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Finovate Global South America: Investment, Partnership, and Innovations in Embedded Finance

Finovate Global South America: Investment, Partnership, and Innovations in Embedded Finance
By David Penn Posted on
Categories: Finovate Global, MasterCard, Salt Edge, Sumsub, VISA

This week’s edition of Finovate Global looks at recent fintech headlines from the South American countries of Argentina, Brazil, and Uruguay.

Ualá Raises $66 Million at $2.75 Billion Valuation

In a funding round that featured participation from Mexican media titan TelevisaUnivision, Argentina-based fintech Ualá has added $66 million in funding to its Series E round. The additional funding brings the round’s total to $366 million and gives the company a valuation of $2.75 billion.

The capital comes via an equity sale and will be used to fuel Ualá’s growth throughout Latin America—with a particular emphasis on expansion in Mexico. Ualá Founder and Chief Executive Officer Pierpaolo Barbieri praised the participation of TelevisaUnivision, which he called a “very relevant and influential outlet, across Spanish-speaking markets but especially in Mexico.” Barbieri added, “It will help us create confidence and closeness with a lot of Mexicans that still don’t know us.”

The first close of the Series E round was led by Allianz X, German insurance company Allianz SE’s venture capital arm. Also participating in the first close were Stone Ridge Holdings Group and Pershing Square Foundation. Additional investors in the extension round were not named.

Founded in 2017 in Argentina, Ualá offers financial services including payment accounts connected to an international Mastercard prepaid card, as well as savings accounts, loans, investments, business collection solutions, and more. The company has nine million users in the region, including in countries such as Argentina, Colombia, and Mexico.

Ualá began the year by announcing the availability of six new mutual funds in its ecosystem, including one fund denominated in dollars. In February, the company integrated an advanced artificial intelligence platform, powered by OpenAI’s GPT-4, into its customer service process.

dLocal partners with Temu, Belmoney

Uruguayan fintech and cross-border payments company dLocal announced a pair of partnerships in recent days. First, dLocal launched a new collaboration with Europe-based, remittance-as-a-service (RaaS) provider Belmoney. The goal of the partnership is to facilitate cross-border payouts, leveraging the integration of more than 900 local and alternative payment methods (APMs) such as credit and debit cards, bank transfers, and instant transactions. The collaboration is also designed to boost service reliability and efficiency for those making cross-border transactions in countries including Bangladesh, Ecuador, Peru, and Pakistan.

“Our partnership with dLocal is a game-changer in the remittance space,” Belmoney CEO and Founder Bruno Pedras said. “By integrating with dLocal’s comprehensive network, we can significantly lower costs, improve transaction speeds, and provide a better cross-border payments experience for both senders and recipients.”

Second, dLocal announced that it has formed a strategic partnership with Temu, the international e-commerce platform of China’s PDD Holdings. Together, the two companies seek to provide shoppers in Africa, Asia, and Latin America with new seamless and secure payment options that are suited to local preferences. Millions of customers in 15 emerging markets in these regions stand to benefit from the collaboration.

“By partnering with dLocal, we’re excited to extend these benefits to millions of customers in emerging markets, ensuring that more people can enjoy accessible, convenient shopping experiences,” a Temu spokesperson said in a statement.

Launched in 2022, Temu is an online marketplace that offers consumer goods at significantly discounted prices. Shipping goods directly from the People’s Republic of China, Temu reportedly has more than 292 million monthly active users of its app worldwide. The app was among the most popular in US app stores for both iOS and Android in 2024.

Founded in 2016, dLocal is headquartered in Montevideo, Uruguay. The country’s first unicorn, dLocal offers an all-in-one payment platform that enables companies to accept and disburse a wide range of local payment methods and currencies. In 2024, the company processed more than $25 billion worth of payments. dLocal works with 700+ merchants, supports 900 payment methods, and operates in more than 40 countries. A publicly traded company on the Nasdaq exchange under the ticker DLO, dLocal has a market capitalization of $2.7 billion. Sebastián Kanovich is CEO.

Ant International’s Bettr brings embedded finances services to ecommerce merchants in Brazil

Speaking of partnerships between businesses in Asia and Latin America, we learned this week that Bettr, Ant International’s AI-driven lending business, has gone live in Brazil. Bettr will help expand lending opportunities for small and medium-sized enterprises (SMEs) by working with local partners such as AliExpress. Through this partnership, Bettr will introduce a new financing solution, Bettr Working Capital, for local merchants working on AliExpress’s platform.

“This collaboration reinforces our commitment to helping small and medium-sized businesses thrive by providing accessible and efficient financial tools that can take their operations to the next level,” LatAm director of AliExpress Briza Bueno said. “In this way, we are not only supporting the individual growth of these entrepreneurs but also contributing to the advancement of e-commerce in the country.”

Bettr Working Capital will be introduced gradually; the first round of disbursements began this week. The technology analyzes merchant sales records and other unstructured business data from AliExpress to make smarter, tailored, more affordable loan solutions. This will help small and medium-sized businesses better manage cash flow and expand into new markets.

Headquartered in Singapore, Ant International is an international digital payments and financial technology provider. Bettr is the company’s digital lending business, which specializes in serving micro, small, and medium-sized enterprises (MSMEs). The firm combines emerging technologies like AI and data-driven credit modeling to offer secure financial solutions that better fit borrower needs.

Here is our look at fintech innovation around the world.

Latin America and the Caribbean

Asia-Pacific

  • Indonesian ride-hailing service InDrive teamed up with Singapore’s Fingular and Indonesia’s Sharia-compliant P2P lending platform Ammana to launch its new inDrive.Money app.
  • Malaysian wealth management platform Versa raised $6.8 million in Series A funding.
  • Japan’s international payment brand JCB partnered with integrated payment provider First Cash Solution, expanding JCB Card acceptance in Germany.

Sub-Saharan Africa

  • African payments technology giant Flutterwave integrated with Pay With Bank Transfer to support businesses in Ghana.
  • Mastercard extended its collaboration with London-based Paymentology to boost financial inclusion in South Africa.
  • Compliance and fraud prevention platform Sumsub announced a partnership with the Association of Fintechs in Kenya.

Central and Eastern Europe

  • Lithuanian identity verification provider iDenfy announced a collaboration with mobility provider Evemo.
  • Estonian fintech Hoovi raised €8 million in funding via a structured bond issue from Finland’s Multitude International Bank.
  • Moldova-based digital wallet and electronic money institution (EMI) Paynet partnered with open banking services provider Salt Edge.

Middle East and Northern Africa

  • Israeli fintech FINQ became the first Israeli company to secure a US Securities and Exchange Commission (SEC) Registered Investor Advisor (RIA) license without relocating to the US.
  • Egyptian fintech Fawry inked a strategic agreement with Contact Financial Holding to expand access to Buy Now, Pay Later (BNPL) services.
  • MENA-based payment service provider Telr secured a Retail Payment Services license from the UAE’s central bank.

