What The FinTech #76: 5 Dec 2021
Happy Sunday and Welcome back to What The FinTech, your regular FinTech & Innovation Newsletter focusing on Hong Kong & Asia ! Here are the selection and the top headlines for this week.
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BLOCKCHAIN - CRYPTO - DIGITAL ASSETS - DE FI
Dorsey-led Square rebrands to Block in nod to blockchain
See you in the metaverse: How VR and NFTs could transform commerce
Uquid and Binance partner to launch online shopping platform
Crypto Payments Firm TripleA Secures Digital Payment Token License From MAS
Next-gen Fintech Platform DeFiato Completes First Round of Private Fundraise
Audi-backed startup creates Metaverse for in in-car entertainment with native cryptocurrency token
Dorsey-led Square rebrands to Block in nod to blockchain
Square Inc, the payments company led by Twitter Inc co-founder Jack Dorsey, said it was changing its name to Block Inc, as it looks to expand beyond its payment business and into new technologies like blockchain. The San Francisco-based company said the name "Square" had become synonymous with its seller business. The new name would distinguish the corporate entity from its businesses, Square added, a strategy similar to Meta Platforms Inc's rebrand last month. The company said there would be no organisational changes and its different business units - Square, peer-to-peer payment service Cash App, music streaming service Tidal and its bitcoin-focused financial services segment - will continue to maintain their respective brands. The digital payments giant's Square Crypto, a team "dedicated to advancing Bitcoin", will also change its name to Spiral. The new name would become effective on or about Dec 10.
See you in the metaverse: How VR and NFTs could transform commerce
The idea of the metaverse, a virtual world where people can socialise, consume goods and entertainment and even own assets like virtual land – just as they could in the real world, has exploded globally. Entrepreneurs and investors are contending with how the metaverse could transform retail – or not. Many see immense potential, but are also wary of the legal and regulatory minefield ahead. While retail could take off in the metaverse, this would necessitate a rethink of how payments are made. In the case where the goods being sold are virtual, such as a piece of digital art, there is also the issue of how to prove ownership. This is where many are betting on NFTs – which are essentially units of data stored on the blockchain with a unique signature. However, the dystopian possibilities are aplenty. Data collection in the metaverse, especially where VR headsets are involved, could be much more intrusive for example.
Uquid and Binance partner to launch online shopping platform
Uquid.com is a new e-commerce platform with more than 2 million physical products. To meet the demand of its loyal customers, the platform is further integrating Binance Pay which will allow users of both platforms to make purchases with crypto. Uquid, a pioneer in helping customers enjoy a Web 3.0 shopping experience will enable connecting to the wallet address which will help buyers enjoy extra benefits of smarter shopping features such as shopping mining, staking points or receive rewards and new tokens airdrops from merchants. With this launch, Uquid also introduced "Buy Now and pay later by Crypto" for the first time. The concept is similar to other successful BNPL models in the fiat world like Afterpay or Klarna. Uquid Pay will allow users to split payments flexibly into 3 installments within 3 months without paying any additional fees.
Crypto Payments Firm TripleA Secures Digital Payment Token License From MAS
Cryptocurrency payments company TripleA has been granted a Digital Payment Token license by the Monetary Authority of Singapore (MAS). The license allows TripleA to provide end-to-end cryptocurrency payment services for businesses. This includes crypto payments, payouts, remittances, and white-label trading in the following license categories; Digital Payment Token Services, Domestic Money Transfer Services, Cross-Border Money Transfer Services, and Merchant Acquisition Services. With the prior license exemption provided under the Payment Services Act, TripleA said that it had demonstrated its capabilities as a trusted provider complying with MAS regulations to receive the full license. Now with the crypto license, TripleA said that it would be able to accelerate its efforts in reaching largely untapped markets to facilitate crypto payments between businesses and people globally.
