PaymentFacilitator’s News Roundup is a curated mix of the past week’s news and articles from around the web, including company announcements, global payments news, and other coverage and analysis of topics relevant to payment facilitators.
Fintech funding reaches record high in 2018. According to the KPMG Pulse of Fintech report, fintech funding spiked to an impressive $111.8 billion last year. These numbers are up 120% from 2017 and as far as what has fueled the massive uptick, credit is being given to major mergers and acquisitions – including PayPal / iZettle and Worldpay / Vantiv – as well as significant buyout deals. From KPMG.
Big Brands Making Waves
Mastercard and Visa to raise interchange fees. And this could potentially impact fintechs? Yes. Visa and Mastercard are scheduled to raise their interchange fees (a nominal fee paid by the merchant to the issuing bank on each card transaction) this April and many challenger banks rely on these fees as part of their revenue stream. These fees also attract European fintech startups to the U.S. as a potential marketplace. From Techcrunch.
Can Adyen meet investor expectations? Adyen has established and maintained solid forward momentum since going public last year. So much so, the company’s market value has almost doubled since its June IPO. But is this momentum sustainable? Speculation implies that investors may be betting on a “best-case scenario.” From Bloomberg.
The Fraud Factor
ClassPass, Gfycat and StreetEasy get hacked. With close to 750 million records from 24 hacked sites up for sale in just a week’s time, the industry has a real security threat in their digital midst. To date, the hacker has breached roughly 30 companies (including those listed above) for a grand total of about 841 million records. From Techcrunch.
Underdogs Take the Lead
Small banks gain street cred. In this wave of fintech startups, who is managing the digital dynasty? Small banks you’ve never heard of (Sutton Bank, Cross River Bank and Evolve, to name a few) are managing the behind-the-scenes financial affairs of fintech startups. And this setup is ideal as it leaves the fintechs free to develop apps and platforms for their digital consumers. But is it too risky? From CNBC.