Mahi Sall, Advisor, Fintech-Bank Partnerships, Payments and Financial Inclusivity
January 25th, 2023
Mahi Sall is the CEO & Founder of FinXpair, a Berlin-based strategic advisory boutique firm focu[...]
Category Archives: Payments, Transfers, Rewards
ZayZoon raises $34.5M in Series B, Championing EWA for SMBs
Funding | Sep 29, 2023
Image: Unsplash/Fabian Blank
ZayZoon, a prominent Earned Wage Access scale-up for small and mid-sized businesses, and founded in Calgary, recently announced that they raised $34.5 million in debt and equity during its Series B financing round.
- Investors include Framework Venture Partners who led this round, with notable co-investment from Export Development Canada (EDC) and participation from ATB Financial and existing shareholders.
- ZayZoon is a financial empowerment platform specifically designed for small and mid-sized businesses. The company's primary mission is to provide employees with the ability to access their earned wages before the traditional payday, a service known as Earned Wage Access (EWA). This innovative approach aims to alleviate financial stress and break the paycheck-to-paycheck cycle that many individuals face.
- Catering to the varied needs of its users, ZayZoon offers multiple payout options, including bank deposits, debit cards, and fee-free alternatives like Instant Gift Cards and Gas Cards
See: Redefining Payday: Earned Wage Access (EWA) Insights from Harvard Study
- ZayZoon emphasizes seamless integration with existing payroll and HR infrastructures. In 2023, the company was notably recognized as an ADP and PrismHR Marketplace Partner of the Year.
- Their trajectory is nothing short of remarkable, boasting a 400% increase in payouts year-over-year. Their expanding clientele includes household names such as Dunkin’, McDonald’s, and Amazon Warehouses. This growth underscores the rising demand for EWA and employee engagement platforms, particularly among the SMB sector.
Darcy Tuer, Co-Founder and CEO of ZayZoon
This financing will fuel our mission in being a true partner in financial health and workplace engagement to small and midsize businesses. Not only does ZayZoon act as a substantial competitive advantage for the business, but it helps the millions of Americans living paycheck to paycheck get by between paydays and plan for the future.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Bank of Canada Seeks Your Input on Transaction Reports
BoC | Sep 28, 2023
Image: WikiCommons Media/Bank of Canada
The Bank of Canada has extended an invitation to members of the Retail Payment Advisory Committee (RPAC) and the broader payment service provider (PSP) community to share feedback on its supervisory approach to transaction reporting.
The Bank is keen on understanding the current practices of payment service providers (PSPs) and aims to develop an effective strategy for transaction reporting. This initiative is not limited to RPAC members alone; the Bank is actively seeking diverse opinions from the entire PSP industry.
See: Citi’s Top 10 Insights on Cross-Border Payments 2023
By sharing your feedback, you will help the Bank gain insights into the current practices of PSPs and also contribute to the development of a robust transaction reporting approach.
Survey
The Bank has launched a survey to better understand the information needs of PSPs. This will aid PSPs in understanding the Bank's expectations and preparing for upcoming retail payment supervision. The results of this survey will shape the Bank's communication strategy, ensuring PSPs are well-informed and ready to comply with forthcoming legislation. The survey is entirely voluntary, and the Bank guarantees that no personally identifiable information will be collected or shared. You can complete the survey here.
Registration Pilot for Retail Payment Activities Act
The Bank is gearing up for the enforcement of the registration requirement under the Retail Payment Activities Act, expected in the latter half of 2024. To ensure a smooth and efficient registration process, the Bank is launching a pilot program. They are seeking volunteers, both individuals and entities subject to the Act, to test the registration process. Information about this pilot will be shared by December 2023, with the pilot tentatively set to commence in April 2024. Interested parties can sign up using the online form.
Thanks For Your Feedback
NCFA Canada encourages all its members and stakeholders to actively participate in this feedback process. Your expertise and insights will play a crucial role in shaping the future of transaction reporting in Canada. Let's collaborate and ensure that the industry's voice is heard.
See: Top 20 Fintech Blogs in Canada
For those wishing to share their feedback directly with the Bank of Canada, you can email your thoughts here by October 16, 2023.
Thank you for your continued commitment to advancing the fintech and alternative finance sectors in Canada.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Jack Dorsey Returns as ‘Square Head’, Announces Cannabis Partnership
Payments | Sep 27, 2023
Image: Unsplash/Blake Wisz
Jack Dorsey returns to lead Square as it strategically dives into the Canadian cannabis market through a partnership with Jane Technologies, signaling a bold new direction for the fintech giant.
