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  • Fintech in 5 - Adyen Stock Surge, Revolut is Giving eSim Cards and more

Fintech in 5 - Adyen Stock Surge, Revolut is Giving eSim Cards and more

Shares in Adyen surged after strong Q2 earnings, Revolut is giving a 3gb global data plan to their Ultra clients, Apple Cash is launching a virtual card number feature and more.

Author

Benjamin Schroeder
February 15, 2024

Hey 👋,

Lots of interesting news last week. Shares in Adyen surged after strong Q2 earnings, Revolut is giving a 3gb global data plan to their Ultra clients, Apple Cash is launching a virtual card number feature and more.

Let's dive in 👇

In This Edition:

💰 Fundraising

📰 Top Stories :

💰 Fundraising

🇪🇺 Top Deals in Europe Last Week

Last week, a total of 82,2M € was raised by 5 Fintech companies across Europe (France, Estonia, UK, Denmark and Lithuania).

To dive deeper into the deals of last week, you can read Tuesday’s Funded edition of Fintech in 5.

👑 Pennylane Became a Unicorn

Last week, the fundraising crown belongs to Pennylane, who achieved unicorn status with a 40M € Series C Funding. The Paris-based fintech says that the funds will be used to accelerate development, invest in AI for accountants, and expand to other markets in Europe.

The company has seen a 40x increase in its user base over the last 24 months, with an impressive clientbase of 120,000 SMEs and 2,000 accounting firms. They plan to become profitable within the next 12 to 18 months.

Congrats to Pennylane ! 🎉 

📰 Top Stories :

🇳🇱 Adyen Experiences Strong H2 Growth, Shares Surge After Beating 2023 Earnings Expectations

  • Adyen, a Dutch payments company, reported a significant recovery in the second half of 2022 with a 29% increase in processing volume and a 23% rise in net revenues, addressing earlier growth concerns and investor skepticism from the U.S. market.

  • The company's strategic adjustments, including a commitment to greater transparency and cost control measures, contributed to a positive shift in performance, resulting in a nearly 24% jump in shares after surpassing 2023 earnings expectations, with net revenue rising 22% to €1.63 billion.

  • Adyen's operational efficiency and expansion of customer relationships, notably with U.S. firm Cash App, have solidified its position as one of Europe's most valuable financial firms, boasting a market capitalization that surpasses major banks and signaling robust growth despite broader industry challenges.

→ Pyments

🇬🇧 Revolut Innovates in the UK with Launch of eSIM for Global Data Plans

  • Revolut, a British fintech company, has introduced eSIM technology in the UK, making it the first financial institution in the country to offer telecom plans, aimed at eliminating unexpected roaming charges for its users.

  • The service, which includes plans for both basic and Ultra (approximately €45/month) subscription customers, offers up to 3GB of global data usage, catering to the needs of frequent travelers and enhancing Revolut's status as a financial "super app" with diverse services beyond banking.

  • Partnering with UK mobile network operator 1Global, Revolut's eSIM launch addresses the increased cost of mobile data overseas for UK residents post-Brexit and positions the company for long-term profitability by adding a new revenue stream and increasing customer loyalty.

💡 My Insight: Revolut is quickly becoming a financial super app and has recently been pushing hard to capture the high net worth and/or mass affluent customer segment. Their Ultra plan, for 45 € per month, offers a sleek metal card as well as a lots of other benefits (Deliveroo Premium, NordVPN, FT subscription, travel insurance and more). Their eSim offer is just another benefit to add to that list.

In a sea of boring cards and complicated insurance benefits, Revolut has managed to offer benefits that millenials understand (I mean, has anyone ever read the fine print of the insurance benefits on a Visa Premier?). In doing so, Revolut has managed to appeal to wealthy millenials - a segment a lot of banks want to attract. The realease of the eSim is just another way Revolut can attract younger, travel-loving customers.

→ Revolut

🇺🇸 Apple Cash Enhances Flexibility with Virtual Card Number Feature in iOS 17.4 Beta

  • Apple Cash, part of Apple's ecosystem in the United States, is introducing a virtual card number for its users in the iOS 17.4 beta, allowing for online shopping in places where Apple Pay isn't accepted. This update provides a new layer of convenience and security, generating a unique security code for each transaction.

  • The virtual card number can be easily accessed and managed through Safari's Autofill settings, offering users the ability to view the card number, generate new numbers, and access expiration dates and security codes, mirroring the functionality previously exclusive to the Apple Card credit card.

  • This development addresses the limitation of using Apple Cash solely through Apple Pay by enabling purchases on websites that do not support Apple Pay. Approximately 15% of retailers still do not accept Apple Pay, and this feature aims to bridge that gap, expanding the usability of Apple Cash for online transactions. The official release of this feature is anticipated with the public launch of iOS 17.4 in early March.

🇺🇸 PayPal Preps for EU's Digital Markets Act with New Consumer App

  • PayPal, headquartered in the United States, is gearing up to leverage the European Union's Digital Markets Act (DMA), aiming to expand its mobile payment capabilities by incorporating Near Field Communication (NFC) technology, which will allow for more versatile use of its services beyond online transactions.

  • The new legislation will enable third-party apps to access NFC technology, a domain previously dominated by Apple Pay, offering PayPal and its users the potential to choose alternative mobile wallets as their default on Apple devices, significantly enhancing consumer choice and flexibility in the EU.

  • In anticipation of these regulatory changes, PayPal is developing a new consumer app designed to improve its mobile experience, incorporating AI-powered features for personalized services, aiming to strengthen its position in the mobile payments market amidst evolving EU regulations and growing demand for contactless payment options.

🌎 BNPL Giants Affirm and Afterpay Rethink Loyalty Strategies Amid Industry Shifts

  • Affirm, based in the U.S., has ended its rewards program, allowing customers to redeem existing points until April 5, as it seeks to innovate and improve its product offerings, including the exploration of a new rewards experience.

  • Afterpay, another major player in the buy now, pay later (BNPL) space, also terminated its Pulse Rewards program, with plans to launch a brand-new rewards program in 2024, indicating a strategic shift in how loyalty programs are structured within the industry.

  • Amid these changes, competitors like Klarna continue with their rewards initiatives, while the BNPL sector overall is moving towards subscription models, like Afterpay's invite-only card and Klarna Plus, to enhance customer engagement and loyalty, highlighting the evolving dynamics and competitive landscape of the BNPL industry.

→ Pyments

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Have a great rest of your week,