Revolut sets global banking stage with British license, eyes 2026 IPO 😳🏦; Adyen expands Affirm BNPL integration to UK market 🤝🇬🇧; Eat Now, Klarna Later? 🧐🍔
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]
The Ultimate List of Resources about AI Agents 🤖 [unlock the power of AI Agents: your gateway to the future of autonomous agentic systems]
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]
The Ultimate List of Stablecoin Use Cases 🪙 [discover how stablecoins are quietly revolutionizing finance, business, and daily life across industries]
Klarna’s IPO filing: a FinTech turnaround story at the crossroads of profitability and scale 🔔🛍️ [breaking down the 396-page S-1 filing, uncovering key facts and figures, why they matter, and what’s next for the FinTech giant post IPO + more bonus reads inside]
𝕏 marks the spot: how Musk's platform rebounded to $44 billion valuation 😳📈 [quick recap of the latest developments at 𝕏, why it matters + bonus deep dive into the vision behind the Everything App]
Block launches Cash App Afterpay 💳📱[what it’s all about & why it matters + bonus deep dive into Block & their latest financials]
Kraken makes waves with $1.5 billion NinjaTrader acquisition 😳💸 [what the largest-ever Crypto-TradFi deal tells us & what to expect next + some priceless M&A resources inside]
Fiserv expands European footprint with strategic CCV acquisition 🇪🇺💸 [what it’s all about & why it matters + bonus M&A resources to save you billions]
Klarna shutters offices in strategic cost-cutting push 👋🏢 [what’s the big picture view here + a bonus deep dive into Klarna’s IPO prospectus]
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 intense week in the financial technology space so make sure to check all the above stories.
Revolut sets global banking stage with UK license, eyes 2026 IPO 😳🏦
The news 🗞️ Revolut, the London-based FinTech giant valued at $45 billion, is strategically building out its UK banking operations as a foundation for global expansion and a potential initial public offering (IPO) in 2026.
After securing a restricted banking license in the UK last July, the company is now in a mobilization phase expected to continue until the summer of 2025.
Let’s take a quick look at this and see why it matters.
More on this 👉 Francesca Carlesi, Revolut's UK CEO, revealed in recent interviews with Bloomberg and the Wall Street Journal that the company has expanded its UK banking unit from 35 to over 100 staff members since receiving its license, with plans to reach approximately 200 employees by year-end. The company is actively hiring regulatory reporting analysts, financial risk controllers, and other banking specialists.
Currently, Revolut's app allows users to make payments, trade assets, and hold money. Once regulators approve the transfer of its millions of UK customers to the new banking entity this summer, Revolut will expand its offerings to include loans, overdrafts, and mortgages. Customer accounts will then be protected by the UK's Financial Services Compensation Scheme, which covers deposits up to £85,000.
Zoom out 🔎 With more than 50 million customers globally (one-fifth in the UK), Revolut already holds a European banking license and operates in dozens of countries. The company has approximately one million customers in the US through a partnership with Missouri-based Lead Bank, though it acknowledges its brand recognition there remains low.
Financial performance appears strong, with Revolut reportedly preparing to announce record profits of approximately $1 billion before tax for 2024, nearly double the $545 million reported in 2023.
A secondary share sale in November valued the company at $45 billion, with investors reportedly pushing for another sale that could raise the valuation to $60 billion.
✈️ THE TAKEAWAY
What’s next? 🤔 Revolut's methodical approach to securing banking licenses and building regulatory infrastructure signals a transformation from disruptive FinTech to an established global financial institution. This strategy addresses a key criticism of many digital challengers - their lack of comprehensive banking services and regulatory oversight. Looking at the bigger picture, the company's vision to become "like Amazon, a global app available everywhere, but for financial services" represents an ambitious goal to create a unified global banking platform. This model differs significantly from traditional banks that typically operate with different systems and products across regions. This will get a solid test in the US market, which according to Revolut's assessment, still lags behind Europe when it comes to financial services innovation and presents a significant opportunity. While JPMorgan Chase and other major US banks have made digital pushes, none have achieved the seamless user experience and comprehensive product suite that Revolut aims to offer.
Adyen expands Affirm BNPL integration to the UK market 🤝🇬🇧
The news 🗞️ FinTech giant Adyen has expanded its partnership with Buy Now, Pay Later (BNPL) pioneer Affirm AFRM 0.00%↑ into the United Kingdom, enabling British merchants to offer consumers more flexible payment options at checkout.
The move builds on the companies' successful collaboration in North America.
Let’s take a quick look at this and see why it matters.
More on this 👉 Under this expanded partnership, Adyen's UK merchants can now integrate Affirm's installment payment services directly into their checkout systems.
Consumers will have access to a range of interest-free and interest-bearing payment plans, allowing them to select customized options that fit their budgetary needs without incurring hidden or late fees.
The partnership extension follows significant growth in North America, where the collaboration has seen annual transaction volumes increase more than sevenfold between 2021 and 2023. The companies initially began working together in November 2020, making Affirm available to eligible Adyen merchants in the US across digital and physical channels.
In December 2024, they expanded to include Adyen's platform businesses in the US and Canada.
