Rectangle Health, a leading provider of healthcare financial technology and patient engagement solutions, announced a recapitalization by GI Partners, a leading private investment firm with deep healthcare technology and payments investing experience. GI Partners' investment, in conjunction with existing investor TA Associates, a leading global growth private equity firm, will further accelerate Rectangle Health's growth as the company continues to drive innovative consumer-centric solutions to the healthcare industry. TSG served as payments industry consultant to GI Partners.
Top executives with FIS Inc. spent a good deal of time Thursday morning countering what they said is a “bear case” that has developed among at least some investors and observers of the company. “The bear case is that FIS is standing still and not able to compete. This is clearly not the case,” said chief executive Gary Norcross during a conference call with analysts to discuss the company’s third-quarter performance. Norcross cited positive developments, including the impending conclusion of the massive Worldpay integration that began in 2019 with FIS’s acquisition of the big merchant processor.
“We are pleased to have delivered the strongest performance in our history in the third quarter despite facing incremental challenges from COVID-19 during the period,” said Jeff Sloan, Chief Executive Officer. “Our businesses continued to demonstrate their resilience, and our results highlight our consistent execution across cycles. As we have throughout the pandemic, we benefit from accelerated digitization across our markets. This quarter provided further proof points that our four-pillared strategy drives differentiated growth.”
Moneygram executives on last Friday blamed discounting by rival Western Union at Walmart stores for a drop in its money transfer revenue as it competed with lower pricing. In a call with analysts, executives at Dallas-based Moneygram said about half of the decline in its walk-in revenue during the quarter resulted from the company trying to remain competitive with discounting by Western Union at the stores, especially on certain cross-border services. Western Union rolled out its services at Walmart, including the money transfer, earlier this year, after announcing in May that they would be available at 4,700 Walmart stores.
May require account to read. The payments frenzy is going global, and Africa is catching the bug. So far this year four of the continent’s financial-technology firms have reached or exceeded billion-dollar valuations, more than doubling Africa’s population of “unicorns”. OPay, a mobile-payments company, acquired its horn in August, after raising funding from investors including SoftBank, a Japanese firm. Other recent unicorns include Wave, a Senegal-based startup that runs a mobile-money network; Chipper Cash, which offers peer-to-peer payments; and Flutterwave, which simplifies payments for businesses.
ING is to shut down Payvision, the controversial international card acquirer and payments platform that the Dutch bank acquired in 2018 for €360 million. A competitor to Adyen and Worldline, Payvision has been mired in controversy relating to dubious business practices undertaken prior to its acquisition by ING. Dubbed the "Wirecard of the Netherlands" by the European Funds Recovery Initiative, Payvison been held responsible for processing hundreds of millions of euros in payments that were generated from investment scams.
Swedish investment firm Creades said on Tuesday it had agreed to sell price comparisons company Pricerunner to Swedish payments firm Klarna for 1.06 billion Swedish crowns ($124.36 million). Klarna will pay 40% of the price in cash and the rest with Klarna shares, Creades said in a statement. Klarna, a “buy now, pay later” company expected to make its stock market debut in the coming months, said separately that Pricerunner would bring product reviews, rich product discovery and price comparisons to the Klarna app.
Amid a growing number of banking apps aimed at teens, Square Inc.’s Cash App today is broadening its reach by making its payments app available to younger teens between the ages of 13 and 17. Previously, the app required users to be at least 18 years old, like rival Venmo. The company says younger teens will need to get a parent or guardian to authorize their account, but can then begin to send peer-to-peer payments and take delivery of a customized Cash Card, powered by Visa. The Cash Card, essentially a Visa debit card tied to the teen’s Cash App account, can be personalized using the Cash App mobile app.
Facebook has found a way to skirt Apple’s 30 percent tax on in-app transactions. On Wednesday, Mark Zuckerberg, the CEO of Facebook parent company Meta, announced that creators will soon be able to share custom web links directing their fans to pay them for subscriptions using Facebook’s native payments system. If a fan signs up through the link rather than Apple’s in-app subscription, the creator will keep all of the money minus taxes.
Ant Group-backed fintech firm Paytm said it has allocated shares worth 82.35 billion rupees ($1.11 billion) to more than 100 institutional investors, including the government of Singapore, ahead of what is expected to be India's largest stock market listing. Paytm's offer of up to 183 billion rupees, which was increased last month from 166 billion rupees, garnered interest from 122 institutional investors who bought more than 38.3 million shares for 2,150 rupees apiece, according to a regulatory document dated Nov. 3.
The anonymous hucksters behind a Squid Game cryptocurrency have officially pulled the rug on the project, making off with an estimated $3.38 million. It was only obvious because investors could purchase the crypto but couldn’t sell it. But plenty of people didn’t get the warning in time. The SQUID cryptocurrency peaked at a price of $2,861 before plummeting to $0 around 5:40 a.m. ET., according to the website CoinMarketCap. This kind of theft, commonly called a “rug pull” by crypto investors, happens when the creators of the crypto quickly cash out their coins for real money, draining the liquidity pool from the exchange.