Central and Southern Asia

Photo by Juan Cruz Palacio Mir

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Fintech Rundown: A Rapid Review of Weekly News

Fintech Rundown: A Rapid Review of Weekly News
By Julie Muhn (@julieschicktanz) Posted on
Categories: authenticID, Delfi Labs, Fintech Rundown, Fiserv, Insuritas, Mahalo Banking, MasterCard, SoFi

This is the week fintech has been anticipating for years. Klarna filed its F-1 prospectus document late Friday, anticipating it will raise at least $1 billion at a $15 billion valuation with its IPO. We won’t know the official valuation figures until Klarna prices shares, which may take around a month, however. While we wait, let’s dive into this week’s fintech news. We’ll continue adding news to this post throughout the week, so stay tuned!

Small Business Financial Management

Small business credit card and spend management platform Capital on Tap partners with bank payment firm GoCardless for Variable Recurring Payments (VRPs).

Levelpath joins Coupa App Marketplace with AI-powered procurement solution.

Insurtech

Insuritas integrates auto rates from Agency Insurance Company (AIC) into its embedded insurance platform.

Payments

Fiserv acquires Netherlands-based payment solutions provider CCV.

Wyndham collaborates with SoFi’s Galileo to launch the Wyndham Rewards Debit Card.

ICBA Payments and Mastercard partner to upgrade customer payment experiences for community banks.

AuthenticID and Authvia join forces to provide secure, frictionless digital payments.

Jack Henry and Moov to implement Mastercard Move to enable fast, seamless domestic payments.

ACI Worldwide and Ingo Payments to power faster, flexible digital disbursements.

Risk management

Delfi launches free risk management solution: Delfi Essentials.

Digital banking

Princeton Federal Credit Union goes live with Mahalo Banking’s Thoughtful Banking platform.

UK-based commercial digital bank for entrepreneurs OakNorth acquires Michigan-based Community Unity Bank.

ABNB Federal Credit Union chooses Eltropy’s AI-powered platform to modernize member communications.

Challenger banking

Nordic challenger bank Lunar tops one million user milestone.

Crypto / DeFi

Web3 non-custodial wallet Bitget Wallet partners with Cryptorefills to facilitate crypto payments for travel.

MoonPay acquires stablecoin infrastructure platform Iron.

Wealth management / Wealthtech

German wealthtech NAO announces a second closing of its seed funding round, bringing the funding total to €4.5 million.

Privacy and Security

BotGuard raises $49.2 million round B led by Dawn Capital, rebrands to Blackwall.

Ecommerce

Shopify transfers its US listing from the NYSE to the Nasdaq.

Credit and lending

Finastra unveils enhanced lending cloud service supported by IBM.

Credit risk management specialist AKUVO partners with Prosperity Bank to enhance the institution’s collections process.

Photo by Markus Winkler

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Mastercard partners with CredibleX to empower SMEs with enhanced access to financing

Mastercard partners with CredibleX to empower SMEs with enhanced access to financing
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, MasterCard
  • CredibleX is integrating Mastercard’s Small Business Credit Analytics (SBCA) API into its embedded financing platform to enhance SME credit access in the UAE and EMEA region.
  • SBCA uses anonymized, item-level transaction data to help lenders assess small business financial performance, enabling faster underwriting, reduced risk, and improved loan terms.
  • This partnership aligns with Mastercard’s goal of driving financial inclusion, leveraging advanced analytics to help small businesses secure working capital despite limited credit history.

Working capital financing platform CredibleX announced this week that it has partnered with Mastercard. The Abu Dhabi-based company is integrating Mastercard’s Small Business Credit Analytics (SBCA) into its embedded financing tool.

The integration will offer CredibleX enhanced data-driven insights based on anonymized and aggregated transaction data. Leveraging this new data in a unique way with SBCA will empower small and medium businesses to have greater access to financing.

​Mastercard launched its SBCA API last April as part of an effort to enhance tools for acquirers in identifying and mitigating potential risks during onboarding and daily operations. SBCA solicits consent from the small business client to leverage data-driven insights to help assess the company’s financial performance. SBCA leverages business performance data to help lenders evaluate key questions about a small business’s financial health.

With SBCA integrated into its embedded financing tool, CredibleX will be able to help make more informed lending decisions, reduce underwriting time, and enhance risk management. “This partnership with CredibleX underscores Mastercard’s commitment to supporting the SME ecosystem in the UAE,” said Mastercard EVP of Services in EEMEA Selin Bahadirli. “SBCA is a game-changer, offering unparalleled insights into small business performance. Together, we aim to empower SMEs with better credit access, improved loan terms, and enhanced opportunities for growth.”

Adding enhanced data will also help CredibleX improve access to credit across the EMEA region. Because Mastercard’s SBCA will offer CredibleX a more comprehensive evaluation of a business’s financial health, it will also drive financial inclusion for small businesses with previously limited access to working capital because of their limited credit history or lack of formal documentation.

“This partnership is a testament to our shared vision of enabling financial inclusion and innovation,” said CredibleX Co-Founder and Chief Product Officer Hassan Reda. “By combining CredibleX’s expertise in lending with Mastercard’s advanced analytics, we are setting a new benchmark for data driven SME financing in the region.”

Founded in 2023, CredibleX offers embedded insurance, embedded invoice finance, embedded POS finance, and B2B channel finance tools. The solutions help any organization that services SMB customers to add lending solutions under their brand. CredibleX raised $55 million in funding last December from Further Ventures. Anand Nagaraj serves as CEO.

Photo by Rachel Claire

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Fintech Rundown: A Rapid Review of Weekly News

Fintech Rundown: A Rapid Review of Weekly News
By David Penn Posted on
Categories: FICO, Fintech Rundown, InComm, Mambu, MasterCard, OneID, Salt Edge, Token

Partnerships and collaborations in the payments space lead fintech headlines at the beginning of this holiday-shortened week. Be sure to check Finovate’s Fintech Rundown all week long for the latest updates in fintech and financial services.

Payments

Account-to-account (A2A) payment infrastructure provider Token.io teams up with payment orchestrator Fabrick.

InComm Payments collaborates with Mastercard to offer Mastercard “Give Hope” gift cards in support of the American Red Cross.

Real-time payments framework Payfinia partners with B2B2C SaaS embedded finance solutions provider TAPP Engine.

Card issuer and processor Paymentology forges strategic partnership with UAE-based fintech Mamo.

Transaction management software company Redpin opens new payments corridor to Brazil.

Open banking

Moldova-based digital wallet and electronic money institution (EMI) Paynet partners with open banking services provider Salt Edge.