Next-gen Fintech Platform DeFiato Completes First Round of Private Fundraise
DeFiato, a next-generation fintech platform for Decentralised Finance (DeFi), successfully completed the first round of its private token sale. Participating investors include leading DeFi-focused funds DAO Maker, Mirana Ventures (a venture partner of Bybit and BitDAO), CRC Capital, Double Peak Group, Dweb3 Capital and 7 O'Clock Capital. The strong interest and participation reflects a high demand for secure, centralised exchange graded platforms with fiat on-ramp. Many decentralised platforms present various technical barriers in on-chain farming, staking and trading, while off-chain activities face liquidity issues, fiat restrictions and the lack of a central multichain to support crypto assets and institutional-grade custodians. With its proprietary technology, such as One-Click-To-Farm, combined with ease of fiat access and exchange-grade security, DeFiato eliminates technical barriers and financial risks associated with many decentralised platforms today. It provides a user experience similar to centralised services, such as assured security, quick settlements, ease-of-use and customer service support.
Audi-backed startup creates Metaverse for in in-car entertainment with native cryptocurrency token
Holoride, the Audi Audi-backed startup that’s creat ing an in in-vehicle virtual reality entertainment system designed for passengers, has begun publicly selling its Ride cryptocurrency token. The launch of the crypto is the latest move by Holoride to build up its extended reality (XR) ecosystem of games and e xperiences created by a community of developers. Vehicle passengers keen to experience virtual worlds or play games — all of which are in tune with the movement the car they’re riding in — will have to use the Ride utility token to make purchases.
SINGAPORE
YouTrip raises $30m for move into B2B payments
Singapore and Philippines step up Digital Payment cooperation
Bexs Banco and Thunes partner to enable real-time payments in Brazil
YouTrip raises $30m for move into B2B payments
Singapore-based neobank YouTrip has raised US$30 million in a Series A funding round that will fuel its move into B2B payments and the wider Southeast Asian market. The firm says that with strong cross-border e-commerce business and the return of travel spending following Covid, it has seen solid growth, with more than 1.5 million app downloads and over US$800 million in spending processed. Now it is setting its sights on the B2B payments ecosystem with a corporate credit card, called YouBiz. This card will have higher spending limits while transacting at the best exchange rate in more than 150 currencies. YouBiz will be rolled out in Singapore in the first quarter of 2022, with plans to bring it to five other Southeast Asia countries in the next twelve months.
Singapore and Philippines step up Digital Payment cooperation
The central banks of Singapore and the Philippines have signed an agreement at the World Fintech Festival Philippines to boost payments cooperation, which includes the linkage of the two countries' QR and real-time payment systems. The regional neighbors aim to boost cross-border collaborations that will strengthen Asean regional payments and provide financial inclusivity to Overseas Filipino Workers (OFWs) and micro-small-to-medium-sized enterprises (MSMEs). The agreement expands on the Fintech Innovation Function Cooperation Agreement, which was signed between the two countries in 2017. The 2021 agreement will make cross-border payments “cheaper, more inclusive, and more transparent” and drive financial inclusion, particularly underserved Filipinos.
Bexs Banco and Thunes partner to enable real-time payments in Brazil
Thunes, a Singapore-headquartered global payments company, recently announced a partnership with Brazil’s Bexs Banco, a pioneer in international digital payments, to help global businesses and customers make real-time payments to Brazil, including payments to Pix, the instant payment system developed by Brazil’s Central Bank. With this partnership, Brazilian recipients will be able to enjoy increased speed and transparency of inbound transactions processed by Thunes. Those using Pix will receive payments instantly. Thunes sees strong demand for international payments to and from Latin America. Forecasts suggest global cross-border transactions will grow to USD 156 trillion in 2022, with B2B payments accounting for USD 150 trillion. Latin America’s share of these transactions is expected to increase significantly due to surging global trade in the region. The company’s existing network in the region covers over 16 countries, including Argentina, Colombia, Mexico, Peru, and Uruguay.
