Barrow sign for Faro Bank rentals, more corporate cards and BNPL under the microscope • TechCrunch

Welcome to The Interchange! If you receive this in your inbox, thank you for signing up and for your vote of confidence. If you’re reading this as a post on our site, sign up over here So you can receive it directly in the future. Each week, I’ll take a look at the most important fintech news of the past week. This will include everything from funding rounds to trends to analysis of a specific space to hot offers on a particular company or phenomenon. There is a lot of fintech news, and it’s my duty to stay informed – and understand – so you can stay informed. – Mary Ann

First of all, I have to say that last week was one of the busiest news weeks I’ve experienced in a long time. Stop. Until now. Although I obviously couldn’t cover everything, I tried to include as much of it as possible in this newsletter.

Before we get into the various news from last week, let’s talk about bank charters.

For the uninitiated, according to Investopedia: “An authorized bank is a Financial Institution (FI) whose primary roles are to accept and protect cash deposits from individuals and organizations, as well as to lend money. Details of an authorized bank vary from country to country. However, in general, an authorized bank in the process has obtained some form of Government permission to do business in the financial services industry. A charter bank is often associated with a commercial bank.”

In 2020, digital bank Varo becomes the first nationally fully digital consumer bank in the US – which means it has received approval from the Office of the Comptroller of the Currency to become actual A bank, as opposed to partnering with one as most digital banks do.

It was a bold and dangerous move. So I spoke to Varo CEO and founder Colin Walsh to see if it was worth it. his answer? 100%.

To read my full interview with Walsh about how things have gone since then, Chief over here.

Company cards keep coming

Mercury It was announced last week that Launched a new corporate credit card. Via email, a spokesperson told me IO Mastercard It is designed to help startups scale their businesses. “It’s 1.5% direct cashback on everything, no personal credit check, and the first step to qualifying for the card is to get just $50,000 in a Mercury account.”

The company added that the corporate credit card has been one of the most requested features from customers since Mercury launched in 2019. In fact, Mercury had already considered launching it with a credit card as its first product but chose instead to start with a bank account instead because “every founder He needs a bank account to run his business… and [they] It is the perfect foundation on which to build additional financial advantages.” The move is admittedly an attempt to carve out its own space against the likes of Brex and Ramp.

Meanwhile, European financial technology Bayhawk Announced that it will launch in the United States with a focus on enterprise customers. As part of the move, it’s also launching – you guessed it – the first credit card product in the US. The move follows what a spokesperson called a “huge year” for the company: Over the past 12 months, its revenue has grown by more than 520%. The company achieved unicorn status after extending its Series B round to $215 million.

We are not finished yet! centerCo-founded by former Concur CEO and co-founder Steve Singh and launched its own corporate card and expense program targeting small and medium-sized businesses, it recently tripled its customer base last year “while retaining 94% of existing customers” and doubled the size of its company. This is particularly interesting because many of the company’s current card players often refer to Concor as a vacant company they are trying to replace.

These companies of course join a large number of other companies in the US that already offer corporate cards, including – but not limited to – Brex, Ramp, Airbase, Mesh Payments, and Rho.

Image credits: Mercury

Weekly news

I am convicted It announced on September 15 that it became the first financial technology company to collaborate with it Cash App (Block) To submit cash payment via the appIt is a mobile payment method for its customers in the United States. Adyen said its business will give customers a way to pay using the app’s cash balance or a linked debit card. “As the first fintech platform outside the Square ecosystem to launch Cash App Pay, we look forward to seeing the value this partnership brings to our customers and Adyen business,” said Cash App COO Owen Jennings in a written statement. An Adyen spokesperson told me via email: “The partnership will provide Adyen business customers with access to more than 80 million active customers who make up a third of Millennial and Gen Z consumers in the US, and their customers will in turn provide another convenient feature, a seamless way to pay at checkout that matches their needs and habits. Unique Finance.

Talking about roadblockthe company formerly known as (and sometimes still goes by) Field Last week it announced that its entire ecosystem includes more than 35 products and services Now available in Spanish For sellers in the United States. This means that millions of Hispanic-owned businesses in the US will have the ability to use Square in English or Spanish,” including major products like Square Banking to unlock access to financial services and Square for Restaurants to enable seamless bilingual communication between the interface. front and home workers.”

While we’re on the subject of payments, Goldman Sachs and modern wardrobe It announced its partnership to “accelerate the transition to embedded payments, and help joint customers embed and scale payments into products.” Via email, a Goldman Sachs spokesperson told me that the partnership advances “Goldman’s push to better serve mid-market companies that have long wanted to do business with Goldman.” in written statement“Incorporating payments into software products is increasingly the path of commerce, and by partnering with Modern Treasury, we are creating new opportunities for customers to take advantage of our payment capabilities seamlessly within their own platforms,” said Eduardo Vergara, Head of Product and Sales at Goldman Sachs Transaction Banking.

in other Goldman Sachs In the news, Bloomberg reported that the investment banking and financial services giant “Embark on the biggest round of job cuts since the beginning of the pandemic.” The publication cited people familiar with the matter who said that Goldman “plans to eliminate several hundred roles starting this month.”