In recent developments, Jack Dorsey, the co-founder of Twitter (now known as X) and the mind behind fintech giant Block Inc, is making headlines once again. This time, it's not just about his leadership changes at Square but also about Square's strategic move into the Canadian cannabis market.
Jack Dorsey Returns to Square
Jack Dorsey, who co-founded fintech company Block in 2009, is set to lead Square once more. As CEO Alyssa Henry prepares to step down on October 2nd after a commendable nine-year tenure, Dorsey will take over her role.
Interestingly, Dorsey will be titled as "Square Head", aligning with his current title of "Block Head" at Block Inc.
During her time as CEO, Alyssa Henry played a pivotal role in transforming Square into a software-led technology company. Under her leadership, the company navigated the challenges of global pandemic lockdowns and expanded its services for small businesses globally.
See: Jack Dorsey Announces Launching Bluesky, Decentralized Social Platform, Closed Beta Soon
Square, which was initially known for its payment services, has evolved to assist businesses with online and point-of-sale payments, wage, scheduling, inventory management, and other financial solutions.
In 2021, Square rebranded itself as Block, reflecting the company's broader vision beyond just payment solutions.
Square's Foray into the Canadian Cannabis Market
Square, a unit of Block Inc, announced its entry into the Canadian cannabis market through a strategic partnership with e-commerce platform Jane Technologies.
This move will see the launch of an early access program in Ontario, allowing licensed dispensaries to test Square's retail point-of-sale offerings. Businesses that opt for Square's payment systems in their physical stores will also have the advantage of leveraging Jane's platform for online sales.
It's worth noting that Jane Technologies had previously entered the Canadian market in 2021 by partnering with the pot firm High Tide.
See: Autonomous IoT Transactions and Micropayments
Roshan Jhunja, the head of retail at Square, emphasized the company's approach of focusing on one province initially to ensure stability before expanding further. The Canadian cannabis industry, despite witnessing robust growth post its legalization in 2018, faces stiff competition from cheaper, illegally sourced marijuana.
The collaboration between Square and Jane Technologies aims to offer sellers a platform that rivals the accessibility of the illicit market. Jane's CEO, Socrates Rosenfeld, envisions this partnership expanding beyond Canadian borders when regulations permit.
Recently, U.S. health authorities suggested relaxing marijuana constraints, marking the initial move toward broader legalization in one of the world's largest cannabis arenas.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Citi’s Top 10 Insights on Cross-Border Payments 2023
Report Insights | Sep 26, 2023
Dive into Citi's illuminating insights on the transformative landscape of cross-border payments for 2023
Based on the Citi's latest "Global Perspectives & Solutions: Future of Cross-Border Payments" report September 2023, here are 10 of the most insightful thought leadership points, statistics, or facts and figures that would be of interest to fintechs and banks.
The report is the culmination of insights gathered from prominent market infrastructure specialists both inside and outside of Citi, as well as from FinTechs and a broad spectrum of banks spread across four continents. Additionally, it encapsulates the primary discoveries from an exclusive survey conducted among over 100 financial institutions affiliated with Citi.
See: Understanding the Impact of Blockchain on Banking: Cross-Border Payments
1. Cross-Border Payments Inflection Point
- The world of cross-border payments is at a pivotal moment. As new competition and technologies emerge, there will be winners and losers.
- All players must adapt to maintain and grow their market share.
2. $250 Trillion Opportunity
- The value of cross-border payments is projected to reach $250 trillion by 2027.
- This massive growth presents a significant opportunity for both traditional banks and fintechs.
3. Market Share Shift to Fintechs
- Over 40% of banks have already lost at least 5% of their market share to fintechs.
- Additionally, 89% of banks anticipate losing at least another 5% of their share to fintechs in the next 5-10 years.
4. Consumer Expectations
- In domestic transactions, consumers now expect payments to be instant and fully traceable.
- These expectations are transitioning to the more complex cross-border space, leading to a "consumerization" of corporate expectations.
5. APIs as Key Enablers
- 83% of banks recognize application programming interfaces (APIs) as the primary technology to enhance the client experience. APIs allow banks to expand their networks through partnerships and elevate their capabilities.
See: Luge Capital Secures $71M in Second Fund’s First Close
6. Globalization and Cross-Border Payments
- Globalization, driven by the flow of goods, people, ideas, and capital, underpins the growth in cross-border payments revenues.
- These revenues have rebounded post-pandemic and are forecasted to grow at mid- to high-single digits over the next five years.