Digital identity

OneID and Adobe announce partnership to enhance identity verification for Adobe digital signatures.

Lending, credit, and underwriting

TransUnion Kenya and FICO team up to offer two new risk solutions to help expand access to credit.

Digital banking

SaaS cloud banking platform Mambu announces strategic partnership with Spain’s Ibercaja Banco.

Armalytix unveils its bank statement scanning tool.

Photo by May Guo

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Finovate Global Mexico: Payments Partnerships and International Acquisitions

Finovate Global Mexico: Payments Partnerships and International Acquisitions
By David Penn Posted on
Categories: Backbase, Finovate Global, MasterCard, TransUnion

This week’s edition of Finovate Global focuses on recent fintech headlines from Mexico, which boasts the second largest economy in Latin America.

Belvo and JP Morgan Partner to Enhance Recurring Payments in Mexico

A strategic collaboration between Latin American open finance platform Belvo and J.P. Morgan Payments aims to automate and streamline the management of recurring payments via direct debit. The partnership will enable businesses in multiple sectors to deploy direct debit quickly and securely, enhancing the customer experience and boosting engagement.

“This alliance with J.P. Morgan Payments is a milestone for Belvo and the financial ecosystem in Mexico,” Federica Gregorini, General Manager of Belvo in Mexico, said. “Direct debit offers a modern and efficient solution that not only improves companies’ operational processes but also makes life easier for users. With this collaboration, we are taking recurring payment automation to the next level, making it more accessible for all types of businesses.”

Now a member of J.P. Morgan Payments Partner Network, Belvo will give companies in industries such as lending, insurance, utilities, subscription services, and more the ability to automate their recurring collections. By leveraging direct debit, these companies will reduce errors, ensure timely payments, and increase convenience for customers who will no longer have to make manual payments.

Founded in 2019 and headquartered in Mexico City, Belvo is a leading open finance and data payments platform. With partners including BBVA, Citibanamex, and Finovate alum Nubank, Belvo first launched its direct debit recurring payments solution in Colombia and Mexico in the fall of 2023. This week’s strategic collaboration with J.P. Morgan Payments will bring this technology to more businesses throughout Mexico.

“We are pleased to work with Belvo to offer our clients in the country access to a best-in-class direct debit solution, providing higher transaction success rates, new features such as partial debit payments, and more efficient settlements,” Francisco Molina Viamonte, Head of Mexico for J.P. Morgan Payments said.

TransUnion Acquires Trans Union de Mexico from Mexico’s Largest Credit Bureau

International information and insights company TransUnion has signed a definitive agreement to acquire majority ownership of Trans Union de Mexico, the consumer credit business of Mexico’s largest credit bureau, Buró de Crédito.

“Our expansion in Mexico continues our commitment to making trust possible in global commerce,” TransUnion President and CEO Chris Cartwright said. “Credit bureaus are a catalyst for financial inclusion, and we are excited for the opportunity to bring the benefits of our state-of-the-art technology, innovative solutions, and industry expertise to Mexican consumers and businesses.”

TransUnion currently owns approximately 26% of Trans Union de Mexico. Cash consideration for the transaction, in which TransUnion will acquire an additional 68% ownership stake, is $560 million (MXN 11.5 billion), with an enterprise value of $818 million (MXN 16.8 billion). Buró de Crédito’s commercial credit business is not a part of this transaction.

“We anticipate that our planned acquisition of Buró de Crédito’s consumer credit business will strengthen our leadership position in Latin America and will make TransUnion the largest credit bureau in Spanish-speaking Latin America,” Regional President of TransUnion Latin America Carlos Valencia said. “We see substantial opportunity to introduce global products like trended and alternative credit data, fraud mitigation solutions, and consumer engagement tools. We also plan to expand beyond traditional financial services into adjacencies such as FinTech and insurance.”

TransUnion made its Finovate debut in 2016 at FinovateFall. The company returned to the Finovate stage last year for FinovateSpring 2024 to demonstrate its Enhanced BreachIQ solution, which provides modern, gamified consumer identity protection. Part of TransUnion’s TruEmpower suite of solutions, Enhanced BreachIQ builds an Identity Safety Score based on the user’s individual and unique data breach history. It also provides Breach Risk Scores that measure the severity of incidents in which their data was exposed, and a Personalized Action Plan of practical risk mitigation steps.

Founded in 1968, TransUnion is headquartered in Chicago. The company trades on the New York Stock Exchange under the ticker TRU and has a market capitalization of $18.4 billion.

Airwallex Acquires MexPago as Part of Latin American Expansion

Speaking of acquisitions in Mexican fintech and financial services, global financial platform Airwallex has finalized its acquisition of Mexico-based payment service provider MexPago, a licensed Institution of Electronic Payment Funds (IFPE). The acquisition, along with recent news that Airwallex has secured a payment institution license from Banco Central do Brasil, will enable the company to connect its international financial infrastructure with Brazil and Mexico, supporting local businesses.

“Mexico plays a pivotal role in the global economy, serving as a key link between North and South America and a critical hub for cross-border payments,” MexPago CEO and founder Luis Castillejos Ordaz said. “We’re proud to join forces with Airwallex to enable seamless and secure cross-border transactions for businesses worldwide. MexPago’s domestic capabilities, combined with Airwallex’s global reach will deliver even greater value to our shared customers. Together, we will unlock borderless opportunities for businesses here in Latin America and around the world.”

Founded in 2014, MexPago is headquartered in Huixquilucan, part of Greater Mexico City. Post-acquisition, Castillejos will serve as Country Manager for Airwallex, Mexico, where he will manage operations and help Airwallex’s customers successfully navigate the Mexican market.

Here is our look at fintech innovation around the world.

Asia-Pacific

  • UnionDigitalBank, the digital banking arm of Union Bank of the Philippines, partnered with fintech lending platform JuanHand.
  • Japanese international payment provider JCB forged a strategic collaboration with DOKO to boost JCB card acceptance in the U.K.
  • Backbase announced that its client, Vietnam-based An Binh Commercial Joint Stock Bank (ABBANK) has launched ABBANK Business, a new digital banking platform.

Sub-Saharan Africa

Central and Eastern Europe

  • Czech cybersecurity firm for financial institutions Wultra raised €3 million in funding.
  • Ebury announced its acquisition of Lithuanian B2B cross-border payments solutions provider ArcaPay.
  • Lithuania required financial institutions in the country to block payment card transactions from unregulated operators.

Middle East and Northern Africa

  • Egyptian fintech Raseedi acquired microfinance lender Kashat.
  • MENA-based fintech startup Zywa, which offers banking solutions for Gen Z customers, raised $3 million in funding.
  • Saudi Arabian payments services provider HyperPay secured a license from the Saudi Central Bank (SAMA) to support the development of the financial services ecosystem in the kingdom.

