Nubank goes Bitcoin Lightning ??; Target supercharges its marketplace with a Shopify partnership ?????; Klarna Plus hits 100k subscribers in the US ??
Linas Beliūnas
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Last week (24-28 June) was another super wild and really fascinating week in the new age of finance. We will look at Nubank which has just integrated the Bitcoin Lightning Network (why it’s a brilliant move and what’s next + some bonus deep dives into NU); Target that’s supercharging its marketplace with Shopify partnership (the value add & why it’s all about Shopify here + a deep dive into Shopify and why I’m bullish); Klarna Plus which is gaining traction in the US (what the numbers really tell us + some more bonus reads & deep dives into this BNPL giant, and other interesting news and developments.
Without further ado, let us dive into what happened in the Blockchain & Crypto sector last week. Let’s connect the dots.
Nubank goes Bitcoin Lightning ??
The news ??? Brazilian neobank and super app Nubank has partnered with blockchain solutions provider Lightspark to integrate the Bitcoin Lightning Network into its platform, potentially transforming financial services for its 100 million customers across Latin America.
This strategic move aims to enhance transaction speed, reduce costs, and improve scalability for Nubank's users in Brazil, Mexico, and Colombia.
Let’s take a look at this.
More on this ?? The integration of the Lightning Network, a layer-2 solution built on top of the Bitcoin blockchain, will enable Nubank's customers to conduct near real-time fiat and Bitcoin transactions at lower costs. This development aligns with Nubank's mission to offer more efficient services through blockchain technology.
In addition to the Lightning Network, Nubank will implement Universal Money Addresses (UMAs), which function like email addresses for sending and receiving money. This feature is expected to simplify financial transactions for users, making it easier to transfer both cryptocurrencies and fiat currencies. Awesome ??
It’s worthwhile to note that Lightspark 's role in this partnership extends beyond just providing the Lightning Network infrastructure.
The company will offer AI-based tools to optimize liquidity requirements and routing in real-time, aiming to achieve the highest transaction success rates. This collaboration therefore allows Nubank's product and engineering teams to focus on creating seamless end-to-end experiences for their customers without getting bogged down in the complexities of managing a large-scale Lightning implementation.
Win-win.
?? THE TAKEAWAY
What’s next? ?? First and foremost, the integration of the Bitcoin Lightning Network by Nubank represents a significant milestone in the adoption of this BTC technology by mainstream financial institutions. This move has the potential to accelerate the adoption of Bitcoin and other cryptocurrencies in Latin America, a region that has shown increasing interest in digital assets. Having said that, for Nubank, this partnership could solidify its position as a leader in digital banking innovation, potentially attracting even more customers and increasing user engagement. The ability to offer fast, low-cost international transactions could be particularly appealing in a region where cross-border payments are often expensive and time-consuming. Not to mention the fact that Brazil loves crypto:
Brazilian real-denominated crypto trading volumes reached $6 billion from January to early May 2024. This growth positions?Brazil as a leading player?in the Latin American crypto market and highlights the increasing interest in stablecoins, Bitcoin, and other cryptocurrencies.
ICYMI: Nubank acquires Hyperplane to accelerate its AI-first strategy ???? [what it’s all about & why it’s a brilliant M&A + a bonus deep dive in NU & why you just can’t ignore it]
Target supercharges its marketplace with a Shopify partnership ?????
The news ??? Retail giant Target has announced a strategic partnership with e-commerce and FinTech heavyweight Shopify to expand its third-party marketplace, Target Plus.
This collaboration allows select Shopify merchants to apply for inclusion in 塔吉特百货 's curated online marketplace, potentially reaching millions of new customers.
Let’s take a quick look at this.
More on this ?? The move comes as Target seeks to reinvigorate its sales growth and compete more effectively with e-commerce powerhouses like Amazon and Walmart.
Launched in 2019, Target Plus currently features over 2 million products from approximately 1,200 sellers. The partnership with Shopify is expected to introduce new and trendy brands to Target's platform, enhancing its product offerings across various categories including apparel, sporting goods, and home decor.
Unlike some competitors' more open marketplaces, Target maintains an invitation-only approach to seller selection, emphasizing quality and brand fit. This curated strategy aims to build consumer trust and complement Target's existing product assortment.
The USP ?? The collaboration clearly offers benefits for both parties. Target gains access to Shopify's extensive network of merchants, potentially discovering popular items that could also be featured in physical stores. Shopify sellers, in turn, can leverage Target's established customer base and perks such as free shipping on qualifying orders.
