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Tracking fintech, banking & financial services innovations since 1994
Google Cloud has unveiled its latest data center and announced that PayPal will be among the first to move key components of its payments infrastructure to Google’s cloud region. The news is the latest example of a partnership between the two technology giants that extends back at least as far as 2017, when PayPal became an authorized payment method for Android Pay (which later became Google Pay).
The new cloud region, Google’s 22nd globally, will be based in Salt Lake City and is designed to provide customers in the western U.S. with better, more reliable cloud services.
“When it comes to processing a financial transaction, security and speed count,” PayPal VP for Employee Technology & Experiences and Data Centers Dan Torunian said. He added that Google Cloud will provide PayPal with the “security, quality, and velocity” it needs, particularly when it comes to managing seasonal payment transaction volume surges and keeping regional expansion costs low.
In fact, PayPal reportedly chose Salt Lake City in part for low-latency access to its own data center, which will make it easier for PayPal to commit additional resources to the cloud over time. The partnership will also allow PayPal to establish a migration pattern that can be used to convert more on-premises infrastructure to the Google Cloud – at the Salt Lake City data center or to any other Google Cloud platform region.
More than 300 million consumers and merchants in 200 markets use PayPal’s payments technology for financial services and commerce. The San Jose, California-headquartered company began the year forging a strategic partnership with UnionPay International that will boost its merchant and consumer business in the Chinese market. PayPal reported adding more than 37 million net new active accounts last year, processing “nearly $200 billion” in total payment volume in the fourth quarter alone.
It is hard to imagine having a better start to your week than Plaid had seven days ago when the innovative fintech (and Finovate alum) announced that it had agreed to be acquired by Visa for $5.3 billion.
But the €90 million ($100 million) raised by Swedish open banking platform Tink on Monday is nothing to sneeze at. In fact, the funding, which is the company’s largest to date, is a reminder that investment interest in (and funding for) companies dedicated to developing the infrastructure that connects consumers, banks, and the financial technologies is very much in abundance.
“Our aim is to become the preferred pan-European provider of digital banking services and to offer the technology needed for banks, fintechs, and startups to leverage the opportunities of open banking and enable them to successfully develop financial services in the future,” Tink co-founder and CEO Daniel Kjellén said in a statement.
The London-based money transfer firm, founded in 2012, promoted its COO Richard Ambrose to CEO back in August, as Azimo founder Michael Kent took what TechCrunch referred to as a lateral move to become executive chairman. Today, Fintech Futures, Finovate’s sister publication, reports that the company has appointed Dora Ziambra to the post of Chief Operating Officer. Azimo also promoted its head of finance Tatiana Okhotina to the post of Chief Financial Officer.
“We’re fortunate to have the depth of talent to fill these top roles internally,” Ambrose said in a statement. “We’re lucky too that Azimo will continue to benefit from the experience and leadership of these two outstanding women.”
Here’s our weekly roundup of the latest news from our Finovate alumni:
Union Bank to leverage technology from FIS for core banking.
Italy-based CREDEM leveragingWorldline’s Payment and Liquidity Hub software CRISTAL to process Target2 payments
POS software Vend partners with Klarna to offer retailers more flexible payment options.
U.K. food retailer The Co-operative to deployACI Worldwide’s fraud management solution, ReD Shield.
A partnership between TransferGo and Currencycloud will enable the money transfer company to enter 14 new markets.
YellowDogforges reseller agreement with Annex Pro.
Bankable cozies up with Plaid to allow its bank customers to connect with their users’ bank accounts.
Ohpenappoints former Tesla marketing leader Corinne Aaron as new head of marketing.
Segmint to acquire WAND’s Product and Service Taxonomy division.
CuneXuscelebrates 2019 success with a 40% year-over-year increase in consumer reach.
Three Key Lessons We Learned from Plaid – Unless you’ve been living under a rock, you’ve probably heard that Visa is acquiring Plaid for a deal that’s worth $5.3 billion. The fact that they were so widely used at such an early stage is a testament to the quality of their code, but there are also a few key lessons to take away from their success.
