BankerAdvisor's Ongoing Series of How Fintech is Making Lives Better

Remitting it Forward

Run on digital assets leads platforms to freeze user accounts, including withdrawals. Bankruptcy looms. 

The Big Chill in Crypto

Coinbase, Google Cloud, MinePlex among deals

Crypto Still Has Fans...And Deals

Firm to combine asset, wealth and consumer banking into one unit

Goldman Sachs Reorganization 

3S Money provides a financial technology platform that enables customers to connect corporate bank accounts to their customers' accounts by providing them with local business accounts to send and received funds via all major payment rails.


United Kingdom

Europe

Get expert feedback on 3S Money capabilities and product offerings. BankerAdvisor helps you review and compare hundreds of banks to help you find the best one for you.

3S Money Reviews 2024 | BankerAdvisor

3S Money

SWIFT said it is uniquely positioned to interlink the fragmented digital asset landscape with its forthcoming digital currency trials in 2025. Banks in North America, Europe and Asia are preparing to participate in trials involving digital assets by the Society for Worldwide Interbank Financial Telecommunication (SWIFT).  SWIFT announced on Oct. 3 that it will begin digital asset trials on its network in 2025. The trials will involve experiments with transactions that include multiple digital currencies and assets.

Banks to join SWIFT digital asset trials in 2025

Klarna, which is known for its popular buy now, pay later business, said Wednesday it has confidentially filed IPO documents with the SEC. Analysts recently valued the company in the $15 billion range. Klarna investors include SoftBank, Sequoia Capital and London-based firm Atomico.

Buy now, pay later provider Klarna says it filed confidentially for U.S. IPO

Launched in July 2023, the Federal Reserve's FedNow service has been a game-changer in the U.S. payments landscape. With over 900 financial institutions onboarded, including major players like Chase and Wells Fargo, FedNow is reshaping the future of payments in the U.S. FedNow represents a significant shift from the traditional Automated Clearing House (ACH) system to real-time payments, ensuring transactions are processed instantly, 24/7/365. ACH, while effective, typically requires one to two business days for transaction completion. In contrast, FedNow processes payments in seconds, offering a faster and more efficient alternative that aligns the U.S. with global payment standards. 

One Year Since the FedNow Launch: What You Should Know

Authorised Push Payment (APP) fraud continues to be one of the most pressing concerns for financial services, the payment industry, law enforcement and the general public – and new developments in cross-border payments may be making it easier. A new study by The Payments Association, the UK’s community and advocate for the payments industry, highlight how the speed and anonymity of cross-border payments, and the global patchwork of different regulatory regimes, is being exploited by criminals. APP fraud is easy to understand and, unfortunately, equally easy to carry out. Essentially, APP fraud is any type of fraud that uses an Authorised Push Payment – whenever a person is tricked into voluntarily sending a payment to another person. 

Cross-Border Payments Could Further Enable APP Fraud, Says Payments Association Study

Mastercard reportedly plans to lay off 3% of its global workforce — about 1,000 people — as part of a reorganization it announced earlier this year. Most of the employees who will be affected by the move will be notified by the end of the current quarter, Reuters reported Friday (Aug. 16), citing a Mastercard spokesperson.  The company announced an executive restructuring on April 9. Mastercard said this realignment of its organizational structure centered on three areas — Core Payments, Commercial & New Payment Flows, and Services — and would help accelerate growth and deliver value to shareholders.

Mastercard to Cut 3% of Workforce Amid Previously Announced Reorganization

A Bitcoin-related bill is gaining support in the United States, signaling a potential boost for the cryptocurrency’s value, which could hit $1 million. Former President Donald Trump’s victory in the 2024 presidential election on Nov. 5 has sparked optimism for more crypto-friendly policies.
One of the most anticipated bills is the Bitcoin Act, championed by Wyoming Republican Senator Cynthia Lummis, which proposes the creation of a strategic Bitcoin BTC tickers down $98,418 reserve for the US, making it the first nation to use it as a “savings technology.”

US Bitcoin reserve during Trump presidency could pump BTC to $1M

In a significant move to counteract international sanctions and reduce dependency on the global financial system Swift, Russia has called on BRICS nations to establish a new cross-border payments network, reported Bloomberg. This initiative is aimed at facilitating transactions in local currencies and strengthening economic ties within the bloc. The proposed network would involve a consortium of commercial banks capable of executing transactions in the respective local currencies of BRICS countries. It also suggests the establishment of direct connections between central banks to further insulate the group from external financial systems.

