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Finovate Blog
Tracking fintech, banking & financial services innovations since 1994
Payouts and treasury platform PayQuicker launched its 1099 tax reporting solution, powered by fellow Finovate alum Avalara.
The new offering helps reduce the complexity of 1099 filing while keeping companies compliant with the latest regulatory mandates.
New York-based PayQuicker made its Finovate debut at FinovateFall 2022. Avalara is an alum of Finovate’s developer conference, FinDEVr Silicon Valley 2015.
PayQuicker, a payouts and treasury platform that made its Finovate debut at FinovateFall 2022 in New York, has introduced its new 1099 tax reporting solution. Powered by agentic tax and compliance specialist—and fellow Finovate alum—Avalara, the new offering will help companies streamline and automate 1099 reporting while reducing both compliance risk and administrative burden.
“Businesses need reliable automated solutions to stay compliant without slowing down operations,” PayQuicker CFO Joe Bertalli said. “By partnering with Avalara, we’re able to provide our customers with a robust 1099 solution that reduces complexity, increases accuracy, and gives them confidence in their compliance processes.”
PayQuicker’s 1099 solution enables companies to collect W-9 and other W-series tax forms over the course of the year to help ensure accurate payee information at all times. PayQuicker’s solution also leverages real-time Taxpayer Identification Number (TIN) matching to validate data at the point of collection. This helps reduce the potential for costly backup withholding notices, penalties, and corrections at a time when regulatory requirements around tax reporting for businesses are becoming increasingly complex.
Powered by Avalara’s tax compliance technology, PayQuicker’s 1099 solution provides scalable, secure, and compliant tax reporting for businesses managing sizable numbers of payees. The solution facilitates the accurate and efficient generation, filing, and distribution of 1099 forms supported by automated federal and state filing, electronic delivery, and ongoing regulatory updates.
“PayQuicker is focused on making complex financial workflows easier for businesses,” Avalara General Manager for 1099 Reporting Queenie Lee said. “We’re excited to power their 1099 solution with Avalara’s compliance expertise, enabling customers to automate reporting and reduce risk while staying focused on growth.”
An alum of Finovate’s developer conference, FinDEVr Silicon Valley 2015, Avalara leverages an expansive library of tax content and industry integrations to serve more than 200,000 direct and indirect customers in more than 75 countries. Avalara’s purpose-built AI agents automate compliance processes from tax calculations and return filings to exemption certificate management and more. Avalara has helped companies achieve an 85% reduction in time spent managing tax returns and a 50% reduction in time spent on exemption certificate management. Scott McFarlane is Co-Founder and CEO.
Headquartered in Rochester, New York, PayQuicker made its Finovate debut at FinovateFall 2022. At the conference, PayQuicker demonstrated its Payouts OS solution which packages the company’s technology into an in-market payouts orchestration platform. Payouts OS leverages a single REST API that plugs into multiple banks and international payment rails to identify and facilitate the fastest, most cost-effective way for clients to make payouts to businesses and consumers around the world.
This week’s edition of Finovate Globallooks at recent fintech headlines from South Africa.
Lesaka Technologies to Acquire Bank Zero
Lesaka Technologies, a fintech that provides low-cost financial services to underbanked South Africans, has secured approval from the Competition Commission to acquire Bank Zero. An app-only bank co-founded by Michael Jordaan in 2018 and publicly launched three years later, Bank Zero today has more than 40,000 funded accounts and deposits of more than $22 million. The financial institution offers personal and business banking solutions to both underbanked and tech-first customers.
Initially announced in July, the acquisition is valued at $60 million. The transaction consists of a combination of newly issued shares in Lesaka and up to $5 million in cash. Post-transaction, Jordaan will remain as Bank Zero’s chairman, and co-founder Yatin Narsai will continue to serve as CEO. Bank Zero’s entire management team will also remain in place.
Lesaka anticipates that the acquisition will fortify its balance sheet, enhance lending performance, and reduce the firm’s dependence on bank debt. The fintech suggested that the move could lower its gross debt by $57 million.
“The acquisition of Bank Zero is a transformative event in Lesaka’s journey, enabling us to better serve our consumers, merchants, and enterprise clients, by embedding a trusted, well-engineered neobank capability into our fintech platform,” Lesaka Chairman Ali Mazanderani said. “I am delighted to welcome the Bank Zero team to Lesaka as partners.”
Lesaka Technologies offers banking, lending, and insurance products to consumers and cash management, billpay, business funding, and card acquiring solutions to retail merchants in both the formal and informal sectors. Founded in 1997, the company is headquartered in Johannesburg, South Africa.
South African Retailer Explores New Banking Venture
One of South Africa’s largest discount retail groups may be getting into the banking business.
