What’d I miss? News and Insights that got noticed - Week 9

Key themes this week (February 23 - 29)

• Apple begins sharing BNPL data with Experian
• Amazon expands smart carts pilot
• CFPB may take legal action against Block
• Capital One-Discover deal carries $1.38B termination fee

Apple begins sharing BNPL data with Experian

"...Tech giant Apple has become the first major buy now, pay later provider to fully share “pay-in-4” loan information and payment history to credit bureau Experian, with Apple Pay Later loans being included on consumers’ credit reports from Experian, the credit bureau said Wednesday. Experian will not factor the loans into borrowers’ credit scores for now, it said. Rather, starting Friday, the credit bureau will list Apple Pay Later loans initiated Wednesday onward on its credit reports, Experian said in a press release…”

Key takeaways:

• Other BNPL providers may follow suit, according to a professor at the Stanford Graduate School of Business
• Some BNPL companies say that current credit scoring models are not compatible with their short-term lending
• Consumers who might be turned away by credit card companies can sign up for multiple BNPL loans, and some experts say that sharing BNPL data with credit bureaus could help mitigate this issue

LinkedIn Post

Amazon expands smart carts pilot

“…The smart carts, which arrived at the California location a few weeks ago, require shoppers to first log in with an Amazon or Whole Foods account using a QR code, according to local TV station ABC 7 News. Once finished, the shopper walks out through a designated smart cart lane and the card associated with their account will be automatically charged..."

Key takeaways:

• Amazon has been testing smart carts since 2020, and it is also testing biometric palm recognition payment and a fully automated checkout system in some Whole Foods stores
• A rival grocery chain, Aldi, has a fully automated checkout system in some of its stores
• The POLL I did where I asked the LinkedIn audience “Are you excited by the Amazon smart cart that allows you to walk out of the grocery store and get charged without having to check out?” resulted in the majority answering “Yes, so much easier”. For full POLL results click on the link below

LinkedIn Post

CFPB may take legal action against Block

"...The bureau has informed the digital payment company it’s weighing legal action related to a Cash App probe.”

Key takeaways:

• The CFPB has been investigating Cash App for allegedly mishandling customer complaints and disputes
• Block has received several investigative demands and subpoenas from the CFPB and attorneys general in multiple states
• Block says it is cooperating with the investigations and is committed to providing its users with a safe and secure platform
• In the meantime, Cash App continues to grow, with 56 million monthly active users as of December

LinkedIn Post

Capital One-Discover deal carries $1.38B termination fee

"...The fee would apply if Discover chooses another buyer or if either board has a change of heart but not if regulators block the deal...”

Key takeaways:

• Capital One and Discover are in the midst of a $35.3 billion acquisition deal
• Similar breakup fees have been around 4% of the deal’s value
• Lawmakers have raised concerns about the deal, saying it could reduce competition and increase costs for consumers

?LinkedIn Post

Homebot Announces Partnership with Ent Credit Union to Empower Financial Success & Education For Members

"...Homebot, a home finance education portal that empowers consumers to make smart home finance decisions, today announced their partnership with Ent Credit Union, Colorado's largest credit union and recognized by Newsweek as one of Colorado's Best Regional Credit Unions 2024..."

Key takeaways:

• The two companies aim to provide homeowners with valuable home finance education
• This partnership will help consumers make confident financial decisions about their homes
• Both companies are excited about the partnership and believe it will set a new standard in the homeownership journey

LinkedIn Post

Report: Figure AI to Raise $675 Million for Human-Like Robots

“….Figure AI, a startup developing human-like robots, is reportedly in the process of raising $675 million in funding, with a pre-money valuation of roughly $2 billion. Among the investors are Jeff Bezos’ Explore Investments, Microsoft, NVIDIA and an Amazon-affiliated fund, Bloomberg reported Friday (Feb. 23), citing unnamed sources. Other backers include Intel’s venture capital arm, LG Innotek, Samsung’s investment group, Parkway Venture Capital, Align Ventures, Ark Ventures Fund, Aliya Capital Partners, Tamarack Global, Boscolo Intervest and BOLD Capital Partners, according to the report. Another investor is OpenAI, which once considered acquiring Figure AI, the report said..…”

Key takeaways:

• The company is developing human-like robots, known as Figure 01
• The goal is to help alleviate labor shortages in industries like manufacturing, shipping and logistics, warehousing and retail
• Formal agreements are expected to be signed on February 26th

LinkedIn Post

Check this out:

If you just want to listen to the What’d I miss Top 3 from last week you can watch this video…?

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