ITSCREDIT’s Joao Pinto on the Digital Lending Opportunity – ITSCREDIT is a spinoff from ITSECTOR and is a fairly new player in the digital lending space. In this interview, Pinto talks to us about the digital lending opportunity, how his company fits into the current state of this fintech subsector, and what we can expect to see next.
Kasasa Enhances its Take-Back Loan – Community bank marketing expert Kasasaannounced a partnership with Carleton today in which Kasasa will integrate Carleton’s insurance and debt protection calculations into its Kasasa Loan.
Plinqit Brings Rewards-Powered Financial Literacy to First Community Bank – One day in the distant future, children will be educated in basic financial literacy as readily as they are taught algebra. Until then, solutions like Plinqit from HT Mobile Apps will be valuable tools for credit unions and community banks looking for novel ways to engage and educate their members and customers.
Credit, Data, and Cryptocurrencies: Graychain Rebrands as Credmark – The company that is bringing credit data clarity to the cryptocurrency industry is entering 2020 with a new name.
Tradeshift Lands $240 Million as it Inches Toward Profitability – The San Francisco-based company will use the investment to boost expansion efforts and gear toward a “direct path to profitability in the near future.”
Backbase-as-a-Service Helps Banks Leverage the Cloud to Innovate and Scale – The solution makes the company’s broad portfolio of digital banking offerings available to FIs looking to accelerate their ability to develop and offer new technologies to customers.
Also on Finovate.com
Visa to Acquire Plaid in $5.3 Billion Deal – “Today marks an important milestone for our company and for fintech,” company co-founder and CEO Zach Perret wrote on the Plaid blog earlier today. “What started with two founders building in a cramped conference room has become an incredible network that enables millions of consumers to interact with over 2,500 digital finance products.”
Not Another 2020 Trends Prediction Post (Seriously, It’s Not!) – We’re taking a look at the trends you can expect to see on stage next month at FinovateEurope. To keep things simple this year, we assessed the themes at a very high level and broke them down into three categories: the big, the little, and the trends in-between.
Singapore’s Digital Banking License Space Race Accelerates – Is there anyone out there who is NOT trying to secure a digital banking license in Singapore? The Monetary Authority of Singapore announced last week that has received 21 applications for digital bank licenses.
MogoSpend Offers Credit, Cashback, and Help Reducing Your Carbon Footprint – The new digital spending account from Canadian fintech Mogo does more than help Canadians get control of their finances. The solution also offers cardholders generous cashback rewards and a way to make a positive impact on the environment by reducing their carbon footprint.
Getsafe Expands its Insurtech to the U.K. – If your insurance company is offering you drone insurance, you know it’s not your grandmother’s insurance agency. Germany-based insurtech Getsafe does just that– and the company announced today it is expanding its home contents insurance offering (though, sadly, not its drone insurance offering) to users in the U.K.
Raisin’s New Acquisition Gives Company Access to the U.S. Market – European deposit marketplace Raisin announced today it acquired New York-based Choice Financial Solutions.
French Fintech Lydia Locks in $45 Million – TechCrunch reported this morning that French mobile payment app Lydia has raised $45 million (€40 million) in a round led by Tencent.
Visa’s Tap to Phone Brings Contactless Payments to mPOS – With Visa’sTap to Phone app arriving pre-installed on the new, enterprise grade smartphone from Samsung, a broad range of merchants will have access to yet another way to accept payments from customers.
INTL FCStone Acquires International Bank Transfer Firm – Headquartered in Germany, GIROXX offers international bank transfers and currency hedging. INTL FCStone plans to leverage this technology to expand its current client base to small-and-medium-sized enterprises (SMEs).
Join us next month in Berlin, Germany for FinovateEurope 2020. Our three-day fintech conference will begin on February 11 and run through February 13.
The event features both our signature, seven-minute, live technology demonstrations, as well as keynote addresses, roundtables, and case studies on many of the most critical issues in fintech. Check out our conference agenda and stay tuned for more about our speakers and demoing companies.
Here’s our weekly look at fintech around the world.
Central and Eastern Europe
Austrian mobile payments firm Bluecode raises $13.4 million (€12 million) from European Private Venture Capitalists.
German fintech Solaris Bank announces plans to offer custodial services to cryptocurrency investors.
