Apple’s HUGE move in Finance w Open Banking integration ??????; Merc cars are transforming into payment devices ????; NU just entered ETF Market ????

?? Hey, Linas here! Welcome to a ?? weekly free edition ?? of my daily newsletter. Each day I focus on 3 stories that are making a difference in the financial technology space. Coupled with things worth watching & most important money movements, it’s the only newsletter you need for all things when Finance meets Tech.

If you’re not a subscriber, here’s what you missed last week:

1. VC portfolio construction model ?? [use this to model a venture fund]
2. Klarna's strategy that nobody’s talking about ?? [deconstructing what matters & where you should focus on + how Klarna is building the Google of Shopping]
3. Generative AI will make Finance Autonomous ???? [taking a big picture view on the changes taking place now & what’s next + more deeper dives into AI & Finance]
4. The Dawn of AI in Central Banking: ECB starts testing ChatGPT-style AI ????
5. Goldman Sachs is in advanced talks to sell GreenSky ??
6. Affirm’s new strategy to boost profitability ??
7. One of the smartest decisions from Revolut ??
8. Kraken’s European expansion ????
9. Unicorns reignite IPO plans as market sentiment improves ?? [market sentiment is improving + an invaluable resource for anyone planning an IPO]

and more! Don't miss out and join the community here????

Last week (25-29 September) was one of the hottest and most intense weeks in FinTech this year so far. We will look at Apple which just made a BIG move into Finance with Open Banking integration (what it’s all about & where’s the value + how it plays in building Apple Finance Empire); Mercedes Benz whose cars are transforming into payment devices (what it’s all about & why it matters); Nubank which just entered the ETF Market (why it’s a strong move + a deeper dive into Brazil’s FinTech gem), and other interesting news and developments.

Without further ado, let us dive into what happened in the financial technology sector last week. Let’s connect the dots.

Apple’s HUGE move into Finance with Open Banking integration ??????

The BIG launch ?? Tech titan Apple has softly launched a new feature for iPhone users in the UK that allows them to view their current account balances and transaction histories directly within the 苹果 Wallet.

This is a big and solid move from Apple showing the technology giant’s growing ambition in financial services.

Let’s take a look.

More on this ?? This new feature is made possible through open banking APIs from major UK banks including HSBC, Barclays, Lloyds, RBS, Monzo, and Starling. Notice there’s no Revolut here? Oh wait, they aren’t a bank in the UK… ??

ICYMI: UK banking license unlikely? Revolut's latest 2022 accounts delayed ??♂?

With this new integration, iPhone users can now see their real-time account balances alongside their Apple Pay cards in the Wallet app. When making an Apple Pay purchase, they will also be able to view their balances, providing greater visibility into their finances at the point of payment.

Finance at stake ?? While a current account balance feature may seem simple on the surface, this launch signals a major strategic play by Apple. It represents one of the first implementations of open banking by a major consumer tech platform worldwide. It is also the first time Apple has launched a new financial feature in the UK before the US. BTW, this is thanks to the acquisition of British OB FinTech Credit Kudos.

ICYMI: Apple takes another step towards becoming a bank ????

More importantly, by tapping into open banking, Apple can unlock powerful financial insights and personalization opportunities. The tech heavyweight could then use transaction data and machine learning to provide tailored recommendations on which payment card to use based on rewards programs or foreign transaction fees.

Apple could also leverage geolocation to prompt users to pay with certain cards when near relevant merchants.

?? THE TAKEAWAY

Looking ahead ?? Many don’t realize how big of a move this is. At the core, the OB integration essentially turns the Apple Wallet into a personal finance management (PFM) tool. With these foundations, Apple could build on this further by using data to provide spending insights and budget notifications in real-time at the point of purchase. This could help consumers make better financial decisions while also increasing customer engagement and loyalty. Looking at the big picture, the launch yet again shows Apple's growing ambition in financial services. It is obvious now that Apple is gradually building a financial ecosystem and positioning itself as a finance platform, and one of the biggest challenger banks in the world (without actually needing to become a bank). With over 1 billion iPhone users globally, Apple's every next move in open banking, finance, and payments will have huge implications. The Biggest FinTech company in the world is gaining more and more momentum.

ICYMI: Apple should go into stock trading in 2025 ???? [+ more dives into Apple’s Finance Empire]

Mercedes cars are transforming into payment devices ????

The news ??? Auto giant Mercedes-Benz has partnered with finance behemoth Mastercard to introduce embedded in-car payments at the point of sale.

Let’s unpack this and see why it’s a pretty big deal.

More on this ?? Now live with 萬事達卡 debit and credit cards in recent Mercedes-Benz AG models, the German auto giant has become the world's first carmaker to integrate Mastercard Secure Card on File for Commerce Platforms technology for online payments into its vehicles.?

