Restaurant-software provider Toast prepares for IPO - Toast is planning an initial publicoffering that could value the restaurant-software provider at around $20b. In going public, Toast, a 10-year-old company whose valuation has leapt several fold in the past year, would join a red-hot IPO market fueled lately by the high-profile debuts of companies including Affirm and Bumble. Read more
Zillow’s price estimates are now cash offers in homebuying push - For more than 500,000 properties across 20 markets in the U.S., Zillow has added language on its websites and apps inviting owners to “sell to Zillow for your Zestimate.” When an offer is accepted, Zillow sends an inspector to make sure its information on the home is accurate, then pays cash for the property, makes light repairs, and puts it back on the market. Read more
Stripe adds former Bank of England governor Mark Carney to board - Carney, who has worked as the UN Special Envoy for Climate Action, will help Stripe with his experience in global financial systems and governance. In addition, Stripe is also debuting climate change efforts globally, helping “millions of businesses” to bring more funding to emerging carbon removal techniques, the release stated, and Carney will bring his assistance in sustainable finance. Read more
Coinbase files for direct listing after revenue more than doubles in 2020 - According to the S-1 filing, Coinbase had net revenue of $1.14b in 2020, up from $483m the previous year, and net income of $322m for the year after posting a loss in 2019. The company also said it has 43m verified users as of the end of 2020, with 2.8m making monthly transactions. Read more
FinTech startup Brex applies for bank charter - Brex, which makes financial management software for businesses, announced it has filed to open an industrial bank in Utah, according to a press release. Industrial banks are distinct from other forms of banks in the U.S. in that they don’t need to be owned by bank holding companies. Read more
The Padres owe Fernando Tatís Jr. $340m; he owes an investment fund millions from his payday - Fernando Tatís Jr. was 18 years old, just a low-level prospect from the Dominican Republic trying to work his way up in the San Diego Padres farm system, when he made a financial deal that would impact his entire baseball career. And it wasn’t with the Padres. Tatís signed a contract with Big League Advance, an unusual investment fund that pays minor-league players money up front in exchange for a share of their future MLB earnings. Read more
The Fed’s system that allows banks to send money back and forth went down for several hours - The “operational error,” as the Fed described it, impacted multiple services, including its pivotal automated clearinghouse system, which connects depository and related institutions sending electronic credit and debt transfers. There were no initial indications that foul play was suspected. Read more
Fintech firm Apex Clearing agrees to go public via SPAC - Apex Clearing Corp., a financial technologies firm that focuses on securities custody and clearing, has agreed to go public through a merger with the blank-check company Northern Star Investment Corp. II. The transaction, which could be announced as early as Monday, will be valued at $4.7b. The special purpose acquisition company was started by Jonathan Ledecky, co-owner of the National Hockey League’s New York Islanders. Read more
Stripe, Afterpay join forces to expand BNPL to more merchants - The plan is to spread Afterpay services to Stripe merchants via an "easy and seamless integration," according to a press release. The companies said that “businesses on Stripe can start accepting Afterpay in minutes — there's no application, onboarding or underwriting process to get started.” The partnership will give shoppers the option to spread out their payments over four installments, without having to take out a traditional loan or pay any upfront fees or interest. Read more
Covid-19 shopping makes card fees a bigger burden for merchants - Visa and Mastercard are planning to raise swipe fees for some types of credit-card purchases in April, adding to the squeeze felt by restaurants, retailers, and other merchants already struggling through the Covid-19 pandemic. Read more
Square buys $170m worth of bitcoin - The company said it purchased approximately 3,318 bitcoins, expanding on its October 2020 buy of 4,709. Square said it represents about 5% of the company’s total assets as of the end of 2020. Read more
UK plans fintech visa fast-track scheme - UK chancellor Rishi Sunak is preparing to unveil a fast-track fintech visa to attract top tech talent to post-Brexit Britain. Read more
Klarna may opt for direct listing as private funding looms - The “buy now, pay later” firm completed a $650m funding round in September from a group of investors led by Silver Lake that valued it at $11b. The banking sources, and another source familiar with the company, said it was finalizing another private funding round to raise at least $500m that could be completed within days. Read more
China regulator finalizes guidelines on banks' internet loan businesses - China’s bank regulator tightened requirements on the internet loan business of commercial banks, amid heightened scrutiny of online lending by internet giants such as Ant Group. Commercial banks must jointly contribute funds to issue internet loans with a partner, and the proportion of capital from the partner in a loan should not be less than 30%, the China Banking and Insurance Regulatory Commission said in a notice. Read more
Lightspeed partners with dLocal to power payments for independent merchants in Mexico - The partnership between the global commerce leader and emerging market financial technology unicorn provides reliable payment technology tailored to specific needs of Mexican SMBs. Read more
Intuit sues Visa and Mastercard over 'price fixing' - Intuit has filed a federal lawsuit against Mastercard and Visa over 'unlawful' price fixing in interchange and card scheme fee structures. Read more
Open banking in LatAm: State of play - Open banking is perhaps the most significant regulatory change in the history of Latin American banking, promising to boost competition and open the door to new technology players. While the trend in favor of data sharing agreements is clear, each country is adopting the rules to fit their own ecosystem. Read more
Mortgage companies want in on the IPO boom. Investors aren’t convinced - Last year was a banner season for the IPO market in general and public offerings for mortgage companies in particular. Between July and December, eight of the 30 largest U.S. mortgage lenders announced plans to go public. It hasn’t worked out quite the way all the companies were hoping. Read more |
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