Ukraine’s mobile-only bank Monobank to expand to the U.K. in 2020.
Middle East and Northern Africa
IBMbrings its fraud prevention technology to Qatar International Islamic Bank.
PYMNTS looks at the opportunities PSD2 may offer Turkish banks.
Egypt-based fintech Dayra wins $15,000 grant from Y Combinator’s Startup School, the first MENA-based startup to do so.
Central and Southern Asia
Business Recorder interviews Syed Mohsin Ahmed, CEO of Pakistan Microfinance Network.
Fintech Singapore lists India’s top fintech influencers for 2020.
Makers India highlights five women who are driving fintech innovation in India.
Latin America and the Caribbean
Born2Invest examines the impact of mobile money on Argentina’s banking industry.
Brazilian fintech Cora raises $10 million in funding to help provide financial services to SMEs.
Rebel, a startup that helps provide credit to middle-class Brazilians, rakes in $10 million in equity funding.
With closing of a 70% stake in China’s GoPay, PayPal is the first non-Chinese firm licensed to offer payment services in the country.
FIS’ global ecommerce platform, Worldpay, partners with Japanese issuer and acquirer JCB.
Who are the top contenders in Singapore’s digital banking race? Fintech Singapore reviews the field.
Micro-investing startup Trove picks up an investment from Nigerian asset management company, ARM.
Kontomatik’s Konstantin Rabin looks at South Africa’s position as an “unlikely fintech leader.”
Julaya, a startup based in Ivory Coast that specializes in digitizing financial services for small businesses, raises $550,000 in funding..
As Finovate goes increasingly global, so does our coverage of financial technology. Finovate Global is our weekly look at fintech innovation in developing economies in Asia, Africa, the Middle East, Latin America, and Central and Eastern Europe.
Payments titan PayPal is shelling out $4 billion today in a transaction to purchase Honey, an online shopping and rewards platform. The deal is PayPal’s 20th acquisition and closely follows the California-based company’s arrangement with GoPay last month that gives it a 70% ownership in the China-based company.
PayPal, which offers solutions for both end consumers and merchants, will leverage Honey to create a better experience for the end customer while giving its merchant clients a boost through increased sales and customer engagement.
Honey brings with it a network of 30,000 online retailers and 17 million monthly active users. PayPal will be able to engage with these shoppers while they are still at the beginning of their online purchasing experience. Leveraging access PayPal’s 275+ million active customers and network of 24 million merchant accounts, Honey will be able to scale up its user base considerably.
Calling today’s purchase as one of the “most transformative” in the company’s history, PayPal President and CEO Dan Schulman went on to praise Honey for its ability to improve the online shopping experience. “The combination of Honey’s complementary consumer products with our platform will significantly enhance our ability to drive engagement and play a more meaningful role in the daily lives of our consumers,” Schulman said. “As a partner of choice for our merchants, this is another way that we can help them build and strengthen their customer relationships, provide personalized offers, and drive incremental sales.”
Logistically, Honey will stay intact, maintaining its headquarters in Los Angeles. The company’s co-founders George Ruan and Ryan Hudson will continue to lead the Honey team, reporting to PayPal’s Senior Vice President John Kunze.
PayPal showcased its Instant Account Creation feature at FinovateFall 2012. The company has a market capitalization of $120 billion.
After making inroads into China at the beginning of this month, PayPalannounced another international move today– this time with the U.S.’s friendly neighbors to the north.
The San Francisco-based company has made the PayPal Business Loan for small business owners available in Canada. This isn’t the first time PayPal has launched financing products outside of the U.S. The company also offers loans in the U.K., Australia, Germany, and Mexico.
With this launch, Canada-based small business owners can access from $5,000 to $100,000 in working capital at competitive borrowing rates from terms ranging from 13 to 52 weeks. Businesses can apply online and will receive approval in minutes. Once approved, merchants can receive funds in their business bank account within one to two days.
Before accepting the loan, borrowers can see the transparent cost and fee structure of the loan, including the fixed fee. There are no hidden, origination, late payment, early repayment, or application fees.