Under the partnership, customers can now use a fingerprint sensor in their car to make secure digital payments at more than 3,600 service stations in Germany.

The USP ?? After refueling, the driver will see the amount of fuel refueled and the invoice amount to their Mastercard debit or credit cards on the in-car MBUX dashboard display.

Payment will be made automatically, and the driver will be able to leave the gas station without having to walk to the checkout area. The invoice is then sent to the customer by e-mail.?

?? THE TAKEAWAY

Looking ahead ?? This is the first such implementation globally, and MB plans to extend it to other in-car services and European markets. Obviously, this is not 100% new as it builds on previous work with Visa for in-car payments using their tokenization technology. Zooming out, this transforms the car into a payment device and enhances convenience through fingerprint-based authentication. But more importantly, it demonstrates the potential for cars to become transaction platforms. And the potential is definitely there - research shows a growing demand for in-car payments, with 60% interested in paying for gas this way.

ICYMI: In-car payments are on the rise ???? [+some more bonus reads]

Nubank just entered the ETF Market ????

The news ??? Latin American FinTech giant Nubank has entered the exchange-traded fund (ETF) market with the launch of two ETFs focused on dividend distribution.

This is yet another great move by Nubank to further diversify its product offerings.

Let’s take a look.

More on this ?? These ETFs are based on a new index, the Ibovespa Smart Dividendos, derived from the Brazilian Ibovespa index.

The new benchmark index, Ibovespa Smart Dividendos, will include 21 companies and be rebalanced every four months, with criteria such as dividend yields, consistency, and lower dividend fluctuation used to weigh a stock's importance in the index.

Nubank's two ETFs, Ibov Smart Dividendos and Nu Renda Ibov Smart Dividendos will track this new benchmark. The key difference between them lies in how dividends are utilized, with one reinvesting dividends in the ETF itself and the other making monthly dividend payments to shareholders.

?? THE TAKEAWAY

Why this matters? ?? At the core, Nubank going into ETFs is all about diversifying its product offerings and attracting both existing customers and other investors. For now, they are going to do this through the Brazilian stock exchange, B3, but the FinTech giant has plans to introduce additional ETFs in the future, starting with equity ETFs. Given how sticky and savvy NU’s customers are (all 85 million of them!), I’m pretty sure this is going to be a huge success for Brazil’s FinTech gem, only further strengthening their bottom line. Remember - Nubank is a neobank like no other for a reason ??

ICYMI: analysis of NU’s latest performance & why you should be excited + some bonus reads on other LatAm FinTech you cannot ignore:

Extra Reads & Quick Bites for Curious Minds ??

• Coinbase doesn’t stop ???? Cryptocurrency exchange Coinbase has revealed that it obtained an AML registration from the Bank of Spain.?As shared in the official press release, Coinbase has registered as a cryptocurrency exchange and custodian wallet provider with the Bank of Spain. This registration will allow the company to extend a full suite of products and services to both retail and institutional users in Spain – all in compliance with the country’s legal framework. Following Coinbase's registration, users in Spain will be able to access various cryptocurrency services including having custody of crypto assets, buying and selling with legal tender, and trading against other crypto assets. Solid work, again! ICYMI: It’s all about that Base 'bout that Base, no treble ?? [how Coinbase’s Base Blockchain is doing + why it’s a critical part of their "Master Plan"]
• Curve + PayPal ?? All-in-one card app Curve has added integration with PayPal to its suite of payment options. Customers will be able to directly connect their personal or business PayPal account to Curve without having to enter account, debit, or credit card details, and select it as their preferred payment option to make purchases in-store, expanding PayPal’s reach to include all point-of-sale and contactless transactions. The collaboration will also allow consumers to earn cashback on their PayPal transactions and build it up in their Curve Cash balance to either spend straight away or save up for a special treat. Another good win for PayPal. ICYMI: PayPal’s PYUSD stablecoin is now available on Venmo ??

Money Moves ??

• Alums from some well-known names in crypto and fintech are?starting?a new $60M fund called Oak Grove Ventures, which focuses on the intersection of Web3, artificial intelligence, and biotech.
• Apron, a UK startup that slashes the time small businesses spend processing invoices, has raised a $15M Series A.

Continue reading by subscribing to Linas's Newsletter. You will receive fresh news about FinTech with hot takeaways every day.

P.S. You might enjoy my earlier pieces as well:

?? Top 10 FinTech predictions for 2023 ??

?? Top banking trends to watch in 2023 ??

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About: I am a business developer, sales professional, and FinTech strategist, as well as a Cryptocurrency and Blockchain enthusiast. I'm highly passionate about Financial Technology and Digital Innovation, and strongly believe that it will change the world for the better. Apart from my daily job at a global payments startup where I'm leading the company's expansion into Europe, I'm an active member of the FinTech community and a TechFin evangelist.

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