In today’s FinTech news, Stellar is using its seed to grow its credit access platform for people in the U.S. with no or bad credit, while Moove is using its Series A to bring car financing to mobility entrepreneurs with poor access to credit. Plus, Giift acquires a majority stake in Xoxoday to offer a full range of services along the loyalty value chain.
Austin, Texas-based FinTech startup Stellar closed an oversubscribed $7 million seed round to further develop its suite of comprehensive money management tools and financial literacy resources in addition to credit access that will be targeted to Americans with poor or no credit.
The app-based, digital-only tool is anticipated to launch in May.
Moove is using an infusion of capital to bring its vehicle financing platform for mobility entrepreneurs into seven new markets across Asia and the Middle East/North Africa (MENA) region.
Moove offers revenue-based financing to those with lower levels of credit access. The startup’s alternative credit scoring technology extends vehicle financing to customers using a percentage of their weekly revenue.
Loyalty management company Giift has purchased a majority stake in Xoxoday, a Software-as-a-Service rewards firm.
Xoxoday’s solutions enable businesses to automate rewards and pay disbursements. The companies together encompass the loyalty value chain, expanding both firms’ offerings and leading to expansion.
Paytm Payments Banks is barred from opening new customer accounts until the Reserve Bank of India is through with an audit of the FinTech’s IT records, Bloomberg recently reported, citing an unnamed source.
The audit was reportedly prompted over allegations that Paytm’s digital payments division was sharing data with Chinese companies, according to sources.
Brian Kim, the founder of South Korean FinTech and social media giant Kakao Group, has exited the company’s board of directors to instead focus his attention on the global development of the firm’s affiliates’ operations.
The move follows the stepping down of KakaoPay’s CEO and two other executives amid criticism of their exercising of stock options soon after the firm went public in November 2021.
Ingo Money CEO Drew Edwards told PYMNTS’ Karen Webster that for FinTechs, banks and other enterprises setting out to enable money mobility, the direction depends on a lot of variables.
There are proprietary settlement integrations, shifting network rules, redundancies and exceptions to consider. It’s also easy to misunderstand the ongoing maintenance and operation of multiple rails.