“Applying for a traditional loan takes time and isn’t always favorable to small business owners,” said President of PayPal Canada, Paul Parisi. “We’re launching the PayPal Business Loan to offer our merchants easy access to financing, something they desperately need. We look forward to helping more small business owners achieve their dreams to grow locally and globally.”
This news comes almost six years after PayPal began offering business financing solutions. Since that time the company– which was founded in 1998– has provided $10+ billion in funding to nearly a quarter of a million business owners around the world. PayPal reports that historically, the most common uses of the loans include managing cash-flow (44%), purchasing inventory (37%) and investing in marketing (31%).
The loans are currently available to select Canadian business owners by invitation only. PayPal will make the loans available to all Canadian PayPal business account holders next year.
PayPal showcased its Instant Account Creation feature at FinovateFall 2012. The company, which made its 19th acquisition earlier this month, has a market capitalization of $116 billion.
Join us next week as our annual Asia-Pacific fintech conference returns to Singapore! FinovateAsia is one of the best ways for fintech startups and innovative industry veterans from the region and around the world to showcase their latest technologies before an audience of C-level decision-makers, venture capitalists, all-star analysts, and more.
FinovateAsia runs from October 14 through October 15, with an additional Summit Day on October 16. Visit our registration page and pick up your ticket today.
Finovate alums Hydrogen, Sedicii, Strands, and Wealth Migrateearn finalist spots in the South African Reserve Bank’s Fintech Demo Day.
Carbon CEO Chijioke Dozie offersFive Lessons Global Banks Can Learn from African Fintechs.
Business Tech highlights 12 of the hottest fintechs in South Africa according to the country’s biggest banks.
Central and Eastern Europe
Alior Bank’s Alior Kantor to deployEfigence’sEFI4 Digital Banking Platform.
Deloitte Romania and FintechOSpartner to offer banks digital transformation and automation solutions.
Sberbankunveils new “Apply for Mortgage” feature on its Sberbank Online mobile app.
Middle East and Northern Africa
Dubai earns top ten ranking in the Global Financial Centres Index (GFCI).
Boubyan Bank of Kuwait and Zain Telecom team up to launch a digital Islamic bank.
Saudi Capital Market Authority (CMA) authorizes financial technology experimental permits enabling three companies to build an equity crowdfunding platform.
Central and Southern Asia
Khatabook, an Indian fintech that helps SMEs track and record businesses transactions, raises $25 million.
Varanium Capital launches $28 million venture fund focused on Indian fintech.
Indian fintechs await regulatory guidelines for deployment of Video KYC technology.
Latin America and the Caribbean
OurCrowd to open its 13th global office in São Paulo, Brazil.
Colombian small business lender Sempli raises $8 million in Series A funding.
EBANX will process payments for Uber in Brazil and other countries in Latin America.
After sealing a transaction which gives it a 70% stake in China-based GoPay, PayPal has taken on a new role in the global payments services scene.
That’s because PayPal not only has controlling interest in GoPay but is also now licensed to offer online payment services in China, making it the first foreign company to be granted such license.
“We are honored to become the first foreign payment platform to be licensed to provide online payment services in China,” said PayPal CEO Dan Schulman. “We look forward to partnering with China’s financial institutions and technology platforms, providing a more comprehensive set of payment solutions to businesses and consumers, both in China and globally.”
The China opportunity represents major growth potential for PayPal. That’s because online payments in China are undergoing a growth spurt of their own. Between 2013 and 2018, online payment transactions in China doubled, topping out at $200 trillion.
The move gives PayPal an advantage over U.S. competitors, which have become not only more prolific but also more competitive since PayPal set up shop in 1998. However, the new territory also pits PayPal against some major new competitors. China-based competitors, Alibaba’s Alipay and Tencent’s WeChat Pay, make up 90% of the region’s mobile payment market.
Financial terms of the deal, which marks PayPal’s 19th acquisition, were not disclosed.
PayPal showcased its Instant Account Creation feature at FinovateFall 2012. The company has a market capitalization of $118 billion.
We highlighted an overview of current stats and trends in the Asian fintech scene in a blog post yesterday. The best way to learn more about fintech in Asia is to attend FinovateAsia, taking place in Singapore October 14 through 15.