Central and Southern Asia

  • Amazon acquired India-based Buy Now, Pay Later firm Axio for $150 million.
  • Pakistan-based commercial bank Bank Alfalah acquired a 9.9% equity stake in Jingle Pay.
  • Indian equity management platform Hissa launched a new fund to help workers at growth-stage startups convert their vested stock options into cash.

Latin America and the Caribbean

  • Cross-border payment solutions provider Bamboo partnered with Argentina-based e-commerce platform Tiendamia.
  • J.P. Morgan Payments and Belvo teamed up to enhance recurring payments in Mexico.
  • Crypto banking solutions company Coins.xyz launched in Brazil.

Photo by Jezael Melgoza on Unsplash

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Finovate Global: Innovations and Opportunities in Islamic Finance

Finovate Global: Innovations and Opportunities in Islamic Finance
By David Penn Posted on
Categories: Finovate Global, MasterCard, Tyro

Finovate Global is back! This week’s edition leads off with stories about financial institutions around the world that are seeking to better serve their customers by offering a broader range of Shariah-compliant solutions.

Gatehouse Bank partners with ColCap UK for Shariah-compliant home financing

A new partnership between Gatehouse Bank and ColCap UK will help bring Shariah-compliant home finance to more U.K. prospective homebuyers. The partnership includes a forward flow arrangement to originate more than £550 million in Shariah-compliant home financing for ColCap UK over an initial two-year period.

Gatehouse Bank noted that it will continue to generate its own originations onto its balance sheet via its own home financing offering.

“We have seen a considerable increase in demand for our products and services over the last five years and this agreement highlights the bank’s credibility as a leading Islamic finance provider in the U.K.” Gatehouse Bank CEO Charles Haresnape said.

Founded in 2007, Gatehouse Bank is a Shariah-compliant bank that provides savings products and financing for commercial and residential real estate in the U.K. The bank offers personal and commercial deposits that ensure Shariah-compliance, for example, by providing an expected profit rate (EPR) rather than an interest rate. The accounts are invested in Shariah-compliant investments and accountholders receive a share of the profits as a return on their accounts.

Additionally, Gatehouse Bank offers home financing via what is often referred to as an “Islamic Mortgage,” in which homebuyers purchase the property jointly with the bank, and is ownership transferred to the buyer after all payments are made at the end of the term. The bank also provides Shariah-compliant Buy-to-Let purchase plans and has launched multiple Private Rented Sector (PRS) investments since 2014.

“This forward flow arrangement positions us to meet the growing demand for Sharia-compliant financing,” ColCap UK’s Executive Director and COO Esther Morley said. “Combining Gatehouse’s and ColCap’s expertise, we’re confident this collaboration will deliver significant value and reinforce ColCap UK’s leadership in ethical finance.”

A subsidiary of ColCap Financial Group, a residential home finance specialist based in Australia, ColCap has offered residential property financing in the U.K. since 2022.

Offa acquires Bank of Ireland’s Alburaq Sharia-compliant home finance portfolio

A major acquisition by U.K. Islamic proptech Offa will give customers a wider range of Shariah-compliant property financing solutions. Birmingham-based Offa has acquired Bank of Ireland’s Alburaq portfolio, valued at $21.6 million (£17 million). This gives the fintech one of the oldest Shariah-compliant home financing products ever launched in the U.K., which include more than 350 home purchase plans.

“It is a testament to Offa’s abilities that Bank of Ireland has agreed to sell their Islamic home finance portfolio to us,” Offa Chief Financial Officer Amir Firdaus said. “This marks another chapter in Offa’s ambitious growth plans. Members of the Offa executive team are already very much familiar with Alburaq’s clients, having helped distribute this book almost two decades ago, and we are delighted that these customers are now coming home to us.”

Offa’s acquisition will revive a product that has not been available to new customers since 2009. Alburaq was launched as the U.K.’s first Shariah-compliant structured deposit solution in 2008 via a partnership between Bank of Ireland and Arab Banking Corporation’s U.K. division. This week, a spokesperson for Bank of Ireland reported that “the sale of the small remaining portfolio will provide customers with access to a wider range of Sharia-compliant property re-financing options.”

Founded in 2019, Offa calls itself as the first financial institution in the U.K. to acquire an Islamic home-finance book. The U.K.’s first Shariah-compliant bridging lender, Offa introduced its Buy-to-Let (BTL) offering this summer and, back in February, announced a partnership to use finova’s Apprivo origination platform to power its Shariah-compliant digital lending solution.

Premier Bank and Mastercard launch Shariah-compliant cards in Kenya

Proptech and mortgagetech are not the only fields where Shariah-compliant fintech innovation is growing. A newly announced partnership between Kenya-based Islamic financial institution Premier Bank and Mastercard will provide a suite of Shariah-compliant debit, credit, and prepaid cards

The suite will offer features such as contactless payments and global acceptance. Cardholders will be able to make safe and convenient online payments, transact at brick-and-mortar stores, and withdraw cash from Premier Bank ATMs across the country. The suite also provides benefits including Lounge Access through the World Elite Card, travel insurance, and localized offers such as dining discounts via Uber Eats and travel discounts with major airlines.

“The introduction of Shariah-compliant Premier Mastercard suite is not merely a product launch. It is a strategic initiative that exemplifies our commitment to enabling communities with secure, convenient, and tailored financial services,” Mastercard SVP and County Manager for East Africa and Indian Ocean Islands Shehryar Ali said. “As Kenya continues to embrace digital transformation, this initiative will play a pivotal role in shaping a more inclusive financial landscape that caters to the evolving needs of individuals and businesses across the country.”

Launched in 2023, Premier Bank was born via the acquisition of the majority shares in First Community Bank, which was founded in 2007. Headquartered in Nairobi, the bank has assets of more than $23 billion as reported in the 2023 Central Bank of Kenya’s Bank Supervision Annual Report. The financial institution opened its 22nd branch earlier this year.

Here is our look at fintech innovation around the world.

Central and Eastern Europe

  • Polish identity verification platform Authologic raised $8.2 million to fight AI-powered fraud.
  • The central bank of Latvia to offer fast track pre-approval for MiCA compliance.
  • German fintech 21X secured approval for its blockchain-based tokenization platform.

Middle East and Northern Africa

  • Crypto.com launched its Mastercard-powered card in Bahrain as part of its expansion in the Gulf region.
  • Backbase inked a distribution and integration deal with Morocco-based consultancy and AI solutions integrator Seven.
  • Israel-based fintech unicorn Capitolis acquired U.K.-based financial firm Capitalab for $46 million.

