Affirm expands global reach through extended Shopify partnership 💳🛍️; Coinbase seeks fresh start in India 😳🇮🇳; Payoneer's China breakthrough 💳🇨🇳
You're missing out big time... Weekly Recap 🔁
👋 Hey, Linas here! Welcome back to a 🔓 weekly free edition 🔓 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, it’s the only newsletter you need for all things when Finance meets Tech.
If you’re not a subscriber, here’s what you missed this week:
10 FinTech and Finance stocks to include in your portfolio for 2025 💼 | Part II [seize the Future: ride the wave of innovation reshaping Finance & FinTech]
AI 100: Top Artificial Intelligence Startups of 2024 🤖💸 [these companies raised $28B already. Find whose backing them, unlock their exclusive pitch decks & learn from the best]
AI fuels venture capital rebound amid global uncertainties 🤖😤 [recapping the latest funding numbers, why they matter & what’s next + bonus startup resources for founders and entrepreneurs]
Mastercard launches One Credential in a bid to transform digital payments 💳👥 [what it’s all about & what it tells us about the future of digital payments + bonus deep dives in Mastercard & Visa’s latest financials]
Shift4’s Q4 2024 & another FinTech M&A shows a payments powerhouse poised for global domination 😤💳 [breaking down their latest Q4 2024 financials & recent M&A, why it matters & why you should be bullish on FOUR 0.00%↑ in 2025 and beyond]
Remitly is riding the digital remittance wave with momentum and margin expansion 💸📈 [breaking down their latest Q4 2024 numbers, what they mean, what’s next & whether Remitly is worth your time and money in 2025]
Tether co-founder's new stablecoin venture aims to rival industry leader 😳🪙 [what it’s all about and what can we expect next + more bonus reads on stables]
Chase dethrones Monzo and Starling as UK's most recommended bank 🏦🇬🇧 [why this matters & what it tells us about the future of FinTech + bonus deep dives into JPMorgan & co]
Toast’s Q4 2024: rare blend of growth & profitability in restaurant tech 🍞📈 [deep dive into Toast, their latest financials & whether you should be bullish on this restaurant FinTech giant in 2025 & beyond]
Global 6,200+ Investor Database to Fast-Track Your Funding in 2025 💸 [shorten your fundraising time, find your perfect investors, and close rounds faster]
As for today, here are the 3 incredible FinTech stories that were transforming the world of financial technology as we know it. This was yet another insane week in the financial technology space so make sure to check all the above stories.
Affirm expands global reach through extended Shopify partnership 💳🛍️
The news 🗞️ FinTech giants Affirm AFRM 0.00%↑ and Shopify SHOP 0.00%↑ are strengthening their partnership, with Affirm stepping up as Shopify’s exclusive Buy Now, Pay Later (BNPL) provider in Canada and preparing to do the same in the UK.
Let’s take a quick look at this and see why it matters.
More on this 👉 The partnership extension builds upon five years of collaboration between the two companies, during which their integrated payment solution has served millions of US consumers.
Under the new agreement, eligible Shopify merchants in Canada will soon be able to offer Shop Pay Installments powered by Affirm, allowing customers to make purchases using customized biweekly or monthly payment plans. These plans will feature rates as low as 0% APR, terms up to 24 months, and no hidden or late fees.
The expansion holds particular significance as it brings Affirm into Shopify's home market of Canada, where Affirm has maintained a presence since acquiring PayBright in 2021. The integration with Shop Pay will streamline the process for Canadian merchants, enabling them to activate installment payments through a simple opt-in within their merchant console.
For the UK market, which Affirm entered just last quarter, the company is taking a measured approach to establish its presence. Affirm identified a strategic advantage in the UK, noting the company's capability to underwrite longer-term installment loans of 24-36 months, filling a gap where traditional banks and pure-play BNPL competitors have not ventured.
