Friday October 16, 2020 –
Here are the new and noteworthy stories we have been following this week.
Razorpay Raises $100 Million in Latest Funding Round
India’s Razorpay raised $100 million in Series D financing co-led by Singapore sovereign wealth fund GIC Pte and Sequoia India at a $1 billion valuation; Razorpay handles online payment processing for small businesses and many of the new platform companies including Oyo, Cred, and Flipkart.
European fintech giant Revolut is close to applying for a bank charter in California
Revolut is reportedly close to applying for a bank charter in California; according to industry sources, the California charter will allow Revolut to operate throughout the US via interstate agreements.
New Chase account helps kids develop healthy saving and spending habits
Chase has launched Chase First Banking, a new kid and teen focused checking account with no monthly fees; the account operates around three features, Earn, Spend, and Save that are accessible by both parents and kid and helps kids learn responsible money management.
Federal Reserve announces FedNowSM Pilot Program
The Fed has announced and invited expressions of interest in a pilot program for its upcoming instant payments offering, the FedNow Service; the opportunity to participate in the pilot is open to eligible members of the FedNow Community, which currently numbers more than 700.
https://www.frbservices.org/news/press-releases/101320-announcing-fednow-pilot-program.html
PayPal enters UK’s buy now, pay later market
PayPal is launching its ‘buy now, pay later’ shopping service in the UK branded as ‘PayPal Pay in 3’; the service will let businesses offer their customers the option of making three interest-free installment payments for purchases between £45 and £2,000.
https://www.finextra.com/newsarticle/36749/paypal-enters-uks-buy-now-pay-later-market
Philippe Starck unveils payments ring
Designer Philippe Starck has developed a smart ring that stores payments cards, transit passes, and business cards; the ring has been created in collaboration with start-up Icare Technologies and includes security technology from NXP, incorporating data encryption and a deactivation system.
https://www.finextra.com/newsarticle/36745/philippe-starck-unveils–payments-ring
Bank Earnings Show Diverging Fortunes on Wall Street and Main Street
Trading and investment banking income drove Q3 profitability for the largest banks which in general turned in strong results; in their earnings reports, the banks said they are prepared for credit losses which they anticipate in the second half of 2021.
https://www.nytimes.com/2020/10/14/business/bank-earnings-wall-street-coronavirus.html
Stripe acquires Nigeria’s Paystack for $200M+ to expand into the African continent
Stripe has announced a deal to acquire Nigeria-based payments startup Paystack for $200+ million; Paystack provides a quick way to integrate payments services into an online or offline transaction via an API and currently has around 60,000 clients.