Central and Southern Asia

  • Kazakhstan-based banking and fintech company Kaspi.kz acquired a majority stake in Turkish e-commerce technology platform, Hepsiburada.
  • Central Asian digital banking ecosystem TBC Uzbekistan launched its own payment processing center.
  • Nepalese fintech Fonepay partnered with U.K.-based Compass Plus Technologies to offer the country’s first virtual credit card.

Latin America and the Caribbean

  • Spanish banking group Santander introduced its digital Openbank in Mexico.
  • Mastercard teamed up with Brazilian events platform Sympla and Latin American payments orchestrator Yuno to bring its Payment Passkey Service to the region.
  • Nuvei launched blockchain-based payments in Latin America.

Asia-Pacific

  • Payments company Tyro launched its embedded payments solution that makes it easier for businesses to accept tap-to-pay payments.
  • Filipino-based fintech Starpay teamed up with distributed database solutions provider OceanBase.
  • Financial servcies platform Atome forged a payment checkout partnership with Valiram in Singapore and Malaysia.

Sub-Saharan Africa

  • Kenya-based Islamic financial institution Premier Bank unveiled a suite of Shariah compliance payments solutions courtesy of a partnership with Mastercard.
  • CNBC Africa profiled Rwanda’s Kigali International Finance Centre and its new fintech strategy.
  • Visa announced investment in four African fintechs — Oze, Workpay, OkHi, and ORDA — that graduated from its Africa Fintech Accelerator program.

Photo by Abdullah Ghatasheh

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Blackhawk Network Teams with Mastercard to Add Paper Prepaid Products

Blackhawk Network Teams with Mastercard to Add Paper Prepaid Products
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Blackhawk Network, Daily news, MasterCard
  • Blackhawk Network (BHN) is transitioning Mastercard’s open-loop prepaid products from plastic to paper-based materials, aligning with Mastercard’s goal to eliminate PVC plastics from payment cards by 2028.
  • As of 2022, 60% of BHN’s physical cards were already paper-based, with the company aiming for 75% by the end of 2023, supported by collaborations with global partners.
  • Today’s collaboration follows a similar partnership with Visa that was formed in 2023.

Branded payments provider Blackhawk Network (BHN) announced this week it is partnering with Mastercard, transitioning its network-branded open-loop prepaid products from plastic to paper-based materials. 

The move will help support Mastercard’s commitment to remove first-use, PVC plastics from payment cards on its network by 2028. It also supports BHN’s sustainability efforts. The California-based company has offered paper-based and recycled products since 2017, and made a pledge in 2022 to convert most of its own original card products to digital or paper.

“Since making our 2022 pledge, we have moved at lightning speed to deliver—and have successfully done so,” said BHN CEO and President Talbott Roche. “As of the end of last year, 60% of the physical cards in our network had been transitioned to paper-based materials, and we are well on our way to achieving our original goal of converting 75% by the end of this year. Taking those initiatives a step further, we are continuing to seek out collaborations with partners like Mastercard, banks, merchants, other card issuers, and manufacturers that operate on a global scale.”

BHN reports that paper-based cards still offer convenience and reliability while posing minimal disruption to consumers, retailers, and issuers. The company is continuing to invest in research and development that will enable the use of paper materials in other channels, including print-on-demand production formats.

“Mastercard’s reach, combined with our own, puts us in a rare position to not only reduce our footprint, but also to lead by example for other companies. We will continue to encourage more businesses to join our efforts and responsibly reduce the environmental impact of the products we use and consume,” added Roche.

The move toward sustainability isn’t the first effort from BHN or major card companies. Last year, BHN announced a partnership with Visa where BHN was helping the card giant transition its open-loop prepaid cards from plastic to sustainable paper-based materials.

Swapping out plastic in favor of paper cards is a good move for prepaid cards, which are often used once or twice and then disposed of. However, it is unlikely we will ever see paper credit or debit cards. Even if they are made to be durable enough to withstand daily transactions, consumers seem to favor thicker plastic and even metal cards, which offer a sense of status and exclusivity.

Photo by DS stories

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Finovate Global Nigeria: A New Unicorn, Mobile Wallets, and the Pursuit of Financial Inclusion

Finovate Global Nigeria: A New Unicorn, Mobile Wallets, and the Pursuit of Financial Inclusion
By David Penn Posted on
Categories: Finovate Global, Mambu, MasterCard, Nubank, Wise

This week’s edition of Finovate Global features news from the fintech industry in Nigeria.

Africa’s newest fintech unicorn raises $110 million

African fintech Moniepoint is the continent’s latest fintech unicorn. The firm, Nigeria’s largest merchant acquirer, announced this week that it has raised $110 million in a funding round led by private equity firm Development Partners International (DPI). The round also featured participation from Google’s Africa Investment Fund, Verod Capital, and Lightrock. The infusion of capital boosts Moniepoint’s valuation above $1 billion, and is providing a positive light at a time when many fintechs in Africa are struggling to secure funding.

The funding takes Moniepoint’s total capital to more than $180 million.

Formerly known as TeamApt, the nine-year-old fintech will use the capital to accelerate the company’s growth across the continent. Moniepoint is building an all-in-one, seamlessly integrated platform for African businesses that features services including digital payments, banking, foreign exchange, credit, and business management tools. Speaking on behalf of DPI, Adefolarin Ogunsanya praised the company for its “combination of innovative technology, fast growth, and positive impact on the continent.”

CEO Tosin Eniolorunda co-founded the company in 2015. In the years since then, Moniepoint has grown into an all-in-one financial ecosystem that serves 10 million businesses and individuals. The company powers most of the point of sale transactions in Nigeria and, via its subsidiaries, processes $17 billion a month for its customers. Headquartered in London, Moniepoint maintains offices in Lagos, Nigeria; and Nairobi, Kenya, as well as in the U.S.

“This milestone validates the work we’ve put in for almost a decade,” the company noted in a post on its LinkedIn page. “And with this raise, we’ll be making financial happiness a reality for every African, everywhere. This is just Day One, and we’re excited for where this takes us.”

CB Insights also named Moniepoint to its 100 most promising startups roster for 2024. The Nigerian fintech is one of seven African startups to make this year’s list.

MTN Nigeria aims for higher quality mobile wallet users

There’s good news and bad news in the latest financial report from African telecommunications company MTN Nigeria. The bad news is that the company reported a significant after-tax loss of $312.7 million (₦514.9 billion), due largely to volatility in the currency market. MTN also noted that though active data users grew by more than 5% to 45.3 million, the company’s mobile money wallet business declined by more than 21%.

The good news? MTN’s fintech division grew revenues by 18%, with much of the gains coming from its mobile money service, MoMo. The decline in active mobile money wallets noted above was attributed in part to a shift in the company’s sales strategy to focus more on “high-quality wallet users” rather than just maximizing the number of users in general. MTN Nigeria also noted that its MoMo service has recently added functionality to support cross-border transactions.