✈️ THE TAKEAWAY
What’s next? 🤔 First and foremost, this tie-up demonstrates the growing mainstream acceptance of BNPL services, supported by PYMNTS Intelligence data showing that 56% of consumers used installment payment options in the past year, with 76% reporting high satisfaction rates. More importantly, the partnership's international growth could accelerate the consolidation of the BNPL market, as established players with strong technological infrastructure and regulatory compliance capabilities gain advantages over smaller competitors. Affirm's strong Q4 2024 performance, with revenues up 47% to $866 million, suggests that well-executed BNPL strategies can drive substantial growth. Looking ahead, this expansion may catalyze several developments: increased competition in international markets, particularly around longer-term financing options; greater integration of BNPL services into native e-commerce platforms; and potential regulatory attention as these services become more prevalent in new jurisdictions. Bullish on both FinTech giants.
ICYMI: Affirm’s Q2 2025: a growth story at an inflection point as profitability finally emerges 👏😤 [breaking down their latest numbers, what they mean & what’s next for Affirm]
Shopify’s Q4 2024: a commerce & FinTech powerhouse is hitting its profitable stride while maintaining hypergrowth 😤🛍️ [deep dive into their latest financials, breaking down key numbers, what they mean & why you should be bullish on Shopify in 2025]
Coinbase seeks fresh start in India 😳🇮🇳
The news 🗞️ Global cryptocurrency exchange giant Coinbase COIN 0.00%↑ is preparing for a strategic reentry into the Indian market, marking a significant shift in its approach to one of the world's largest potential crypto markets.
The company is actively engaging with Indian regulators, particularly the Financial Intelligence Unit (FIU), to secure necessary approvals for relaunching its operations.
Let’s take a quick look at this.
More on this 👉 This new attempt comes after Coinbase's previous ventures in India faced significant challenges. The company's initial launch in 2022 with UPI payment support was suspended after just three days due to regulatory concerns from the National Payments Corporation of India. By September 2023, Coinbase had completely ceased its operations in the country.
The renewed effort appears more methodically planned, with Coinbase executives scheduled to visit India in March 2025 for discussions with the FIU. The company is taking a more collaborative approach this time, seeking to work with local partners and implementing a clearer strategy than in its previous attempt.
Zoom out 🔎 India's crypto landscape has evolved significantly since Coinbase's last attempt. Despite maintaining a 30% tax on crypto income and a 1% transaction tax, the country is reassessing its stance on cryptocurrencies, influenced by global regulatory developments and changing U.S. policies.
This shift is evidenced by recent statements from Economic Affairs Secretary Ajay Seth, who acknowledged the need for a coordinated international approach to crypto regulation.
✈️ THE TAKEAWAY
What’s next? 🤔 Looking ahead, this development could have some interesting implications. For Coinbase, success in India could provide access to one of the world's fastest-growing crypto markets, particularly notable given India's leading position in Chainalysis' Global Crypto Adoption Index. More importantly, the company's strategic timing aligns well with its broader international expansion plans and follows Binance's successful regulatory compliance in India after paying a $2.25 million fine.
For the Indian crypto ecosystem, Coinbase's reentry could help fill the void left by the collapse of local exchange WazirX and potentially lead to increased institutional adoption. More importantly, the company's presence, alongside its investments in local exchanges CoinDCX and CoinSwitch, could help establish a more robust market infrastructure.
ICYMI: Coinbase’s Q4 2024: solidifying platform play for the mainstreamification of digital assets 🪙📈 [breaking down their latest numbers, what they mean, and what’s next for Coinbase + bonus deep dive into its rival Robinhood]
Payoneer's China breakthrough 💳🇨🇳
The news 🗞️ Global financial technology giant Payoneer PAYO 0.00%↑ has just achieved a significant milestone in China by securing regulatory approvals for its planned acquisition of a licensed Chinese payment service provider.
The transaction, expected to close in the first half of 2025, marks a pivotal development in Payoneer's mission to facilitate global commerce for small and medium-sized businesses (SMBs).
Let’s take a quick look at this.
More on this 👉 The regulatory approval represents a particularly noteworthy achievement given China's traditionally stringent oversight of its financial services sector, especially concerning foreign payment companies.
