FinovateFall: Mapping the Future of Fintech Today

Every time we build a Finovate presenter headquarters map, we are reminded of how geographically diverse fintech innovation has become. For all the talent gathered in places such as the Bay Area, New York, and London, our map encourages us to keep in mind less talked-about locales—like Utah, for example, where multiple Best of Show winner MX and Finovate newcomer ProActive are both making personal finance technologies for the 21st century. And it's not just the Mountain West. Three companies scheduled to demonstrate their latest technologies live on the Finovate stage this week hail from Texas, two from Florida, and five from the Great Lakes region of Wisconsin and Michigan.

Beyond the United States, familiar international fintech powerhouses like Israel and Canada (eight presenters from the Great White North alone!) are sharing space with Nigeria and Cyprus, countries that are relative newcomers to the global fintech scene. And with our…

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Four Fintech Companies in Forbes 100 Most Innovative Public Companies

We love seeing alums called out in the numerous "most innovative" articles. Usually, those skew to young private startups. But the recent Forbes list of innovators, limited to large public companies (minimum market cap = $10 billion, with 7 years of public ownership), didn't disappoint. Four financial technology companies made the top-100 list, and all four have appeared on the Finovate stage. Interestingly, financial services firms are excluded by Forbes on the grounds that they "have no measurable investment in R&D." (I am sure many readers would argue that point).

Here are the financial fab-four in order of their finish (the innovation premium is the extra value investors place on their growth vs. their enterprise value, methodology):

#27 Visa with a 55% innovation premium (Finovate '10 demo video) #30 MasterCard with a 54% premium (Finovate '14 demo video) #71 Experian with a 43% premium…

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

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…

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Payworks Raises $4.5 Million Series A

Just a few days after launching its next-generation payment-gateway, Pulse, Payworks announced a $4.5 million Series A. The round was led by HW Capital and Rumford, and featured the participation of "leading U.S. and European payment executives" as well as existing investor, Speedinvest. The funding will help accelerate the Munich, Germany-based company's continued expansion into Europe and North America.

"We are extremely happy on having closed our Series A with a great group of investors," said Christian Deger, Payworks CEO and co-founder. "With their support, we will make Pulse available to even more merchants worldwide and establish our position in the market as a leading payment-gateway technology company."

Nikolaus von Taysen, a partner at Rumford, had high praise for the German SaaS payment-gateway company, and called Payworks "one of the very few companies that has a shot at replacing an old and outdated infrastructure on a global scale."

…

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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.

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Yoyo Wallet is Prepared for Liftoff (But Not in a SpaceX Explosion Sort of Way)

The mobile wallet market in the U.S. is being inundated with apps from Samsung Pay, Apple Pay, CVS Pay, Wells Fargo Wallet, Xiaomi's Mi Pay, and many others. Meanwhile, London-based Yoyo Wallet with its slow-and-steady approach is starting to take off with both merchants and consumers.

You might think of Yoyo Wallet as the Venmo of the mobile-wallet industry since the app has struck a nerve with millennials. The mobile wallet generates a unique QR code for each transaction and allows retailers to in-build rewards and loyalty to incent first-time customers and encourage repeat business.

The startup was recently featured in Fusionwire, which interviewed Yoyo's cofounder and CRO Michael Rolph, who said:

Over the last six months we’ve gone through this evolution that I think is fairly unique in any company’s life cycle. We’ve probably done the most important work of our lives over this time in order to…

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The Procrastinator’s Guide to FinovateFall

Now that everyone in the U.S. has rested up from the Labor Day holiday, it's time to shift focus to fintech, specifically FinovateFall, which is coming up fast. Here's a guide to quickly get you up-to-speed on everything you need to know for the event.

Tickets
There are still a handful of tickets remaining. You can register online or at the registration desk on the day of the event.

Where
We're returning to the New York Hilton Midtown in NYC.

Address:
1335 Avenue of the Americas
New York, NY 10019

When
Registration opens at 8 AM and the first demo begins at 8:45 AM. Coffee and continental breakfast will be provided, so come early and grab a seat.