This partnership is particularly significant given Target's recent financial performance. The retailer has faced declining comparable sales for four consecutive quarters and struggled with e-commerce growth.
By expanding its marketplace, Target thus hopes to stimulate online traffic and boost overall sales.
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?? THE TAKEAWAY
What’s next? ?? At the core, this partnership is all about Shopify and its expanding influence. The deal thus yet again underscores Shopify's growing role in the e-commerce ecosystem. We may soon see Shopify forge similar alliances with other major retailers, further solidifying its position as a key player in online retail infrastructure. Looking at the big picture, it also speaks about the marketplace growth. As more traditional retailers expand into third-party marketplaces, we can expect increased competition in this space. This trend may lead to further innovation in marketplace models and seller services. Which is again good news for Shopify.
ICYMI: Shopify unveils AI-powered Sidekick in a bid to revolutionize e-commerce for merchants ????? [unpacking all their latest AI products & features and what they mean for the future + a bonus deep dive into Shopify & why I’m bullish]
Klarna Plus gains traction as the BNPL giant hits 100,000 subscribers in the US ??????
The news ??? Buy Now, Pay Later (BNPL) pioneer Klarna, has announced that its Klarna Plus subscription service has reached 100,000 members in the United States since its launch in January.
This $7.99 monthly subscription offers benefits such as waived service fees, exclusive discounts, and rewards. Subscribers have reportedly saved an average of $18 in the first month, with subsequent months averaging $16 in savings.
Sounds good enough? Well, not really…
Let’s see what it actually tells us.
More on this ?? First and foremost, we must note that while reaching 100,000 subscribers in five months is noteworthy, it represents only about 1.25% of Klarna's reported 8 million monthly active US users in 2023.
This conversion rate therefore raises questions about the broader appeal of BNPL subscription models ??
More importantly, we must realize that the introduction of Klarna Plus is part of the company's recent innovations, which include the Klarna Card, an AI shopping assistant, and a Sign-in With Klarna feature.
These developments come as Klarna refocuses its business strategy. One of the very recent illustrations of that is selling its online checkout solution, Klarna Checkout (KCO), for $520 million.
ICYMI: Klarna is “checking out” from the Checkout Business to focus on partnerships ????? [what it’s all about & why it’s a brilliant move + a bonus deep dive into this BNPL giant & why it’s poised for huge growth in the AI Era]
Zooming out, it’s getting more and more clear that Klarna appears to be shifting its focus towards commerce enablement rather than direct payment processing (hence, why I’ve been calling it the Google of Shopping ??).
And that’s exactly why it’s strengthening partnerships with payment service providers like Adyen and Stripe, potentially reducing conflicts of interest in its business model.
?? THE TAKEAWAY
What’s next? ?? First and foremost, for Klarna, the success of its subscription service is crucial as it attempts to diversify beyond its traditional, low-margin BNPL business. If Klarna Plus fails to gain substantial traction, the company may face challenges in fully transitioning to its desired commerce enablement focus. This could thus potentially slow down Klarna's growth in other business lines and impact its overall strategy. Alternatively, if Klarna struggles to accelerate subscription growth, it may signal a limited consumer appetite for BNPL subscription services. This could hence discourage other BNPL providers from pursuing similar models, pushing them to explore alternative revenue streams. But ultimately, the success or failure of Klarna Plus could shape the future direction of the BNPL industry, influencing how these companies approach revenue diversification and customer engagement in an increasingly competitive financial services landscape.
Extra Reads & Quick Bites for Curious Minds ??
Money Moves ??
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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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4 个月Thanks for the valuable breakdown Linas Beliūnas
Helping HERO Founders With Over 10,000 Hours of Expertise - Build $20M Startups in 24 Months with AI and Blockchain—Maximize Control, Scale Efficiently, and Create Your Legacy.
4 个月Linas Beliūnas Bold to say blockchain and crypto 'refuse to stop.' Ever looked at their volatility? Nubank bought into Bitcoin Lightning Network—assuming everyone's ready for crypto. Target and Shopify partnership sounds great. Pray it's not another retail gimmick. Klarna Plus gaining traction? BNPL trend could fade faster than you think. Why do we always assume these integrations are foolproof? Any thoughts on risks?
Killer B2B Fintech copywriting and marketing strategies (I generate new leads and revenue for B2B Fintech companies)
4 个月NuBank is only going to continue to grow with this new partnership with Lightspark, Linas Beliūnas. Well done on their behalf. I'm looking forward to see how they take advantage of the opportunity.