7. B2B Dominance and C2B Growth
- While B2B payments continue to dominate in size, the fastest growth area is expected in consumer-to-business (C2B) payment flows, driven by e-commerce and other innovations.
8. Digital Assets and AI
- Digital assets are emerging with interesting use cases, such as smart contracts and real-time liquidity.
- Additionally, artificial intelligence (AI) has captured significant attention in 2023 and could act as a catalyst for change in the payments market.
9. Client Experience Focus
- Over 50% of banks see the need to revamp their front ends to improve the client experience.
- Over 60% of respondents believe there's a need to upgrade their core infrastructure.
See: Lending Loop Launches ‘Loop Card’ for Small Business Cross-border Transactions
10. Changing Nature of Trade
- Trade in merchandise and services across borders has rebounded post-financial crisis. The value of exports amounted to almost 25% of global GDP in 2022, up from 23% in 2019.
- The mix of trade is also evolving, with increasing cross-border data and IP flows.
Image: Citi Cross-Border Payments Sep 2023 Report
Download the Report
The report contains statistics and insights from key stakeholders, and recognizes both the pain points that both banks and fintechs must overcome to compete for market share along with key areas of focus to win including delivering 'best in class' client experiences with unprecedented speed, transparency, and low cost.
The future of cross-border payments is undergoing a tectonic shift as stakeholders jostle for a piece of a projected $250 trillion market by 2027. Download the full 120 page PDF report here.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Bank Consortium to Launch “Paze” to Challenge Big Tech’s Fintech Dominance
Mobile Wallet | Sep 20, 2023
Image: Paze website
Major American banks like JPMorgan Chase, Bank of America, and Wells Fargo are gearing up to launch "Paze", a mobile wallet that will connect directly to the credit and debit card accounts of 150 million customers.
The rise of mobile wallets and digital payment solutions by tech companies has been meteoric. Apple Pay, for instance, has seen its user base grow from 60 million to over 500 million in just five years. Such numbers are not just impressive; they're a clarion call for banks to innovate or risk being sidelined.
See: Bank CEOs Defend P2P Payments Network Zelle in Senate Hearing Over Consumer Fraud Handling
As banks are increasingly leaning towards partnerships with fintechs, there are rising concerns from regulators. They are wary of the potential risks these collaborations might introduce, especially in terms of customer data and security.
Paze - Collaboration Over Competition
Paze is not just another mobile wallet. It's a strategic initiative by giants such as JPMorgan Chase, Bank of America, and Wells Fargo. Designed to connect directly to the credit and debit card accounts of a whopping 150 million customers, Paze aims to be the go-to mobile wallet for the masses.
The launch of Paze highlights a significant shift in the banking industry's approach. Gone are the days when banks believed they could individually take on Big Tech and emerging fintech startups. The focus now is on partnerships and collaborations.
Operated by Early Warning Services, the same consortium group behind the successful payments app Zelle, Paze is a testament to the collaborative spirit of traditional banks. It signifies a shift in strategy, where banks are pooling resources to defend their turf against the encroaching Big Tech.
Early Warning announced the recruitment of Cameron Fowler, a top executive from the Canadian bank BMO Financial Group, as its next chief executive. Fowler is expected to join the company in October.
Challenges Ahead
While the optimism around Paze is palpable, the road ahead is not without challenges. The consortium will need to navigate these regulatory waters carefully, ensuring that Paze is not just innovative but also secure and compliant.
See: Will Top of Digital Wallets Threaten Traditional Credit Card Markets?
For Paze to be a game-changer, it needs to offer direct connectivity to customers' bank accounts. This direct connection could give Paze an edge over competitors like Apple Pay, which doesn't hold any funds. However, details about the full functionality of Paze or whether users will be able to access their account information through the app are not yet disclosed.
The mobile wallet space is becoming increasingly competitive, and while Paze is a significant initiative by major banks, it will face competition from several other payment innovations such as:
- Apple Pay Later: In March, Apple announced a new "buy now, pay later" product called Apple Pay Later. Unlike traditional financing, Apple plans to fund this service with its own money rather than using bank financing.
- Elon Musk’s X (formerly known as Twitter): This platform aims to offer banking services to its vast user base, further intensifying the competition.
- Venmo: Owned by PayPal since 2013, Venmo is a popular peer-to-peer payment app. While its payment volume is smaller compared to Zelle, its brand recognition and user-friendly features make it a notable competitor.
