Hi embedded finance friend

If you have not gotten the chance, now might be a good time to check out the very first episode of the Embedded Finance Review Podcast with German wholesaler Metro and their ambitious embedded finance plans (Spotify, Apple podcast).

Additionally, I am already fully focused on the preparations for our next Embedded Finance Review Event in October in Berlin (spoiler: it looks like we have the two sponsors in place already🤞). The previous events were informal evening events with some light presentations and between 60 and 120 participants. I was actually thinking of going a little bit bigger and hosting a full-day conference focused purely on embedded finance. So far, I have decided against it because I have a feeling that a one-day conference once a year is not the right format for many non-financial brands.

Therefore, I am thinking of hosting more embedded finance events but make them smaller on purpose. Aren’t the best events we've ever attended on the smaller side? Currently, I am thinking of hosting small dinners with 15–30 participants, without presentations but purely focused on insightful conversations. Such dinners would be in addition to the normal informal public evening events. In order to host our first private embedded finance dinner, I am looking for companies to team up as sponsors and co-hosts (one sponsor per dinner). We will probably start with Berlin or London, but it would be the goal to extend this to more cities in the future. If you are interested, please reply to this email.

But now let’s dive in  👇

Top Story 📰

Nelly partners with Adyen to launch financial hub for doctors in Europe

The Berlin-based startup Nelly is a mix of a fin- and health-tech provider and currently targets doctors and dentists in Germany, but they have announced expansion plans to Italy already. The initial product is a digital patient onboarding solution: patients receive an email or scan a QR code in the doctor’s office and then provide the necessary information. Nelly ensures that this data is being transferred into the patient management software, basically positioning Nelly as an add-on and not a replacement for the existing software stack. Additionally, Nelly already supports their clients with digital invoicing and factoring solutions, which is basically their current fintech offering.

With the new partnership announcement with Adyen, the fintech product offering will be much more extended. The two companies mention that Nelly will be offering Adyen-powered POS devices, embedding online payments into the user journey, and, most interestingly, bank accounts and cards. I believe its fair to say that many in the German fintech ecosystem were waiting for such an announcement, since Nelly has always advertised itself as a fintech company. Therefore, you might very well argue that they are not a non-financial brand. But let’s not argue about the terms in this case, what matters is that Nelly is an exciting company to follow at the intersection of fintech and healthcare.

Nelly is not the only company that aims to become the financial hub for doctors, a target group that is highly attractive for many reasons. It will be interesting to follow what the winning strategy looks like and what the right mix of financial services and non-financial services looks like for this industry.

Adyen

Non-Financial Brands 🏢

Europe

• Swile moves from Treezor to Enfuce: The French employee benefit provider had previously provided cards issued by Treezor to its business customers. After receiving its electronic money institution licence, the French tech company decided to partner with Finnish Enfuce, which enables them to internalise some of the capabilities that have previously been with Treezor. (FFNews)
• Moco partners with Pliant: The ERP provider for agencies integrates the Pliant credit card solution, which enables its users to save time with bookkeeping and receipt collection. (Pliant)
• Icelandic telco Síminn is introducing a card solution: The commercial Mastercard credit card, in partnership with Enfuce, is a virtual card compatible with Apple Pay and Google Pay. Síminn is the largest telco provider in Iceland, and it is launching its service via its fintech subsidiary, Síminn Pay. (Finextra)
• Sainsbury's agrees to a BNPL deal with Klarna: The partnership enables customers of the three brands Argos, Habitat, and TU to choose from Klarna’s interest-free payments. (Finextra)
• Apple partners with Santander for consumer financing in Germany: Zinia, the digital consumer finance platform of Santander, will offer customers purchasing Apple products both in Apple stores and online the option to defer payments by splitting the total amount into installments, or by deferring the payment for 30 days. (The Paypers)
• Woo Commerce adds new online merchant payments: Woo, the maker of WooCommerce, an open-source e-commerce platform built on WordPress, partners with Elavon to help micro and small businesses take online payments. The solution is available for Woo-supported e-commerce stores in Poland, Germany, the UK, Ireland, Sweden, Denmark, Norway, Belgium, Spain, and the Netherlands. (Finextra)

North America

• Shopify acquires a startup to offer a new no-code solution: With the acquisition of Checkout Blocks, Shopify’s merchants will be able to customise their checkout process. (Pymnts)

Infrastructure Provider 🏗️

Europe

• Specialised embedded lending provider Cloover closes seed round: The lender enables the installers of renewable energy hardware to offer financing products to its customers. Cloover raised a total of $114 million, of which the majority is debt for its lending business. (Fintech Futures)
• Modulr unveils an all-in-one payment solution for online travel agents: It provides a suite of solutions in a range of currencies that includes virtual cards, account-to-account transfers, and customisable notifications, accessible through a single API integration and an online portal tailored for travel agents. (FF News)
• Merge receives in-principle approval for an Electronic Money Institution licence in France: The infrastructure provider can now expand its services to include moving e-money, issuing payment instruments, and issuing localized IBANs. Merge facilitates global money management, holding, and movement across various currencies through local rails via a single API. (The Paypers)
• Equals Money expands to offer banking-as a-service: The new product allows Equals Money customers to offer payment and card services to their own clients. Previously, the company offered expense management and other payment solutions. (The Paypers)
• XYB hires new CEO ahead of expected split from parent company, Monese: We knew already that the investors of neobank Monese are supporting a breakup of the B2C and B2B businesses of the company, and the new hire indicates it might happen soon. (Fintech Future)
• mmob integrates with open banking provider Yapily: Customers can use mmob to integrate a wide range of services; many of them are financial services, but it is not limited to them. With the partnership, open banking capabilities are now available via their API as well. (Finextra)
• Plend launches an embedded credit API: Previously, the company only offered direct lending products, but with the new solution, it enables partner organisations to offer credit directly to their own users. (Finextra)
• Marqeta opens a new office in the EU: The card-issuing platform has opened a new office in Warsaw. By setting up its operations in the country, Marqeta is expected to gain more access to customers in the European Union. Furthermore, Poland’s central location within Europe will also enable the company to facilitate access to key Eastern and Western European markets. (The Paypers)

North America

• Remote working software provider Deel announces an investment in embedded finance provider Alviere: The investment further bolsters Deel’s commitment to give workers in the US access to faster and more streamlined wage payouts and a wallet solution. Alviere’s technology and compliance programme have already been integrated into Deel’s platform since the beginning of the year. (Crowdfund Insider)
• Investors and banking partners knew about the missing funds: The latest development in the case of bankrupt US BaaS provider Synapse shows that $85 million is missing due to ongoing reconciling issues, which many of the stakeholders apparently knew about. (Fintech Business Weekly, The Information, Fintech Brainfood)
• Canadian open banking provider expands to BaaS: Zūm Rails is launching a BaaS initiative to enable companies to offer a new suite of bank-like services directly to their customers. The company has hired a payment expert from Sesame Credit, a company that seems to be their first BaaS customer. (Fintech Global)
• Live Oak Bank has launched its first embedded banking partnership: Powered by the bank’s in-house technology and a Finxact core, this offering enables software companies to directly deliver Live Oak banking products and services to their own customers. (Pymnts)

Rest of the world

• Stripe India moves to invite-only: The payment processing company is now operating on an invite-only basis in the Indian market. It seems that this move was triggered by new regulations introduced, and Stripe aims to return to the open registration approach in the near future. (The Paypers)
• Nuvei partners with Visa to offer Visa Direct in Colombia: Visa Direct allows safe, convenient, and near-real-time fund delivery directly to financial accounts using card credentials. Visa Direct clients use the capability to enable use cases such as person-to-person (P2P) payments, fund disbursements, bill payments, or cross-border remittances directly to an eligible debit or prepaid card. (Finextra)

Banks & FIs 🏦

• How is embedded finance transforming major institutions like J.P. Morgan and Wells Fargo: Unlike community banks that dominate banking-as-a-service, these larger banks are leveraging technology to reach new customers and drive payment volumes. This shift is reshaping the financial landscape, making banking services a seamless part of digital experiences. (American Banker)

Insightful links 🤓

• The former Bond CEO talks about their acquisition by FIS: Roy Ng founded and led Bond until its acquisition in the middle of 2023. In this short interview, he shares some insights about the new synergies. (FF News)
• Next-gen POS driving impressive growth: Companies with either a payments or software focus, such as Clover, Square, Toast, and Shopify, are leading this transformation by offering comprehensive service bundles. The market share for these next-gen POS providers is growing at double-digit rates, with significant increases in revenue and terminal adoption. (Flagship Advisory Partners)
• What’s next for embedded finance?: The article discusses the evolving landscape of embedded finance, highlighting both opportunities and risks for U.S. banks. It highlights the need for banks to carefully balance distribution gains with potential revenue losses, six strategic approaches based on bank size and capabilities, and the importance of partnerships. (The Financial Brand)
• What’s behind the move to closed-loop payments and branded digital wallets? The trend of merchants launching their own digital wallets to boost customer loyalty and reduce payment processing fees involves a closed-loop system that allows merchants to facilitate transactions directly with customers, integrating rewards and incentives to enhance engagement and increase revenue. (Tearsheet)
• 66% of consumers in India would switch merchants for the right embedded lending offer: While only 15% of consumers currently use these options, 66% are willing to switch merchants for the right offer. The study, involving over 8,000 global consumers, reveals that embedded lending is underutilised despite significant interest, particularly among Gen Z and millennials. (Pymnts)

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