Burger King has partnered with Robinhood to give away Bitcoin, Ethereum, and Dogecoin to members of its Royal Perks loyalty program when they spend $5 on the restaurant’s app. Most people, not surprisingly, will receive DOGE. Burger King says the prize pool will consist of 2 million Dogecoin, 200 Ether, and 20 Bitcoin. That puts the odds of receiving a Bitcoin at about one in 100,000. Still, the chance to hop on the crypto express simply by grabbing a combo meal could be highly alluring for some.
Livestream shopping—wait! You’ve read a million articles on the next big thing in social commerce. Still in its infancy in America, livestream shopping is already making retailers and social media companies rethink their digital-shopping strategies. Facebook has its live shopping event series (which it extended for the holidays). Even Albertsons partnered with a short-form video platform. But why hasn’t livestream shopping, expected to be an $11 billion industry by the end of 2021, taken off in the US the way it has in China?
Customers can pay bills or fund accounts in the InComm Payments VanillaDirect network, which includes more than 15,000 billers and account providers across a variety of sectors, such as utility, telecommunication, tolling, banking, rental companies and insurance providers. The services are available at all 4,700 Walmart locations at customer service desks or Walmart Money Centers. Customers scan a barcode tied to their account, via a paper copy or digitally on mobile devices, to complete their payment with cash. Funds are then transferred electronically through a single consolidated settlement.
The Cincinnati-based grocer did not say how many stores or which locations will have the branded shop-in-shop experience. Meanwhile, the online collaboration will be enabled by the grocer's Ship marketplace. Kroger is looking for ways to build out its assortment online as more shoppers turn to the channel for groceries, home goods and more. Last year, it launched its online marketplace focusing on specialty and international products. Combining food with baby furniture offers a way to further connect with shoppers at milestone moments.
The US Treasury Department is urging Congress to pass legislation that would require stablecoins to be issued by banks subject to federal banking laws in a new report from the President’s Working Group on Financial Markets, a panel headed by Treasury Secretary Janet Yellen. The report recommends legislation that would guard against stablecoin runs, address concerns about payment system risk, and address additional concerns about systemic risk and economic concentration of power.
While Tesla invested $1.5 billion in bitcoin, Gary Gensler, the chairman of the U.S. Securities and Exchange Commission, called the cryptocurrency space the “Wild West.” Meanwhile, in China, the government created its own digital currency while abruptly canceling the IPO of its most well-known fintech firm, AliPay, for regulatory reasons. It’s enough to give the casual observer whiplash. What is happening here?
Ransomware continues to be many criminals' weapon of choice for reliably shaking down victims small, medium and large, in pursuit of a safe, easy and reliable payday. But the ransomware landscape itself continues to evolve in numerous ways. For example, the arrival of new players remains constant, while big names occasionally bow out. Some gangs run complex ransomware-as-a-service operations, tapping specialists in network penetration, negotiations, malware development and more.
Private sector job creation popped higher in October thanks to a burst in hiring in the hospitality sector, payroll processing firm ADP reported Wednesday. Companies added 571,000 for the month, beating the 395,000 Dow Jones estimate and just ahead of September’s downwardly revised 523,000. It was the best month for jobs since June. Leisure and hospitality, a category that includes bars, restaurants, hotels and the like, saw a gain of 185,000 for a sector that remains well below its pre-pandemic employment level.
A measure of U.S. services industry activity surged to a record high in October likely as declining COVID-19 cases boosted demand, but businesses remained burdened by snarled supply chains and the resulting exorbitant prices. The Institute for Supply Management said on Wednesday its non-manufacturing activity index vaulted to a reading of 66.7 last month. That was the highest since the series started in 1997 and followed a 61.9 reading in September. A reading above 50 indicates growth in the services sector, which accounts for more than two-thirds of U.S. economic activity.
The Federal Reserve concluded a pivotal meeting of its rate-setting body today with a commitment to leave interest rates near zero along with an announcement that later this month, it will start unwinding one one of its biggest and most unprecedented market interventions undertaken in the wake of the pandemic. Wall Street had been awaiting Fed Chairman Jerome Powell’s remarks about the stubbornly persistent inflation that is beginning to create interest rate anxiety on Wall Street.
GoDaddy reported better-than-expected third quarter results with strong revenue growth across its domains and business applications units. The company reported third quarter earnings of $97.7 million, or 58 cents a share, on revenue of $964 million, up 14% from a year ago. Wall Street was expecting GoDaddy to report third quarter revenue of $945.6 million with earnings of 40 cents a share.
"Lightspeed's powerful commerce platform has helped our customers to not only survive the worst of the pandemic but thrive in the recovery." said Dax Dasilva, Founder and CEO of Lightspeed. "With the addition of Ecwid and NuORDER, Lightspeed will continue to deploy revolutionary technology that will allow our customers to meet the future with greater insights, control and confidence than they have ever had in the past."
