The FinTech IPO index was down 5.5% after earnings roll out in the third quarter
Even some double-digit gains in some of our distressed companies weren’t enough to keep the FinTech IPO index in positive territory this week.
The overall index fell 5.5% over the past five sessions and is now 46.6% lower for the year.
Admittedly, there was a lack of company-specific news this week. But earnings season is in full swing, and it should provide clues about consumer spending — and continued demand, if any, for buy-now-pay-later (BNPL) lending to embedded payments to digital banking integration and all points in between.
Notable winners
9F Group was up 56.3%. It has become routine to see this name swing wildly, and it still remains to navigate the 180-day period to come back into compliance with Nasdaq’s listing rules.
Personal loan and auto refinance company Payoneer rallied 7.5%, continuing to make headway on news that, starting this week, the company’s stock would be listed among firms traded in the S&P SmallCap 600.
Those gains were more than offset by slippages seen by names including KE Holdings, which plunged 21.4%. Concerns over housing transactions (and the services that will accompany those transactions) in general and China’s economy in particular may have done much to turn investor sentiment negative this week.
Notable losers
Bill.com fell 18 percent. the company has changed its name to BILL and is in the middle of a rebranding.
Brazilian FinTech Nubank fell more than 17% in recent days. Brazil’s central bank (BCB) is set to cap interchange fees for prepaid cards starting in April 2023, and it will also standardize the settlement period for debit and prepaid card transactions. The limit will be 0.7% for interchange fees for prepaid cards.
BCB said the changes are expected to “increase the efficiency of the payment ecosystem, encourage the use of cheaper payment instruments, enabling the reduction of costs for stores to accept these cards.” Nubank’s income contribution from exchange was 7% of the consolidated top line.
OneConnect Financial Technology fell 14%. This past week, the company unveiled OneConnect Smart Technology in the United Arab Emirates (UAE) at the Abu Dhabi Global Market.
Nuvei gave up 11%. Italian iGaming operator Lottomatica is re-platforming its digital services and partnering with payment technology firm Nuvei to deliver faster payouts to users. The new offers allow Lottomatica to offer extended payment and withdrawal options. According to the joint announcement between the companies, Nuvei uses smart transaction routing to reduce costs and increase the acceptance rate for cards.