Pepkor Holdings operates more than 5,800 stores across a wide number of brands including PEP, Ackermans, and Tekkie Town. A subsidiary of Steinhoff International, Pepkor is reportedly looking to launch a new banking venture—informally referred to as “Pep Bank”—that will leverage the company’s market reach to offer zero-fee banking to millions of consumers with lower incomes. The company is said to be in conversation with Investec, seeking a partner to support the new bank’s regulatory, operational, and financial infrastructure.
There has been no public commentary from Pepkor on the initiative, and press reports assert that the talks are in “early stages.” Further, the launch of a new bank would require approvals from the South African Reserve Bank (SARB) and the National Credit Regulator, and no such engagement has been reported to date.
Speaking of launching banking operations in South Africa, Revolut announced that it has officially begun the process of securing a banking license in the country. The company has confirmed that it submitted a Section 12 application under the country’s Banks Act, the first step in becoming a licensed bank in South Africa. Revolut first signaled its intention to launch a bank in South Africa in September, highlighting the country as a “key growth market” with increasing rates of digital adoption and an openness to innovative financial products and services.
“Becoming a licensed bank will allow us to bring a full suite of products to the market and ensure we become the go-to financial app for millions of South Africans,” Revolut South Africa CEO Jacques Meyer said.
As a sign of the company’s growing engagement with the South African market, Revolut has appointed Dr. Gaby Magomola as Chairman of Revolut South Africa. A pioneer in the history of banking in South Africa, Dr. Magomola has served in senior executive roles at Citibank, Barclays Bank, First National Bank, and African Bank. He most recently served as Deputy Chairman of the Development Bank of Southern Africa (DBSA).
“Dr. Magomola’s experience is invaluable as we deepen our commitment to the South African market,” Meyer said. “His strategic counsel will be critical in navigating the local regulatory environment, ensuring we build a locally relevant service that addresses the financial needs of all customers in South Africa.”
Revolut’s presence in South Africa would bring significant additional competition to the country’s digital bank industry, which consists of TymeBank, Discovery Bank, and Bank Zero, which has been acquired by Lesaka Technologies, as we noted in this week’s column. Already one of the largest digital banks in the world, Revolut has said its expansion in South Africa is part of the company’s goal to grow its customer base from 65 million to 100 million by 2027. Revolut also seeks to be active in 30 markets by 2030.
Here is our look at fintech innovation around the world.
Asia-Pacific
Japan’s largest trust bank, Sumitomo Mitsui Trust Bank, selected SCSK Corporation and OneSpan to enhance security for its mobile banking operations.
Australian superannuation fund Brighter Super partnered with Napier AI to enhance its compliance infrastructure.
Is Jack back? South China Morning Post featured Alibaba Group Holding founder Jack Ma’s return to the campus of Ant Group.
Sub-Saharan Africa
South African fintech Lesaka Technologies received approval to acquire Bank Zero in a deal valued at $60 million.
Revoluthas applied for a banking license in South Africa.
South Africa’s Discovery Bank announced new crypto trading offering.
Central and Eastern Europe
Lithuanian regtech iDenfy unveiled its new solution that conduct instant license checks during the KYC process.
The European Payments Initiative (EPI) announced that Wero for e-commerce is now live in Germany.
Mastercardintroduced open loop transit payments in Azerbaijan.
Middle East and Northern Africa
Crypto payments company MoonPay expanded its partnership with Israel-based Zengo Wallet. The firm’s venture arm, MoonPay Ventures, also announced a strategic investment in the self-custodial crypto wallet.
First Abu Dhabi Bank teamed up with Thunes to enable global mobile wallet payouts.
Yuze Digital, a AI-powered fintech platform for freelancers and independent businesses, launched its pilot in India.
Pakistani fintech Abhi partnered with UAE-based digital platform Numou to help SMEs access financial services.
Indian fintech Yubi raised $46.4 million to enhance its debt marketplace, collection systems, and AI capabilities.
Latin America and the Caribbean
Uruguay-based cross-border payment platform dLocal partnered with global payouts orchestration company PayQuicker to help the firm serve more merchants in emerging markets.
Latin American accounts receivable management and collections automation platform Moonflow acquired Mexican fintech Kobro.
International payouts orchestration company, PayQuicker, has forged a partnership with cross-border payment infrastructure firm Thunes to expand its e-Wallet payout capabilities around the world.
The integration is designed to better serve the growing demand for diverse and flexible payout methods. This demand is especially acute in emerging markets, where access to traditional banking is limited and tools like e-Wallets play a major role in helping individuals manage finances and make payments. McKinsey estimates that up to 60% of those in emerging markets prefer to use e-Wallets instead of traditional banks.
Integrating enhanced e-Wallet capabilities into its global payouts solutions mix will help PayQuicker fulfill its objective of providing faster, easier payouts around the world. The company said that it will offer access to more than 120 e-Wallets in key emerging markets, courtesy of the new partnership. Among the e-Wallets that will be accessible are popular e-Wallets such as the Philippines’ GCash, China’s Alipay, and both Orange Money and M-Pesa of Africa.
