Ep. 38 - Reveel Launches Pay(ID) | Binance x MGX | UK Government Axes PSR | Telegram Crypto Wallet | Shape x PXP | Rapyd x PayU | Lunar Youth | PotN..

Welcome to Episode 38. It was 18 degrees on Sunday, and we are now at 6 degrees the following Thursday as I write this newsletter. For all readers living in sunnier parts of the world than the United Kingdom, I'm sure you all secretly dream of this kind of unpredictable climate.

Anyway, that's enough talk about the weather, I don't want to add any more fuel to the fire on that very British stereotype. Let's get into this episode..

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Reveel Launches Pay(ID), Universal Stablecoin ID for P2P Payments

Reveel has just launched Pay(ID), which they're calling the first universal stablecoin payment ID. It's designed to allow users to receive any stablecoin from any chain and automatically settle in their preferred currency.

The system enables users to send and receive stablecoins instantly without managing multiple wallets and chains. With stablecoins processing over $6.4 trillion in transactions over the past year (according to Visa's tracker), this could be a significant development.

Pay(ID) offers universal compatibility across blockchains, simplified transactions via tagging usernames rather than copying wallet addresses, and personalized fund routing. It's clearly targeting AI and embedded finance use cases too.

The service is now live at reveel.id with a freemium pricing model. Premium usernames start at $5 annually.

“Payments should be simple, instant, and work across any platform. Pay(ID) eliminates the friction in stablecoin transactions, making crypto payments as easy as sending a text,” said Adrien Stern , Founder & CEO of Reveel. “This is the missing link to mainstream stablecoin adoption.”

I'll be keeping an eye on their adoption numbers, especially with that 110,000 waitlist that was announced!

Finextra has all the details on this new release here.

Binance receives ï¿¡2 billion investment from Abu Dhabi's MGX

Abu Dhabi investment group MGX has invested ï¿¡2 billion in crypto exchange Binance, making it the largest investment ever in a crypto company and apparently the largest investment ever paid in crypto.

For MGX, which focuses on AI and advanced technology, this represents their entry into the crypto sector. Binance has a significant footprint in the UAE, basing around 20% of its 5000 strong global workforce there, taking advantage of what they call a "progressive" regulatory regime.

Worth noting that this focus on compliance comes after a host of regulatory problems for the company, including a prison sentence last year for founder Changpeng "CZ" Zhao after he pleaded guilty to violating anti money laundering requirements. They also had to forfeit $2.5 billion to the government and pay a $1.8 billion fine in a settlement with various US agencies.

A rather expensive way to learn that compliance matters, I'd say.

Reuters has a full write up on this news story here.

UK Government moves to abolish Payment Systems Regulator

In a move that caught many by surprise, the UK Government has announced plans to dissolve the Payment Systems Regulator (PSR), consolidating its responsibilities under the Financial Conduct Authority (FCA).

The Government has framed this as part of a wider effort to reduce regulatory complexity and as a response to business concerns over excessive regulatory burdens, particularly for smaller firms in the financial services sector.

Officials suggest that transferring PSR functions to the FCA will create a more streamlined system, reducing the need for payment system providers to engage with multiple regulators.

Industry reaction has been mixed, with some cautious optimism about a more unified regulatory approach, but also concerns about the potential to stall progress in areas such as Open Banking and competition.

Is this just a branding exercise? As some have pointed out, the PSR is already a subsidiary of the FCA, sharing both office space and personnel. It's unclear what, if anything, will materially change beyond dropping a logo.

The government website has a full press release on this news here.

Plata raises $160 million in Series A funding round

Mexico based fintech startup Plata has announced a $160 million Series A funding round, reaching a $1.5 billion valuation and becoming one of the region's unicorn startups.

The funding round was led by Kora, with participation from Moore Strategic Ventures LLC and several undisclosed investors from the US and Europe.

Plata distributes financial products digitally, using ambassadors to deliver credit cards and assist customers. The firm accounts for 10% of new credit cards issued in Mexico, where digital banking adoption remains relatively low.

Launched in April 2023, Plata received a banking licence in December. They've raised a total of $750 million in equity and debt, including a $200 million warehouse facility from Fasanara Capital.

Fintech Futures has all the finer details on this raise here.

Telegram Wallet adds multi asset trading and yield features

Telegram's crypto wallet, developed by The Open Platform (TOP), has introduced new features including multi asset trading and yield functionalities.

Based on the TON blockchain, TOP launched the wallet in 2023 and claims over 100 million users have signed up, with most being new to the crypto ecosystem.