Russia proposes Swift alternative for cross-border payments

Mastercard introduced a new solution that will enable banks to facilitate commercial cross-border payments that are near real-time, predictable and transparent. The new Mastercard Move Commercial Payments is designed to simplify operations, optimize liquidity, reduce counterparty risk and provide end-to-end visibility for banks and their customers, the company said in a Monday (Oct. 21) press release.

Mastercard Introduces New Commercial Cross-Border Payment Solution for Banks

Stripe, the FinTech giant, is reportedly in talks to acquire crypto startup Bridge for $1 billion, according to sources familiar with the discussions. This potential acquisition would be the largest to date for Stripe, which was recently valued at $70 billion. However, the deal is still under discussion and subject to regulatory considerations and compensation for employees. 
Bridge, a provider of infrastructure for crypto stablecoins, has previously raised $58 million in funding and has a strong customer base that includes government departments and companies like SpaceX and Coinbase. The startup offers software that enables businesses to accept cross-border payments made with stablecoins. 

Stripe Aims for Largest Acquisition Yet with $1 Billion Deal for Bridge

Growth in the payments industry, which was once characterized by rapid expansion, is now slowing as the shift from cash to digital payments has reached its peak, according to BCG research. The BCG Global Payments Report 2024 found that revenue growth is expected to halve by 2028, with global revenues set to rise at a compound annual growth rate of just 5% to $2.3 trillion. This marks a sharp decline from the 9% growth recorded in the previous five years, which saw revenues to $1.8 trillion in 2023.

Payments Industry Growth Slows as Cash-to-Digital Shift Reaches Peak

Finance and payments company Klarna says it has reduced hundreds of jobs and sees more reductions coming due to its implementation of AI. The Swedish company is using AI to handle customer queries with chatbots to drastically reduce the time taken to resolve issues. A buy-now-pay-later company, widely expected to seek a stock market listing next year, Klarna has been one of the early adopters of generative AI to cut costs and boost productivity.

Klarna uses AI to reduce employee numbers

Melio, an accounts payable and receivable platform for small and medium businesses, has hit a $2 billion valuation in a $150 million strategic funding round led by Fiserv. Shopify Ventures, Capital One Ventures, Accel, Bessemer, Coatue, Frontline Ventures, General Catalyst, Latitude and Thrive Capital joined the Series E for New York-based Melio. The funding follows a ten-fold increase in revenue since the last $110 million round three years ago. Melio’s platform integrates cash flow management, accounts receivable and accounts payable solutions to help SMBs - and their accountants - maximise cash flow and save time managing their payment operations.

Fiserv leads $150m funding round for Melio

Transak has received its second Money Transmitter License (MTL) from the US state of Delaware, while also gaining registration with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). The MTL will allow Delaware residents and businesses to use the cryptocurrency platform. Transaks first MTL came from the Alabama Securities commission and the company stated they intend to continue to expand across the US. 

Transak gains Delaware Money Transmitter License and FINTRAC registration

The US Department of Justice (DOJ) has filed a civil antitrust lawsuit against Visa over allegations of “monopolisation and other unlawful conduct in debit network markets in violation of Sections 1 and 2 of the Sherman Act”. In a press release announcing the lawsuit on 24 September, the DOJ says: “Filed in the US District Court for the Southern District of New York, the complaint alleges that Visa illegally maintains a monopoly over debit network markets by using its dominance to thwart the growth of its existing competitors and prevent others from developing new and innovative alternatives.”

US Department of Justice files civil antitrust lawsuit against Visa

The National Center for Public Policy Research — a Washington DC-based think tank championing free markets — submitted a shareholder proposal to Amazon saying that a Bitcoin corporate treasury strategy should be considered at the April 2025 shareholder meeting.
According to the proposal, the Consumer Price Index (CPI) used to measure inflation, which currently puts inflation at 4.95%, is a “remarkably poor measure” of true currency debasement. The authors suggested the true inflation rate may be double the reported CPI figure. This greatly erodes Amazon’s $88 billion in cash and short-term cash equivalents, the letter said, and to protect shareholder value, Bitcoin should be used to hedge against this risk. 

National Center for Public Policy Research proposes BTC treasury to Amazon

PayPal Holdings, Inc. (NASDAQ: PYPL) announced it is enabling its U.S. merchants to buy, hold and sell cryptocurrency directly from their PayPal business account.  At launch, this functionality for Business Accounts will not be available in New York State. Today's announcement is PayPal's latest step to increase cryptocurrency's utility by making increased functionality available to millions of merchants in the U.S. 

