Mastercard Makes Money Moves with bunq & Open Banking
Future of Fintech - Edition #122 (4th-10th June)
Fintech is brewing a potent potion - collaborations are paving the way for novel use cases, card game disruptions are fueling the game, and players are continuing to make bold global moves. And with Money20/20 Europe wrapping up just last week, this concoction is not to be missed >>>
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What’s on the fintech menu today?
📖 Today’s Must Read: Frenemies No More: Capital One X Stripe X Adyen vs. Fraud
🌟 Fintech Fiesta: The Week's Hot 10!
🌐 ‘Byte’ Buzz: Fintech highlights, sorted by segment!
🔗 Link Up: Your gateway to resourceful links!
Fin-teresting Stories in Fintech 📰
Frenemies No More: Capital One X Stripe X Adyen vs. Fraud
In a surprising move, industry giants (and competitors) Capital One, Stripe, and Adyen have joined forces to tackle a common foe – e-commerce fraud. Their solution? Direct Data Share (DDS) - a free, open-source API designed to revolutionise fraud detection for businesses.
Why the sudden love-in? While Capital One has built models to protect its customers from fraud, it was getting stuck because it just didn’t have enough data. Concurrently, according to Juniper Research, e-commerce fraud losses are expected to surge to $343B by 2027, and this partnership could be key in tackling the problem.
Here’s the intel:
Traditionally, fraud data has been locked in silos, hindering merchants' ability to identify and stop fraud. This is where DDS creates a real-time information network. Think of it like this - Capital One spots a fraudulent IP address through Stripe. With Direct Data Share, it can instantly use that same IP address to prevent fraud for transactions happening at Adyen, and vice versa. This real-time intel empowers merchants to block fraudulent transactions before they happen.
But DDS goes beyond just this. False declines – those frustrating moments when legitimate purchases get flagged – are a major pain point for both businesses and customers. DDS tackles this too. By sharing evidence of positive customer behaviour, the system ensures smooth transactions for honest shoppers.
Why is this a game-changer? Collaboration is rare in the fiercely competitive world of fintech. This partnership signifies a major shift, prioritising industry-wide security over individual gain. It shows Capital One's commitment to working alongside businesses, not against them. It's a giant leap forward in data sharing, something the entire fintech world has been buzzing about.
This news is even more interesting when you consider our blog “Adyen Beyond Payments – Embedded Finance Playbook”. We dissected their unique approaches to Embedded Finance:
Stripe: The agility champion, perfect for startups with their developer-friendly tools.
Adyen: The full-stack powerhouse, empowering platforms with comprehensive solutions for SMBs.
DDS acts as a strategic power-up for both. It strengthens their offerings by creating a collaborative defence against fraud. This means reduced risk for Stripe's startups, and enhanced security for Adyen's SMBs.
Get the inside scoop on Stripe vs. Adyen's unique approaches in our blog here 👇
We're always on the hunt for trailblazing stories in the future of fintech.
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Edition #122 is here to decode the fintech DNA >>>
The Week's Hot 10! ♨️🔟
Mastercard's Masterstroke -
⤷ Mastercard integrated Deposit Switch and Bill Pay Switch with its Open Banking platform, allowing consumers to automate direct deposit switches and recurring bill payment updates when opening or updating digital accounts.
⤷ bunq partnered with Mastercard to provide European users with a comprehensive financial overview. Through this integration, bunq users access spending analytics from all accounts in the app, enhancing budgeting and future planning.
Powering Up with Partnerships -
⤷ French fintech Lydia Solutions expanded its partnership with card issuing platform Marqeta by selecting the firm to power its new digital banking application Sumeria.
⤷ Adyen partnered with Prada Group in a joint effort to deliver luxury payment experiences for customers.
Regulators Take Charge -
⤷ The CFPB launched a process to recognise open banking standards, with a new rule to establish data-sharing standards and prevent dominant incumbents from stifling startups.
⤷ The Depository Trust and Clearing Corporation (DTCC), Deutsche Börse’s Clearstream, and Euroclear released a joint blueprint to boost institutional adoption of tokenisation and digital asset securities.
Enfuce had Some ‘Cards’ Up its Sleeve-
⤷ Issuer processing powerhouse Enfuce partnered with French worktech unicorn Swile to launch an all-in-one employee benefits card in France.
⤷ Enfuce also collaborated with Síminn Pay, Iceland's largest telecom fintech division, to launch a virtual commercial card programme and help clients reduce carbon footprints.