This development thus positions Payoneer to strengthen its operational capabilities in one of the world's largest e-commerce markets.
Zoom out 🔎 The acquisition offers several strategic advantages for Payoneer's business model.
First and foremost, by gaining direct market access without relying on local partnerships, the company can potentially reduce operational costs and improve service delivery efficiency. The licensed entity will enable Payoneer to process domestic Chinese payments directly, opening access to a vast SMB market that has been historically challenging to serve effectively.
Additionally, this move enhances Payoneer's competitive position against both global payment providers and local Chinese FinTech companies.
✈️ THE TAKEAWAY
What’s next? 🤔 At the core, the integration of a licensed Chinese payment provider into Payoneer's global financial stack is all about accelerating the company's growth. It should streamline payment processes for Chinese SMBs engaging in global commerce, potentially reducing transaction friction and costs. This could be particularly impactful for China's expanding e-commerce sector, where businesses increasingly seek international reach. The acquisition could also serve as a model for other global FinTech companies looking to establish stronger footholds in regulated Asian markets. Payoneer's success in securing Chinese regulatory approval might influence how other international financial technology firms approach market entry strategies in the region. Looking at the bigger picture, this development also signals a potential shift in China's approach to foreign financial technology companies. While the market has historically been difficult for foreign payment providers to penetrate, this approval might indicate an evolving regulatory environment that could create new opportunities for international FinTech players in China's digital payment ecosystem. So watch this out!
ICYMI: Payoneer: a hidden FinTech giant accelerating B2B cross-border payments growth 😤🚀 [breaking down their latest Q3 2024 financials, what they mean, why I’m bullish & why you should be too]
🔎 What else I’m watching
BBVA Enhances Virtual Assistant with AI 🤖 BBVA has upgraded its virtual assistant, Blue, with AI-powered features for account and card management. Blue can now handle up to 150 queries and transactions, answering over 3,000 questions using natural language. The tool enhances efficiency and provides a more human-like interaction. It can manage digressions in conversations without losing track. Blue focuses exclusively on banking-related tasks, ensuring a tailored experience for BBVA customers. Additionally, BBVA has introduced an AI-based assistant to support its agents, equipped with over 30,000 references covering the bank's products and services.
Google Pay to Introduce AI-Powered Voice Payments 🗣️ Google Pay is set to launch an AI-powered voice payment tool, allowing users to make UPI transactions by speaking. This feature aims to enhance user convenience by eliminating the need to type instructions, making online transactions more accessible, especially for users who may struggle with literacy. The initiative is part of the Bhashini AI project, which enables payments in local languages, and is being developed in collaboration with the Union Government. Google GOOGL 0.00%↑ is also investing in AI and machine learning to combat cyber fraud, ensuring the new feature will help safeguard users against online threats.
Nigeria Sues Binance for $81.5 Billion Over Economic Losses and Tax Evasion 💸 Nigeria has filed a lawsuit against Binance, seeking $79.5 billion in damages for alleged economic losses and $2 billion in unpaid taxes. The country accuses Binance of contributing to currency troubles and tax evasion, including non-payment of VAT and company income tax. Binance has faced scrutiny in Nigeria, including a $10 billion fine for manipulating exchange rates and a money laundering case against a senior executive, which was later dismissed. The lawsuit follows a government crackdown on the crypto industry in 2023 and Binance's decision to halt naira transactions in March 2024.
💸 Following the Money
Turkiye-based fintech iyzico has acquired Paynet in a $87M transaction, securing approvals from the Turkish Competition Authority and the Central Bank of the Republic of Turkiye.
SRA Watchtower, a SaaS provider of AI-powered risk management and financial insight technology, has secured $4M in funding.
Glassbox, a Toronto-based FinTech startup, has raised $1.2M in pre-seed funding to reimagine how finance teams work with spreadsheets in the age of AI.
👋 That’s it for today! Thank you for reading and have a relaxing Sunday! And if you enjoyed this newsletter, invite your friends and colleagues to sign up:
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