Today in FinTech: Chime Eyes $40 Billion IPO
In today’s FinTech news, digital banking startup Chime is eyeing an estimated $40 billion valuation as the FinTech gears up for its upcoming stock market debut with Goldman Sachs on its side. Meanwhile, another newcomer to the digital financial services space, Save, is introducing a Visa investment card, and in-person casino players in Nevada can now register for cashless in-person play.
Digital Bank Chime seeks to go public with $40 billion IPO
Chime is among the biggest digital banks, with more than 13 million customers and partnerships with The Bancorp Bank and Stride Bank – so it’s no surprise the startup, founded in 2014, is now gearing up for an initial public offering (IPO).
With an estimated valuation of nearly $40 billion, the challenger bank is partnering with Goldman Sachs to help it prepare for a public offering.
FinTech Save launches the Visa investment card
Savings startup Save is collaborating with Visa to introduce what the company says is the first high-yield credit card. Instead of traditional cashback or points, Save’s Visa credit card offers market returns.
According to Save, the card should have the highest return potential compared to other premium cards, with an average annual return of 6% on all purchases.
The card connects users’ spending habits to investments and stores it all in a personalized wallet. Portfolios should include a mix of investments with managed crypto exposure.
Nevada Greenlights Cashless Check-in, Remote ID Verification
Players in Las Vegas — or any part of Nevada — can now leave their wallets at home if they register remotely for identity registration and in-person cashless gaming. The Nevada Gaming Commission voted unanimously to change the regulations and now allow casinos to offer customers remote identification and mobile funding for in-person gaming.
The gaming commission’s decision was prompted by a petition filed by Sightline Payments. Sightline was approved by the commission in 2013 as a payment processor, as well as a provider of cash access services and wagering instruments.
The Sightline Payments Application Network (SPAN) is the gaming industry’s only processing network, connecting customers, financial institutions, gaming platforms and integrated resort operators, according to the company’s website.
The Finclusion group raises $20 million in financing to develop the African neobank
Finclusion Group has raised $20 million as it continues to expand its digital banking services across Africa. The new capital injection is intended to expand its footprint in Mozambique and Uganda.
The funds will also be used to expand its operations in Eswatini, Kenya, South Africa and Tanzania, and to expand its salary streaming and Buy Now Pay Later (BNPL) product offerings. The startup also strives to develop financial products for people living in remote areas and those in larger cities.
Kakao shares in Korea jump after three executives leave
KakaoPay shares rebounded on Friday (January 21) following the simultaneous resignation of three C-suite executives – chief executive Alex Ryu, chief financial officer Kijoo Chang and chief commercial officer Jin Lee.
A short-lived success in the South Korean stock market, global internet company Kakao has faced several challenges in recent weeks, the most recent blow being the investigation of founder Brian Kim.
Kim owes 886 billion won ($743 million) in taxes resulting from the Kakao and Daum merger in 2014.