The world fintech in the last month of 2020
In this blog I’ve decided to collect news, which has accumulated and which I want to discuss. I’ve chosen the December news of the outgoing year. The fintech industry surprised us with the pace and results of its development both in Ukraine and around the world . We looked into the emergence of Facebook Shops and the Stripe’s prospects in Ukraine, the neobanks in messengers and Checkout.com as one of the most expensive fintech startups in Europe. And of course, we talked a lot about several important laws that were passed in Ukraine and radically influenced the operation of the financial services industry and the operation of the entire industries, such as eSports. What is important today?
Revolut acquiring solution
Checkout.com, Stripe, Braintree and other major payment platforms have now a strong competitor — Revolut.
The startup had already had the solution for businesses before the launch of the acquiring, which helped to send and receive international payments through the own business account. However, the new acquiring solution has changed the position of the fintech startup Revolut. Merchants can now accept card payments from the customers online in 14 currencies and directly to their Revolut Business account the next day after a payment. The processing fees depend on the merchant’s plan and are not charged on small amounts. Above the limit, the commission is 1.3% on card transactions from customers based in Europe and the U.K. For all other cards merchants pay 2.8% on all transactions. Quite pleasant conditions. But even more enticing is the fact that Revolut’s acquiring solution is integrated with Revolut Business, so that the user can see payments and banking in the same interface. The team of professionals is required to implement such a system with a user-friendly interface.
Visa cryptocurrency cards
Last week I wrote about the role of Bitcoin in the global economy and about the first steps of Ukraine towards virtual assets legalization. Bitcoin price has risen significantly since October and recently exceeded $23 000.
Just a couple of years ago, Visa didn’t support the use of cryptocurrencies, and at the beginning of 2019, the payment system together with the Coinbase exchange, launched a debit card which allows users to spend cryptocurrencies like ordinary fiat money on the card. In 2020, Visa joined the startup Fold to offer a Bitcoin Cashback Debit Card that earns rewards denominated in the cryptocurrency .
Well, and today we are talking about issuing a credit card with cashback in Bitcoin. The credit card, offered by Visa and BlockFi, is expected to be issued in early 2021. Users of the Bitcoin Rewards Credit Card will receive 1.5% of their purchases back in the digital asset and a lump sum $250 in the crypto asset if they spend more than $3000 in the first three months. Evolve Bank & Trust will be the issuing bank. The card’s annual fee will be $200.
Fintech regulation in China
The financial technology industry is creating a lot of new things. Especially this year, the pace of growth and development was rapid, as we faced the need to implement remote solutions for various tasks. In this regard, some states are concerned about the growing influence of fintech giants, because their technological solutions are already becoming a part of everyday life.
China is one of the few countries which can take radical actions towards such “problems”. China’s regulators have presented several draft regulations aimed at such fields as data use and antitrust legislation. China’s top banking regulator hinted at the introduction of restrictive measures against the operation of the country’s largest fintech companies. Thus, due to such possible changes, the chance of the Ant Group giant large-scale IPO next year, which I wrote about in one of my blogs, is getting smaller.
There is still half of December ahead, and with the pace of industry development, we can expect other interesting news by the end of the year. Therefore, let’s be in no haste to sum up the year!