FinTech Futures: Top five stories of the week – 30 June 2023
Here’s our pick of five of the top news stories from the world of finance and tech this week.
Visa to acquire payments and banking platform Pismo for $1bn
Payments giant Visa has agreed to acquire Brazilian issuer processor and core banking platform Pismo for $1 billion in cash.
Visa to acquire Pismo for $1 billion
The transaction is subject to regulatory approvals and is expected to close by the end of this year, with Pismo retaining its current management team.
In March, it was reported that a number of firms, including Visa and Mastercard, were competing to acquire the Brazilian fintech.
With the acquisition, Visa says it will be able to provide core banking and issuer processing capabilities across debit, prepaid, credit and commercial cards for customers via cloud-native APIs. Pismo’s platform will also enable Visa to provide support and connectivity for emerging payment rails (such as Pix in Brazil) for financial institutions.
Orange in exclusive negotiations with BNP Paribas as it looks to exit retail banking market
French telecommunications giant Orange Group is in exclusive negotiations with BNP Paribas to take on its Orange Bank customers as the firm looks to withdraw from the retail banking market.
Orange Group’s board of directors have given the go-ahead to work out a partnership with BNP Paribas for Orange Bank’s two-million-strong customer portfolio in France and to develop financing solutions for mobile devices. The pair will also negotiate terms for a takeover of Orange Bank’s Spanish business.
European Commission proposes new measures to modernise payments
The European Commission has put forward new proposals today in a bid to modernise payment services across the continent, including upgrading the Payment Services Directive (PSD2) to PSD3 and enhancing the rules around financial data access.
The EC proposes modernisation of payments and upgrade to PSD3
The EC says the proposals reflect the changes seen in the payment services market in recent years. It claims electronic payments in the EU have been on the rise and were greatly accelerated by the Covid-19 pandemic.
With new providers entering the market, including the rise of open banking services, the EC says sophisticated kinds of fraud have also emerged.
“In response to these developments, today’s package seeks to ensure the EU’s financial sector is fit for purpose and capable of adapting to the ongoing digital transformation, and the risks and opportunities it presents – in particular for consumers,” the EC says in a statement.
UK signs financial services cooperation agreement with EU
UK chancellor Jeremy Hunt has signed a long-awaited financial services cooperation agreement with European commissioner for financial services, financial stability and capital markets union Mairead McGuinness.
The news follows Hunt’s visit to Brussels to meet European commissioners, the first visit by a UK chancellor in over three years.
The memorandum of understanding (MoU) aims to establish a “constructive, mutually beneficial relationship” between the UK and the EU in financial services and will help establish an “ongoing forum” to discuss voluntary regulatory cooperation on financial services issues.
Robinhood reportedly laying off 7% of staff in fresh round of job cuts
US stock trading app Robinhood is reportedly laying off 7% of its full-time employees – around 150 staff – according to The Wall Street Journal.
Robinhood reportedly lays off another 7% of its workforce
The news marks Robinhood’s third round of layoffs since 2022, after it first shed 9% of its workforce in April 2022 and then later cut 23% of its staff in August 2022. The news also follows Robinhood’s latest acquisition of credit card platform X1 for a sum of $95 million in cash.
Last August, the company had cited broader company reorganisation as a reason for the layoffs, with Robinhood’s operations, marketing and program management departments being affected. In the same month, Robinhood’s crypto division was also fined $30 million by The New York State Department of Financial Services.
