With this launch, INFINIOS becomes the first issuer in Bahrain, apart from being one of the first fintechs in the Middle East, to enable Mastercard settlement using stablecoins, unlocking faster, more efficient settlement capabilities for modern commerce.

The integration also forms part of Mastercard’s broader regional strategy to bring regulated, real‑world blockchain use cases into the mainstream payments ecosystem, bridging traditional finance with tokenized money. INFINIOS was selected as an early live partner following rigorous regulatory, operational, and technical readiness requirements.

“By going live with Mastercard on stablecoin settlement, INFINIOS is helping define the future of how money moves—faster, more transparent, and designed for a digital‑first economy. Bahrain is once again proving it can lead in payment innovation and financial ecosystem transformation,” said Sherif Abdelsalam, CEO of INFINIOS.

“In addition, the collaboration establishes the foundation for 24/7 settlement capabilities that will be introduced progressively over time, addressing long‑standing inefficiencies in cross‑border and institutional payments while maintaining full regulatory compliance,” the senior official remarked further.

Mastercard announced INFINIOS as one of its initial Middle East partners for stablecoin settlement as part of its blockchain and digital asset expansion strategy, reinforcing Bahrain’s role as a forward‑looking fintech hub.

“At Mastercard, we are bringing our global network of partners together to shape the future of stablecoin adoption and power a new wave of digitalization in financial services. Our collaboration with INFINIOS will advance the move toward trusted, enterprise-grade digital settlement rails across the Middle East,” said Saud Swar, country manager, Saudi Arabia, Bahrain, Jordan, and other Levant at Mastercard.

“With this go‑live, INFINIOS positions itself at the core of next‑generation payment infrastructure, enabling banks, fintechs, and enterprises to access Mastercard’s global network with the speed and programmability of blockchain‑based money,” he concluded.

INFINIOS has been expanding its operational footprint into the Middle East, in terms of making stablecoin settlement the new normal in the region.

INFINIOS, in June, entered into a strategic agreement with Circle Internet Financial, a subsidiary of Circle Internet Group, one of the world’s leading financial platform companies. Through the strategic arrangement, INFINIOS will be able to deliver faster, more secure, and more globally interoperable digital payment and treasury solutions for businesses and financial institutions in the Gulf region. The company will integrate with Circle’s financial infrastructure, including USDC, EURC, and API-enabled onchain payment capabilities for payouts and treasury operations.

“Through its integration with Circle’s infrastructure, INFINIOS aims to support institutional and enterprise use cases, including cross-border payments, treasury and liquidity management, merchant settlement, platform payouts, tokenized financial services, and embedded finance. The collaboration also reflects a shared focus on compliance, transparency, and regulatory alignment, including KYC, AML/CFT, and data protection standards,” the Bahraini company said in June, while announcing the agreement.

The post Bahrain’s INFINIOS marks Middle East stablecoin milestone with Mastercard appeared first on International Finance.

Open Standard confirmed the move on 30 June 2026, launching Open USD, or OUSD, and pitching it as neutral infrastructure for payments, trading and the wider internet economy rather than any single company’s product. Visa, Mastercard and Google sit among the founding backers, with Fireblocks on board as a key infrastructure partner. The fuller roster stretches across traditional payments and crypto native firms, including Stripe, American Express, Coinbase, BlackRock, BNY, IBM and DoorDash.

The design is what sets OUSD apart. The token charges nothing to mint or redeem at any scale, and returns nearly all of its reserve income to the partners that distribute it rather than keeping it as issuer profit. Governance sits with a board drawn from those same partner companies rather than a single controlling entity. Zach Abrams, the Bridge co-founder installed as Open Standard’s founding chief executive, framed it plainly at launch. “It’s a stablecoin built for the internet economy, designed by the businesses growing it,” he said.

Bridge, the stablecoin infrastructure firm Abrams previously built, was bought by Stripe for roughly a billion dollars in 2024, which makes him an unusually well credentialled operator to steer a coalition this large. OUSD is expected to go live later this year, with Solana confirmed as a day one network and Stellar, Base and Polygon set to follow.

Markets reacted within hours. Circle’s shares fell as much as 18% on the announcement, as investors weighed the threat to USDC’s core revenue, the interest earned on the treasuries backing its reserves. Circle chief executive Jeremy Allaire pushed back publicly, arguing that USDC’s liquidity, regulatory track record and years of operating history are not easily replicated by a brand new entrant, and questioning whether fee free minting at scale is sustainable.

Not everyone is convinced OUSD can pull off its own pitch either. Will Harborne, co-founder of stablecoin infrastructure firm Rhino.fi, has warned that a shared standard creates friction of its own once businesses start actually using it, rather than just backing it on paper. “For consumer facing businesses, that’s where the friction bites first,” he told CCN, pointing to the confusion of payments sent in one stablecoin and received in another.

ARK Invest’s Lorenzo Valente has raised a related concern, questioning whether a consortium of roughly 500 competing entities can move quickly enough, given a cold start liquidity problem and thin trading pairs. History offers a caution too. USDC currently holds around seventy three billion dollars in supply, against roughly three billion for USDG, the earlier consortium coin that pioneered yield sharing eighteen months ago.

No US regulator has commented on OUSD by name so far, which is not surprising for an eleven day old announcement with no live product. But there is a genuine open legal question sitting underneath the launch. The GENIUS Act bars payment stablecoin issuers from paying yield to token holders, and the OCC’s proposed rule implementing that ban, published in February, extends the prohibition to arrangements where an issuer routes yield through affiliated third parties.

OUSD’s entire model depends on sharing reserve income with 140 partner companies, precisely the kind of arrangement that rule appears to target, though the OCC has carved out an exemption for white label profit sharing with non-affiliated partners that Open Standard may lean on. Final rules are due by 18th July.

Whichever way that question resolves, OUSD has already done something no rival coin managed. It got Visa, Mastercard and Coinbase to agree, however briefly, that this dollar is nobody’s dollar and everybody’s.

The post Open USD: 140 rivals to share one single cryptocurrency appeared first on International Finance.

“We welcome that the European Parliament’s ECON Committee has agreed on its position on the single currency package, which will safeguard euro cash as legal tender while also shaping the digital euro,” the ECB said in a statement.

The digital euro, as an electronic wallet guaranteed by the central bank but marketed by banks or fintech companies, will allow eurozone residents to make payments online and in person. While the project has been ongoing for the last six years, it only got the push in 2025 as Republican Donald Trump entered the White House for his second stint as the United States president.

His tariff-heavy trade policies, which hit the allies and adversaries alike, raised fear in the European political circle about Uncle Sam potentially weaponising its dominance over payment networks like Visa and Mastercard.

And the fear is not unfounded, given the fact that as per the European Central Bank (ECB) data, Visa and Mastercard account for 61% of card payments in the euro area and almost all cross-border card transactions.

The approval of draft rules by the European Parliament’s Economic and Monetary Affairs Committee officially ended the three years of stalemate between the ECB and banks, which have been concerned about deposit outflows and lost revenues and sought to limit the digital euro’s scope.

“The introduction of the ⁠digital euro would… reduce overreliance on non-European providers by becoming a pan-European means of payment and would bring the single currency into the digital era by giving Union citizens the freedom to opt to pay with central bank money in their daily transactions,” the draft regulation says.

However, there is still a bit of opposition against the digital euro, as Siegbert Frank Droese of the far-right “Europe of Sovereign Nations,” a political group in the European Parliament, said his group had voted against the proposal, raising the likelihood that a further vote would be needed at the Parliament’s plenary.

Notwithstanding this, lawmakers are now in a position to start negotiating with the European Council of EU governments and the European Commission from July onwards, aiming for final approval for the digital euro’s rollout by the 2026 end.

The ECB, which plans to run a 12-month pilot of the digital euro starting in the second half of 2027, before a full launch in 2029, said it looked forward to Parliament adopting its final position.

Among other nations, China has been piloting a digital yuan at scale, while countries like India and Brazil have conducted trials of their respective CBDCs (Central Bank Digital Currencies). The United Kingdom, on the other hand, has focused on research amid concerns over privacy, financial stability, and banking-sector impact. Trump, on the other hand, through an executive order, has forbidden the Federal Reserve from issuing a digital currency.

The Republican, instead of a CBDC, has backed the development of stablecoins, privately issued crypto assets designed to maintain a stable value.

Since the vast majority of global stablecoins are denominated in US dollars, the cryptocurrency’s backers argue that the technology could reinforce the dollar’s international role and expand its use in cross-border payments.

Coming back to the digital euro, based on an ECB recommendation, lawmakers have proposed in the draft regulation that the European Commission should be the final deciding authority in terms of determining how many digital euros every user could own. The ceiling, in consultation with the central bank, can be reviewed at least every two years.

“Businesses would not be allowed to hold digital euros for longer than 24 hours. The digital euro would not earn any interest or cost anything to its users,” the proposal stated further.

“The proposal reflects political compromises. It keeps commercial banks at the center of distribution, with only a limited role for public channels and ⁠other providers, and does not go as far as presenting the digital euro as a true alternative to bank deposits,” Laura Casonato, head of policy at Positive Money Europe, an advocacy group for monetary reform, told Reuters.

“Such concessions were likely crucial to win over critics such as Fernando Navarrete Rojas, the parliament’s negotiator on this file, who only recently dropped his opposition to making the digital euro available online,” she stated further.

As per the latest ECB simulations, depositors could withdraw up to 699 billion euros (USD 795.88 billion) from eurozone banks if a limit on digital euro holdings was set at ⁠3,000 euros each.

“This is equal to 8.2% of all retail sight deposits, although the impact would be greater for small-market lenders and retail banks,” the ECB noted.

As per the draft proposals, the ECB would provide the underlying infrastructure, while commercial banks and payment service providers would offer digital euro services to customers.

“Financial institutions are expected to be compensated for their participation in the scheme, while merchants will pay fees that are expected to be lower than those associated with current card transactions,” the proposals stated further.

However, the compensation’s structuring is expected to be one of the bones of contention ahead of negotiations between the EU and its member states.

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As per Backbase, the integration is intended to accelerate the adoption of near real-time cross-border payments among financial institutions, which will allow banks to offer international payment solutions more quickly while facing less implementation complexity.

The collaboration will be looking to deliver pre-built connectors, removing the need for custom integration work, while supporting complete payment flow management from initial customer transaction through settlement and reconciliation. The initiative will initially target banks operating in the European Union (EU) and the Middle East and North Africa (MENA) regions.

“For financial institutions, the partnership offers a range of practical advantages, including reduced implementation timelines, faster routes to revenue through a pre-certified integration, and an architecture designed to support multiple payout options and currencies,” Backbase said.

Talking about Backbase’s AI-native Banking OS, it has a sort of “Unified Frontline,” an operating model for AI-native financial institutions, where customers, employees, and AI agents collaborate as one—across digital channels, front office, and operations.

AI-native Banking OS, launched in April 2026, addresses one of the financial sector’s most persistent structural challenges: fragmentation. Based on insights from more than 120 deployments, Backbase estimates that roughly 80% of frontline banking work happens in the whitespace between systems—the handoffs, coordination, and exceptions no single application owns. It’s the same work banks now want to hand to AI agents. By launching the Banking OS, Backbase has brought forward an AI-powered mechanism that sits above a bank’s existing systems, cores, payments, cards, risk, and CRM without replacing them.

It understands the customer in one shared view, coordinates the work across every system, authorizes every action, and optimizes the functions continuously, learning from interactions, signals, and outcomes.

The pre-built Backbase connector to Mastercard Move has now been made available to the AI-native banking software’s customers, supported by structured planning, technical assessment, and delivery guidance.

Backbase global vice president and head of ecosystem partnerships Mayank Somaiya said, “The Backbase Ecosystem extends the AI-native Banking OS with best-of-breed capabilities across payments, fraud management, open banking, dispute management, and end-to-end banking services. With Mastercard Move accessible directly through the Banking OS, banks can deliver trusted international payments within the same digital journeys their customers already use—competing with digital-first and non-traditional players on experience, pricing, transparency, and speed.”

Mastercard global head of transfer solutions Pratik Khowala commented, “By making Mastercard Move available through the Backbase AI-native banking OS, we’re accelerating banks’ ability to bring cross-border services to market. This collaboration helps financial institutions deploy trusted, transparent international payments faster and with far less complexity.”

The post Backbase, Mastercard to work on accelerating cross-border payment adoption appeared first on International Finance.

The deal with Anchorage marks another regulatory breakthrough for Justin Sun, who in March 2026 reached a USD 10 million settlement to resolve US Securities and Exchange Commission (SEC) charges.

The regulatory body, in March 2023, sued Justin Sun and his companies Tron Foundation, BitTorrent Foundation and Rainberry, accusing them of illegally distributing the crypto assets tronix and bittorrent, apart from artificially inflating trading volume, and concealing payments to celebrity endorsers. However, in a letter to US District Judge ⁠Edgardo Ramos in Manhattan, the same agency now says, “Justin Sun and his companies did not admit or deny wrongdoing.”

“By supporting Tron on Anchorage Digital’s regulated platform, we’re helping bring one of crypto’s largest ecosystems into an institutional framework,” said Anchorage co-founder and CEO Nathan McCauley.

Anchorage clients will now be able to custody Tron’s tronix (the cryptocurrency native to the blockchain), paving the way for greater adoption of the token ‌in ⁠the United States.

American investors wishing to invest and trade in Tron’s token currently carry out the activity mostly through decentralised exchanges, which ⁠aim to cut out the middleman and allow users to transact directly on a blockchain network.

The tie-up between Anchorage Digital and the Tron blockchain also comes in the backdrop of President Donald Trump’s aggressive efforts to make the world’s largest economy also a global hub for virtual currencies. Justin Sun, a major backer of the Trump family crypto ⁠venture World Liberty Financial, told that Tron’s partnership with Anchorage will help “expand secure institutional access to the blockchain network.”

TRON was in the news in March 2026, as it reached a settlement to resolve SEC charges. The blockchain also joined the “Mastercard Crypto Partner Programme” to support cross-border remittances, B2B transfers, and other on-chain payments by leveraging Mastercard’s global network and settlement infrastructure.

TRON, that handles USD 22 billion daily and USD 85 billion in USDT (Tether), offering high throughput, low costs, and liquidity for global payments and AI-driven transactions, will now engage with Mastercard on product design, interoperability, and responsible scaling. The initiative will demonstrate the value of combining blockchain programmability with established financial systems to enable practical, widely adopted digital payments.

The post Anchorage Digital ties up with Justin Sun’s Tron blockchain appeared first on International Finance.

The move comes as Binance faces increased regulatory scrutiny around the world, and crypto exchanges try to assure investors that their funds are safe after FTX collapsed in 2022. Last February, US authorities fined Binance USD 4.3 billion for violating federal anti-money laundering and sanctions laws by failing to monitor its internal controls and sentenced its founder and chief executive, Changpeng Zhao, to four months in prison.

Still, Binance has remained the world’s largest cryptocurrency exchange by trading volume, handling billions of dollars in trades daily across hundreds of cryptocurrencies.

Meanwhile, European users can now convert cryptocurrency into fiat and withdraw money straight to a Mastercard that is eligible for almost instantaneous settlement, thanks to a new feature Binance has introduced. With the help of Mastercard Move, the payment behemoth’s suite of money-movement tools, the service is operational on the Binance website and app.

Two components make up the new functionality: a “sell to card” option that instantly transfers the money to the user’s Mastercard after converting cryptocurrency into euros. The “withdraw to card” option is an additional choice that enables users to transfer their current euro balances from Binance straight to their card.

Currently, only euro-based payouts are available for both services; additional currencies should be added soon. The new features are intended to simplify cryptocurrency payments, according to Thomas Gregory, vice president of Fiat at Binance.

“Our goal is to continue expanding our services with global leaders and innovators in digital payments, like Mastercard, to widen access and possibilities for our broad global user base,” the senior official stated further.

This update makes off-ramping easier for users who prefer fast access to their money without using conventional bank transfers. With availability in almost real time, it fills a significant gap between regular fiat spending and cryptocurrency wallets.

The post Binance teams up with BBVA to let customers keep assets off exchange appeared first on International Finance.

Driving Iraq’s Financial Sector

Over the course of these 17 years, Qi Card has evolved into a quintessential symbol of financial innovation, specialising adeptly in biometric ID cards and cutting-edge electronic financial services. Conceived through a forward-thinking partnership that seamlessly blends private and public interests, Qi Card stands out as a formidable driving force in Iraq’s dynamic financial sector. This collaborative synergy empowers Qi Card to harness the resilience and ingenuity of the private sector, harmoniously complemented by the stability and extensive reach of the government sector.

Boasting a dedicated team of over 1,200 highly trained professionals, Qi Card’s MasterQi has adeptly navigated the ever-changing landscape of fintech, emerging triumphantly as a premier provider of biometric ID cards and electronic financial services in Iraq. The amalgamation of expertise from Iraqi and international specialists in finance, banking, and technical management serves as a testament to Qi Card’s unwavering commitment to excellence.

MasterQi integrates advanced biometric card verification capabilities, enhancing security and ensuring a seamless user experience for secure and efficient transactions.

Blending Technology And Innovation

At the heart of Qi Card’s revolutionary advancement is its innovative payment solution, a trailblazing approach that has transformed the dynamics of the Iraqi market. This pioneering system, the first of its kind, functions based on fingerprint-based transactions, fundamentally altering the way salaries and grants are distributed in Iraq.

Qi Card’s visionary outlook transcends mere transactions and it aspires to foster an Iraq where cashless transactions become the prevailing norm. The Qi Card system, characterised by a harmonious blend of convenience and heightened security facilitated by biometric identification, plays a pivotal role in fortifying a more resilient and secure financial ecosystem for its users.

Secure And Convenient Financial Transactions

At the forefront of Qi Card’s offerings stands the flagship product, the MasterCard, symbolizing the epitome of secure and convenient financial transactions. This versatile card empowers users to seamlessly receive salaries, government payments, and partake in diverse financial activities.

The widespread acclaim garnered by the Qi MasterCard is further amplified by the user-friendly Qi Services mobile application, which plays a pivotal role in advancing financial inclusion across Iraq. This app not only affords users heightened control over their finances but also ensures transparency, rendering Qi Card a preferred and contemporary choice for individuals seeking modern financial solutions.

Qi Services mobile application also provides customers with convenient access to credit products, empowering them to manage their financial needs efficiently.

Cooperation With Western Union

A pivotal juncture in the annals of Qi Card’s history is marked by its strategic alliance with Western Union, a renowned global leader in cross-border money transfers. This collaborative venture has not only elevated Qi Card’s functionality but has also empowered users with seamless access to Western Union’s robust network for secure and efficient international transfers.

The integration of Western Union services into the Qi Card platform signifies a notable stride forward, providing users with a dependable solution for global financial transactions. This strategic partnership underscores Qi Card’s unwavering commitment to delivering comprehensive and cutting-edge financial solutions.

Championing Financial Inclusion

Opting for a Qi Card extends beyond the tangible advantages of utilising a user-friendly app. It has evolved into a powerful symbol of financial empowerment in Iraq, actively championing financial inclusion by granting access to financial services to individuals who were previously underserved by conventional banking systems.

Reshaping The Landscape Of Financial Services

Since its establishment in 2007 to its current status as a premier fintech company, Qi Card’s trajectory vividly exemplifies the transformative influence of technology in reshaping the landscape of financial services. Through its wide array of products, strategic collaborations, and unwavering commitment to user empowerment, Qi Card stands as a pivotal force in shaping the future of financial technology in Iraq.

The post A cash-free tomorrow: Qi Card’s 10-year fintech odyssey in Iraq appeared first on International Finance.

The Financial Development Programme’s primary goal, according to the Saudi Central Bank, commonly known as SAMA, is to promote digital payment alternatives to help the Kingdom transition to non-cash payments at a rate of 70% by 2025.

In August 2023, mobile phone payments increased by 18% to SR19.5 billion from SR16.6 billion during the same month of the previous year.

On the other hand, card sales were SR31.7 billion in August, an increase of SR2 billion over the corresponding month in 2016.

When compared to the same month in 2022, MADA card usage for online purchases increased by 27.4% to SR14.4 billion in August.

The Kingdom promotes the adoption of electronic payment mechanisms, such as MADA cards, to move toward a cashless society.

MADA cards are frequently used to receive payments from the government, such as salary, social benefits, and subsidies. The government payments’ digitisation has increased card usage and sales value even more.

MADA cards are frequently used at ATMs for balance cheques and cash withdrawals. The use of MADA cards grows together with the number of ATMs.

However, according to SAMA records, the number of automated teller machines decreased by 274 from August 2022 to that month, indicating a downward trend over the previous six months.

Although the rise in MADA card utility and the decrease in ATMs may appear to be at odds with one another, many developments in the nation’s financial landscape can explain the trend.

The use of MADA cards may be rising as more people and businesses switch to electronic payments like online shopping, bill paying, and fund transfers, which eliminates the need for manual ATM withdrawals.

Another explanation might be the widespread use of contactless payment technology, which enables users of MADA cards to conduct speedy and secure transactions without having to physically enter their cards into a card reader.

This feature has gained popularity for making low-value purchases, which lessens the need for ATMs.

While there may be fewer ATMs, the overall trend indicates a shift toward card-based and digital payments, with Saudis becoming more accustomed to electronic transactions and using teller machines for cash withdrawals less frequently.

The Kingdom’s roadmap of transforming itself into a cashless society got a massive boost in September 2023 as Mastercard and Fintech Saudi signed an agreement to boost a core part of the Gulf state’s high-tech vision of the future.

The deal supports Saudi Arabia’s ambitious ‘Vision 2030’ socio-economic transformation strategy, as the Kingdom sees its fintech sector as one of the major non-oil growth drivers.

According to the Fintech Saudi report for the financial year 2021-22, there were 147 active fintech ventures in Saudi Arabia. While this tally is expected to go up further, Nezar A Alhaidar, managing director at Fintech Saudi, told the ComputerWeekly.com that MasterCard deal would be a game changer for the country as the world’s second-largest payment-processing venture would provide the Saudi fintechs with a scale of resources not available within the Kingdom.

Fintech Saudi, launched by the Saudi Central Bank and the Capital Market Authority, has a roadmap to support 525 fintech startups in the Kingdom by 2030, under the ‘Vision 2030’ strategy.

Talking about the Mastercard-Fintech Saudi deal, Alhaidar remarked, “We can help fintech companies to develop innovative payment methods and digital services that enhance the rapidly expanding sector in the Kingdom by utilising Mastercard’s knowledge and network.”

Adam Jones, country general manager in the Middle East at Mastercard, commented, “Saudi Arabia is becoming a global hub of tech and SME innovation, with Vision 2030 and the Kingdom’s commitment to developing a cashless economy serving as the foundation of this success.”

“Our partnership with Fintech Saudi aligns with this goal and will enable us to better support new and established startups by delivering secure, innovative and diverse payment solutions and digital services,” added Jones.

Fintech Saudi has already established partnerships with global tech and finance biggies like Accenture, Visa and Amazon Web Services, in order to turn the Kingdom into a major fintech hub.

The post Mobile & card payments rise as Saudi Arabia transitions to a cashless society appeared first on International Finance.

The package of European Commission reforms is looking to update the decade-old rules, which will open the payments market long dominated by banks and especially, American behemoths Visa and Mastercard.

Knowing The Proposal In Detail

The reforms, once approved by the EU member states and the European Parliament, will make it harder for banks to stop fintech from opening an account with them, and give fintech access to payments infrastructure in the same way as the legacy financial institutions.

The electronic payments market in Europe has grown from 184.2 trillion euros (USD 201.7 trillion) in 2017 to 240 trillion euros in 2021.

“The legal basis for banks and other payment firms to share information without falling foul of EU data protection rules is also being made clearer to reinforce the sector’s collective capacity to tackle scams,” an EU official said, while interacting with Reuters.

In 2021, reports emerged about the European Payments Initiative (EPI), which was looking to create a payments firm that can take on American payments companies like PayPal, Mastercard, Visa, Google and Apple.

Some 30-plus banks and credit card processors in Europe were reportedly teaming up to topple the US domination in Europe’s payment market.

EPI, which comprises 40 payment experts, from regional stakeholders like Deutsche Bank, BNP Paribas, ING, UniCredit and Santander, started its policy roadmap on developing a systematic plan for a pan-European payments service. The project got backing from the European Commission and other regional financial regulators, apart from receiving funding of over €30 million.

Fast forward to June 2023, came another policy push from the European Commission.

Understanding The American Domination

From 2018 to 2021, card payments accounted for 73% of transactions in the United Kingdom. Visa and Mastercard dominate this segment, not only in Europe but the overall global market, 75% to be precise, thus running a duopoly.

“As often happens with an effective duopoly, these two dominant forces’ market position has become so entrenched that they are able to set the terms of their relationships with merchants. This includes the fees they charge for processing transactions. Those terms play a large role in small businesses’ lack of competitively and higher prices being passed on to consumers. Merchants hand over $138 billion in transaction fees each year, the second-biggest cost after wages,” said a ‘Disruption Banking’ article.

Both companies have massive digital infrastructure, international reach, security, and the ability to process fast transactions (1700 in a second). Also, these companies continuously upgrade cards’ security features, resulting in consistently high customer satisfaction and acceptance rates.

However, the trust comes at a much higher cost. Visa and Mastercard have earned infamy due to their strict chargeback rules, legal controversies, unfair business practices and the acquisition of competitors.

Europe’s Fintech Ecosystem: Brimming With Possibilities

Pitchbook’s latest report on European VC valuations showed that median early-stage fintech pre-money valuations in Europe grew to €22.1 million in the first quarter of 2023. Around the same period in 2022, the value was at €13.8 million.

Europe is known for having a favourable regulatory environment for fintech firms. Measures like the revised Payment Services Directive (PSD2) and the European Banking Authority’s (EBA) guidelines on digital operational resilience have helped to level the playing field for fintech companies across all sizes.

The PSD2 has even allowed fintech ventures to access customer data held by banks, thus enabling the development of innovative financial services.

Also, Europe has been known for having world-class business and engineering courses, along with start-up hubs like Berlin, London, and Paris.

The continent also has accelerator programs and venture capital firms. Events like Money20/20 and Finovate also allow these start-ups to connect with potential investors and customers.

Add Europe’s large and mature financial services market, a diverse customer base, along with well-developed infrastructures and established tech players, these start-ups have the perfect formula to disrupt the market.

As per a report from the Boston Consulting Group (BCG) and QED Investors, the fintech sector will witness a six-fold revenue increase by 2030, from USD 245 billion to USD 1.5 trillion.

The United Kingdom and European Union together will constitute the world’s third-largest financial intermediary market by 2030, aided by a significant fintech expansion. The growth will be over five times that of the 2021 ratio.

A Minor Blip Is There

As per ‘CB Insights’, while the European fintech sector saw its funding rose by a staggering 168% to reach the USD 131.5 billion mark in 2021 from USD 49 billion in 2020, things changed in 2022, as rising interest rates, a cost-of-living crisis and the Ukraine war dominated the continent’s economic landscape, leading to the trillions in valuation being erased from public markets.

However, according to McKinsey, in each of the seven largest European economies, at least one fintech firm has occupied a rank in the list of top five domestic banking institutions.

So it shows that despite facing economic headwinds, Europe’s fintech sector has been resilient.

The Final Verdict

Europe’s financial sector is going through a transformation and the fintech sector has been at the forefront of the campaign. The continent has everything to make the ecosystem a grand success story. All these companies need is a steady flow of funding, along with regulatory help, to ensure that they produce substantial valuations on a yearly basis and keep Europe’s growth engine running by creating more jobs.

A healthy competition, not a duopoly of two American payment giants, is what the European fintech market needs right now. So the European Union’s latest proposal looks like the right step towards realising this goal.

The post IF Insights: Europe’s fintech reforms and the need to eliminate US duopoly in the sector appeared first on International Finance.

DNA Payments has also tied up embedded finance provider Liberis, a deal which can be the game-changer in the Small and Medium Enterprises (SME) sector, as Liberis will be analysing data from DNA Payments to offer pre-approved funding to over 65,000 of their merchant customers across Europe.

DNA Payments, established in 2018, took its first external funding in 2021 from private equity firm Alchemy Partners. While the company’s losses reportedly grew from 2.6 million pounds in 2020 to 8.9 million pounds in 2021, the start-up expanded its headcount by 313% (198 employees currently) in 2023.

Knowing DNA Payments In Detail

As of June 2023, the start-up is helping over 65,000 merchants across the United Kingdom and Europe with its cutting-edge industry solutions for online, in-store and on-the-go businesses.

American Express, Visa, Mastercard, UnionPay, Apple Pay, Google Pay, PayPal, name any biggie of the online payments industry, it has a tie-up with the UK-headquartered venture.

“Our Group includes Optomany, a company that services large corporates and medium-sized businesses; and 123Send, Active Payments, First Payment Merchant Services, Kwalitas, and Card Cutters, who all provide services to SME customers. Our combined Group is one of the largest PaaS and SaaS services providers to multinational acquirers and banks,” the company stated.

“We’re FCA (The UK Financial Conduct Authority) regulated for consumer hire with headquarters in London and operational hubs in Kent, Hull and Oxford, and now serve over 65,000 merchants. That’s around £900,000,000 processed monthly across 100,000 POS terminals worldwide,” it remarked further.

DNA Payments was launched in August 2018 with just three people. In September of that year, the start-up launched its first e-commerce payment solution. In July 2019, it got its first ‘Valued Ecommerce Customer’, followed by the launch of its merchant portal v1. In September 2019, the company acquired CR7 Services and a month later, reached the landmark of having 30,000 customers in the United Kingdom.

