demand for all-in-one vendor solutions is a testament to the pains businesses and their customers are experiencing with current workflows.
Typically, most legacy identity and authentication solutions require companies to cobble together different technologies as their needs and regulations have evolved. As a result of this siloed approach, Frankensteined technology setups put a strain on businesses as they are costly and time-consuming to maintain while also requiring an immense amount of heavy lifting from customers.
Say hello to Trulioo GlobalGateway Orchestration
For the past 10 years, Trulioo, the global leader in identity verification, has been on a mission to build a leading end-to-end identity platform that will enable everyone, in every country, to participate in the digital economy in real-time.
As consumers increasingly interact and transact online, the demand for reliable and robust identity verification services and technology continues to surge.
With this in mind, it only made sense for Trulioo to partner with HelloFlow — an innovative no-code, drag-and-drop builder of client onboarding and monitoring digital workflows.
Through the recent acquisition of HelloFlow, Trulioo is able to bolster its position as a trusted global platform for verifying businesses and individuals while offering advanced orchestration with unmatched capabilities. With a best-in-class, intuitive workflow builder, it will be even easier for customers to customize and deploy its global identity API — Trulioo GlobalGateway.
Backed by advanced orchestration from Trulioo, businesses will be able to seamlessly create multi-product verification workflows and smooth onboarding experiences for their customers, all while keeping their data secure. By bringing together several aspects from the employee and customer journey, businesses can alleviate the pains that are often associated with:
Registrations and logins
Identity verification
Ongoing authentication
With the ability to verify identities, businesses and documents, GlobalGateway Orchestration will combine user onboarding and verification to make it easy to:
Build and launch workflows At the heart of GlobalGateway Orchestration, the flow builder will allow you to build an integrated workflow that connects verification solutions.
Monitor and optimize workflows GlobalGateway Orchestration allows for high-level monitoring and testing of workflows by providing in-depth performance metrics including verification rates, country data and even deeper case-by-case reviews of client data.
Are you ready to future-proof your business?
As your business grows and your needs evolve, it’s important to work with a company that can grow alongside you.
No matter the size of your business, where you’re located or where you’re looking to go, Trulioo has the customizability to get you there. With experience in multiple markets and multiple countries, Trulioo has a team of growth specialists ready to help you future-proof your business, this year and beyond.
To find out how your business can begin leveraging an identity verification platform that’s built for change, visit the Trulioo website or you can see them at FinovateEurope 2022 in booth #37.
The company will leverage the two purchases to fuel global expansion and to deepen its cryptocurrency roots.
Shift4 expects the acquisitions will contribute $15 billion in payment volume in 2023.
Payments processing technology company Shift4 made two key acquisitions this week. The Pennsylvania-based firm snapped up cross-border ecommerce expert Finaro and cryptocurrency fundraising startup The Giving Block. Terms of the deals were not disclosed.
Shift4 said the move will position it to pursue growth in eCommerce, gaming, stadiums, restaurants, hospitality, specialty retail, charitable giving, and a new frontier– cryptocurrency enablement. The company expects the acquisitions will contribute $15 billion in payment volume in 2023.
“These two acquisitions… underscore our aggressive efforts to deliver a unified commerce experience across the world,” said Shift4 CEO Jared Isaacman. He also noted that the move gives the company “a real right-to-win additional customers across the nonprofit vertical. It also represents an exciting and responsible step towards further embracing cryptocurrencies and blockchain technology.”
Malta-based Finaro was founded in 2007 as Credorax. The company is a global cross-border payments provider with four offices across the world. Finaro serves more than 5,000 merchant clients, 98% of which leverage Finaro for ecommerce capabilities. The company has a diverse team; its 370 employees represent 24 nationalities and speak 12 different languages. Shift4 will leverage Finaro to expand its existing services, notably its next-generation SkyTab POS solution, Shift4Shop eCommerce platform, and VenueNext stadium offering.
The Giving Block was founded in 2018 with a mission to make Bitcoin and other cryptocurrency fundraising easy for nonprofits. The company, which is part of a recent rise in charitable giving-enablement, serves as a donation platform more than 1,300 non-profits ranging from mission-driven organizations, charities, universities, and faith-based organizations. The Giving Block is not just a transaction platform; the company also helps non-profits build community, raise awareness, and create campaigns to support their cause.
Shift4 will invest in The Giving Block’s existing business while combining crypto donation capabilities with traditional card acceptance and pursuing the non-profit market. Notably, Shift4 will tap The Giving Block’s crypto talent to establish a Crypto Innovation Center and integrate crypto acceptance and settlement capabilities across its own existing verticals.
Shift4 was founded in 1994 and is publicly listed on the New York Stock Exchange under the ticker FOUR. The company’s market capitalization is $3.69 billion.
Digital marketing solutions provider Segmint is partnering with marketing communications expert Constant Contact.
The partnership will enable Segmint to bring a turnkey email delivery solution to its Marketing Automation platform.
The offering leverages Segmint’s Key Lifestyle Indicators, which offer insight into customer life events and interests.
Digital marketing solutions provider Segmint is partnering with marketing communications expert Constant Contact. The two are working together to bring a turnkey email delivery solution to Segmint’s Marketing Automation platform, a tool that helps financial services companies create personalized, timely engagement campaigns.
By integrating Constant Contact’s capabilities into its Marketing Automation platform, Segmint will help financial institutions leverage customer insights and personalize individualized, targeted messages to their account holders. Constant Contact will offer banks a turnkey email automation tool that unlocks siloed customer data to deliver highly personalized messages.
Segmint’s Marketing Automation solution leverages the company’s KeyLifestyle Indicators (KLIs). Segmint’s KLIs analyze customer data to gain insights into their life events and interests, as well as to identify cross-sell opportunities, product utilization, and more. The company processes the data in real time to keep the insights relevant and up-to-date.
“The email integration into Segmint’s platform enables FIs to align digital marketing efforts with the full suite of media channels, while most importantly utilizing their own account holder data which allows them to produce insights that deliver the highest level of targeting efficiency and relevant messaging,” said Segmint Chief Product Officer Nate Shahan.
Founded in 2007 and headquartered in Ohio, Segmint offers financial services companies a range of solutions, including AI-driven predictive models, data cleansing and quality management tools, customer insights, and customer retention tools. Among the company’s recent partnerships are Access Softek, Corelation, and Nymbus.
You’ve no doubt heard of the three largest buy now, pay later (BNPL) players, Klarna, Afterpay, and Affirm. The oldest of these, Klarna, has been around since 2005. But after the BNPL boom exploded in 2020, dozens of new players (and even some consolidation) emerged in the BNPL arena.
With so much competition– especially competition from large incumbents such as Chase–it can be difficult for BNPL companies to stand out and attract frequent customer spend. That is why some firms have found it advantageous to tailor their offering to a more specific audience. By targeting niche consumer groups, companies can provide a better user experience by tailoring each aspect of their offering to the specific group.
We’ve identified four niche players, each of which uses specificity to its advantage.
Study now, pay later
Australia-based ZeeFi recently launched its platform that helps education providers maintain cashflow and offers students a flexible, interest-free payment solution. The education provider receives payment upfront, while students can spread out the cost of their course for up to 36 months. ZeeFi was founded in 2016 under the name Study Loans. The company has raised $88.5 million.
Travel now, pay later
Uplift was founded in 2014 to allow users to pay for their travel experiences over time. The San Francisco-based company partners with travel brands, including hotel, airline, cruise, travel agencies, and more, and offers a point-of-sale financing option that lets customers spread their purchase out over time. Depending on factors such as purchase details and the traveler’s credit history, Uplift offers no-interest and simple interest loans that users can pay back over time, even after their trip.
Healthcare now, pay later
medZero‘s tool allows businesses to offer their employees a way to spread out the cost of their out-of-pocket healthcare expenses. The company provides users on-demand access to funds to pay up-front for the fraction of their healthcare bill that their insurance doesn’t cover, and pay the balance back over time. medZero doesn’t run credit checks, is fee-free, and charges no interest. The Missouri-based company has raised $5.7 million since it was founded in 2015.
Housing now, pay later
New York-based Flex helps renters pay their landlord on a schedule that works with their cashflow. Flex automatically connects to major rent payment companies and sends rent money on the user’s behalf to their landlord on the first of the month. As an added bonus, the company can help users build their credit scores, too. Flex, not to be confused with challenger bank Chime’s in-house BNPL tool with the same name, was founded in 2019 and has raised $5.8 million.