✈️ THE TAKEAWAY
What’s next? 🤔 This partnership expansion comes at a pivotal time for the BNPL sector. Recent research shows consumers facing cash flow shortages are 3.5 times more likely to use BNPL services than financially stable consumers, highlighting the growing demand for alternative credit options. Looking ahead, the Adyen-Affirm collaboration is poised to significantly impact both the UK retail landscape and the broader fintech ecosystem. For merchants, the integration offers a streamlined path to implementing flexible payment options that can boost conversion rates and average order values. For consumers, particularly those underserved by traditional credit, it provides greater financial flexibility and purchasing power. Zooming out, the expansion also signals a maturing BNPL market that continues to gain legitimacy through regulatory oversight and integration with established payment platforms. As economic pressures persist for many consumers, we can expect further growth in alternative payment methods, with embedded finance becoming increasingly central to retail strategies. Bullish on both of these FinTech giants.
ICYMI: Adyen’s H2 2024: payments processing powerhouse continues to show industry-leading margins 😤💳 [breaking down their latest H2 2024 financials, what they mean & what’s next + bonus deep dive into Adyen’s competitors]
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]
Eat Now, Klarna Later? 🧐🍔
The news 🗞️ DoorDash DASH 0.00%↑, the dominant food delivery platform commanding nearly 63% of the U.S. market, just announced a partnership with buy now, pay later (BNPL) giant Klarna.
The collaboration will allow customers to finance their food deliveries and other purchases through installment plans, marking what industry analysts call a "seismic moment" for payment options in everyday spending categories.
Let’s take a quick look at this.
More on this 👉 The integration will offer DoorDash customers three payment options: "Pay in Full," "Pay in 4" (dividing costs into four interest-free installments), and eventually "Pay Later" (deferring payment for up to 30 days without interest). Initially, only the first two options will be available at launch.
This partnership extends beyond just restaurant delivery, covering all products available through DoorDash, including groceries, electronics, home improvement supplies, and beauty products. Customers can also use Klarna to finance their DashPass Annual Plan subscriptions.
Zoom out 🔎 The announcement comes as Klarna prepares for its initial public offering (IPO) on the New York Stock Exchange, expected in April 2025. The Sweden-based company reported a 24% revenue increase to $2.8 billion last year, with adjusted operating profits of $181 million – a significant turnaround from its $49 million loss the previous year.
Klarna currently serves 93 million active consumers across 26 countries and works with 675,000 merchant partners.
✈️ THE TAKEAWAY
What’s next? 🤔 At the core, this partnership signals a strategic shift in the BNPL industry, moving beyond discretionary purchases like electronics and fashion into everyday essentials. For Klarna, integrating with America's leading food delivery service strengthens its position ahead of its IPO and expands its ecosystem into regular consumer spending patterns (it’s all about the IPO now). Nevertheless, this development raises important questions about consumer debt patterns. Financial watchdogs have expressed concerns about "phantom debt" accumulation, where consumers might lose track of multiple small payment obligations across various services. With DoorDash's premium pricing already adding significant markups to food costs, financing these purchases could potentially normalize debt for consumable goods. And we shouldn’t promote that… Looking at the bigger picture, this partnership illustrates how payment solutions are becoming deeply embedded in all consumer spending categories. Traditional credit card companies may thus need to respond with more flexible payment options to remain competitive as consumers – particularly younger demographics – increasingly embrace alternative financing methods.
ICYMI:
🔎 What else I’m watching
Metro Bank Adopts AI for Loan Processing 🤖 Metro Bank will use Covecta's AI platform to streamline corporate and commercial loan processing, reducing manual effort and improving efficiency. Early tests showed a 60-80% time reduction per task, enhancing decision-making and risk analysis. The bank aims to grow lending and better serve customers with this implementation. ICYMI:
Robinhood Launches Prediction Markets 📈 Robinhood HOOD 0.00%↑ introduced an in-app 'Predictions Hub' allowing users to bet on world events, starting with federal funds rate targets and college basketball tournaments. The feature, available through Kalshi, aims to engage users in prediction markets while complying with regulations. Robinhood sees this as a new way for customers to participate in markets aligned with their interests. ICYMI: Robinhood's wild Q4: record profits, 88% AUC growth, and global expansion signal a new era of growth 🤑💸 [breaking down their latest Q4 2024 numbers, what they mean, and whether Robinhood is worth your time and money in 2025 & beyond]
Bybit Hack: $16M in Stolen Bitcoin Laundered 💸 Bybit CEO Ben Zhou reported that 86% of the $1.5 billion stolen in a February hack, converted to 12,836 BTC, is being laundered by the North Korean Lazarus Group. The funds, distributed across 9,117 wallets, are funneled through Bitcoin mixers like Wasabi and peer-to-peer vendors. Zhou highlighted the challenge of tracing mixed transactions, with 88.8% of funds still traceable.
💸 Following the Money
Stable Sea, a startup providing services to the rapidly growing stablecoin industry, has raised $3.5M in a round led by Kindred Ventures, with others participating. ICYMI:
Rapyd, a leading global Fintech-as-a-Service provider, has completed the acquisition of PayU Global Payment Organisation (GPO) in Latin America and Africa.
Abu Dhabi-based banking-as-a-service vendor NymCard has secured $33M in a Series B funding round.
👋 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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