Digital’s continuing rise in remittances; How generative AI can be put to work in banking;
Hi Fintech Fans, our agenda for this edition of Fintech Wrap Up below:
Insights & Reports:
Curated News:
TL;DR:
Insights & Reports Analysis:
News Highlights:
Insights & Reports
Segmenting the world of wallets
The term digital wallet is applied to a bewildering array of different solutions – from single-function wallets that do nothing more than enable a particular type of payment, to true super apps which bring together a wide range of capabilities and services, like taxi hailing, food delivery, cinema tickets, and even wealth management within one easy customer interface.
So, to begin with, it’s worth segmenting the main wallet categories – or archetypes – and the business models that underpin them.
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?? 1 common denominator
The one thing that all wallets have in common is payments. Indeed, a typical definition of a digital wallet is “a storage place of secure information necessary to authenticate a customer and initiate an authorization process to make a transaction to purchase goods and services”.
?? 2 main funding mechanisms
While every type of wallet enables some form of payment, there are two main funding mechanisms:
? Bank or card-connected wallets
This category includes simple pass-through wallets and more complex staged wallets, which store payment information relating to the customer’s connected payment card or bank account.
Digital’s continuing rise in remittances
The slow growth of digital remittances has been a strong and persistent narrative in the space for some time, and in 2023 we saw this gain notable momentum.
On digital revenues, not all players report sufficient information to accurately chart these, however those that do show the impact of different growth rates. Wise and Remitly both offer digital-only services to different consumer money transfers market segments, but Remitly’s slightly higher growth rates have seen the two companies converge around the same C2C revenues, all of which is digital.
Curated News
Nuvei in advanced talks with private-equity firm Advent
Canadian payments processor Nuvei , backed by celebrity entrepreneur Ryan Reynolds, is nearing a buyout deal.?
Private-equity firm Advent International is in advanced talks with Nuvei for a transaction that could be announced soon, according to people familiar with the matter. The talks could still fall apart before a deal is reached.
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