May 2024: Top five new fintech launches of the month
From paytechs to digital banking apps, a number of new start-ups and innovative products have been launched in the fintech space this month.
Here, we run through five of the top new launch stories of the month, featuring Fractal, FutureMoney, GoDutch, Thimsa, Lydia and more.
New US paytech Fractal launches with aim to become “SaaS companies’ preferred payment method”
Fractal launches payment service in the US
Fractal, a new paytech firm catering exclusively to Software-as-a-Service (SaaS) enterprises, has made its debut in the US market, with ambitions to challenge payment sector giants.
Founded by James Greaves, former VP of Zelle, and Brian Nichols, the start-up seeks to deliver a payment service at a “fraction of the price” of those offered by established providers like Stripe.
With this, it claims its solution provides SaaS firms with a pre-built embeddable payment service, including online retail checkout options, electronic invoicing payment links, merchant onboarding capabilities, and an API for enterprises that require “complete control and customisation”.
Wealthtech start-up FutureMoney launches tax-advantaged investing platform
US-based wealthtech start-up FutureMoney has unveiled its micro-investing platform to “make investing more inclusive”, according to company co-founder and CEO, Philip Barrar.
The start-up’s platform offers parents a “one-stop-shop” investment account for their children, with features such as automated deposits, tax optimisation and fully managed portfolios.
FutureMoney’s flagship offering is its tax-advantaged Junior Roth IRA account, which leverages 529 plans that can be transitioned to a Roth IRA account after 15 years. With this account, family members can contribute up to $35,000 before a child reaches 18, taking advantage of the tax-free growth for their retirement savings.
Business banking start-up GoDutch launches in the Netherlands
GoDutch launches business banking services this week
GoDutch, an Amsterdam-based business banking start-up, has officially launched this week with the aim to “revolutionise business banking by redefining what ‘fair banking’ truly means”, according to founder Thomas Vles.
Commenting on the launch via LinkedIn, Vles says the new venture plans to share “up to 70%” of its income with its users and will actively support initiatives focused on climate and social impact.
“This initiative is part of our commitment to fair financial redistribution, active support of social and sustainable projects, and the mission to achieve a climate-positive status within two years,” its new website further clarifies.
GoDutch provides free business accounts with a free Dutch IBAN and a virtual card, with additional benefits available through a number of tiered subscription packages.
New UAE-based open banking start-up Thimsa launches in beta
Thimsa, a UAE-based fintech start-up on a mission to “simplify and accelerate payment processes” by embracing open banking, has announced the beta launch of its payment management platform in the UAE and Bahrain.
The start-up aims to capitalise on the expected growth of open banking in the GCC (Gulf Cooperation Council) region. Citing data from Allied Market Research, the firm highlights that open banking is set to account for over $124 billion worth of transactions in the GCC alone by 2031, up from $14 billion in 2020.
Founded by Rayan Azab, Ash Karla and Salah Khashoggi, Thimsa is introducing a range of payment solutions to the market through its new platform, which encompasses B2B, C2B and cross-border payment functionalities.
French fintech Lydia launches digital banking app Sumeria
French fintech Lydia launches banking app
French fintech start-up Lydia is splitting its financial services app into two and launching a new digital banking brand called Sumeria, into which it plans to invest over €100 million and hire 400 people over the next three years.
The company’s unveiling of Sumeria comes just over a month after it announced the launch of its new app Lydia Accounts, which will support a service remit solely focused on peer-to-peer (P2P) payments.
Lydia launched in 2013 as a P2P payments app and has gradually added more financial services features over the years.
When launching Lydia Accounts, the start-up acknowledged that despite its best efforts to create an “all-in-one product”, consumers who primarily used its original P2P service “gradually lost this magical experience” due to the app’s scaled development. As a result, the firm says the “promise of a clean and relevant design, for everyone, could no longer be kept”.
