Top five stories of the week – August 5, 2022
Here’s our pick of five of the best news stories from the world of finance and technology this week.
Italian paytech Nexi collaborates with Microsoft to develop digital payment solutions
Nexi uses Microsoft for its Azure Cloud services
Italian paytech Nexi has partnered with Microsoft to develop cloud and digital payment solutions for European software providers, financial institutions, SMEs and other public organizations.
Nexi has tapped the tech giant for its Azure Cloud services as the payment technology looks to consolidate its data centers across Europe and further digitize its platforms and solutions.
The strategic partnership will see the pair work together to “digitize the European payments space”, developing unified digital upgrade packages for SMEs, scalable cloud infrastructure for public entities and optimized payment solutions for businesses.
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Rêv buys Global Payments’ card business Netspend in a $1 billion deal
Texas-based fintech Rêv Worldwide, in partnership with funds advised by Searchlight Capital, is to buy the Netspend consumer business from Global Payments in an all-cash transaction valued at $1 billion.
Founded by Rêv founders Roy and Bertrand Sosa in 1999, Netspend is a provider of payment and financial solutions for consumers and businesses.
The company operates prepaid and debit cards, serves millions of customers across the United States and processes hundreds of billions of dollars in purchases.
The Sosa brothers intend to combine the strengths of both firms to deliver “financial empowerment and product innovation”.
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Robinhood to cut 23% of employees, crypto entity fined $30 million
Robinhood Cuts 23% of Staff, Crypto Entity Gets Fined $30M
Stock trading app Robinhood is set to cut nearly a quarter of its staff while the crypto arm has been fined $30 million by New York’s Department of Financial Services (DFS) for “significant anti-money laundering, cybersecurity and consumer protection violations.”
The decision to shed 23% of its workforce follows a “broader reorganization of the company into a general management structure,” says Robinhood CEO Vlad Tenev.
The news follows an earlier round of layoffs in April, where the company cut 9% of full-time employees. These cuts “didn’t go far enough”, says Tenev now.
In another headache for Robinhood, the crypto division has been fined $30 million by the New York State Department of Financial Services.
The agency alleges that Robinhood failed to maintain effective and compliant Bank Secrecy Act (BSA), AML and cybersecurity programs and violated consumer and reporting requirements.
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American Express launches cross-border payment solution for US SMEs
American Express is launching a new digital solution called Global Pay that will enable US businesses to make domestic and international B2B payments.
The firm says that through the Global Pay platform, businesses can send payments from their business bank accounts to their suppliers in more than 40 countries in multiple currencies. Customers can also earn Membership Rewards points on their currency payments.
Dean Henry, executive vice president of global commercial services at American Express, says the firm built Global Pay to enable businesses to “easily and efficiently manage their B2B payments globally on a secure platform”.
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Dubai BNPL firm Tabby secures $150m debt financing
Tabby raises $150 million in debt financing
Dubai-based paytech Tabby has secured $150 million in debt financing from Atalaya Capital Management and existing investor Partners for Growth.
The new debt commitment follows Tabby’s $54 million Series B expansion in March of this year.
Tabby says the investment “fortifies” its balance sheet and supports its continued growth in transaction volumes and product expansion.
It adds that it will continue to provide consumers in the Middle East and North Africa (MENA) with access to credit “not otherwise available to them”, without charging interest or other fees.
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