Apple continues to expand its FinTech services ๐ฒ; A path towards $100B FinTech Giant: Nubank applies for a banking license in Mexico ๐ฒ๐ฝ๐ฆ; Plaid is preparing for an IPO ๐
You're missing out big time... Weekly Recap ๐
๐ Hey,ย Linas here!ย Welcome back to a ๐ weekly free editionย ๐ of my daily newsletter. Each day I focus on 3 stories that are making a difference in the financial technology space. Coupled with things worth watching & most important money movements, itโs the only newsletter you need for all things when Finance meets Tech.
If youโre not a subscriber, hereโs what you missed this week:
Acquisition Schedule Template for More Profitable Acquisitions๐ฐ [use this to elevate your acquisition game & maximise returns ๐]
Understanding B2B payments: the fast-growing $137 trillion opportunity ๐ธ [deep dive into B2B payments, the last major bastion of paper-based payments and processes]
Latest earnings show that Goldman Sachs finally has a vision of where it wants to go ๐
Will we see warning signs after banks report Q3 earnings? ๐ค
Goldman Sachs regrets Apple Card, calls it a โmistakeโ and is trying to escape the deal ASAP ๐ณ
As for today, here are the 3 exciting FinTech stories that were transforming the world of finance as we know it. This week was just wild in the financial technology space, so make sure to check all the above stories.
Apple continues to expand its FinTech services ๐ฒ
The news ๐๏ธ Tech titan Apple AAPL 0.00%โ is continuing to expand its financial services capabilities by allowing users to set up recurring payments and automatic reloads in Apple Pay.
This new Auto Pay feature enables iPhone users to schedule regular, automated transfers from their Apple Cash balance, adding convenience and simplicity.
Letโs take a look at this and see why it matters.
More on this ๐ While a relatively small upgrade, Auto Pay builds on Apple's broader ambitions to make financial transactions seamless for its customers. We can remember that Apple already offers peer-to-peer payments, credit cards, installment plans, savings accounts, and an electronic wallet for storing cards.
More services are definitely on the horizon as Apple leverages its ecosystem.
ICYMI: Apple should go into stock trading in 2025 ๐๐ธ [+more reads]
The value add ๐ธ Looking at the big picture, the introduction of scheduled transactions further integrates financial services into iPhone users' daily lives. Customers can now set money aside automatically, ensuring funds are available when recurring bills or payments come due.
This convenience encourages people to manage finances through Apple Pay rather than traditional methods.
ICYMI: Apple now runs one of the largest neobanks in the world ๐คฏ [+ lots of bonus reads]
The challenge ๐ฅถ But thereโs one challenge - Goldman Sachs GS 0.00%โ. Apple's partnership with Goldman (thatโs powering most of their finance efforts) is on shaky ground. GS has struggled with its consumer banking arm Marcus, recently selling its GreenSky business at a loss.
While itโs hard to draw any conclusions as of yet, one thing is clear - Goldman's upcoming Q3 earnings report may provide insight into whether it remains committed to the partnership or not (more on that - later today!). If not, Apple may seek a new partner for future financial products. Or do more stuff themselvesโฆ
ICYMI: Goldman Sachs regrets Apple Card, calls it a โmistakeโ and is trying to escape the deal ASAP ๐ณ [unpacking whatโs happening & whatโs next + lots of bonus reads and deep dives]
โ๏ธ THE TAKEAWAY
Looking ahead ๐ First and foremost, the launch of Auto Pay moves Apple toward its goal of making the iPhone a central financial hub. With payment cards, BNPL, savings, and now scheduled transactions housed under one roof, customers may be less inclined to interact with traditional banks for basic financial needs. Because you can get it all from Apple. And when it comes to Apple, more financial services means both new revenue streams and increased customer loyalty and engagement. As people grow reliant on Apple Pay's simplicity for transactions, they inevitably become more and more embedded into the Apple ecosystem. And thatโs BIG.
Worth reread: Apple might become the First Super App of the West ๐ [+4 more reads]
A path towards $100 billion FinTech Giant: Nubank applies for a banking license in Mexico ๐ฒ๐ฝ๐ฆ
The news ๐๏ธ Digital banking giant Nubank NU 0.00%โ has applied for a full banking license in Mexico, marking a major step in its expansion in Latin America's second-largest economy.
If approved by regulators (itโs only a matter of time), the license will allow Nubank to significantly broaden its product portfolio beyond credit cards and loans, offering Mexicans a full suite of banking services.
Letโs take a closer look at why it matters and why it could be a BIG thing.
More on this ๐ The Sao Paulo-based company, which is already Mexico's largest financial technology firm with over 3 million customers, views the country as a vital growth market. Nubank highlighted that while it has a global vision, it carefully tailors its strategy to each marketโs specific regulations and customer needs.
The banking license is thus seen as the optimal path forward in Mexico.
The value add ๐ธ The license will effectively enable NU to offer brokerage accounts, mortgages, business loans, and other products unavailable to non-bank institutions. It also allows for higher deposits, salary portability, and more robust deposit insurance.
For customers, Nubank would become a true one-stop-shop and potentially their primary financial relationship, as is already the case for 60% of its Brazilian users.
We can remember that NU only began operating in Mexico in 2019 but has already invested over $1.3 billion in the market. It launched a popular savings account earlier this year which attracted over 1 million customers in its first month.
Analysts agree the country is underserved by traditional banks and ripe for disruption by digital-first competitors.
