Today in FinTech: Euroclear supports Fnality
In today’s FinTech news, Euroclear has invested in blockchain payments consortium Fnality, while Recharge.com is expanding its gift card offerings to the country Down Under. In addition, rising interest rates could be a game-changer for traditional financial institutions.
Euroclear supports Blockchain Payments Fnality Consortium
International securities settlement system Euroclear has invested in Fnality, a regulated blockchain payment consortium owned by 16 financial institutions.
Fnality plans to go live with its first payout currency in October, with pounds sterling deposited at the Bank of England (BoE). In 2021, the BoE decided that account types were needed for new types of payment systems, including those on the blockchain.
Amsterdam FinTech Recharge.com expands to Australia
FinTech Recharge.com, a gaming and entertainment-focused gift card aggregation company, is expanding its services to Australia. As the Buy Now Pay Later (BNPL) space faces regulatory changes, Recharge.com is expanding its reach to provide more people with an easy digital way to connect through entertainment and gaming.
Incumbent Banks Could See Competitive Advantage Over FinTechs Amid Rising Rates
With rising interest rates, FinTech newcomers may lose some of their advantages over traditional financial institutions. The Fed raised the rate by 25 points for the first time since 2018 and is expected to continue raising rates over the coming months.
According to data from PYMNTS, 70% of consumers have a high level of trust in their current banks, which could give financial institutions an edge when tweaking their digital products.
Trust Payments Intros Stor eCommerce Platform for SMEs
FinTech Frictionless Payments Trust Payments has launched Stor, an e-commerce website for small and medium-sized enterprises (SMEs).
Trust Payments will allow banks, payment companies and other third parties to sell Stor directly to US merchants. The company offers on-demand payments and banking as a service to support the expansion of SMEs.
In the digital world, community banks must avoid “rocks in shoes”
Simplicity is why people are driven to do business with FinTechs, and eliminating friction is something community banks need to focus on, said Laura Merling, chief operations and transformation officer at Arvest Bank, to Karen Webster of PYMNTS.
Traditional community banks can also build customer loyalty by leveraging artificial intelligence and advanced technology solutions to anticipate people’s needs.
Helcim raises $16M in Series A to expand payments to small businesses
Canadian payments company Helcium has raised $16 million to launch new products to help SMBs adopt the latest technologies to facilitate payments. The new funds will also help the startup expand its workforce, and Investors Information Venture Partners and ATG will each get a seat on the board.