EVO Payments, Inc. announced its third quarter 2021 financial results. For the quarter ended September 30, 2021, reported revenue was $135.0 million compared to $117.0 million in the prior year, an increase of 15%. On a currency neutral basis, revenue for the quarter increased 14%. On a GAAP basis for the quarter, net income was $7.1 million compared to $14.6 million in the prior year, which includes a $1.3 million loss and $15.8 million gain on investment in equity securities, respectively. Adjusted EBITDA increased 27% to $51.4 million for the quarter, and on a currency neutral basis, adjusted EBITDA increased 25%.
Boost Payment Solutions, Inc., the leader in optimizing the use and acceptance of commercial cards, announced a strategic global partnership with Mastercard to create tailored and scalable strategies to accelerate and expand the use of commercial card products. The partnership’s initial focus will be seven key markets – the United States, Canada, Mexico, Brazil, Western Europe, United Kingdom and Australia.
As the airline industry works to bring customers back on board, it is simultaneously challenged with protecting passengers, brand and revenue. To expedite takeoff, Visa’s global payment and fraud management platform, Cybersource, announced it has joined the International Air Transport Association (IATA) Financial Gateway to help airlines streamline commerce and payment efficiencies, manage fraud, maximize revenue and innovate at a faster pace. As part of IATA’s Financial Gateway (IFG), Cybersource’s global capabilities are now available as a pre-integrated, secured digital acceptance tool to IATA’s 290+ airline members.
Paysafe, a leading specialized payments platform, announces the latest milestone in its strategy to become a fully cloud-based payments provider with the migration of its digital wallets, Skrill and NETELLER, and all associated business services to Amazon Web Services (AWS). The completion of the Digital Wallets cloud migration is part of a global multi-year agreement with AWS that supports Paysafe’s cloud strategy.
ACI Worldwide, a leading global provider of real-time digital payment software and solutions, today announced a partnership with Affirm, the payment network that empowers consumers and helps merchants drive growth. U.S. merchants using ACI Secure eCommerce can now seamlessly offer consumers the ability to make purchases with Affirm and pay-over-time without any late or hidden fees.
FinTech Cross River Bank has acquired 4-year-old software-as-a-service (SaaS) provider Betterfin, a company focused on helping small businesses manage their cash flow and offer insights on financing and credit, according to a Tuesday (Nov. 2) press release. Financial details of the acquisition were not disclosed. The acquisition supports Cross River’s technology foundation and bolsters lending-as-a-service offerings for small businesses and technology partners, according to the announcement.
LegalZoom.com, Inc., a leading online platform for legal, compliance and tax solutions, has partnered with Square to provide small business owners across industries best-in-class POS payment software and versatile operations management tools to support the growth of their business. This partnership will allow LegalZoom customers to access and receive preferential pricing on offerings available with Square the moment they form their business. Square helps businesses of all types and sizes reach buyers online and in person, manage their business, and access financing.
Togetherwork, the leader in integrated software and payments for managing communities, groups, and organizations, is excited to announce the acquisition of Protech Associates. As the leading provider of Association Software built for the Microsoft Dynamics 365 + platform, Protech has a history of deep customer relationships and strong growth. With the addition of Protech, Togetherwork is boosting its commitment to the association industry and significantly growing its presence in the market.
“Signage has long been an important tool for American Express; it’s the familiar blue and white square logo on merchant’s doors or website that signals American Express Cards are warmly welcomed,” said Mary Ellen Jelenek, Senior Vice President, Global Merchant Marketing and Analytics at American Express. “We know from marketing data that many of our merchants want these materials for their business. This new signage helps signal welcomed acceptance of American Express, as well as welcomed acceptance of all customers."
As world leaders come together for the UN Climate Change Conference (COP26), Mastercard unveiled an acceleration of its net zero timeline by a decade, from 2050 to 2040. It is also scaling its sustainable solutions to customers across Europe and Latin America, including Banco de Costa Rica, ekko, Gránit Bank, and Sberbank, which have all signed on to adopt the Mastercard Carbon Calculator.
EPSG, a leading integrator of payment technology solutions, announced that it has been awarded a multi-year merchant services contract, supporting seven Bobby Van’s steakhouse locations. In 1996, Bobby Van opened his original location in Bridgehampton, NY. Since then, the company has grown to a total of seven locations throughout New York City, Washington, D.C., and Philadelphia, and has become synonymous with the best steakhouse in each region.
Simpay, a full-service payment, payroll, and POS provider, is continuing to transform their executive leadership team with the announcement Robert Heinrich will head up Simpay’s Product Strategy channel. In his role, Heinrich will focus on a 360 degree approach to Product Strategy, implementing product suites across the company. “With more than twenty years in the industry, Robert is the obvious fit for this role”, said Lazaros Kalemis, Simpay’s Founder and CEO.
