Fintech News wrap Jul 28 - Aug 4th 2024

?Catching up on the week of July 28 - August 4th, and the world of Fintech news and Updates? Here are some things you absolutely cannot miss. BTW, if you are looking for the deep dives, then I have moved them to Substack . You can read it from here .

USA & Canada

1.?????? Stripe just made its third acquisition in 14 months, snagging Lemon Squeezy , a payment processing startup that makes selling software and digital products a breeze. Lemon Squeezy's secret sauce? Handling global sales tax and legal fees for its clients, which helped it hit $1 million in annual recurring revenue in just nine months. Stripe's CEO Patrick Collison sees huge potential, saying they're going to "scale merchant of record selling in a big way." Lemon Squeezy's founder JR Farr chose Stripe over other suitors because of its top-notch developer experience and commitment to quality. This strategic move is all about Stripe's ambition to become the go-to financial infrastructure provider for?businesses.

2.?????? Klarna is coming to the US, with a more sustainable offering to the traditional credit card. What are the perks: - No monthly or annual fees: Klarna has eliminated the $4.99 monthly fee from the old Klarna Card.

- Flexible payment options: You can pay your balance monthly in full with zero interest, move a purchase to the next monthly statement, or pay over 3 or 6 months with added interest.

- Earn cashback: Get rewarded with up to 10% cashback when using the card in the Klarna app.

- Seamless app integration: The Klarna app and AI assistant make finding deals and managing payments easy.

- Physical and virtual Visa card: Compatible with Google and Apple Pay, and accepted anywhere Visa is accepted.

- No foreign transaction fees: When shopping abroad, you won't be charged extra fees.

- Full spending overview: Track your spending in the Klarna app for financial budgeting.

Full throttle ahead Klarna !

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3.?????? Talking spend management, Ramp raise $150 M recently . This funding round was led by Khosla Ventures and Founders Fund, with participation from new investors Sequoia Capital, Greylock, and 8VC. Ramp plans to use this funding to further develop its AI capabilities, automate processes, and enhance decision-making. The company has seen significant growth, with a revenue increase of 4x in 2022, and currently serves over 25,000 companies across various industries.

4.?????? FranShares is revolutionizing the world of franchise investing, making it accessible to the masses with a mere $500 buy-in. And they also raised an impressive $4.2M in seed funding while building their product suite out. This Chicago-based startup connects investors with franchise operators, offering a slice of the lucrative franchise pie (think $859 billion in US revenue) and a chance to diversify portfolios. With 43,000 investors already on board and SEC regulatory approvals in place, FranShares is democratizing passive income and making franchise investing a whole lot more approachable.

5.?????? Trusting your Neobank as your one stop shop may not be such a great idea, as Mercury recently showed us. Citing compliance complexities, Mercury recently stopped servicing custoemrs in several countries, like Ukraine, Croatia and Nigeria. US sanctions and financial watchlists have made it a compliance headache. But here's the thing: it's not just about geography - Ukrainian founders living in the US are still good to go. It's a tricky situation, and Mercury's move has sparked debate about banking's bigger problems.

UK & Europe

1.?????? Starting a business in the UK? You're in luck! Sage and Virgin StartUp have teamed up to give founders the support they need to thrive . With Sage's accounting expertise and Virgin's know-how, you'll get access to top-notch tools, startup loans, and a community that's got your back. Whether you're just testing the waters or ready to scale, this partnership has got you covered. As Jonathan Dowden from Sage puts it, "We're breaking down barriers and turning ideas into thriving businesses." Andy Fishburn from Virgin StartUp adds, "Managing finances is key to success, and we're stoked to be partnering with Sage to make it happen." Consider this your ultimate?startup?BFFs!

2.?????? SDK.finance , the Lithuanian whiz-fintech of white-label digital payments, have joined forces with Salt Edge, the open banking gurus . Their mission? To help fintechs of all shapes and sizes cook up some tasty open banking treats without breaking a sweat (or the bank). SDK.finance is tapping into Salt Edge's Partner API, which is like giving their customers a golden ticket to the open banking chocolate factory. No AISP license? No problem! They're making bank account info as easy to access as your ex's Instagram. If you're dreaming of digital wallets or neobanks, SDK.finance is now your one-stop-shop. No more playing hopscotch with individual banks for payment initiation. It's like they've built a fintech superhighway! SDK.finance has been in the game since 2013, cooking up pre-built solutions for everything from digital wallets to crypto-to-fiat wizardry. Now, with this Salt Edge collab, they're not just aiming for the EU market - they're eyeing those unbanked countries too.

