The Week in Review

The Week in Review

Friday June 25,  2021 –

Here are the new and noteworthy stories we have been following this week.

PayPal raising merchant fees on some of its transactions

According to a blog post published by a PayPal executive, the company will be raising rates on certain transactions “to better align our pricing with the value that our products and services provide”; one of the most significant changes is the new rate for PayPal Digital Payments which goes to 3.49%+$0.49 per transaction.

China to shut down over 90% of its Bitcoin mining capacity after local bans

Bitcoin mines across China have closed after local authorities ordered a halt to mining amid an intensified nationwide crackdown against cryptocurrency mining; additionally, the government has ordered local electricity companies to immediately stop supplying power to crypto mining projects they have detected, conduct self-inspection and rectification and report their results to government regulators.

Deutsche Bank Jumps Back Into Payments With Fiserv Deal

Deutsche Bank is setting up a merchant acquiring JV with Fiserv in Germany to allow its business customers to accept card payments both in-store and online; Deutsche Bank is re-entering the payments business which it exited in 2012 when it sold its merchant acquiring business to EVO Payments.

Mollie raises €665 million at a valuation of €5.4 billion

Mollie, a Netherlands-based PSP has raised €665 million in a Series C funding round led by funds managed by Blackstone Growth; Mollie which allows businesses to integrate payments into sites, documents, and other services by way of an API serves more than 120,000 monthly active merchants of all sizes across Europe.

South Korea’s Answer to Robinhood and Venmo Lands a $7 Billion Valuation

Viva Republica Inc. a South Korean company that operates Toss (a financial super app) has raised 460 billion Korean won, the equivalent of $406 million from a broad set of investors; Toss has a subscriber base of 18+ million and lets users transfer money, take out loans, trade stocks, and check their credit scores.

Digital banking startup Majority raises new round led by Valar Ventures

Majority, a digital bank that targets immigrant communities has raised $19 million in seed funding led by Valar Ventures; Majority started by offering financial services to the Nigerian community in Houston and later expanded to Cubans in Miami – it will use the new funds to grow the business and expand to new migrant communities.

Fifth Third Bank Offers Early Pay for Direct Deposits

Fifth Third has announced the launch of ‘Early Pay’ for all Fifth Third Momentum® Checking2 customers allowing them access to their paychecks up to two days early; Early Pay was piloted in various markets and reportedly received a good reception.

Visa To Acquire European Open Banking Platform Tink

Visa is acquiring Tinka European open banking platform for 1.8 billion Euros, inclusive of cash and retention incentives; Tink is integrated with more than 3,400 banks and financial institutions and reaches millions of bank customers across Europe.

Visa Installments launching in Canada with Scotiabank

Visa Canada is launching ‘Visa Installments’ – a new option to convert purchases already made on a Visa credit card into smaller, equal payments over a defined period of time; Scotiabank will be the first Canadian issuer to leverage Visa’s Installments capability to offer its Visa credit card customers the ability to split qualifying purchases they have already made on their card into installments – the service will be branded as Scotia SelectPay™.

VTB and Visa test ‘pay-by-glance’

Russia’s VTB Bank is working with Visa and O.Vision, a local fintech to let restaurant customers make payments by looking at a camera; customers first need to install the O.Vision mobile app, register their phone number, save their facial biometrics and link a payment card – to make a payment they look into the camera at the restaurant payment terminal.