Presenters
You can find a list of companies and their websites on the FinovateFall homepage. Or check out our Sneak Peek series on the blog for more details on what…

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Finovate Alumni News

On Finovate.com

A last minute guide to FinovateFall. Time to get your Finovate on! Yoyo Wallet is Prepared for Liftoff (But Not in a SpaceX Explosion Sort of Way)

Around the web

American Banker features Moven's partnership with TD Bank. Come see Moven at FinovateFall this week in NYC. FST Media interviews Phil Copeland, co-founder and chief executive officer of Avoka. Come see Avoka's FinovateFall demo. MoneyStrands launches new app to help users create good spending habits. Check out Strands at FinovateFall.

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.

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Solving the False Positive Problem in Credit/Debit Authorizations

For the third year in a row, I traveled from Seattle to the L.A.-area to drop off my son at college. And for the third year in a row, Bank of America declined my card at Target, buying groceries and incidentals for him. And this time it was an EMV chip-card. Thank goodness I had my trusty Capital One card along, because it seems to do a far better job minimizing false positives (for fraud), at least for my account.

Capital One did have its concerns along the way, though. They sent the following email asking for confirmation that these gas-station authorizations were mine. And even though I didn't respond right away, perhaps 12 to 18 hours later, they never shut off my card.

Bank of America also sent a similar email, but it arrived AFTER the card was declined. I understand the bank's need to terminate suspicious transactions, but…

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FutureAdvisor Brings RoboAdvisory to U.S. Bank Wealth Management

Since its acquisition by BlackRock a year ago, online investment adviser FutureAdvisor has inked partnerships with BBVA Compass and RBC Wealth Management. Recently, we learned that the San Francisco-based robo-adviser founded by CEO Bo Lu has added another major client to its roster: U.S. Bank Wealth Management.

"Digital advice ... will play a larger role as the combination of digital and human advice, packaged appropriately together, continues to improve outcomes for both financial advisers and their clients," Lu said.

FutureAdvisor is an online investment adviser that automatically reviews and manages investment holdings to optimize asset allocation, limit hidden fees, and improve tax efficiency. The platform provides regular portfolio rebalancing, tax-loss harvesting, and immediate and automatic investment of newly added cash. FutureAdvisor also gives clients access to professional licensed advisers and service specialists to ensure that investors get quick answers to their questions about investing and the FutureAdvisor…

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Blackhawk Network Acquires Grass Roots for $118 Million

Prepaid payments network Blackhawk Network scored big yesterday. The California-based company has agreed to acquire Grass Roots, an employee- and customer-engagement solutions company, for $118 million.

This is the company's eighth acquisition and is expected to help Blackhawk broaden the incentives-and-engagement business it launched in 2014 called Blackhawk Engagement Solutions (BES). BES took shape after Blackhawk acquired incentives-and-rewards companies Parago, InteliSpend, Cardlab, and Incentec. Since then, Blackhawk has bolstered BES by acquiring Achievers, Giftcards.com, and Extrameasures.

Bill Tauscher, executive chairman for Blackhawk, said the acquisition "complements the existing client portfolio" of Blackhawk. Tausher says the company "will also offer new products and capabilities to Grass Roots’ clients.”

While the company has commercial operations in 25+ countries, this acquisition will expand Blackhawk's geographical reach. U.K.-based Grass Roots has offices in Europe, the Americas, and Asia and will operate as a subsidiary of Blackhawk. The finalization of the transaction is subject to…

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Finovate Alumni News

On Finovate.com

Blackhawk Network Acquires Grass Roots for $118 Million FutureAdvisor Brings RoboAdvisory to U.S. Bank Wealth Management

Around the web

Avoka reports record levels of orders for fiscal 2016. Join Avoka in New York for FinovateFall 2016 next week. Financeit earns spot on the TechVibes' Fintech Five. Chain CEO Adam Ludwin warns against "blockchain hype" on Fortune.com. Narrative Science teams up with Franklin Templeton Investments to bring Quill technology to their fund commentary process. SmartyPig switches to Sallie Mae Bank to enable partial withdrawals, direct deposit, and to offer a higher interest rate.

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.

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