Klarna Gains Momentum for IPO with Profit Surge

Hey FinTech Fanatic!

Klarna Bank AB reported a 27% revenue increase in the first half of this year, boosting adjusted profit to 673 million kronor ($66 million) for the June quarter, reversing a 456 million kronor loss from the previous year.

The Stockholm-based FinTech, gearing up for a potential $20 billion IPO in the U.S. next year, kept operating expenses low while investing heavily in AI, which now handles tasks equivalent to 700 employees 🤯

Klarna is also finalizing plans with Goldman Sachs to lead the offering and has been negotiating a secondary share sale to enhance its valuation.

Klarna recently acquired Laybuy, a New Zealand-based BNPL provider, after Laybuy collapsed following a cyberattack that resulted in millions of pounds in losses. The attack severely impacted Laybuy's cash flow, leading to its administration.

While Klarna purchased Laybuy's New Zealand operations, the UK arm was excluded from the deal.

Enjoy more FinTech news updates I listed for you below, and I'll be back in your inbox tomorrow!

Cheers,

Marcel

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FEATURED NEWS

🇬🇧 Visa has collaborated with Revolut to enable Instant Card Transfers for Revolut Business customers. Powered by Visa Direct, a network that enables real-time payments, Revolut Business customers can now access Instant Card Transfers, sending money across the globe in real-time and securely.

INSIGHTS

🇦🇷 MercadoLibre slams Argentine banks for ‘cartel’ tactics. The company accused Argentine banks Monday of “illegally concentrating” under one payments platform as an anti-competitive tactic against the company’s FinTech arm.

FINTECH NEWS

🇺🇸 Walgreens teams with Bilt allowing shoppers to apply FSAs, HSAs to purchases. As part of its Automatic Healthcare Savings program, Bilt members who shop at Walgreens with any debit or credit card will receive an alert letting them know they have purchased items that are FSA/HSA approved. 

🇵🇱 Conotoxia adds multi-currency cards for businesses to its offer. Companies can order multi-currency cards, which can be used to pay in more than 160 currencies worldwide and make payments in 23 without currency conversion.

🇬🇧 Webull UK, a digital investment platform, has announced the launch of options trading for its users. This new feature is designed for sophisticated, active traders who seek to profit from fluctuations in share prices while managing risk.

PAYMENTS NEWS

🇺🇸 Paze, an online checkout experience by banks, is now available in the US. It's a direct competitor to other online checkout experiences like Stripe Link, Shop Pay, etc. Just like Early Warning Services, banks have joined forces to provide a direct checkout experience competing with all the big players. Paze will allow businesses to accept payments without a credit card number on file.

🇲🇩 OTP Bank has successfully implemented MIA Instant Payments, aiming to accelerate the process of digital transformation and its overall development. The MIA platform represents an important step in the overall modernisation and development of the payment system in the region of Moldova.

🇨🇦 Nuvei & FinTech360 launch Cashier solution for the forex B2B industry. By integrating Nuvei’s capabilities into its infrastructure, FinTech360 enhances its service offerings, making them more attractive to potential forex clients. Read more

OPEN BANKING NEWS

🇳🇿 Bank of New Zealand becomes the first NZ bank to achieve next open banking milestone. BNZ has implemented the Payments NZ Account Information API v2.1 standards, which when open banking is fully operational, will enable New Zealanders to safely and securely share their financial information with approved providers.

DIGITAL BANKING NEWS

🇺🇸 The Federal Reserve Board announced its approval of the application by OakNorth Bank plc, of London, England, to establish a representative office in New York. Read the full press release

🇬🇧 PayPoint and Teya announce new partnership to facilitate cash deposits. Teya customers can now access a convenient cash payment service where they can add funds directly into their business accounts at over 29,000 PayPoint stores across the UK.

🇺🇸 Revolut US told users it was migrating from MCB, which was hit with an enforcement action last October, to CFSB. But now, "after careful consideration," Revolut has instead decided to go with Lead Bank (found by Jason Mikula).

🇦🇺 New security feature for businesses to save millions in scams. In a move to help reduce scam losses and make Australia a harder place for scammers to operate, Westpac is extending its payee verification solution to institutional and government clients. 

🇮🇳 HDFC Bank partners with Zeta to offer Credit Line on UPI. The partnership will empower HDFC Bank to launch innovative credit products on NPCI’s CLOU scheme, which allows banks to connect pre-approved credit lines directly to the UPI user base. 

BLOCKCHAIN/CRYPTO NEWS

🇺🇸 PayPal USD crossed the $𝟭 𝗯𝗶𝗹𝗹𝗶𝗼𝗻 market cap mark this weekend, just over a year after its launch. Which is 2x faster than USDC and 3x faster than USDT 🤯 Discover more

🇪🇺 Banking Circle launches the first bank-backed MiCA-compliant stablecoin, EURI. The MiCA regulation establishes a framework for crypto-assets, issuers, and service providers to protect holders' rights in the EU. It is directly applicable to all 27 EU member states.

🇺🇸 Nasdaq seeks SEC approval for bitcoin index options. The proposed index options - listed derivatives offering a quick and inexpensive way to amplify exposure to bitcoin - on a bitcoin index would give institutional investors and traders an alternative way to hedge their exposure to the world's largest cryptocurrency.

DONEDEAL FUNDING NEWS

🇨🇭 N26-backer Redalpine closes seventh fund of $200m. The Swiss early stage VC has opened a new London office in a bid to “follow the deal flow.” 50% of the fund will be reserved for follow-ons. Continue reading

🇦🇺 State Street Global Advisors buys stake in Australian FinTech Raiz. Through the utilisation of State Street Global Advisors' global network of resources, insights, and trends, Raiz clients will get access to a wider range of investing education tools and content related to financial literacy.

M&A

🇺🇸 Shift4 to acquire Givex Corp., global provider of gift card, loyalty & Point-of-Sale solutions. The acquisition will add 130,000+ locations across more than 100 countries to Shift4’s customer base. The Arrangement Agreement is subject to customary closing conditions and the transaction is expected to be completed in Q4 2024. 

MOVERS & SHAKERS

🇺🇸 Yuno hires Jonathan Summerton as SVP of enterprise commerce in US. Under the leadership of Carol Grunberg, Yuno's Chief Business Officer, Jonathan Summerton will advance the company's commitment to revolutionizing global cross-border commerce, expanding their already impressive presence in over 80 countries.

🇺🇸 MoneyGram appoints Josh Gordon-Blake Chief Digital Officer. As the Company's digital business surges, Gordon-Blake joins to amplify momentum, spearheading digital strategy with a focus on the growth and global expansion of MoneyGram Online ("MGO"). 

🇸🇬 Ravi Patel joins Zühlke as Head of Financial Services Southeast Asia. Based in Singapore and overseeing the market strategy and portfolio development for financial services in the region, he will drive sustainable market growth, leveraging his industry experience and network to deliver transformative value for customers.

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