Buy now, pay later It made headlines several times last week. First, the Associated Press mentioned That (unsurprisingly, unfortunately) as “Americans have become enamored with the ‘buy now, pay later’ services… the ‘pay later’ part is becoming increasingly difficult for some borrowers.” Meanwhile, TechCrunch Kyle Wiggers I mentioned that US Consumer Financial Protection Bureau (CFPB) On September 15 it “released a report indicating that companies such as Klarna and Afterpay, which allow customers to pay for products and services in installments, should be subject to stricter oversight.” while, Confirms CEO Max Levchin told Bloomberg Law in an interview: “We chose a fair amount of what the report called for. We have always seen this as lending business subject to all lending rules and regulations.”

Proptechs continues to take a hit. Residential real estate market sundae Last week he performed his second layoff this year. About 28% of the team has been laid off – mostly sales and support staff. Specifically, about 106 employees were laid off. I reached out to the company for confirmation and a spokesperson told me via email that “Sundae is focused on creating a simpler customer experience so we can get offers to sellers faster. The market remains volatile and we saw layoffs as an opportunity to use data and technology to simplify our approach and improve our customer experience. As we’ve seen These decisions as an opportunity to build a longer runway.” You’ve covered the company’s increase for 2021 over here.

In more enhanced employee news, fodder – Payments processor that aims to make it easier for Grocery to accept SNAP EBT payments online – Reveal it Christina Hermann he is Join the company In the new role of Head of Business. She comes to Forage after nearly 16 years at Amazon, most recently building and leading the company’s underprivileged population team as its founder and general manager. Earlier this year, I wrote about how Ofek Lavian left his role as Head of Payments at Instacart To join Forage. Today, he is the CEO of the startup.

FIS Worldpay for Platforms launched, Embedded financing solution Aimed at small and medium businesses. FIS told me via email that businesses using the offer, “eliminate the need for SMBs to pay separate partners to help issue cards or cash advances or get faster access to cash flow.” This obviously has implications for companies like Stripe or Plaid, or other embeddable products aimed at the small business market.

ICYMI: Revolution Recently announced a new feature for online payment, push the revolutionAllows consumers to pay when paying online with just one click.

Seen on TechCrunch

For startups organizing payments in LatAm, market segmentation is a boon in disguise

The Linus Foundation announces the OpenWallet Foundation for the development of interoperable digital wallets

YC Batch Shows Founders Still Optimistic About FinTech

Image credits: Feed / Christina Hermann, Business Manager

Finance, Mergers and Acquisitions

Seen on TechCrunch

The ratio represents $411 million in equity and credit for flexible subscription payment models

Kenyan in-house technology company Turaco maintains 1 billion user target as it raises $10 million in funding

Denim, a fintech platform for freight brokers, raises $126 million in equity and debt

Allocations just reached $150 million to help private equity funds attract small investors

Payall drops $10 million in initial round led by a16z to help banks facilitate more cross-border payments

Chartered FinTech Startup Cafene Raises $18 Million Acquisition To Fight BNPL

Southeast Asia’s Fintech Fazz raises $100M Series C to serve businesses of all sizes

Nigerian Financial Management App for KEPA Traders Comes with $8.4 Million in New Funding

Fintech Startup Power is flexing its credit card muscle after $316 million in equity, debt pumping

Indian Fintech Approved to Invest in Lending Partner Liquiloans

and in other places

$50M Alternative Asset Management Platform Ethic

Composer raises $6 million for automated investment platform

Redfin CEO, DoorDash co-founder, invested in new startup, Far Homes, that’s building a portal to Mexico real estate

German software company Candis raised $16 million to expand AP automation

Splitit drives premium growth as a service with $10.5 million in funding

PortX was launched as a new entity by ModusBox and received a new funding of $10 million

JPMorgan Chase Acquires Fintech Payments Renovite to Help It Fight Stripe and Block

Whew. that was MuchAnd, if this week is any indication, the fourth quarter is going to be insane. I’m on my way now to try to update this weekend. I hope you do the same! See you next week! xoxoxo Mary Ann

In case you’ve been hiding under a rock and haven’t heard of it, TechCrunch Disrupt is coming to San Francisco October 18-20! I would definitely love to see you there. Use the code INTERCHANGE to get 15% off tickets (excluding internet and exhibition), or simply click over here.

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