Milestone Moments -
⤷ The Bangladesh Bank granted a licence to Nagad Digital Bank PLC, paving the way for it to commence operations as the country's first full-fledged digital bank.
⤷ Trading app Robinhood agreed to a $200M cash deal to buy crypto exchange Bitstamp to expand outside of the US and accelerate its push into digital assets.
Now, for the ‘byte’-sized fintech buzz –
Embedded finance partnerships are bridging continents and industries to drive financial integration and empowerment.
Turkish banking challenger Papara partnered with DriveWealth, a US-based financial tech firm providing Brokerage-as-a-Service, to launch a new US stock investment product. Papara is set to leverage DriveWealth’s fractional investing solution to enable its users to invest in US stocks on the Nasdaq and NYSE in real-time.
Cross-border payments company Nium and HR tech platform Remote partnered to enhance global workforce management with real-time cross-border payroll solutions. The integration is expected to roll out in stages over the coming months.
Open Finance is rewriting the rules of the global financial playground, where everyone has access to real-time payments and credit scores are no longer a mystery.
Equifax Limited became the first of the three main UK-based credit reference agencies to be named on Crown Commercial Service’s (CCS) Open Banking Dynamic Purchasing System (DPS) framework for Open Banking services. This allows Equifax to bid to provide Account Information Services (AIS) to any UK public sector body that uses the DPS.
NPCI International Payments Limited (NIPL) and the Central Reserve Bank of Peru (BCRP) partnered to enable the deployment of a UPI-like real-time payments system in Peru. This innovative system facilitates instant payments between individuals and businesses, thereby reducing reliance on cash-based transactions and expanding the use of digital payments.
In the Digital finance arena, the digital players are empowering the unbanked and underserved with accessible, secure financial tools.
Land Bank of the Philippines (LANDBANK) launched its new GoBayani savings account designed to financially empower Overseas Filipino workers (OFWs) with secure and reliable banking services - including transferring funds online, paying bills and performing e-commerce transactions.
Malaysian digital challenger Boost Bank launched its digital banking app, which aims to serve the country’s underbanked and unbanked populations. The app provides various security measures, such as a cooling-off period for new logins, freezing accounts, and device binding for access control.
The Fintech Infrastructure domain last week powered a financial revolution, from Bhutan's cloud banks to Malta's digital transformation:
ORO Bank, a cloud-first financial institution, was launched in Bhutan with a mission to enable personal, corporate and financial growth in an environmentally, socially and economically sustainable manner.
Finance Incorporated Limited (FIL), an Electronic Money Institution (EMI) based in Malta, partnered with Swiss banking tech vendor Temenos to modernise its digital and core banking capabilities.
In the DeFi realm, traditional finance giants made strategic moves to bridge the gap between centralised and decentralised finance.
Deutsche Bank and cryptocurrency broker Bitpanda have expanded their partnership. The bank will provide real-time payment solutions for Bitpanda customers' incoming and outgoing transactions in Germany.
Trading app Robinhood agreed to a $200M cash deal to buy crypto exchange Bitstamp in an effort to expand outside of the US and accelerate its push into digital assets.
Green finance goes high-tech: new tools empower businesses to navigate the stormy seas of climate change.
FIS Global and PwC Climate Tech launched its Climate Risk Financial Modeler. The modeller is designed to help businesses better assess, reduce and report exposure and provide more proactive foresight into climate-related risks.
Tide partnered with carbon measurement pioneer Connect Earth to develop and deliver a new range of carbon accounting tools that will help Tide’s customers reduce their carbon footprint.
And that's a wrap 👋
We hope you enjoyed this edition of the Weekly Fintech Brew!
As a reward for making it all the way here, enjoy a curated list of awesome fintech resources to keep your curiosity cup full to the brim. Cheers to continuous learning!
🔗 Link Up! –
Debit Where It’s Due Report - FIS
Banking Marketplace Report - Accenture
5 Ways Payment Modernization Boosts Profit Blog - Checkout.com
Unlock business capital access with embedded finance Blog - Marqeta
From Brewing to Boom: Embedded Finance takes-off in Europe Blog - WhiteSight
Stripe’s Economic Infrastructure Playbook Report - WhiteSight
Hungry for more fintech insights? Check out some of our other work at WhiteSight.
If you're someone who likes to read think pieces, you will likely love our monthly blog, Fintersections, where our team members analyse the convergence of fintech with the world.
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