Stripe eyes value-doubling funding round
Stripe is reportedly eyeing a new funding round that would double its most recent valuation of $36bn.
Bloomberg sources said the US fintech is in talks and hopes the round would push Stripe’s valuation to more than $70bn, and perhaps even as high as $100bn. According to those familiar with the situation, the round is still in early stages and may not come to fruition.
It would be the second major capital drive of the year for the digital payments fintech, following a successful $600m round in April earlier this year.
At the time, Stripe’s cofounder and CEO John Collison said the COVID-19 pandemic would make digital payments a necessity and accelerate the sector’s growth immeasurably, adding: “We believe now is not the time to pull back, but to invest even more heavily in Stripe’s platform.”
Digital payments investments soar
Investment in digital payments startups rocketed during the third quarter of 2020, as contactless and online transaction volume and value continued its upward, pandemic-fuelled trajectory. According to Global Data, deal volume rose 14% and total value ballooned by more than 41% compared with Q2.
As COVID-19 continues to necessitate contactless transactions and online retail in many of the world’s countries in lockdown, the investments keep coming thick and fast. Just last week, Paypal’s VC arm pumped $9m into UK digital payments firm Modulr, while Italian fintech Satispay received €93m in backing in a round led by Square and Tencent to expand its payments platform across Europe.
Tink partners with Novalnet AG for open banking payments
The Munich-based fintech Novalnet AG, which was founded in 2007 and is one of Europe’s leadingfintech companies, has announced a new partnership with Tink, the Swedish open banking platform currently connected to more than 3,400 European banks.
Novalnet AG delivers payment solutions and fully automated services, from checkout to debt collection. Its solutions are also available worldwide.
According to reports, the fintech company plans to launch a real-time payments feature for merchants across Europe, to expand its current services and enhance the transaction experience it operates through its platform.
The new feature, says Novalnet, will revolutionise payments for ecommerce with transactions being credited to merchant’s accounts almost instantly.
Novalnet partnership with Tink
By partnering with Tink for payment initiation services (PIS) technology, Novalnet will take previous region-specific payment methods and offer a new unified digital payments service to its merchants across Europe.
The fintech’s real-time merchant payments feature, which will be launched initially in Germany and the United Kingdom, will then be integrated across other European markets during 2021.
Speaking about the new collaboration, Emmanuel Kirse, COO of Novalnet, explained, "We expect great things from our strategic partnership with Tink, which is a significant development for both parties.
“With Tink, Novalnet can offer a new set of open banking-related solutions in Europe. The new opportunities offered by this partnership will help both Tink and Novalnet grow together, along with our merchants."
Cyrosch Kalateh, Regional Director for the DACH region at Tink said, “Our partnership with Novalnet is a big step for Tink in the German market, and we are excited to work together to bring new, innovative payments services to merchants across Europe.”
He added, “At the end of 2020 Tink committed to expanding its payment initiation services from five to 10 markets, fuelled by an €85mn investment round. We are proud to add Germany to this list by announcing we have now fully launched Tink’s PIS services in this market.”
Image credit: Novalnet AG