Friday August 7, 2020 –
Here are the new and noteworthy stories we have been following this week.
Google signs up six more partners for its digital banking platform coming to Google Pay
Google announced that it is partnering with six more banks to offer digital checking and savings accounts to Google Pay users in the U.S.; the new banks include Bank Mobile, BBVA USA, BMO Harris, Coastal Community Bank, First Independence Bank, and SEFCU.
Paya and FinTech III Announce Merger Agreement
Atlanta-based Paya an integrated payments provider and FinTech Acquisition Corp., a special purpose acquisition company, announced that they have entered into a merger agreement that will take Paya public; the transaction reflects an implied enterprise value of approximately $1.3 billion.
https://www.businesswire.com/news/home/20200803005351/en/Paya-FinTech-III-Announce-Merger-Agreement
Kabbage Considers a Sale. It’s Expected to Seek Up to $1 Billion
Kabbage one of the early digital lenders is reportedly exploring a sale; the company has hired FT Partners and is looking for a price of $750 million to $1 billion.
NCR Brings Contactless Service to Restaurant Dining Rooms
NCR is using the Aloha POS and restaurant management platform to provide a contactless dining experience where guests can scan a QR code with their phone to review the menu, order, and pay; the solution has been rolled out at Coupa Cafe locations in California.
Square surges after reporting 64% jump in revenue, more customers using Cash App
Square reported $1.92 billion in net revenue for the second quarter — a 64% year-over-year increase; Square’s Cash App helped drive the company’s performance with gross profits for the app up 167% year-over-year to $281 million.
https://www.cnbc.com/2020/08/04/square-sq-earnings-q2-2020.html
Singapore’s Grab Rolls Out Micro-Investments, Consumer Loans to Users
Grab is increasing its presence in financial services targeting its users; the company is rolling out a micro-investment product called AutoInvest and will also offer consumer loans.
eBay and LendingPoint Team Up to Provide Seller Financing to Entrepreneurs and Businesses
eBay is working with LendingPoint to launch a new lending program for its sellers in the US – eBay Seller Capital powered by LendingPoint; the program is rolling out as a pilot with select sellers and will be available to all eligible sellers in the US later this year.
Splitit secures $71.5m
Australia-listed POS installment credit provider Splitit has raised US$71.5 million in a private placement and share purchase plan; the new funds come from institutional investors including Woodson Capital Management and will be used to accelerate sales and marketing.
https://www.finextra.com/newsarticle/36343/splitit-secures-715m
NYSE-owner ICE to buy Ellie Mae in $11 billion deal
Intercontinental Exchange (ICE) announced that it is buying Ellie Mae, a technology platform for the mortgage finance industry for $11 billion; the transaction significantly enhances ICE’s position as a major provider of end-to-end electronic workflow solutions for the residential mortgage industry.
Federal Reserve announces details of new 24x7x365 interbank settlement service with clearing functionality to support instant payments in the United States
The Federal Reserve Board has announced details of the FedNow℠ Service; according to the Fed, the target launch date remains 2023 or 2024 and the service will be rolled out in a phased manner with the first release providing core clearing and settlement features.
https://www.federalreserve.gov/newsevents/pressreleases/other20200806a.htm
US consumers cut debt as lockdowns curbed spending
According to a new report released by the Federal Reserve Bank of New York, household debt in the US has declined for the first time since 2014, driven by a steep fall in credit card balances as consumer spending declined; consumer credit balances amounted to $14.27 trillion at the end of June, a 0.2% decrease from March.
https://www.ft.com/content/ec49b32d-c30a-4b1c-9f94-66b2f38a005b
BoE increased Monzo capital demands during fundraising
The Bank of England temporarily increased the capital requirements for Monzo; in May, Monzo was required to have capital worth 13.65% of risk-weighted assets, up from about 9%, as well as a fixed amount of £21 million.
Agora Services to Offer Fully White Label Teen & SMB Digital Banking Solutions for Community Financial Institutions
Agora Services is launching a white label integrated digital bank solution to address the teen and small and medium-sized business (SMB) market without any core integration; the products are, Agora Junior and Agora SMB.
https://www.businesswire.com/news/home/20200806005325/en/Agora-Services-Offer-Fully-White-Label-Teen
Customers Bank sells BankMobile unit
Customers Bank is selling BankMobile to Megalith Financial Acquisition Corp., a special purpose acquisition vehicle for $140 million; the new company will operate as BM Technologies Inc. and expects to be listed on the NYSE.
https://www.finextra.com/newsarticle/36356/customers-bank-sells-bankmobile-unit
TD enters into North American data-access agreement with Finicity
The TD Bank Group (TD) has announced a new data-access agreement with Finicity; the North American agreement signifies alignment between TD and Finicity about protocols to be followed by Finicity when accessing financial data of a TD customer to support the customer’s request to use financial services supported by Finicity.