PayPal lets US business accounts buy and sell crypto

Collectively, Americans now owe a record $1.17 trillion on their credit cards, according to a new report on household debt from the Federal Reserve Bank of New York. Credit card balances rose by $24 billion in the third quarter of 2024 and are 8.1% higher than a year ago.Despite that increase, credit card delinquency rates improved — with 8.8% of balances transitioning to delinquency over the last year, compared with 9.1% in the previous quarter, the New York Fed found. That change could “suggest that rising debt burdens remain manageable,” the New York Fed researchers said on a press call Wednesday.

Credit card debt hits record $1.17 trillion, New York Fed research shows

Remittance outfit Sendwave has launched a banking product for migrants in the United States. Sendwave, which is owned by London-based fintech Zepz, is offering select customers a FDIC-insured bank account with an accompanying debit card.


Sendwave launches bank account for migrants

Asset management giant Fidelity is close to submitting its own filing for a spot bitcoin exchange-traded fund, joining a long list of issuers keen to be first to market with such a product. A source familiar with the firm’s plans says that it could submit its filing as soon as Tuesday, following the lead of asset management giant BlackRock. BlackRock’s June 15 filing has been followed by other asset managers looking to launch their own spot bitcoin funds including Invesco, WisdomTree and Bitwise.



Fidelity preparing to submit spot bitcoin ETF filing: Source

Banking giant JPMorgan Chase and 40 other US banks are testing the Federal Reserve’s new instant payment infrastructure called FedNow. According to a new Federal Reserve press release, 41 banks and 15 service providers are wrapping up FedNow test trials ahead of an official launch of the service, which is scheduled for late July. According to the Federal Reserve, the FedNow Service aims to enable businesses and individuals to send and receive instant payments anytime.

JPMorgan Chase and 40 Other US Banks Conducting FedNow Trial Runs Ahead of the Instant Payment Service’s Launch

Fidelity National Information Services will sell a 55% stake in Worldpay to the private equity firm GTCR for $11.7 billion, valuing the company at $17.5 billion. As part of the pact between the companies, Chicago-based GTCR will also provide $1.25 billion to the newly separate Worldpay business to allow it to pursue “inorganic growth opportunities,” according to the release. That most likely means GTCR would provide funding for acquisitions. The board of Jacksonville, Florida-based FIS has already unanimously approved the deal.

FIS to sell Worldpay stake to GTCR

The Bank of China, one of the largest state-owned banks in China, is currently conducting trials for a novel offline payment system that connects to SIM cards. This payment method is designed specifically for the digital yuan — China’s central bank digital currency (CBDC).  The bank plans to enable users to make phone payments by integrating its digital yuan app with specialized “super SIM cards” with near-field communication capabilities. Users can bring their mobile phones near the point of sale terminals for payment.

Bank of China trials offline payments for digital yuan via SIM cards

A TD Cowen analyst views MicroStrategy as “an attractive vehicle for investors looking to gain bitcoin exposure." TD Cowen analyst Lance Vitanza, who initiated coverage on the Michael Saylor-led firm last Wednesday with an outperform rating, praised the company for its “hybrid corporate strategy.” MicroStrategy is known for converting all of its earnings from its core software intelligence business into bitcoin. This approach represents a “paradigm shift,” he wrote in a note to investors.

Bullish MicroStrategy Analysts Raise Price Targets Ahead of Q2 Earnings

Visa has invested in Form3 as part of a wider commercial partnership with the cloud-based account-to-account payments platform. The size of the investment was not disclosed. Form3 will provide Visa’s clients with access to its payments platform. The partnership also aims to reduce high levels of fraud in real-time account-to-account payments, including by building on Form3’s single API connectivity.

Visa invests in A2A payments platform Form3

Visa and Mastercard are reportedly preparing to raise the credit card fees paid by merchants.
Those increases are scheduled to start in October and April, The Wall Street Journal (WSJ) reported Wednesday (Aug. 30), citing sources familiar with the matter and documents viewed by its reporters. According to the report, many of the increases are for online purchases. Merchants could pay an added $502 million per year due to the changes, CMSPI, a consulting company that works with merchants, told the WSJ.

CMSPI estimated that higher network fees will make up a little more than half of that revenue, with the remainder coming from interchange fees — also called “swipe fees” — which merchants pay when consumers use their credit cards.

Visa and Mastercard Interchange Fee Increases May Come in October, April 

Subprime consumers are falling behind on their credit-card bills. From Generation Z and millennials to Generation X and baby boomers, credit-card delinquency rates have been trending upwards for four generations of borrowers since January 2020, reaching a new high in August, according to new data from VantageScore. Borrowers with a VantageScore between 300 and 600 across these four cohorts experienced an 8.9% delinquency rate — of 30 to 59 days — in July 2023, up from 7.49% a year earlier. Credit-card delinquency rates at smaller banks hit a record high of 7.51% in the second quarter of 2023, up from 6.01% at the same time last year, according to the Federal Reserve Bank. 