- Government Initiatives: Governments worldwide are also looking into creating their own digital payment solutions. Such as FedNow in the US and the Central Bank Digital Currencies (CBDCs) are being explored by various countries as a way to modernize the financial system and provide a state-backed digital currency.
- Other Big Tech Initiatives: Other tech giants like Google with Google Pay and Facebook with Facebook Pay are also making strides in the digital payment landscape.
- International: Globally, there are significant players like Alipay and WeChat Pay in China (enables foreign users), which dominate the mobile payment landscape in their regions.
Looking Ahead
The fintech landscape is undergoing rapid transformation, with both traditional banks and tech giants vying for dominance. As Paze emerges as a collaborative effort by major banks to reclaim their space, it signifies a broader trend of strategic alliances in the face of Big Tech's encroachment.
See: [Brookings Event, Oct 6, 2023]: Payments in America for a Digital Century
However, with continuous innovations, regulatory challenges, and evolving consumer preferences, the future of digital payments remains dynamic and unpredictable. Institutions that prioritize adaptability, user-centricity, and cross-industry collaborations will likely lead the next wave of fintech evolution.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Swift and Wise Announce Strategic Collaboration at Sibos 2023 in Toronto
Payments | Sep 20, 2023
Image: Unsplash/Museums Victoria
At the 2023 Sibos conference held in Toronto, Swift and Wise announced a strategic partnership aiming to enhance the global cross-border payment options available to financial institutions and their end customers.
Enhanced Cross-Border Payments
The partnership will allow financial institutions to route Swift payment messages directly to the Wise platform via Wise's Correspondent Services Solution. This integration ensures that Swift customers can leverage the benefits of Wise without undergoing major system overhauls.
Wise will utilize Swift's advanced features, including cloud and API connectivity and Payment Pre-validation.
The hallmark features of Swift GPI, such as the payment status tracker, will be updated by the Wise Platform to ensure a comprehensive end-to-end view across both networks.
See: Swift’s Blockchain Breakthrough Boosts Global Tokenization
Steve Naudé, Managing Director of Wise Platform:
We know that banks face a number of challenges when it comes to enhancing their international payments, including that this often requires them to embed technology which is incompatible with legacy infrastructure. By simultaneously leveraging existing payments architecture and optimising payouts using Wise's global network, we are empowering banks to innovate effortlessly. Our network, combined with Swift’s extensive reach and trackability, will make international payments more convenient, faster and lower cost for banks, without necessitating a major tech build.
Thierry Chilosi, Chief Strategy Officer at Swift, highlighted Swift's role as a trusted global connector. He believes that collaborations like the one with Wise are pivotal in innovating cross-border payments and expanding the options available to customers worldwide. Such cooperative efforts align with the G20 targets for cross-border payments and aim to ensure the seamless, efficient, and secure movement of value in a fragmented global landscape.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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[Brookings Event, Oct 6, 2023]: Payments in America for a Digital Century
Brookings | Sep 20, 2023
![Unsplash Igal Ness money - [Brookings Event, Oct 6, 2023]: Payments in America for a Digital Century](https://ncfacanada.org/wp-content/uploads/2023/09/Unsplash-Igal-Ness-money.jpg "[Brookings Event, Oct 6, 2023]: Payments in America for a Digital Century")
Image: Unsplash/Igal Ness
Event Overview
Date & Time: October 6, 2023, from 9:00 am to 1:00 pm EDT.
Location (In-person or Online): The Brookings Institution, Falk Auditorium, 1775 Massachusetts Ave NW, Washington, D.C. 20036.
Overview: America was once a leader in the adoption of new payment technologies, introducing innovations like credit cards and ATMs. However, in recent times, the country has fallen behind in terms of payment infrastructure. The current system is slow and often imposes costs on users.
See: Payments Canada Delays Launch of Real-Time Rails Again (without a timeline)
With the rise of digitization and technological advancements, there's a significant opportunity to reform the payment system to benefit the economy, promote financial access, and facilitate commerce and trade. However, these innovations also bring regulatory challenges and questions about the role of government and central banks. The event will delve into the current state of U.S. payments and emerging digital asset technologies that could disrupt them. The event is a collaboration between Brookings, Cornell Law, and Vanderbilt Law.
Discussion topics topics include public and private real-time payment systems (FedNow and Real-Time Payments), cryptocurrencies, stablecoins, central bank digital currencies, and more.
See: Could FedNow Outperform Virtually All Existing Cryptocurrency Projects?
Sample Speakers:
Rohit Chopra: Director of the Consumer Financial Protection Bureau.
Christopher J. Waller: Federal Reserve Governor.
Register --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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