“Digital wallets are transforming the way people manage their finances, especially in regions where traditional banking infrastructure is lacking,” PayQuicker CEO Paul Beldham said. “By teaming up with Thunes, we’re further enabling millions of people around the world to receive their funds faster and more securely, providing the flexibility of a bank alternative. This not only empowers individuals to better manage their day-to-day finances but also supports the economic growth of emerging markets by facilitating more reliable transactions.”
Headquartered in Rochester, New York, PayQuicker made its Finovate debut at FinovateFall 2022. At the conference, the company demoed its Payouts OS solution, which packages the company’s payments technology into a payouts payment orchestration platform that intelligently determines and facilitates the fastest, most cost-effective payouts across 200+ countries in 40+ currencies.
Thunes was formed in 2019 when Finovate alum TransferTo rebranded as two separate businesses: one, Thunes, focusing on cross-border payments and the other, DT One, focusing on mobile top-up and rewards. Earlier this month, Thunes announced a partnership with Alipay+ to enable merchants in Paris to accept payments from 15 international e-Wallets and mobile partnerships. In July, Thunes added cross-border payment service provider LianLian Global to its global network.
Global payouts platform PayQuicker announced three new fintech partnerships this week.
The company has teamed up with Qolo, Web3 infrastructure company Fortress, and payments platform Citcom.
PayQuicker made its Finovate debut last September at FinovateFall in New York.
International payouts platform PayQuicker announced a trio of new fintech partnerships this week. The company has teamed up with Qolo, Fortress, and Citcon, who will take advantage of and enhance the functionality of PayQuicker’s Payouts OS platform. PayQuicker recently demoed the technology at FinovateFall.
“No single bank or payment provider can solve for cross-border payments alone,” PayQuicker President Charles Rosenblatt said. “We are uniting the power of these notable partners under our first in-market payouts orchestration platform to bring agile, secure, and convenient payout methods to businesses, and bring hard-earned money to gig and alternative workforces around the globe.”
Qolo will serve as an issuing-processing partner for PayQuicker’s Payouts OS. The company will issue an advanced suite of card solutions for corporate as well as SME business clients. This will make it easier for firms who need to make payouts to gig economy workers, for example, or to marketplace sellers. Fortress is a Web3 infrastructure company. Its partnership will enable PayQuicker to offer its clients a stablecoin wallet for payees. This will allow businesses to make disbursements in crypto instead of fiat currency. Lastly, Citcon is a global payment platform that offers solutions for payments in-store, online, and via mobile. PayQuicker customers around the world will gain new outlets via the collaboration.
“By combining Citcon’s robust global payment networks with PayQuicker’s expertise in secure and efficient payouts, we are empowering businesses to streamline their operations and enhance user experiences,” Citcon co-founder, President, and COO Wei Jiang said.
PayQuicker’s Payouts OS platform leverages a single REST API to deliver turnkey integration for multiple banks and global payment rails. The technology intelligently determines and facilitates the fastest and most cost-effective payout method for a given client. This includes saving clients time and money by comparing the processing and interchange fees.
Joined by company Chief Technology Officer James Legan, PayQuicker’s Rosenblatt demoed Payouts OS at the company’s appearance at FinovateFall last year. The team showed how the company has used Payouts OS to enable instant payouts in more than 200 countries and territories. These payouts were in local currencies and disbursed via prepaid debit card, virtual cards, and mobile wallets. “Payouts OS is the first Payouts-as-a-Service product,” Rosenblatt explained from the Finovate stage in September, “a payment orchestration platform for payouts that allows companies to go out and get the best rate, the best speed.” He added, “It will use lowest cost routing in order to be able to determine that for our clients.”
Founded in 2007, PayQuicker is baed in Rochester, New York.
A look at the companies demoing at FinovateFall in New York on September 12 and 13. Register today and save your spot.
The PayQuickerPayouts OS platform intelligently determines and facilitates the quickest and most cost-effective way for clients to send payouts to businesses and consumers globally.
Features
Turnkey integration with single REST API that plugs into multiple banks & global payment rails
Pay to 200+ countries, 40+ currencies
Routing intelligence based on client’s desired payout parameters
Why it’s great
Payouts OS is rooted in PayQuicker’s time-tested technology, designed to deliver global payouts faster and with more flexibility, increasing efficiency for HR, technology and treasury teams.
Presenters
Charles Rosenblatt, President A seasoned innovator in the payments industry, Charles Rosenblatt has held executive leadership positions at major global banks and prominent FinTech organizations and is now President of PayQuicker. LinkedIn
James Legan, Chief Technology Officer With over 20 years of experience in start-up and enterprise SaaS companies, James Legan leads the PayQuicker technology team to implement optimal technological solutions to complex business problems. LinkedIn