“In the fintech business, we focused on executing our growth strategy, prioritizing increasing wallet quality, focusing on advanced services, and the MoMo PSB app to enhance the user experience and engagement,” MTN Nigeria CEO Karl Toriola explained. “We have introduced cross-border remittances with 13 fellow African countries to boost adoption and monetization. Taking advantage of their interoperability, we are now leveraging the existing network of agents and merchants … in the industry to bring our services closer to our customers.”

PalmPay wins recognition for financial inclusion

Lagos, Nigeria-based fintech platform PalmPay was recognized as the “Most Outstanding Fintech Driving Financial Inclusion” at the 2024 BrandCom Awards held late last month. Sponsored by Brand Communicator, the award acknowledges the fintech’s work in bridging financial gaps and promoting financial inclusion in Nigeria.

“At PalmPay, we believe financial inclusion is the foundation for economic empowerment, and we’re dedicated to ensuring that every Nigerian has access to secure, user-friendly, and reliable financial services,” PalmPay Head of Marketing and Communications, Hanson Femi said.

Founded in 2019, PalmPay has more than 35 million users. The company connects more than one million businesses via its mobile money agent and merchant network, and provides services ranging from instant transfers and billpay to its new USSD feature. This feature enables customers to perform a variety of banking transactions without needing internet connectivity by dialing *861# on their mobile phones.

“We aim to bridge the gap in digital access, and the introduction of our USSD service aligns with that mission,” PalmPay Managing Director for Nigeria, Chika Nwosu, said when the service was launched in September.

Here is our look at fintech innovation around the world.

Asia-Pacific

  • South Korean fintech unicorn, Viva Republica, which operates the mobile financial super app Toss, announced plans to debut in the U.S. market.
  • Singapore has established a “Global Finance & Technology Network” (GFTN) to support the region’s reputation as an international fintech hub.
  • Wise became the first non-bank operating in Japan to earn approval to join the country’s domestic payment network, Zegin.

Sub-Saharan Africa

  • Stanbic Bank Kenya, in partnership with Mastercard, has launched a pair of new credit cards designed to serve the institution’s affluent customers.
  • Nigeria-based fintech Moniepoint achieved unicorn status after raising $110 million in new funding.
  • Côte d’Ivoire-based investment platform Daba Finance won the Ecobank Fintech Challenge.

Central and Eastern Europe

  • Lithuanian identity verification and fraud prevention company iDenfy partnered with O2Factoring.
  • Erste Group teamed up with Neterium to help the firm bring its transaction screening solution to markets in Central and Eastern Europe.
  • Tech Times profiled Germany fintech billionaire and founder of Black Banx, Michael Gastauer.

Middle East and Northern Africa

Central and Southern Asia

  • TBC Uzbekistan forged a strategic partnership with Mastercard.
  • Indian fintech unicorn Slice completed its merger with North East Small Finance Bank.
  • Walee Financial Services went live with Pakistan’s first Islamic nano-financing product.

Latin America and the Caribbean

  • Brazilian fintech Nubank announced the launch of a new mobile phone service NuCel.
  • Berlin-based Mambu teamed up with Kuady to help the company go live with its digital wallet in Latin America.
  • Uruguayan fintech dLocal partnered with advanced management software provider Fourvenues to expand into markets in Latin America and Southeast Asia.

Photo by Ovinuchi Ejiohuo on Unsplash

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Fintech Rundown: A Rapid Review of Weekly News

Fintech Rundown: A Rapid Review of Weekly News
By David Penn Posted on
Categories: Bluefin, Fintech Rundown, Marqeta, MasterCard

Halloween is right around the corner. But have no fear of being out of the loop when it comes to the latest in fintech news — Finovate’s Fintech Rundown has you covered!

Insurtech

Scotland-based insurtech Broker Insights launches in the U.S.

Payments

Mastercard introduces Bill Qkr to streamline billpay for merchants.

Payment orchestrator Yuno unveils Payout, a new feature that enables management of both pay-outs and pay-ins from within a single solution.

Pinwheel launches new subscription management tool, Bill Navigator.

Bluefin and Sycurio announce a strategic partnership to enhance payment security.

Earned wage solutions provider DailyPay secures $100 million from Citi to bolster its secured credit facility.

Identity management and verification

Cross-border payments infrastructure company Nium launches a real-time bank account verification solution, Nium Verify.

Lending

Card issuing platform Marqeta launches embedded Buy Now, Pay Later solution, Marqeta Flex.

Deposit and loan origination software solutions provider Amount introduces its AI Policy Optimizer to enhance credit, pricing, and fraud policy management.

Cryptocurrencies

Cryptocurrency exchange Bitstamp secures a MiFID Multilateral Trading Facility (MFF) license.

Digital banking

U.K.-based banking group Lloyds unveils new Link pay capability in its mobile banking app.

Photo by Yaroslav Shuraev

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Mastercard to Offer Real Time Cross-Border Payments for Commercial Clients

Mastercard to Offer Real Time Cross-Border Payments for Commercial Clients
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, MasterCard
  • Mastercard launched Move Commercial Payments, a real-time cross-border payments solution that operates 24/7.
  • The new commercial payments tool leverages a multi-rail system that includes SWIFT and Mastercard’s proprietary networks.
  • Move Commercial Payments offers features like liquidity management, integration with existing SWIFT systems, and helps to reduce counterparty risk.

Mastercard unveiled an offering this week that will allow commercial users to make cross-border payments in near-real-time. The payments giant introduced Mastercard Move Commercial Payments today, which facilitates payments 24 hours a day, 365 days a year.

Mastercard Move Commercial Payments leverages a multi-rail approach that includes SWIFT, and Mastercard’s proprietary networks to facilitate the cross-border payments. Relying on multiple rails enables banks and their commercial clients to send near-instant, transparent, and predictable transactions any time of day, any day of the week.

Cross-border payments have become increasingly crucial for businesses operating in a global economy. According to a 2023 McKinsey study, global payments revenue grew by double digits in both 2021 and 2022. However, many businesses still struggle with cross-border payments, frustrated by hidden costs and unpredictable settlement speed.

Mastercard Move Commercial Payments offers more than just real-time settlement. The tool also includes several features designed to enhance its value for banks. These features include multiple settlement options that improve liquidity management, a multi-party arrangement to reduce counterparty and default risks, integration with existing SWIFT messaging systems, and compatibility with current correspondent banking relationships. These elements help banks maximize operational efficiency while minimizing risk.

“By powering fast, predictable and transparent payments, Mastercard Move Commercial Payments will bring what is already the norm in domestic payments to the commercial cross-border payment space,” said Mastercard Head of Transfer Solutions Alan Marquard. “Our latest product innovation aims to directly address the pain points that are currently affecting the commercial cross-border payments market. By shifting to this new model, they will be empowered to generate new revenue streams while reducing risk and enhancing the offering for their corporate customers.”

