Amazon shows why the future of FinTech is Embedded 🗂; Stripe's “excellent” layoffs and a warning sign for everyone 🌪; Alternative asset investing is no longer just for the ultra-rich 🤑
FinTech is Eating the World, 7 November
Hey Everyone,
Happy Monday! I couldn’t have wished for a better issue to start the week (you will see it yourselves!). Today we’re looking at Amazon that shows why the future of FinTech is Embedded (& how Amazon is unbundling the bank. Again), Stripe's “excellent” layoffs and a warning sign for everyone (the Good & the Bad lessons for all), and alternative asset investing that’s no longer just for the ultra-rich (or how FinTech is disrupting one of the least disrupted Finance verticals). Let’s jump straight into the amazing stuff:
Amazon shows why the future of FinTech is Embedded 🗂
The launch 🚀 Tech giant Amazon AMZN 0.00%↑ has just launched a cash advance solution for merchants selling on its site as small businesses seek more sources of growth capital.
More on this 👉 The new service is being offered via a partnership with Parafin, a FinTech founded by Robinhood HOOD 0.00%↑ veterans that offers a merchant capital-as-a-service for online marketplaces.
Businesses can access capital from $500 up to $10M, with a payment schedule determined by a fixed percentage of their gross merchandise sales.
There are no minimum payments, no collateral requirements, and no interest, with firms instead paying a fixed capital fee.
To use the program, merchants must have been selling for three months.
Why this matters? 🤔 First, right on the heels of launching its own insurance marketplace and partnering with Venmo, Amazon is taking yet another step into the FinTech domain. More importantly, it’s a perfect illustration of why the future of FinTech is embedded.
Here’s more on this, a recap of what Amazon is doing in lending/banking & the takeaway (+ 4 juicy bonus reads):