In today’s FinTech news, Euroclear has invested in blockchain payments consortium Fnality, while Recharge.com is expanding its gift card offerings to the land Down Under. Plus, rising interest rates could be a game-changer for traditional financial institutions.
International securities settlement system Euroclear has invested in Fnality, a regulated blockchain payments consortium owned by 16 financial institutions.
Fnality has plans to go live with its first payment 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.
FinTech Recharge.com, a gift card aggregation firm focusing on gaming and entertainment, is expanding its services to Australia. As the buy now, pay later (BNPL) space faces regulatory changes, Recharge.com is growing its reach to offer more people an easy, digital way to connect through entertainment and gaming.
With the increase in interest rates, FinTech newcomers might lose some of their advantages over legacy financial institutions. The Fed boosted the rate by 25 points for the first time since 2018 and is expected to keep increasing those rates over the next few months.
According to data from PYMNTS, 70% of consumers have high trust in their current banks, which could give financial institutions an advantage as they fine-tune digital products.
Frictionless payments FinTech Trust Payments has launched Stor, an eCommerce website for small- to medium-sized businesses (SMBs).
Trust Payments will enable banks, payment companies and other third parties to sell Stor direct to U.S. merchants. The company offers on-demand payments and Banking-as-a-Service to further the expansion of SMBs.
Simplicity is the reason people are driven to bank with FinTechs, and getting rid of friction is something that community banks have to focus on, Arvest Bank’s Chief Operations and Transformation Officer Laura Merling told PYMNTS’ Karen Webster.
Traditional community banks can also glean customer loyalty by leveraging artificial intelligence and advanced tech solutions to anticipate people’s needs.
Canadian payments company Helcium raised $16 million to launch new products to help SMBs adopt the newest technologies for facilitating payments. The fresh funds will also help the startup expand its workforce, and Investors Information Venture Partners and ATG will each gain a board seat.