Welcome to the latest in fintech news, where cutting-edge technologies and innovative financial solutions converge to reshape the landscape of banking, investing, and payments. Stay tuned as we explore the trends driving the future of finance!

Mastercard starts domestic payments processing in China (FinExtra)

Mastercard, in partnership with NetsUnion, has initiated processing of domestic payments in China, marking a significant milestone after years of regulatory hurdles. The joint venture, established in 2015, gained approval in 2020 to set up a domestic bankcard clearing institution. This move allows Mastercard to simplify payment experiences for Chinese cardholders, enabling acceptance of Mastercard-branded cards for both domestic and international transactions. Ling Hai, Chairman of Mastercard NetsUnion, emphasizes the aim to enhance choice, value, and safety in payment experiences for consumers and businesses across China. Read more

Visa announces generative AI-powered fraud solution (The Paypers)

Visa has unveiled Visa Account Attack Intelligence (VAAI), an innovative solution powered by generative AI, aimed at thwarting card testing attacks. These attacks, which cause significant fraud losses and operational expenses, are targeted at US issuers. The VAAI Score, part of the updated offering, utilizes generative AI to identify and score enumeration attacks in real-time, enhancing fraud detection and prevention for card-not-present transactions. By learning normal and abnormal transaction patterns, VAAI Score significantly reduces false positives and improves fraud detection accuracy, leading to reduced fraud and operational losses. This tool also enhances the cardholder experience by proactively identifying risky transactions without impacting legitimate ones. Trained on vast transaction data, the VAAI Score model provides a real-time risk assessment in milliseconds, empowering issuers to make informed authorization decisions and prevent fraudulent transactions before they occur. With fraudsters leveraging advanced technologies to exploit stolen credentials faster, Visa’s VAAI Score offers a sophisticated defense mechanism to safeguard cardholder accounts and prevent fraudulent activities across the payment ecosystem. Read more

Danske Bank joins United Fintech in strategic partnership (Fintech Global)

Danske Bank has joined forces with United Fintech, marking its investment alongside Citi and BNP Paribas in the firm. This strategic partnership aims to bolster Danske Bank’s exposure to innovative fintech solutions, aligning with its Forward ’28 strategy. By securing a rotating board seat in United Fintech, Danske Bank will directly influence the platform’s strategic direction. Claus Harder, from Danske Bank, highlights the investment’s significance in enhancing collaboration within the fintech ecosystem and shaping future investment decisions. United Fintech’s expansion includes acquiring five fintech companies, showcasing its dedication to fostering innovation and collaboration in the financial services sector. CEO Christian Frahm emphasizes the importance of collective efforts in addressing industry challenges and propelling banking into the digital age. Read more

European companies in China are under pressure from slower growth, overcapacity (CNBC)

European companies operating in China are facing increased challenges in maintaining profitability amid slowing growth and rising overcapacity pressures, according to a survey by the EU Chamber of Commerce in China. Delays in payments and difficulties in enforcing contracts have been reported, particularly in Shanghai. This trend is attributed to state-owned enterprises using delayed payments as a form of obtaining defacto loans. Only 30% of survey respondents reported higher profit margins in China compared to their global average, marking an eight-year low. The current economic slowdown in China mirrors previous cyclical downturns, prompting concerns about its duration and depth. Issues such as difficulties in transferring dividends back to headquarters and observed overcapacity in various industries further exacerbate the challenges faced by European companies. Despite some market opening measures by Chinese authorities, skepticism among foreign businesses remains high regarding growth potential and regulatory predictability. These concerns are driving companies to reevaluate their investment decisions and market strategies in China. Read more

Pensions dashboards programme delayed due to digital skills shortage (FinExtra)

The UK government’s Pensions Dashboards Programme (PDP) has faced delays due to digital skills shortages and capacity issues, according to a report from the National Audit Office (NAO). The initiative, aimed at creating a digital platform for accessing and reviewing pension details, has been in development since 2020 with the potential to benefit millions. However, delivery setbacks have pushed the final deadline for pension providers to connect to the PDP by a year, with no set date for citizen access. The programme was reset in December 2022 after it was deemed unviable, leading to adjustments and a new delivery deadline set for October 31, 2026. Despite progress, costs have increased by 23%, attributed to delays and supplier expenses. Officials stress ongoing collaboration between the Department for Work and Pensions (DWP) and Money and Pensions Service (MaPS) to ensure successful program completion and public access. The DWP highlights significant progress and testing milestones scheduled from August 2024, aiming for wider provider onboarding by April 2025. Read more

Nubank reaches 100 million customers across Latin America (Fintech Nexus)

Nubank, a Brazilian neobank, has achieved a significant milestone by reaching 100 million customers across Latin America, making it the first digital bank outside of Asia to do so. With over $1 billion in net profit reported for 2023, Nubank is firmly established as a serious competitor to traditional banks in the region. The company’s success is driven by its disruptive approach to banking, particularly in Brazil where it has its main business. Expanding its operations to Colombia and Mexico, Nubank recently announced a $100 million investment in Mexico to accelerate customer acquisition efforts. While the bulk of its business remains in Brazil, the neobank serves millions of customers in Mexico and Colombia as well. CEO and co-founder David Velez emphasizes aggressive expansion in Mexico as a top priority, leveraging high-yield accounts to attract customers away from traditional banks. With the Mexican market emerging as a key battleground for digital banking expansion in Latin America, Nubank is poised to consolidate its position as the leader in the region. Read more

Google Wallet Launches In India With Flipkart, Pine Labs Among Partners (inc42)