Mastercard Move Commercial Payments, which is part of the company’s Move portfolio, was piloted in the U.K. with Lloyds Banking Group and UBS. This initial phase marked an important step in refining the platform’s capabilities for large-scale deployment. By collaborating with major financial institutions, Mastercard was able to validate the efficiency of its multi-rail payment system, demonstrating the platform’s market readiness and paving the way for broader adoption.

Mastercard’s launch competes with Visa’s real-time payments solution called Visa Direct, which enables fast and secure money movement to different endpoints across the globe. Similar to Mastercard’s Move Commercial Payments, Visa Direct also leverages a multi-rail approach that supports card-based and account-to-account transfers that integrate with The Clearing House RTP and FedNow.

Today’s launch comes amid a string of other payments-related news releases this month, as both fintechs and traditional financial services firms seek to capitalize on the recent consumer awareness of real-time payments generated from last year’s FedNow launch. Just last week, for example, we covered news from Worldline, which unveiled an account-to-account transfer tool in Europe, Tyfone’s launch of Payfinia instant payments solution, and Token.io’s real-time payments partnership with Santander.

Photo by Lea L on Unsplash

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Finovate Global Hong Kong: Open Platforms, Web3, and New Opportunities for Octopus

Finovate Global Hong Kong: Open Platforms, Web3, and New Opportunities for Octopus
By David Penn Posted on
Categories: ACI Worldwide, Finovate Global, Mambu, MasterCard, Worldline

This week’s edition of Finovate Global features news from the fintech scene in Hong Kong.

Worldline partners with BOCHK

International payment services company Worldline has forged a partnership with the Bank of China (Hong Kong), also known as BOCHK. The partnership makes the bank the first Hong Kong-based customer of Worldline’s open platform card solution, Paysuite Essential Edition. Previously called “Cardlite,” the solution will enable BOCHK to enhance the customer experience with new offerings, including its multi-currency Mastercard debit card.

“We are excited to partner with BOCHK, a prestigious bank in the region, to launch our new innovative Paysuite Essential Edition in Hong Kong,” Worldline’s Head of Financial Services Asia-Pacific, Noel Chow, said. “The partnership highlights the trust and confidence from leading financial institutions in our innovative open platform solutions. We believe the partnership paves the way for other banks to modernize their card systems and migrate from legacy systems to open systems.”

BOCHK’s partnership with Worldline reflects the trend in the payments industry toward open platform solutions. Already available in other markets, Worldline’s Paysuite Essential Edition offers issuing, acquiring, authorization, switching, and routing functionality. The technology supports Mastercard’s multi-currency card, and provides an infrastructure that accelerates time-to-market and deployment of new products and services.

Additionally, Worldline will provide a local support team with local expertise to assist BOCHK as it scales its operations in the future. This team will also help ensure the institution will meet Hong Kong banking industry compliance requirements.

“As open platform solutions are the future in digital payments, BOCHK is pleased to partner with Worldline, known for its comprehensive innovative fintech solution and unparalleled local support it offers, to provide our customers with the Mastercard multi-currency debit card powered by its Paysuite Essential Edition,” said Daniel Li, Chief Digital Officer of Personal Banking & Wealth Management, BOCHK. “This collaboration marks a significant step forward in our commitment to delivering seamless payment experiences to our valued customers and promote the wider use of digital payments.”

Worldline made its Finovate debut at FinovateEurope 2017. At the conference, the company demoed its Connected Piggy Bank, which helps parents provide financial education for their young children via a “playful” end-to-end savings solution. Today, Worldline processes more than 43 billion payment transactions a year, serves more than 14 million merchants, and is active in 170 countries. Founded in 1972, Worldline is headquartered in Bezons, France.

RD Technologies secures $7.8 million investment

RD Technologies, a Hong Kong-based financial platform that seeks to “bridge the worlds of Web2 and Web3,” has raised $7.8 million in Series A1 financing. Participating in the round were HongShan, Hivemind Capital, Aptos Labs, Hash Global, SNZ Capital, Solana Foundation, Anagram, and Upward Capital. The company will use the funds to further build out its financial platform and help encourage the development of the Web3 ecosystem in Hong Kong.

“The legacy payment industry is ripe to be disrupted using blockchain technology and stablecoins to provide more efficient and cheaper cross-border payment networks,” RD Technologies CEO Rita Liu said. “Hong Kong is leading the world in virtual asset regulation. We are confident that compliant and transparent stablecoins will invigorate the market and address the pain points of traditional payments and finance to bring in institutions and help Hong Kong become a global Web3 hub.”

Founded in 2020, RD Technologies offers two primary solutions via its subsidiaries: the RD Wallet and the HKDR stablecoin (HKDR). RD Wallet is a licensed Stored Value Facility that enables businesses around the world to open multi-currency fiat accounts via mobile device anywhere and at any time. The wallet supports eight currencies — HKD, CNY, USD, JPY, SGD, EUR, GBP, and AUD — that are commonly used in the region, offers fund transfer via TT and CHATS, and provides competitive FX rates with a 0% fee.

Issued by RD InnoTech Limited, the HKDR stablecoin is backed 1:1 by the Hong Kong dollar, with high-quality, liquid assets kept in segregated custody accounts with licensed financial institutions. In July, the firm was one of the first companies to be admitted to the stablecoin issuer sandbox by the Hong Kong Monetary Authority.

“Hivemind is thrilled to support RD Technologies as they seek to lead the future of stablecoins and cross-border payments,” Hivemind Partner and Head of Asia Stanley Huo said. “We believe regulated stablecoins are a critical growth area in crypto, offering real product-market fit, particularly as global demand for regulated stablecoins rises among enterprises and institutions.”

Checkout.com launches Octopus in Hong Kong

London-based Checkout.com is the first international payment services provider (PSP) to offer Octopus, the leading payment method in Hong Kong, as a payment option at checkout.

With 98% penetration in a region with 7.5 million residents, Octopus is Hong Kong’s first, “homegrown” fintech. Octopus was launched in 1997 as a contactless card for multimodal transportation. In the years since, the solution has grown into a popular and versatile payment system, used for retail and shopping as well as food and beverage transactions both in Hong Kong and abroad. The company introduced its mobile app in 2012 and now reports that there are more than 4.5 million Octopus digital wallets.

“At Octopus, we pride ourselves (on) making everyday life easier,” Octopus Head of Business Development and International Business Edwin Lai said. “This partnership with Checkout.com will enhance and broaden the payment experience not just for our customers, but also merchants within Hong Kong and beyond. We anticipate robust demand from global and local businesses eager to access Hong Kong’s consumers. We hope this collaboration will help support the growth of the city’s digital commerce.”

