Global Fintech Trends

Africa Fintech Festival Promotes “Passporting” to Boost Continental Fintech Expansion

The Africa Fintech Festival has ignited dynamic discussions about the future of fintech regulations across the continent. A significant takeaway from the event was the advocacy for smart regulation and the exploration of “passporting” fintech regulations, a model that could streamline the licensing process for fintech companies operating in multiple African countries.

The passporting model, highlighted by industry leaders at the festival, entails regulators in various African countries recognizing and trusting the fintech licenses issued by other African nations. This would enable fintech companies to operate across borders with minimal additional regulatory obstacles, requiring them to comply only with specific local requirements instead of undergoing a complete re-licensing process in each new market.

Read more here: https://www.techinafrica.com/africa-fintech-festival-promotes-passporting-to-boost-continental-fintech-expansion/?

Kenyan President Ruto withdraws controversial finance bill following deadly protests

Kenyan President William Ruto said Wednesday that he will not sign a controversial finance bill, backing down in the face of mass protests that swept the country and reportedly left at least 23 people dead.

“Having reflected on the continuing conversation regarding the content of the finance bill 2024, and listening keenly to the people of Kenya who have said loudly that they want nothing to do with this Finance Bill 2024, I concede, and therefore I will not sign the 2024 finance bill,” Ruto said during a television address Wednesday.

“The people have spoken,” Ruto said. “Following the passage of the bill, the country experienced widespread expression of dissatisfaction with the bill as passed, regrettably resulting in the loss of life, the destruction of property and desecration of constitutional institutions.”

Read more here: https://edition.cnn.com/2024/06/26/africa/kenyan-president-rejects-finance-bill-intl/index.html#:~:text=Kenyan%20 President%20 William%20Ruto%20 said,at%20least%2023%20people%20dead.?

Agritech startup Scoutlabs bags $2M for AI-powered remote insect monitoring

Budapest-based Scoutlabs, formerly known as Smapp Lab with Hungarian roots, has secured an initial investment of $2 million. Czech-based DEPO Ventures (which backed Flowpay and Talsec) invested in this round alongside foreign investors Interactive Venture Partners (IVP), SVG Thrive, and US-based Impact Ventures.?

Given that one of the largest US investors has contributed to this round, it will help the company scale its solutions into the American market.?

“Scoutlabs has the ambition to become a global player, as evidenced by the investment coming from the U.S. Investor Impact being one of the largest landowners in the U.S., can significantly aid in scaling into the American market. The long-term potential of Scoutlabs lies not only in the product itself but also in the possibilities of data monetization, upselling, and targeting new markets,” says Jan Krahulík, an investor at DEPO Ventures.

Read more here: https://techfundingnews.com/agritech-startup-scoutlabs-bags-2m-for-ai-powered-remote-insect-monitoring/#google_vignette?

Egyptian Startup Sahl Raises $6 Million to Revolutionize Utility Payments

Sahl, a startup based in Cairo, has secured $6 million in Series A and seed funding to establish itself as a comprehensive domestic bill management platform in partnership with government entities.

Ayady for Investment and Development, a leading Egyptian investment firm, led the $6 million funding round for Sahl, with participation from existing investors Egypt Pay, Delta Electronic Systems, and E-Finance.

With this latest round of funding, Sahl is set to transform into a comprehensive financial services provider.

Read more here: https://www.techinafrica.com/egyptian-startup-sahl-raises-6-million-to-revolutionize-utility-payments/?

Paycorp Expands into Embedded Business Funding in South Africa and UK

Paycorp, a leading payment solutions provider with over two decades of experience, is expanding its offerings to include embedded business funding in South Africa and the UK. This move signifies Paycorp’s continuous innovation in shaping the future of payments across its operating regions.

Leveraging their established expertise in transaction processing and cash management, Paycorp’s Capital Express brand provides South African ATM owners with instant working capital of up to R1 million based on historical transaction data. This partnership with Retail Capital, a leader in merchant cash advance, simplifies the funding process.

Internationally, Recap Global, a joint venture between Paycorp and Retail Capital, offers similar funding solutions in the UK. Recap utilizes transaction data from various payment partners’ ATMs, point-of-sale systems, and e-commerce platforms to provide pre-approved, real-time funding. This eliminates the hassle of traditional loan applications and empowers businesses to seize growth opportunities quickly. Recap boasts a network of 15 partners across diverse industries, showcasing its reach and effectiveness.

Read more here: https://www.techafricanews.com/2024/06/26/paycorp-expands-into-embedded-business-funding-in-south-africa-and-uk/?

Bank Midwest launches new digital bank for US healthcare industry powered by Finastra

Bank Midwest, which operates a range of consumer and commercial business banking services throughout Iowa, Minnesota and South Dakota in the US, has tapped global financial software provider Finastra to launch a new digital bank called OnePlace.bank.

According to a statement by the two firms, the new offering will be “focused exclusively on the financial needs of the healthcare community”.

Bank Midwest says the launch marks “a natural progression” of its OnePlace Capital business line, which provides business banking and loan services to dental, medical and veterinary practices.

Read more here: https://www.fintechfutures.com/2024/06/bank-midwest-launches-new-digital-bank-for-us-healthcare-industry-powered-by-finastra/?

Visa launches digital card replacement service for travellers

A new Visa service means that travellers that lose their wallet can now get a digital card replacement via text or email.

Digital wallets are now used by 74% of US travellers on their trips, according to a Visa report. The digital emergency card replacement service is designed to enable financial institutions to offer their cardholders seamless, stress-free journeys all over the world. Upon request, a new digital card is sent on behalf the issuer for the cardholder to authenticate and add to their digital wallet.

Read more here: https://www.finextra.com/newsarticle/44383/visa-launches-digital-card-replacement-service-for-travellers

Fintech Sector Sees Revenue Growth despite 70% Funding Slump

The global fintech industry continues to show resilience, with revenues growing 14% annually from 2021 to 2023 despite a sharp decline in funding and valuations, according to a new report from Boston Consulting Group (BCG) and QED Investors.

The report, titled "Global Fintech 2024: Prudence, Profits, and Growth," reveals that while fintech funding has plummeted by 70% since 2021 and valuation multiples have dropped from 20 times to 4 times revenue, the sector's top line has remained robust. When excluding crypto-related and China-exposed fintechs, revenue growth reaches 21% annually.

Read more here: https://www.financemagnates.com/fintech/fintech-sector-sees-revenue-growth-despite-70-funding-slump/?

Digital euro would maintain freedom to choose how Europeans pay - ECB

With Europe inching towards the issuance of a digital euro, the ECB has embarked on a charm offensive, taking to media outlets across the continent to reassure citizens that the new payments option will compliment, not replace, cash and provide them with greater freedom of choice.

While a final decision on issuing a digital euro has yet to be made, the ECB last year moved onto a two year preparation phase ahead of any launch, which would come in 2026 at the earliest. In an article published in a host of publications, executive board member Piero Cipollone makes the case for a digital euro, noting that "we do not yet have a cash equivalent for making digital payments, which limits our freedom in an increasingly digital age".

Read more here: https://www.finextra.com/newsarticle/44384/digital-euro-would-maintain-freedom-to-choose-how-europeans-pay---ecb?