3.?????? Looking to incorporate AI into your fintech business? Of course you do, and VCs love adding extra zeroes onto your valuation? because of it. But if you’re incorporated in the European Union, you may want to tread carefully. Why? Because EU Launched their AI Act, which promises offenders will be made an example out of. The EU's playing referee in the AI game, dividing the players into four leagues - from "no biggie" to "you're outta here!" Spam filters? You're cool. Chatbots? Just don't pretend to be human, capisce? But if you're messing with high-risk stuff, get ready for a regulatory obstacle course! Most of these rules kick in on August 2, 2026 (mark your calendars, folks!), but some start earlier. Moody's did some digging, and guess what? Entity verification is the new black in AI accuracy. More than a quarter of the cool kids think it's crucial, and half say it's pretty nifty.

Oh, and AI in risk and compliance? It's spreading like gossip in a small town. 11% are already in the club, and 29% are trying on the jacket.

4.?????? Ebury, the cross-border payment masters, are making a bold move - a ￡2 billion IPO on the London Stock Exchange ! Goldman Sachs is leading the charge, and if all goes well, it'll be a major vote of confidence in the UK capital markets, which have been a bit...well, let's say, sleepy lately. Founded by two Spanish engineers in 2009, Ebury has grown into a fintech rockstar, handling a whopping ￡26 billion in transactions last year. They've been on a shopping spree, too, snapping up companies in Brazil and Africa to boost their global cred. Now, they're taking the plunge, and everyone's watching with bated breath. Will they succeed where others have faltered? The fintech world is rooting for them, and if they do, it could be a green light for other big players like Zopa, Revolut, and Starling to follow suit. Fingers crossed, for it to rain fintechs in London!

Middle East and Africa

1.?????? Dubai's National Pulse has invested in Singapore's Aleta Planet to supercharge cross-border payments in the Middle East . This dynamic duo is set to revolutionize B2B payments, making international trade and digital economies more efficient. With Aleta Planet's expertise in multi-currency transactions and National Pulse's regional know-how, they're tackling financial challenges faced by SMEs in Dubai. Their joint venture promises secure, cost-effective solutions, and with the UAE's fintech market booming (92% growth in 2023!), this partnership is poised for success. Dubai, get ready to become the global headquarters for Aleta Planet's innovative payment?solutions!

2.?????? UAE and M2 just dropped some bomb for crypto enthusiasts. M2's letting UAE residents dive into the crypto pool straight from their bank accounts. This isn't just about Bitcoin. Ethereum's joining the party too. It's like the UAE's throwing a crypto mixer, and everyone's invited!

Now, before you start thinking this is some Wild West crypto rodeo, hold your digital horses. The UAE's got this locked down tighter than a smart contract. We're talking regulatory frameworks that make Fort Knox look like a piggy bank.

So, whether you're a crypto newbie or a blockchain veteran, M2's rolled out the red carpet for you to strut your stuff in the digital asset world. It's like they've built a crypto highway right through the heart of the UAE.

Bottom line? The UAE's not just dipping its toes in the crypto waters; it's doing a full-on cannonball. And with M2 at the helm, it looks like smooth sailing ahead in these digital seas.

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3.?????? WSPN and Canza Finance, 2 fintech powerhouses, are joining hands to bring the magic of Real-World Assets and DeFi to the African continent . Africa's been itching for a financial makeover, and boy, are they getting one! WSPN's bringing their WUSD stablecoin to the party - it's like the US dollar's cooler, digital cousin. Meanwhile, Canza's got this nifty trick up its sleeve: they've figured out how to put African currencies on the blockchain at perfect parity with central bank rates. Canza's also whipped up a marketplace for Real-World Assets. It's like an Amazon for high-quality assets, making investors' lives easier and giving asset providers a bigger stage. This dynamic duo is about to make finance in Africa as easy as sending a text. Unbanked? Underbanked? Not for long! They're bringing Web3 to the masses, and it's going to be one heck of a ride.

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Fintech Funding

Congratulations to Clix Capital , Rillet Sidekick , Elevate , obconnect , FranShares , Mamo , Aleta Planet , GSS - Global Screening Services , PortSwigger , Supercede | The Reinsurance Platform , Norm Ai on the fund raise!!