Welcome to our recap of the top 5 fintech news from this first week of october 2024.
We’ll cover the most exciting developments in financial technology, from groundbreaking innovations and major partnerships to regulatory updates and market trends. Stay tuned to catch up on the latest advancements shaping the future of finance with Financial Technology Insights.
Brands Covered:
News Headlines:
- Revolut Partners with Mubadala to Propel Strategic Growth in the Gulf Region
- Robinhood Expands Internationally with Introduction of Crypto Transfers in European Markets
- HSBC Urges Technology Leaders to Collaborate in Compensating Victims of APP Fraud
- PayMate Expands its Footprint with $400 Million DigiAsia Partnership in Indonesia
- Klarna and Adyen Collaboration: A Strategic Move into High Street Retail
Revolut Partners with Mubadala to Propel Strategic Growth in the Gulf Region
Mubadala, the sovereign wealth fund of Abu Dhabi, has made its inaugural investment in Revolut, a global neobank, as part of a share transaction that valued the company at US$45 billion. The sale of US$500 million in shares by Revolut employees was alleged to have occurred in August. Mubadala, as well as other significant investors such as Coatue, D1 Capital Partners, and Tiger Global, were involved in the transaction.
Read: Revolut Launches Secondary Share Sale to Boost Employee Liquidity Opportunities
Revolut’s founder and CEO, Nik Storonsky, reportedly sold US$200 million to US$300 million of his own shares during the sale, which accounted for approximately half of the total. However, the precise scale of Mubadala’s investment remains undisclosed. The proceeds from his sale are anticipated to be used to support his venture capital firm, QuantumLight, which concentrates on investments that are propelled by artificial intelligence. Storonsky’s stake in Revolut was valued at roughly US$8 billion prior to this transaction.
Robinhood Expands Internationally with Introduction of Crypto Transfers in European Markets
Robinhood, a retail investing platform, announced that it is expanding its product capabilities in Europe by enabling customers to transmit cryptocurrencies in and out of its app. This move is part of Robinhood’s ongoing international expansion. The company announced in a blog post on Tuesday that it will permit consumers in the European Union to deposit and withdraw over 20 digital currencies through its platform, including bitcoin, ethereum, solana, and USD coin.
The move effectively grants Robinhood’s European users the capacity to “self-custody” assets. This means that, rather than entrusting your cryptocurrency to a third-party platform, you can instead assume ownership of it in a fully owned wallet that holds your funds. Robinhood introduced its crypto trading service, Robinhood Crypto, to the European Union for the first time in December of the previous year. Users could purchase and sell cryptocurrencies through the service; however, they were prohibited from transferring them to a third-party platform or their own self-custodial container.
HSBC Urges Technology Leaders to Collaborate in Compensating Victims of APP Fraud
In recent years, there has been a significant increase in the prevalence of APP fraud, resulting in losses exceeding $500 million in the United Kingdom in 2023. In order to address this issue, regulators are implementing new regulations for the banking sector. Beginning in October, the overwhelming majority of the funds that are lost due to APP frauds will be reimbursed to the victims.
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Nevertheless, UK banks have been advocating for a long time for major tech, social media, and telcos to assume a greater degree of responsibility for fraud that originates from their platforms. UK Finance reports that 76% of APP fraud is generated online, with an additional 16% occurring in the telecommunications industry.
PayMate Expands its Footprint with $400 Million DigiAsia Partnership in Indonesia
DigiAsia Bios, a Fintech-as-a-Service company in Indonesia, has been acquired by PayMate pursuant to a binding term contract. PayMate has announced its intention to invest a maximum of $25 million in cash. The aggregate financing structure and other terms have not yet been finalized. The combined company intends to conduct a public listing in India next year, provided that the transaction is finalized. PayMate, which has secured investments from Visa and Lightbox, assists businesses in the digitization and simplification of B2B payment processes. This encompasses accounts payable and receivable, invoice discounting, and embedded finance.
Klarna and Adyen Collaboration: A Strategic Move into High Street Retail
Klarna and other organizations have been striving to secure a portion of the $11 trillion global in-store payments market, despite the fact that BNPL remains primarily focused on e-commerce. The new agreement will provide retailers with the opportunity to integrate Klarna instalment payments into 450,000 Adyen terminals worldwide. Klarna’s Dynamic QR technology will be accessible through the terminals. In order to pay, the consumer scans a QR code on the device and completes the transaction on their mobile device, selecting the BNPL option.
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Thank you for joining us for this recap of the top 5 fintech news from this week. We hope you found these updates insightful and exciting. Stay tuned for more news and developments in the fintech world. Keep innovating and exploring the future of finance with us. Until next time, stay informed and stay ahead in the fintech space. We will be covering more such updates on Financial Technology Insights.
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