Shopify expands into credit cards as it pushes further into the fintech space
Marcel van Oost - FinTech News USA
Connecting the dots in FinTech...
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The commerce giant announced today that it is offering Shopify Credit, a business credit card designed exclusively for its merchants.
The new product marks Shopify’s first pay-in-full business credit card, said Shopify President Harley Finkelstein. It is powered by Stripe and it is issued by Celtic bank, “and accepted everywhere Visa is,” he added.
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Where do they go from here?
With the market having changed dramatically since the heyday of 2021’s venture funding boom, fintech valuations have largely shifted accordingly.
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FedNow went live today. FedNow is a payments and transfers service provided by the US Federal Reserve. Approved financial institutions may use the service to enable immediate payments and transfers. Currently, there are 35 approved institutions out of around 9000 banks and credit unions in the US.
There are also a number of settlement agents and liquidy providers approved for FedNow.
Student loan payments will finally resume in October after a three-and-a-half year reprieve. Borrowers are shocked that they will suddenly have to economize. And the prolonged pandemic pause may have encouraged many borrowers to pile up more debt, a TransUnion report this week shows.
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Peer-to-peer payment services in the private sector like Venmo or PayPal act as intermediaries between banks, so we need to leverage payment schemes for clearing and Fed systems for settlement. However, FedNow can directly settle the transactions in central bank accounts.
During this summer I will share book recommendations from FinTech industry leaders in a series of articles every Sunday.
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While Twitter has been drawing attention for recent restrictions to features for non-subscribers, as well as the launch of Instagram’s rival product Threads, another major development has also occurred for Twitter: the receipt of its first US Money Transmitter Licenses.
Prescreen is the proactive evaluation of a consumer’s creditworthiness for the purpose of offering them a credit product or enticing them to apply for one.
You’ve almost assuredly encountered prescreen in your day-to-day life.
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Merchants who accept Visa credit cards are being asked to comply with a surcharge cap because the card network giant is concerned about the consumer experience, the company’s CEO Ryan McInerney said.
??INSIGHTS
? 74% would use a checking account,?
? 68% would use a credit card,?
? and 67% would use a savings account.
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NOW, ON TO THE SUMMARY OF LAST WEEK'S?NEWS
???? NATIONAL HIGHLIGHTS
?? American Express unveils commercial partner programme.
?? Form3 completes FedNow certification.
?? Do you want to have access to the best deal flow in FinTech? And/or do you want to invest alongside me and 1000+ other FinTech Angel investors?
DIGITAL BANKING
Cross River Bank closes second quarter with over $66MM in Lender Finance loans. The company’s growing CRE business saw 100 percent growth in number of Lender Finance loans originated.
SVB Financial Group has asked for bankruptcy court permission to implement a program that would award up to $12.6 million in bonuses to nine executives involved with its venture capital and credit investment arm.
PAYMENTS.
Amazon will let shoppers pay with their palms at all Whole Foods stores by the end of the year. Amazon One is a biometric technology that lets users enter and pay for items at stores by placing a palm over a scanning device.
Capital One sees charge-off rates reaching pre-pandemic levels. Consumers are spending more on their cards and delinquency rates are creeping up.
CRYPTO
Charlie Shrem, a co-founder of the defunct BitInstant, was one of the first bitcoin millionaires and one of the first to do time for crypto violations. Now he preaches compliance to startups.
Some Binance.US crypto trading was a mirage, the SEC alleges. Regulators and academics say some digital asset exchanges inflate trade volumes
DONE DEAL
Settle announced it has secured up to $145 million credit facility with Silicon Valley Bank, a division of First Citizens Bank, increasing their capacity to support high-growth e-commerce and consumer brands and small businesses.
Immediate raises $16 million. These funds, split between growth equity and a working capital facility, will enable Immediate to accelerate its growth trajectory in the workplace financial health sector.
Mercury? Financial announced the closing of a $200 million debt facility from client funds managed by Neuberger Berman. Mercury will use the funds to expand its credit card business.
INVESTMENT
Trintech announced its acquisition of Frontier Reconciliation and Accurate Reconciliation from Fiserv.
The American Fintech Council is partnering with professional services firm FORVIS to offer compliance and training opportunities aimed at improving the fintech ecosystem.
FRAUD PREVENTION
Grasshopper Bank partners with Cable for cutting-edge automated financial crime effectiveness testing.
FINANCIAL LITERACY
Stash announces its participation in the CEO Action for Diversity & Inclusion?, the largest CEO-driven business effort focused on advancing diversity, equity, inclusion, and belonging in the workplace.
Greenwood has settled its business dispute with The Gathering Spot, the networking and co-working club it acquired in 2022.
MOVERS & SHAKERS
Fintech Sandbox announced the addition of Reetika Grewal, EVP and Head of Digital for Commercial Banking and the Corporate & Investment Bank at Wells Fargo, as a new member to its governance board.