CHINA
Ant is changing how consumers borrow money from its app
Beijing looks into setting up digital asset exchange to push the e-yuan
Shanghai starts new exchange for trading massive amounts of data like commodities
Ant is changing how consumers borrow money from its app
Ant, the Alibaba-affiliated fintech powerhouse has almost finished restructuring its popular consumer credit products nearly a year after Beijing laid out a guideline for Ant Group to “rectify” its business. Credit loan products contributed nearly 40% of Ant’s revenues in the six months ended June 2020. The two main products are Huabei (Spend), which launched in 2014 for daily expenditures by consumers, working like a virtual credit card. Jiebei (Borrow) was introduced as a credit product for larger consumption transactions. Under the old model, Ant originated loans that were then underwritten by third-party banks and other financial institutions. Since then, Jiebei has split itself into two brands. Credit lines extended by third-party banks are now called Xinyong Dai (Credit Loan) on Alipay. Those provided by Ant’s consumer finance company are staying under the Jiebei brand. Huabei has similarly started a restructuring, which will show users which loans are extended independently by banks and which by Ant’s consumer finance firm. Essentially, users applying for credit loan services will have more information about their credit providers to avoid brand confusion.
Beijing looks into setting up digital asset exchange to push the e-yuan
China is exploring setting up a virtual asset exchange as the government lays out the next step to complement its pilot of the digital yuan, according to a blueprint published on the State Council website. China’s sovereign digital currency project, known as the digital yuan or e-yuan, has expanded to a value of 62 billion yuan (US&9.7 billion) since the roll-out of a pilot programme in late 2019. The State Council, China’s cabinet, did not provide details of the proposed digital assets exchange, but analysts believe it would not be for cryptocurrency trading. The country has banned all digital currencies and non-fungible tokens. The move comes after the Beijing Stock Exchange launched last week. The State Council blueprint has also called on “qualified banks” to participate in a pilot programme to set up branchless, online-only digital banks. It also urges lenders to set up operating entities dedicated to the digital yuan. Several Chinese banks, such as Bank of Communications and China Construction Bank, have started their respective trials in using digital yuan to support investment fund subscriptions.
Shanghai starts new exchange for trading massive amounts of data like commodities
The new exchange, which started trading on Thursday, initially offered 20 data products, including flight information from China Eastern Airlines, and various data from telecommunications network operators China Mobile, China Unicom and China Telecom. One of the first transactions made at the exchange involved the Shanghai branch of the Industrial and Commercial Bank of China, which struck a deal to use data from the State Grid’s Shanghai Municipal Electric Power Co to help improve its financial products. The State Grid is part of the first batch of 100 enterprises, including accounting firm PwC and cloud computing services company UCloud, to sign up as “data merchants” with the exchange. The success of digital data trading in Shanghai could have far-reaching implications for China’s Big Tech companies, which have accumulated huge volumes of user data on which business decisions are made and new services are developed.
ASIA
UnionPay works with Razer Fintech to enable QR code payments
RockFlow raises USD 10 million angel funding, aims to create Asia’s Robinhood
UnionPay works with Razer Fintech to enable QR code payments
Global payment network UnionPay and Fintech company Razer Merchant Services (RMS) are collaborating to enable UnionPay Quick Response (QR) Codes at all Razer Merchant Services’ (RMS) physical merchant touchpoints and online merchants in Malaysia. UnionPay’s QR Code is accepted at almost 100K merchant terminals, ranking it first among international payment networks in Malaysia. UnionPay’s QR Code coverage is also the most comprehensive globally, extending to 44 destinations and over 30 million merchants outside Malaysia, including destinations popular with Malaysian residents like Australia, China, Indonesia, Korea, Japan, Singapore, Thailand, and Vietnam. UnionPay’s previous QR Code deployment have been more focused on offline merchants, but movement restrictions due to the pandemic have caused more of its customers to purchase online.
RockFlow raises USD 10 million angel funding, aims to create Asia’s Robinhood
RockFlow, a one-stop investment platform, has announced the completion of a USD 10 million angel round from world-leading VC firms. The financing is mainly for the company to expand the team and develop AI-driven products. Founded in July 2021, the new company is committed to becoming the Robinhood of Asia, providing a global all-inclusive investment service for Gen Z investors. At the same time, RockFlow aims to create a comfortable investment environment for Gen Z users. This includes reducing investment barriers through product innovation so that anyone can easily invest through RockFlow. Notably, innovations made by brokerage platforms can lead to more accurate risk pricing. These platforms provide more personalized financial plans and usage scenarios based on users’ personal financial needs and risk preferences. Institutional users will have access to a more sophisticated investment research platform that incorporates both fundamental and quantitative intelligence tools.
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