โ๏ธ THE TAKEAWAY
Looking ahead ๐ The continuous bold expansion is characteristic of Nubank co-founder David Velez, who has built Latin Americaโs largest financial startup from scratch in just 8 years. Let that sink in. While the banking license application must still be approved, the move signals Nubankโs ambition to dominate banking in Mexico, bringing its innovative, customer-centric approach to millions more across the region. This brings me to what Iโve said earlier - outsiders like Revolut, N26, etc. donโt stand a chance against NU in LatAm. Period.
ICYMI: Doomed to fail? Revolut goes live in Brazil ๐ง๐ท [+more reads]
Zooming out, we must note that this move is much more than just about Mexico. Itโs not only me whoโs excited - analysts are bullish on Nubankโs growth prospects in Mexico and beyond as well. For instance, investment bank Morgan Stanley set a 2026 valuation target of $100 billion for the company, triple its current $36 billion market cap ๐คฏ Driving this potential growth is Nubankโs ability to cross-sell products to its large customer base in Brazil (they are nailing this!), where it is already the primary bank for 27% of the population. Its successful replication of this strategy in Mexico and Colombia could add tens of millions more customers. The crazy part? NU is probably the only bank in the world that can pull this off.
ICYMI: analysis of NUโs latest performance & why you should be excited + some bonus reads on other LatAm FinTech you cannot ignore:
Disclaimer: this isnโt investment advice and Iโm a shareholder of Nu.
Plaid is preparing for an IPO ๐
The news ๐๏ธ San Francisco-based FinTech startup Plaid has named Eric Hart as its first Chief Financial Officer, fueling speculation that the company is preparing for an initial public offering.
More on this ๐ Hart joins Plaid after 13 years at Expedia Group, including serving as CFO for nearly 3 years. His experience guiding Expedia EXPE 0.00%โ through massive growth is seen as invaluable as Plaid charts its own expansion.
"Eric is an incredible leader, and his many years of experience building Expedia into one of the largest platforms in the world are inspiring," said Plaid CEO Zach Perret in announcing the appointment.
About time ๐ While Plaid says it currently has no timeline for going public, the hiring of a seasoned CFO like Hart is often one of the steps taken by late-stage private companies before an IPO.
We can remember that Plaid was nearly acquired by Visa V 0.00%โ last year for a whopping $5.3 billion, but the deal was scrapped after facing regulatory scrutiny. Since then, Plaid raised $425 million at an even more impressive valuation of $13.4 billion, demonstrating investor enthusiasm for the company's prospects.
The FinTech firm powers popular apps like Venmo, Coinbase COIN 0.00%โ, and Betterment by securely connecting consumer bank accounts. Plaid is expanding into payments, lending, and fraud prevention - putting it on track to enable $10 billion in transactions this year. Solid.
ICYMI: Plaid is building the identity layer for Finance ๐ [+ more reads]
โ๏ธ THE TAKEAWAY
Whatโs next? ๐ค The CFO appointment clearly shows Plaid putting the pieces in place for a potential IPO as it rides a wave of digital innovation in finance. With Hart at the financial helm, the company is poised to capitalize on favorable market conditions when the time for going public arrives. And an IPO would allow Plaid to raise additional capital for expansion and provide liquidity to early investors and employees. The still somewhat strong appetite for FinTech stocks points to likely robust demand for any future Plaid public offering. Together with Stripe, this will be the most interesting FinTech IPO.
ICYMI: Stripe is finally getting ready for an IPO ๐ฅณ [+ bonus dives into Stripe]
And to make the most of any IPO, use this:
๐ What else Iโm watching
Binanceโs troubles in the UK ๐๐ฌ๐ง Crypto giant Binance has stopped accepting new users in the UK while it works to find a partner to help it meet recently-introduced crypto asset promotion rules. The crypto goliath stopped accepting new UK customers at 5 pm on Monday, according to a blog. Under Financial Conduct Authority rules introduced earlier this month, firms wishing to promote cryptoassets in the UK must, by law, be authorized or registered by the FCA, or have their marketing approved by an authorized firm. As an unregulated overseas firm, Binance engaged FCA-authorised firm Rebuildingsociety.com to review and approve financial promotions in compliance with the new rules. But, last week the FCA said that Rebuildingsociety.com is not licensed to do this. Ups. ICYMI: The death of Binance US might not be exaggerated after allโฆ ๐ [+ more reads on this whole saga]
Fiserv goes embedded ๐ Fiserv FI 0.00%โ is making a move into embedded finance, making capabilities from its merchant acceptance, banking, and card issuing businesses available to others through a set of APIs. The company says the move will "supercharge" how payment facilitators, financial institutions, and software platforms serve their clients, expanding their service models. By helping these firms grow relationships beyond payments, Fiserv says it is allowing them to create new revenue streams and stickier and more valuable partnerships with merchants. Merchants, in turn, benefit from faster access to capital and the ability to simplify and consolidate their businessโ financial experience through a single provider. ICYMI: Hereโs your gentle reminder that the Future of Finance is Embedded ๐ [+more bonus reads]
๐ธ Following the Money
American investing app Stash has raised $40M in financing led by T Rowe Price. The firm has also appointed former Nyse CFO Amy Butte as independent audit chair.
Open wealth platform Flanks has secured $8M in a Series A round led by Earlybird Venture Capital, and followed by the existing investors JME Ventures and 4Founders Capital.
Digital ID specialist Prove Identity has raised $40M in a funding round led by MassMutual Ventures and Capital One Ventures.
๐ Thatโs it for today! Thank you for reading and have a relaxing Sunday! And if you enjoyed this newsletter,ย invite your friends and colleagues to sign up: