BFC FinTech Monitor (June-August 2024)

Stay up-to-date on all the latest FinTech news and information from around the world in the BFC FinTech Monitor.

Around the World#Reports and Studies

CBInsights analysts report that there are 1,240 unicorn startups globally, representing a total value of USD 3.9 billion. »»»
The Asian Development Bank (ADB) has published a new report on how fintech solutions can help women entrepreneurs in Indonesia, the Philippines and Vietnam gain access to financing. »»»

#Payments

Apple will soon allow third-party developers to offer NFC transactions in their applications provided they use new NFC and secure element (SE) APIs. »»»
Mastercard has introduced a new payment line based on Web3. »»»
Approximately 60 financial institutions in Switzerland now accept and process instant payments. This covers more than 95% of retail payment transactions in the country. »»»
Visa and payment company Interpay have partnered to develop Visa Direct services in Georgia, Ukraine, Southeastern Europe and other CIS countries. »»» It is notable that, last year, Visa helped prevent USD 40 billion worth of fraudulent transactions. »»»
Checkout.com has integrated the Google Pay secure payment authentication service. »»»
The National Bank of Cambodia has launched the blockchain-based Bakong Tourists app to simplify payments for tourists. »»»
The European Union (EU) is launching P2P payments through the new Wero mobile wallet. »»»

#Artificial Intelligence (AI)

Aaron J. Snoswell, a research fellow at the Queensland University of Technology, warns that future AI systems may become less effective due to the increased availability of AI-generated data. »»»
Coinbase has facilitated the first cryptocurrency transaction between AI agents. »»»
Over half of organizations that participated in a recent Wipro FullStride Cloud survey believe AI to be the main driver of cloud investments. »»»
Analysts are suggesting that Apple may start charging up to USD 20 per user for advanced AI features in the future. »»»
The EU’s risk-based regulation of the use of AI has come into force. »»»
Google has opened free access to 1.5 Flash, a faster version of Gemini. »»»
Microsoft has officially acknowledged OpenAI as a competitor in AI and searches. »»»

#Innovations, Neobanks and Open Banking

Fraud complaints against Revolut in the UK rose 35% in the second half of 2023, exceeding fraud complaints for all of its competitors combined. »»» Revolut, now valued at USD 45 billion, saw record profits last year following the launch of operations in Singapore as well as instant business transfers in partnership with Visa. »»»
NatWest has created an app for Apple Vision Pro, allowing clients to manage finances via a headset. »»»
Serbia’s Parliament has adopted amendments to the country’s Payment Services Act to align it with European legislation, effectively introducing open banking in the country. »»»

#Cryptocurrencies, Blockchain, Non-Fungible Tokens (NFTs) and Decentralized Finance (DeFi)

China’s Supreme Court and Procuratorate now recognize virtual asset transactions as illegal, linking them to money laundering. »»»
El Salvador’s experiment using Bitcoin as legal tender has shown mixed results, with President Bukele noting unrealized widespread adoption. »»»
Seychelles-based crypto exchange Bitget has integrated Apple Pay and Google Pay. »»»
According to a report from PitchBook, investments in crypto startups in the second quarter increased by 2.5% compared to the first quarter. »»»
Bitpanda warns of an increase in fraud attempts, including SMS phishing. »»»
Circle, the issuer of the USDC stablecoin, plans to introduce contactless payments for iPhone users. »»»
Mastercard and Baanx plan to launch a payment card that will allow for instant payments from the MetaMask crypto wallet. »»»
Portugal may become the first EU country to offer foreigners a residence permit in exchange for investments in cryptocurrency. »»»
EU residents will be able to buy cryptocurrencies using a credit or debit card linked to the Stripe app. »»»
A Pantera Capital study has revealed that women now out-earn men in terms of cryptocurrency industry salaries. »»»
Goldman Sachs CEO David Solomon considers Bitcoin to be a store of value. »»»
The Turkish Parliament has adopted a new law regulating crypto assets, »»» leaving them untaxed and allowing banks to start to work legally with them once approved by the country’s regulator. »»»
The first company with capital in cryptocurrency has been registered in Argentina. »»»
Kirill Khomyakov, the CEO of Binance for Central and Eastern Europe and Central Asia, believes that the lack of a clear legislative framework is the main obstacle to the launch of crypto cards in Central Asia. »»»
The number of unique active Web3 wallets hit a record of 10 million. »»»
Bitcoin has overtaken Visa and Mastercard in daily transaction volume. »»»
Swiss company Tangem and Visa have introduced a crypto payment wallet. »»»
Ripple has been recognized as one of the best fintech companies by CNBC and Statista. »»»
A report from Crypto Losses indicates that fraudsters have stolen USD 920.9 million in digital assets so far this year. »»»

#Central Bank Digital Currencies (CBDCs)

