FinTech Futures: Top five stories of the week – 7 July 2023
Here’s our pick of five of the top news stories from the world of finance and tech this week.
FIS confirms deal to sell majority stake in Worldpay to GTCR for $11.7bn
FIS has signed a definitive agreement with US-based private equity firm GTCR to sell a majority stake in its Worldpay merchant business.
The transaction values Worldpay at $18.5 billion
GTCR will acquire 55% of Worldpay, with FIS set to receive $11.7 billion in upfront net proceeds. FIS will retain a non-controlling 45% ownership interest in the firm, with the company’s board of directors unanimously approving the transaction.
The deal values Worldpay at $18.5 billion, including $1 billion of consideration contingent on the returns realised by GTCR exceeding certain thresholds.
FIS CEO and president, Stephanie Ferris, says the deal will allow the company to partially monetise its merchant solutions business at “an attractive valuation” while also enabling it to “simplify and drive greater focus” on delivering new financial technology and software solutions.
Nine UK banks tap Mastercard for new AI-powered fraud risk solution
Mastercard has rolled out its new artificial intelligence (AI) powered Consumer Fraud Risk solution in the UK, with nine banks adopting the tech to help fight real-time payment scams.
Lloyds Bank, Halifax, Bank of Scotland, NatWest, Monzo and TSB are six of the nine UK banks partnering with Mastercard for its latest offering.
For the last five years, Mastercard says it has been working with UK banks to follow the flow of funds through mule accounts created by criminals.
Based on insights from this tracing activity, along with specific analysis factors such as account names, payment values and payer and payee history, Mastercard’s AI solution provides banks with real-time intelligence to stop a payment before funds are lost.
The payments giant adds that it is currently “assessing” further international markets to scale the solution.
South Korea sets out measures to promote competition in banking sector
South Korea’s financial authorities have set out new measures to help promote competition within its banking sector.
South Korea sets out measures to promote competition in banking sector
The measures follow a series of meetings held with private sector experts, financial industry officials and research institutions since the end of February to improve the management and operating practices of the country’s banks.
The Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) intend to allow more banking players to enter the market, with regional banks now receiving permission to expand their business operations across the country.
“For the first time in 30 years, a new nationwide bank can be established. This change is meaningful as the new nationwide bank can have its headquarters not in Seoul but in another regional city,” says Kim Joo-hyun, chairman of the FSC.
Britcoin privacy preserved as Bank of England taps Nuggets for identity layer
The Bank of England (BofE) has stepped up its focus on privacy and security for its potential ‘Britcoin’ retail central bank digital currency (CBDC) through a collaboration with decentralised identity and payment platform Nuggets.
The London-based firm says it is working with the BofE to “design a privacy-preserving identity layer” for a possible digital pound.
The agreement would see the design and deployment of a secure system that “prevents tracking and correlation of transactions while maintaining the highest standards of fraud and anti-money laundering prevention”, the company writes on LinkedIn.
The central bank recently collaborated with HM Treasury on the release of a consultation paper in February, where it was decided that a digital pound was likely needed. However, the paper also confirmed that any decision to issue one would not come about until at least 2025.
Turkish fintech Papara acquires Spanish neobank Rebellion Pay
Turkish banking challenger Papara has acquired Madrid-based neobank Rebellion Pay for an undisclosed sum.
Papara buys Spanish neobank Rebellion Pay
Papara calls the acquisition a “crucial step” in its European expansion strategy. Following the announcement, the Turkish fintech adds it will absorb Rebellion’s team, hire new talent and create a new brand identity.
Rebellion offers customers in Spain a mobile account with a personal IBAN, fee-free money transfers, Mastercard debit cards, cashback and peer-to-peer (P2P) payments. It claims its app currently has more than 250,000 users.
Papara was founded in 2016 and is based in Istanbul, Turkey. It offers financial services including bill payments, money transfers, cards, budgeting features, cashback and insurance through a mobile app boasting more than 16 million customers.