Google has introduced the Google Wallet app for Android users in India, offering a range of features including storing tickets, boarding passes, and loyalty cards. Partnering with 20 brands including cinema chains, ecommerce platforms, and transportation services, the app aims to simplify daily tasks. Notably, Google Wallet is distinct from Google Pay in India, though it offers payment features in other markets. The app has also collaborated with system integrators to incorporate corporate identity badges. Ram Papatla, Google’s India engineering lead, highlighted the significance of the launch, stating that Google Pay remains the primary payments product in the Indian market. Google Wallet’s feature set is akin to Apple Wallet, allowing users to digitize various cards and passes. Despite Google Pay’s dominance, strategic partnerships could propel Google Wallet’s adoption, with potential expansion to iOS platforms in the future. Read more

SA fintech company Adumo acquired by Lesaka in $85.9m deal (Disrupt Africa)

South African fintech giant Adumo has been acquired by Lesaka in a deal valued at ZAR1.59 billion (US$85.9 million), pending shareholder and regulatory approval. Adumo, known as South Africa’s largest independent payments processor, boasts a portfolio of approximately 23,000 active merchants and has been on an acquisition spree since securing funding in 2021. The acquisition will be settled through a combination of Lesaka shares and cash, with Adumo’s current ultimate shareholders, including Apis Growth Fund I, African Rainbow Capital, and IFC, among others. Adumo’s extensive operations cover card acquiring, integrated payments, and reconciliation services, processing over ZAR24 billion (US$1.3 billion) in throughput annually. The acquisition strengthens Lesaka’s position as a leading player in Southern African fintech, expanding its consumer and merchant reach and incorporating Adumo’s technology offerings into its existing operations. Lincoln Mali, CEO of Lesaka Southern Africa, expressed excitement about the acquisition, welcoming Adumo’s team and CEO Paul Kent to the group’s leadership. Paul Kent echoed this sentiment, emphasizing the combined value proposition and synergies between the two entities. Read more

Basware acquires invoice management and statement reconciliation platform AP Matching (Fintech Futures)

Finnish fintech Basware is acquiring UK-based AP Matching, a provider of invoice management and statement reconciliation solutions, in a deal of undisclosed value. Basware aims to integrate AP Matching’s technology with its AI-powered enterprise accounts payable automation platform, which already handles over 220 million invoices and $900 billion in spend annually. This integration is expected to enhance financial statement harmonization, reduce erroneous payments, and improve CFOs’ financial data integrity. AP Matching’s platform reconciles buyer and supplier statements for large enterprises in the UK and US, matching invoice data to customers’ ERP or source to pay systems. Basware will also integrate AP Matching’s managed services division, specializing in automated invoice processing and data capture services for SAP customers, to strengthen its invoice capture, validation, and ERP integration solutions. Basware CEO Jason Kurtz highlights the acquisition’s potential to enhance AP automation processes and increase financial recording accuracy for CFOs. This acquisition follows Basware’s previous acquisition of Irish fintech Glantus to bolster its AI-driven overpayment and fraud detection capabilities. Read more

Investcorp closes $570M fund for cybersecurity and fintech (Tech EU)

Investcorp has closed its Investcorp Technology Partners V (ITP V) fund at $570 million, surpassing its target of $500 million. The fund will focus on investing in software, data/analytics, cybersecurity, and fintech startups. Investcorp manages $52 billion in assets globally and has a successful track record in technology investments. ITP V will target companies with revenues of around $10 million or more and positive EBITDA. Initial investments from the fund have already begun, with recipients including VEDA, HWG Sababa, Zift Solutions, and NetRom. Investcorp emphasizes its proven investment strategy, disciplined approach to valuations, and hands-on partnership with founders. The fund aims to accelerate growth for promising companies and achieve attractive returns for investors. Read more

Go Digit IPO opens on May 15 as insurtech unicorn aims to maintain capital reserves (YourStory)

Go Digit General Insurance, backed by prominent investors including Fairfax Group of Canada, is set to launch its initial public offering (IPO) on May 15. The company, which became India’s first insurtech unicorn in 2021, will utilise the net proceeds from the IPO to maintain its solvency ratio and capital reserves. The IPO, which will conclude on May 17, will see a blend of fresh issuance worth Rs 1,125 crore and stake dilution by existing shareholders, excluding notable personalities like Virat Kohli and Anushka Sharma who are expected to retain their investment in the insurtech firm. The celebrity couple had received 3,33,334 shares worth Rs 10 each in February 2022. Get connected to Digit Insurance The IPO includes an offer-for-sale component of up to 54,766,392 equity shares by the selling shareholders, of which up to 54,755,614 equity shares are proposed to be sold by one of the promoters, Go Digit Infoworks Services Private Limited, as per the Red Herring Prospectus. Go Digit General Insurance is primarily owned by Go Digit Infoworks Services, holding an 83.3% stake in the company. On May 4, Go Digit General Insurance faced a penalty of Rs 1 crore from Insurance Regulatory and Development Authority (IRDAI) due to non-disclosure of a change in the conversion ratio of compulsorily convertible preference shares (CCPS) issued to Fairfax-owned FAL Corporation, MoneyControl reported. Get connected to Digit Insurance Its parent entity issued 78,00,000 CCPS instead of the initially agreed upon 63,00,000, altering the conversion ratio from “1 CCPS for 2.324 equity shares” to “2.324 CCPS for 1 equity share.” While Go Digit disclosed this change in its JV agreement amendment and DRHP filing, it failed to provide full particulars to the regulator, breaching Section 26 of the Insurance Act. The insurtech company had received approval from the market regulator Securities and Exchange Board of India (SEBI) for its IPO in March. Read more

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