In 2020-21, DNA Payments acquired Zash AB, launched its maiden payment link solution, reached the 40,000 customer landmark in the UK, launched ‘Pay by Bank App Payments’, acquired ‘Active Merchant Services’, enabled ‘PayPal E-commerce payments’, introduced Partners’ Dashboard, started its open banking payments mechanism, apart from enabling payment set-ups with two tech biggies, Apple and Google.

The year 2021 also saw DNA Payments launching Verifone and PAX terminals software, apart from launching its integration with ‘BigCommerce’. DNA Payments’ growth journey continued in 2022 as well. It started the year by acquiring UK-based payment solutions provider Kwalitas, followed by the launch of its ‘First Verifone Trinity series POS Terminal’. Also, the start-up acquired ‘Card Cutters’ and ‘First Payment Merchant Services’, apart from reaching 100,000 card terminals and online points of sale.

Apart from partnering up with Mastercard to deliver ‘Click to Pay’, DNA Payments, in 2023, has continued to upgrade its Merchant Portal.

Services Offered By DNA Payments

The start-up, established by Arif Babayev and Nurlan Zhagiparov, provides businesses with online payment solutions through Mobile Card Machines, Portable Card Machines, Countertop Card Machines, Unattended Terminals and Zash Android Epos.

For online transactions between businesses and customers, DNA Payments have solutions like ‘Website Payments’, ‘Virtual Terminal’, ‘No-Code Payment Links’, ‘Recurring Payments’ and ‘Charity Donations’.

How Do These Solutions Work?

The ‘Mobile Card Machines’ accept chip, PIN, contactless and mobile payments with major card providers and popular payment methods, with 24/7 operational availability.

Reliable internet connectivity, long battery life, quick processing speed and printer friendly are the key features of these ‘Mobile Card Machines’, which are suitable for contractors, taxi drivers and delivery service providers.

These ‘Mobile Card Solutions’ can be branded as well by DNA Payments, in order to ensure that the client company’s brand awareness runs throughout its payment system.

Also, the start-up’s portable card machines allow businesses to accept payments anywhere in-store.

These devices are facilitated with Wi-Fi, Bluetooth, 3G and 4G connections, so that they can be connected to the printing machines, in order to ensure quick generation of receipts in a fast-paced working atmosphere like the ones in supermarkets, pubs, eateries and beauty salons. Also, these portable card machines come with the feature of emailing the receipts directly to the customers, in case the latter doesn’t want paper printouts.

The above two solutions are just prime examples of how DNA Payments’ solutions cover the specific transaction-related needs of businesses across sizes. The ‘Unattended Terminal’ is perfect for entities like petrol pumps and ticket vending centres, which encounter long customer queues and lack payment features which are quick, easy and secure.

Through DNA’s merchant portal, businesses can track transactions, authorise refunds and pull sales reports using data analytics, along with accepting payments online without using a website (for this, the businesses can send Payment Links to their customers through email/other online communication methods).

The start-up’s ‘Payment Gateway’ mechanism aids its client businesses to enjoy the benefits of technologies like ‘Automated Routing’ and ‘Secure Tokenisation’, thus making it easy for these entities to accept and process credit and debit card payments online.

“Our Payment Gateway allows for frictionless transactions across multiple sales channels and was developed to work with all major payment providers so it can be implemented easily into your business’s payment process,” DNA Payments stated.

“Only one token is needed for transactions, so you can monitor and get insight without affecting security. Our Payment Gateway facilitates a seamless journey between your sales channels, unifying your platforms and opportunities,” it stated further.

DNA’s ‘Payment Gateway’ has direct integrations with the world’s leading payment systems and processes payments from all merchant sale points.

“Businesses are becoming global, so we’ve developed our Payment Solutions to accept all payment methods worldwide. You’ve got complete control over payment types you choose to receive, all managed using our Merchant Portal,” it stated further.

Also, the company has all-around data security and fraud analytics protocols set in place, while meeting the global cyber security standards.

The Road Ahead

Having an online payment mechanism, based on tools like card terminals and ‘Points of Sale’, is quickly becoming a must for 21st century businesses.

DNA Payments, through strategic partnerships with Mastercard and Liberis, is already on its way to becoming an industry giant in the digital payment sector. From petrol pumps, departmental stores to pubs and eateries, the start-up has established customised online transaction-related solutions for businesses of all sizes.

However, the real challenge for DNA Payments will be to stay future-proof, as online payment mechanisms are evolving at a much faster pace than anyone’s imagination.

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