FinTech Weekly - Fintech News Issue #347

Alex Johnson and Jason Mikula discuss fintech topics and make predictions about what 2022 has in store for us. The focus of this episode of Fintech Takes is on new payment methods and institutions - especially for what concerns BNPL (Buy Now, Pay Later).

“We want to ensure we enable the architects of the future”: smart contracts are becoming a fundamental tool in today’s economy, and they can be used basically for anything. The Cardano Foundation, in partnership with EMURGO, is creating a new ecosystem to facilitate smart contract development.

It’s not the first time Sotheby’s accepts cryptos for an auction, but this time the item is an extremely rare black diamond called “Enigma”. If a crypto bid succeeds, the auction house will use Coinbase to settle the transaction.

Another partnership for Coinbase: Mastercard announced that people will be able to buy NFTs (Non-Fungible Tokens) with their Mastercard cards. Mastercard will simplify and secure the process by also putting into practice its expertise in cybersecurity.

BNPL (Buy Now, Pay Later) is the hottest topic now, and this requires a careful analysis: the Sifted team discusses the topic with Anthony Drury (Zip), Olga Shikhantsova (Speedinvest) and Sandrine Zhang Ferron (Vinterior), coming up with six interesting insights.

Edward Woodford, founder and CEO of Zero Hash - a fintech company focused on providing B2B digital asset infrastructures, thinks that most financial firms and business owners will offer an NFT or crypto product within the next year. Investors seem to agree with him: Zero Hash has just raised $105 million in its last funding round.

Alternative payment methods are rising and they are showing all the weaknesses of the tools we are used to. Variable Recurring Payments (VRP) represent a better alternative to direct debit - they work via API, they are easier to set up, they better fit the needs of customers and merchants, but they’re not widely adopted (not yet).

There is no doubt that neobanks have been able to cut costs for the end users, but what will happen in the future? Traditional banks are reducing their fees to stay competitive: will neobanks need even more innovation in the short-term to be people’s favourite choice?

While we’re on the subject, Tesco Bank is launching its Tesco Clubcard Pay+: this Visa card is a debit card you can top up with any UK bank account. The card not only allows purchases, but it also has a “Round Up” feature that holders can use to save money and earn interest.