“Catering to local payment preferences is crucial for success in the Hong Kong market,” Checkout.com General Manager of APAC Brian Sze said. “Our strategic partnership with Octopus underscores Checkout.com’s commitment to investing in our Asia footprint, delivering localized payment solutions that empower merchants to thrive in this dynamic region.”

Founded in 2012, Checkout.com processes payments for thousands of companies around the world. The company’s international digital payments network supports more than 145 currencies, and processes billions of transactions a year. Checkout.com’s technology helps merchants increase acceptance rates, lower processing costs, fight fraud, and transform payments into a significant source of revenues. The company has raised $1.8 billion in funding, most recently closing a $1 billion Series D round in January 2022. Guillaume Pousaz is founder and CEO.

Hong Kong’s fintech celebration only weeks away

Some of the biggest fintech news in Hong Kong is likely less than three weeks away. Hong Kong Fintech Week begins on October 28 and extends through November 1. The event expects to host 30,000 participants and feature 800 speakers and 500 startups. Finovate participated in the city’s Fintech Week back in 2018 as part of FinovateAsia.

We’ll have more to say about fintech in Hong Kong in the wake of the city’s conference. For now, check out this interview with Lareina Wang, who was appointed chair of the FinTech Association of Hong Kong (FTAHK) in August. In this interview, Wang — who is also executive director, head of digital and innovation at DBS Bank Hong Kong — talks about some of the major issues facing both the growth of the association as well as fintechs in Hong Kong.

“We have some of the world’s best universities in town, while, overall, the fintech industry is short of fintech talent,” Wang told FinanceAsia. “Advocating for policies and reaching collaborations might not appeal to them, but they are interested in being educated around fintech topics.”

Founded in 2017, the FTAHK has 300 corporate members.

Here is our look at fintech innovation around the world.

Central and Southern Asia

  • 86400, a payments technology firm based in India and formerly known as Mobileware Technologies, raised $1.8 million (INR 15.6 crore).
  • The New South Wales (NSW) government teamed up with Indian incubator Afthonia Labs to help NSW fintech startups enter the Indian market.
  • An industry organization consisting of fintech lenders, Fintech Association for Consumer Empowerment (FACE), secured “self-regulatory organization” status from the Reserve Bank of India.

Latin America and the Caribbean

  • Brazilian paytech Barte raised $8 million in Series A funding in a round led by AlleyCorp.
  • Norway’s MeaWallet partnered with Peru-based neobank B89.
  • Grupo Bancolombia’s crypto platform, Wenia, launched its WeniaCard that lets users pay with cryptocurrency at any merchant that accepts Mastercard.

Asia-Pacific

  • Singapore-based fintech Surfin announced a $12.5 million Series A investment from Insignia Ventures Partners.
  • JCB enabled Google Pay for customers in Japan starting on September 6.
  • Checkout.com added Octopus as a payment method in Hong Kong.

Sub-Saharan Africa

  • Mastercard and ACI Worldwide teamed up to bring real-time card payments to South Africa.
  • Network International went live with new payments services in Kenya.
  • Nigerian’s Securities and Exchange Commission (SEC) announced a crackdown on fraud in the country’s fintech industry.

Central and Eastern Europe

  • INDEXO Bank partnered with Mambu as part of its launch in Latvia.
  • Austrian payment orchestration platform IXOPAY introduced new CTO Ronnie Thomson.
  • Croatia-based fintech Fonoa acquired PwC UK’s GITC product to faciliate management of partial tax exemptions.

Middle East and Northern Africa

  • Calcalist interviewed former CEO of Bank Leumi and current Managing Partner at Team8 Rakefet Russak-Aminoach on the current state of fintech in Israel.
  • The UAE announced that cryptocurrency transactions will be exempt from value-added tax (VAT) effective November 15.
  • American Express Middle East forged a partnership with Dubai-based payment gateway Telr.

Photo by Arnie Chou

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Mastercard Acquires Minna Technologies

Mastercard Acquires Minna Technologies
By David Penn Posted on
Categories: Alumni News, Daily news, MasterCard, Mergers & Acquisitions, Minna Technologies
  • Mastercard has agreed to acquire subscription management platform Minna Technologies. Terms were not disclosed.
  • Minna Technologies offers technology that enables users to manage their subscriptions from within their bank app or website, saving users millions of dollars in spending on unwanted subscriptions.
  • Minna Technologies made its Finovate debut at FinovateEurope 2019. The company is headquartered in Gothenburg, Sweden.

Terms were not disclosed. But Mastercard announced today that it has agreed to acquire Swedish subscription management platform Minna Technologies. The transaction, which is subject to regulatory approval, will bring greater simplicity and clarity to the subscription process and help enhance the engagement between merchants and their customers.

“This is significant recognition of the strength, growth, and impact of Minna Technologies in powering the global subscription economy, partnering with top-tier banks, fintechs, and subscription businesses,” Minna Technologies CEO and Chair Amanda Mesler said. “We look forward to joining Mastercard’s world-class team and helping businesses to empower consumers with control, convenience, and flexibility in managing their subscriptions and recurring payments.”

Minna Technologies offers banks and other financial institutions a subscription management platform that enables users to take control over their subscriptions via an automatically generated overview of all the user’s recurring expenses. Individuals can use Minna to cancel unwanted subscriptions as well as identify and quickly switch to new utility service providers. Mastercard’s acquisition comes as the number of subscriptions globally has climbed to 6.8 billion, with analysts at Juniper Research expecting that number to climb to 9.3 billion by 2028.

That said, the experience of our subscription economy can be a mixed one for consumers. Changing, extending, or canceling a subscription is often much more difficult than it needs to be. Additionally, the proliferation of subscription-based services means that many people have trouble keeping track of what they subscribe to, and when those subscriptions will be renewed. In the U.S., for example, the average person has 4.5 subscriptions. Additionally, more than 85% of Americans say that they have at least one paid subscription that goes unused each month.

Minna provides a payment-scheme agnostic service that empowers subscribers to manage their subscriptions from within their banking apps and websites. Bringing this technology into Mastercard’s suite of offerings is yet another example of how some of the biggest companies in financial services are leveraging acquisitions to add new solutions – from account-to-account payment functionality to enhanced cybersecurity – to their product mix. To that point, just last week, we shared news that Mastercard rival Visa had agreed to acquire fraud prevention company (and Finovate alum) Featurespace.

Founded in 2014, Minna Technologies demoed its technology at FinovateEurope in 2019. Today, the Sweden-based company has connected with more than 22,000 subscription businesses, served more than 120 million retail bank and fintech users, and saved customers more than $1 billion in spending on unwanted subscriptions.

Photo by Shvets Anna

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