Is there a subprime credit-card crisis on the horizon? 

The U.S. Federal Reserve launched FedNow in July, the first government real-time payment system in the U.S. The service allows banks and credit unions to transfer money for their customers instantly. Working alongside existing systems like Fedwire and FedACH, FedNow aims to improve the U.S.'s inter-bank and retail transaction infrastructure.

FedNow Has Launched As Blockchain Innovation Delivers Next-Gen Instant Payments

Shares in payment service provider Worldline slipped by more than half after the vendor warned of a deteriorating outlook for sales and the termination of a number of merchant relationships due to soaring cyber crime rates. The company says macroeconomic challenges are beginning to impact some of its key markets, particularly in Germany where the slowdown has disrupted consumer spending patterns.


Worldline shares halve on depressed outloook

Corporate spend management giant Brex has laid off 282 people (20% of its workforce) and revealed that its COO and CTO are leaving their roles.In a message to employees, shared on the company's blog, co-CEO Pedro Franceschi says the job cuts as part of a restructuring to become a "high-velocity company". Franceschi says the axe is being wielded following a hard look at the company's structure that will result in fewer management layers.

Brex axes 20% of staff

Temenos shares were down over 6% on Friday after closing over 28% lower on Thursday.
The Swiss software company said its board of directors “fundamentally refutes” a report by short-seller Hindenburg Research. Short-seller Hindenburg Research made headlines after accusing Indian conglomerate Adani of stock manipulation and accounting fraud in early 2023.

Hindenburg’s latest short target Temenos rejects allegations as share price tumbles

In the six months following its groundbreaking launch in July 2023, FedNow has emerged as a transformative force in real-time payments, marking a significant departure from the traditional Automated Clearing House (ACH) system.  This shift signifies a pivotal moment in banking innovation, offering instantaneous transaction processing that aligns with the modern financial transaction demands.

How FedNow is Shaping Payments Since its Groundbreaking Launch

The Federal Reserve is stressing the importance of fintechs and core providers for the future expansion of its new instant payments system FedNow. The Federal Reserve won’t provide fintechs with direct access to its new instant payments system FedNow, but it’s still courting their participation in the new real-time ecosystem. 

Fintechs can help the Fed see what’s on the horizon for the new faster payment system and allow the new real-time payments services to be easier to use, said Mollie Markham, a Federal Reserve Bank of Chicago industry specialist who works with nonbanks. Fintechs can also assist the Fed in providing services that make the most of FedNow’s data-rich capabilities, she said during a conference this month.

Fed courts nonbanks for FedNow growth

The Consumer Financial Protection Bureau declared on Wednesday that customers of the burgeoning buy now, pay later industry have the same federal protections as users of credit cards. The agency unveiled what it called an “interpretive rule” that deemed BNPL lenders essentially the same as traditional credit card providers under the decades-old Truth in Lending Act. The BNPL market is dominated by fintech firms like Affirm, Klarna and PayPal.

CFPB says buy now, pay later firms must comply with U.S. credit card laws

FTX has reportedly sued former Trump administration official Anthony Scaramucci to recover creditor funds. The suit was one of several filed by the bankrupt cryptocurrency company in its efforts to claw back money owed to its creditors, TechCrunch reported Saturday (Nov. 9). In addition to Scaramucci’s SkyBridge Capital, other defendants include Crypto.com and Fwd.us, a lobbying group backed by Mark Zuckerberg. According to the report, FTX says it is seeking to recoup money that was part of “a campaign of influence-buying” by founder and CEO Sam Bankman-Fried, carried out as the company was struggling to cover its cash flow needs. 

FTX Sues Anthony Scaramucci to Recover Creditor Funds

Apple is discontinuing its buy-now-pay-later service, known as Apple Pay Later, barely a year after its initial launch in the U.S., and will rely on companies who already dominate the industry like Affirm and Klarna. It’s an acknowledgement from a company known for producing hit products that building a financial-services business from scratch, as Apple has been doing for several years, is difficult and highly competitive. Apple Pay Later launched with fanfare in March 2023 as a way for iPhone customers to split purchases of up to $1,000 into four equal payments with no fees or interest. The service was Apple’s answer to the growing popularity of buy-now-pay-later services like Klarna, Affirm, and others.

Apple kills off its buy-now-pay-later service barely a year after launch 

BankerAdvisor Trusted reviews for financial services

3S Money - Reviews