In today’s top payments news around the world, Italian digital payment firm Nexi has agreed to buy FinTech rival SIA, while Brazilian ride-hailing service 99 will collaborate with Facebook-owned WhatsApp. Plus, global trade finance platform Contour is going into live production.
Nexi has agreed to purchase SIA for approximately 4.6 billion euros ($5.4 billion) in an equity deal to make one of the largest payment providers in Europe. The transaction will form a firm with an overall market cap of approximately 15 billion euros ($17.6 billion) and concludes a month of discussions. Nexi shareholders will own 70 percent of the combined company, as SIA shareholders will hold the remainder with the terms of the arrangement.
Ride-hailing firm 99 will team with Facebook-owned WhatsApp to accept orders on the mobile messaging platform, allowing users to call for vehicles. China-based Didi Chuxing Technology owns 99. The collaboration has rolled out in four cities in the São Paulo state. At first, the rides ordered through WhatsApp will need to be paid via cash, but the app intends to allow for an instant payment system to be utilized in the future.
Contour is entering live production as it links buyers, vendors and banks on a decentralized trade finance technology. Banks and businesses will start utilizing the platform by homing in on the letter of credit (LC) process. The transition into production follows a long period of design, development and experimentation by over 80 firms and financial institutions.
Global business leaders are advocating for urgent action to combat “elevated” downside risks from an international economy that is in its “worst state in a century.” Business 20 (B20) is meeting ahead of the G-20 summit, which is scheduled to take place in Saudi Arabia in November. The organization cautioned that the world's biggest economic leaders will have to take meaningful action at the summit.