The Bahamas, Nigeria, Jamaica and the Organization of Eastern Caribbean States are leading the CBDC race. »»»
The European Central Bank (ECB) plans to launch the digital euro by the end of 2025. »»»

#Miscellaneous

Fintech startups can apply to participate in the second wave of the Visa Inclusive Fintech Accelerator Program. »»»
Mastercard will lay off 1,000 employees as part of a reorganization effort. »»»
Stripe’s valuation has reached USD 70 billion, making it one of the most valuable fintech startups. »»»

Ukraine:

Alexander Bornyakov, Ukraine’s Deputy Minister of Digital Transformation for IT Development, has stated that legalizing cryptocurrencies represents an alternative to raising taxes. »»»
A new payment service on the Prozor Merezha blockchain may launch in Ukraine by year’s end. The initiative is being supported by 11 financial institutions, Rozetka and the Kyiv Digital app. »»»
The Ukrainian Processing Center has announced the launch of Ukraine’s first open banking platform. »»»
The National Bank of Ukraine (NBU) will begin imposing restrictions on outgoing card transfers on October 1, 2024. The restrictions will last six months and limit outgoing transfers between individuals to UAH 150,000 per month from any single financial institution. »»»
Fintech Farm has signed a strategic partnership agreement with Visa. »»»
News from Privatbank: a virtual card is now available for accounts associated with the National Cashback state program »»»; the bank is launching new services for doing business »»» ; and the bank has updated its mobile ATMs. »»»
AI startup Assisterr has raised USD 1.7 million in funding. »»»
Monobank is, once again, the only Ukrainian bank in CNBC and Statista’s ranking of the world’s best fintech companies. »»» The neobank has also introduced a new feature allowing users to leave reviews and suggestions for other companies in the app. »»»

Kazakhstan:

The international PLUS-forum Digital Kazakhstan will be held in Almaty October 30–31, 2024. »»»
Kaspi plans to participate in the upcoming privatization of 100% of the Uzbek National Interbank Processing Center (Humo). »»» Kaspi also now has the ability to block partner operations if they violate sanctions. »»»
Fintech company Solva has announced that it has raised USD 5 million in funding from the global investment fund BlueOrchard. »»» Solva has also completed the registration of a subsidiary (Solva Technology) specialized in training IT specialists for Kazakhstan’s financial sector. »»»
Payment aggregator OneVision has begun expanding into Europe, with the aim of maintaining a presence in most European nations. »»»
Nurlan Zhagiparov, co-founder of the fintech company DNA Payments and former Managing Director of JSC Kazkommertsbank, discusses his experiences in the UK, the mergers of large companies and banking sector competition. »»»
Three large banks in Kazakhstan acquired seven fintech companies for their ecosystems last year. »»»

Kyrgyzstan:

Kyrgyzstan plans to launch the digital som in 2027, with the country’s regulator proposing the necessary amendments to the Law on the National Bank. »»»
The number of crypto exchangers in Kyrgyzstan is nearing 100. »»»
Eldik Bank has become the first financial institution to open its own subsidiary IT company (Eldik Tech). »»»
The turnover of virtual asset exchange operators in Kyrgyzstan reached KGS 346.7 billion (over USD 4 billion). »»»
Namba Group plans to sell the assets of Namba Food, its foodtech project, to Yandex and focus on developing fintech services and e-commerce in Kyrgyzstan. »»»
The number of e-wallets in Kyrgyzstan increased 19.7% last year. »»»

Tajikistan:

Abdullo Kurbonov, co-founder of the Tajik fintech startup Alif, plans to open an Islamic bank in the UK. »»»
Representatives of Tajikistan and the Emirate of Ras Al Khaimah have signed a memorandum of cooperation in the field of AI. »»»

Uzbekistan:

Upcoming events in Uzbekistan: FinTech and Banking Forum (October 2–3, 2024), UZCARD FORUM (October 24, 2024) and FINNEXT Asia 2024 (November 28, 2024).
TBC Bank has secured USD 25 million in financing from the global investment fund BlueOrchard. »»» The bank also plans to launch insurance products. »»»
The loan portfolio of fintech services in the Uzum ecosystem has more than doubled in the past six months. »»»
A new feature for purchasing goods in installments is now available in the Alif Mobi payment app. »»»

Azerbaijan:

Turkish fintech company United Payment (Birlesik Odeme) plans to release its TURAN product in the Azerbaijani market. »»»
Azerbaijan’s largest mobile operator, Bakcell, has launched its first debit card (Bakcell Card) in partnership with Kapital Bank. »»»
Azerbaijani processing centers AzeriKart and MilliKart have stopped servicing Russian Mir payment cards. »»»

Armenia:

Fintech startup Text’nPayMe will compete in the World Information Technology and Services Alliance (WITSA)’s world championship in October 2024. »»»
Armenia will be able to transmit and receive information on crypto asset transactions with other countries, starting in 2027. »»»

Moldova: