Fintech in 5 - Apple launched Tap to Pay in France

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Hey 👋,

Welcome to the very first edition of this week's Fintech in 5.

We're in week 46 of 2023, which means we only have 6 weeks until the end of the year. Better get those deals in before we all start hearing "let's touch base about this next year".

Lots of news this week with some big announcements.

Let's dive in 👇

💰 Fundraising

14 deals were reported across Europe as of 13/11/2023, a total amount of €108.1 million raised. 9 deals in the UK, one deal in Italy, one in Denmark, one in France, one in Austria and one in Switzerland.

👑 Monument, the London-based online bank, takes the crown this week with its €47.6 million Series B with existing and new investors including Dubai Investments PJSC. They will use this investment to further strengthen their position in the “mass affluent” segment in the UK, as well as look to internationalize.

📰 Must-Knows:

🇫🇷 Apple Launched Tap to Pay in France

• Apple has introduced Tap to Pay on iPhone in France, enabling businesses to accept in-person and contactless payments effortlessly using iPhones and partner iOS apps.

• This feature, available to businesses of all sizes, allows for secure payments from contactless cards, Apple Pay, and other digital wallets without the need for additional hardware. Essentially, it turns every iPhone into an ETPOS (Electronic Funds Transfer at Point of Sale) device.

• The service is already supported by major players like Groupe BPCE, Adyen, myPOS, Revolut, SumUp, Viva Wallet, and Worldline. It is being launched in retail stores such as Christian Dior Couture, Sézane, Dyson, and more (Apple).

🇪🇺 European Agreement on Instant Payments

• The EU has reached a pivotal agreement, allowing banks and payment service providers to offer instant payments alongside credit transfers without exceeding existing charges.

• This move aims to establish a unified instant payment system in Europe, enhancing the autonomy of the financial sector and reducing reliance on external institutions. (Fintech Futures)

🇩🇪 N26 is Leaving Brazil

• N26, the German online bank, is bidding farewell to Brazil as part of its strategy to cut losses and focus on its core European markets.

• The move comes after struggles to compete with local rival Nubank and follows N26's previous exits from the UK and US, aligning with its efforts to streamline operations amid financial challenges. (Financial Times)

🇺🇸 BNPL companies face grim outlook says Moody’s

• Moody's warns of a tough road for Buy Now, Pay Later (BNPL) firms, citing intense competition, persistent losses, and increasing regulatory constraints as factors likely to drive some companies out of the market.

• Funding challenges and waning investor interest add to the gloomy outlook, with Moody's predicting potential equity depletion for some players in the absence of contained losses and new equity injections.

• The BNPL industry faces fierce competition from startups and threats from large banks like National Australia Bank, NatWest, and tech giant Apple, whose entry into the market intensifies the struggle for market share and profitability amid a global wave of regulatory scrutiny.

🇬🇧 Wise reports a near-quadrupling of profits in the first half of 2023

• Wise, the British fintech firm, reported a nearly 4x increase in pre-tax profits, reaching £194.3 million, a 280% YoY rise, attributed to higher interest rates.

• The company reported a total income of £656 million for the half-year ending on Sept. 30, 2023, up 58% YoY, with revenue at £498.2 million, a 25% YoY increase.

• Analysts express caution despite the impressive profit, citing potential pressure on total processed volume and considering the boost from higher interest income as likely temporary. (CNBC)

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Have a great rest of your week.

À bientôt,

Benjamin