The wallet product has primarily focused on Toncoin, which can be used on Telegram to tip creators or pay for minigames and apps. It also supports Bitcoin, USDT (on the TON blockchain), and currencies like Notcoin.

With the latest update, users can buy, sell, or hold crypto without on chain deposits, making it easier for newer users. They're also introducing an earning component for holding Toncoin with an average yield of 4%, varying based on validators' reward.

You can read more on this story via TechCrunch here.

Shape Technologies and PXP target payment service providers

Shape Technologies and PXP have announced a collaboration designed to transform the way ISOs, ISVs, and Payment Facilitators go to market.

The partnership delivers a turnkey proposition that enables users to get to market more quickly with market leading services. The integration creates a single, end to end solution combining Shape's customisation functionality and embedded process automation with PXP's payment capabilities and processing engine.

The combined offering delivers enhanced efficiency by automating manual processes, customisation for tailored front end experiences, reliable processing via PXP's payment engine, and scalability to grow with businesses.

Payment service providers can capitalise on the collaboration and take it to market under the white label model, saving on self build costs and expediting revenue generation.

Jack Mangnall , Co-Founder at Shape Technologies said “We’re delighted to announce our collaboration with PXP. Their recent launch of Unity makes it the perfect time for us to commence our relationship. We’re committed to giving our customers access to the world’s best payment processing providers and we’re confident that this latest integration delivers exactly that. Increasing our reach in the UK; EU; and US, this partnership reconfirms our intent to be the global platform of choice for payfacs; ISVs; and ISOs.”

FF News has all the details on this new partnership here.

Rapyd complete PayU Global Payment Organisation acquisition

Rapyd is acquiring PayU Global Payment Organisation (excluding operations in India, Turkey, and Southeast Asia) from Netherlands based Prosus for $610 million. The combined entity will operate in over 100 countries, serve more than 250,000 merchant clients including major brands like Adidas and Netflix, support over 1,200 payment methods, and employ a global workforce of 1,700 people.

According to Rapyd CEO Arik Shtilman, the synergies with PayU GPO include a richer technology stack, expanded geographic licensing, and broader market reach for their combined merchant portfolios. The transaction is currently pending regulatory approvals in various countries.

This is a bold move from Rapyd as they seemingly head towards a future IPO.

The full press release is available on the Rapyd website here.

Lunar launches banking app for kids in the Nordics

Lunar bank has very ambitious customer targets, so it's no surprise to see them taking a leaf out of Go Henry's book and launching a paid app for children and teenagers called Lunar Youth, designed for those aged between 7 and 17.

The bank, now ten years old, believes it can capture hundreds of thousands of customers with this new offering. Interestingly, Monzo is also planning a similar move in the UK.

Lunar Youth includes some pretty standard features for this sort of product: kids can design their own cards and app themes, while parents link their bank accounts, set budget limits, monitor transactions, and access spending insights. The app also includes category restrictions for areas like crypto, gambling, and adult content, with all online purchases requiring parental approval.

The service isn't free, costing around four euros monthly as part of Lunar's paid tiers.

Offering banking services to kids now creates brand loyalty that could last decades, particularly if they get the educational aspects right. Smart move.

Financial IT has a full write up on this new product launch here.

Podcast of the Newsletter

PotN this week is Tokenised, from Fintech Brainfood and Dux Media. Hosted by Simon Taylor (Sardine) and Cuy Sheffield (Visa), you know this one is well worth a listen just from that lead in right!

Spotify Bio: This show is for the builders, who see the Bitcoin ETF as just the first step in a much broader picture. The tokenization of all assets. Welcome to Tokenized. A new podcast concept in partnership with Visa. And supported by Digital Asset. Featuring the latest news, with views from the operators, to the builders, and the people in markets and in Crypto who see tokenization as the credible future of finance.

You can listen to all of the episodes to date on Spotify here.

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Thank you for reading The Payments Shed.

Sources: The Payments Shed | Reveel | Finextra | Binance | MGX | Forbes | Reuters | Gov UK | PSR | Plata | Fintech Futures | Telegram | Git Hub | TechCrunch | Shape | PXP | FF News | Rapyd | PayU GPO | Lunar | Financial IT | Spotify | Fintech Brainfood | Dux Media

Disclaimer: All news articles linked in this newsletter are from publicly available sources and any opinions referenced (unless otherwise stated) are my own, and do not represent any views, opinions or statements from the Nomupay group.