Today in FinTech: Bank of America Invests in UK FinTech to Tackle Card Processing Fees

Today in Fintech

In today’s FinTech news, banks and FinTechs are finding more ways to coexist and complement one another’s skills, with Bank of America investing $20 million in the U.K. FinTech Banked to bring more customers a Pay by Bank solution, eliminating card processing fees for merchants.

Spain’s BBVA bank is traveling further along its digital path by upping its stake in the online-only Brazilian bank Neon with a $300 million (€263 million) investment. Meanwhile, the Synctera platform is bringing together Linage Bank in Tennessee and the FinTech health tech app GoGetr.

Additionally, FinTech and embedded payments team up with the acquisition of Payrix by FIS, with a goal of expanding eCommerce solutions for merchants through embedded payments via Software-as-a-Service (SaaS).

Bank of America Backs UK FinTech Banked to Deliver Pay by Bank Solution

Bank of America, the second largest bank by assets in the U.S., invested $20 million in the London FinTech startup Banked to expand the use of Pay by Bank. Instead of using a credit or debit card processed by Mastercard or Visa, Pay by Bank offers eCommerce customers and merchants the option of having funds withdrawn directly from a person’s bank account.

The service helps solve a heated issue in the U.K. over processing and interchange fees paid by merchants to card processors, which often times get passed along to shoppers in part or in full via higher prices.

Synctera Launches Community Bank-FinTech Partnership

Synctera announced a partnership between community bank Lineage Bank and FinTech GoGetr on Monday (Feb. 14), which will operate across Synctera’s platform as part of its Bank Match program.

The program aims to help FinTech builders quickly launch products and community banks tap new revenue streams and markets.

Based in Franklin, Tennessee, Lineage Bank is seeking to build out its technology features for local businesses and customers. GoGetr is combining a savings app with wellness aspects to combine FinTech and health tech.

FIS Acquires Payrix to Boost Embedded Payments, eCommerce and SMB Financial Offerings

FinTech FIS is boosting its embedded payments strategy with the acquisition of embedded payment company Payrix.

The acquisition is part of FIS’s goal to grow its eCommerce solutions to merchants small and large in all sectors by by embedding payments capabilities within Software-as-a-Service (SaaS) platforms.

Spain’s BBVA Backs Brazil’s Digital Bank Neon Payments With $300M

In keeping with its drive to keep expanding both digitally and geographically, BBVA bank in Spain invested $300 million in Neon, a FinTech startup from Brazil. The new investment gives BBVA an additional 21.7% interest in Neon, bringing its total stake to 29.7%.

BBVA also recently invested in Atom Bank in the U.K. and Solarisbank in Germany as part of its digital journey.