TransferWise announces new valuation of $5bn
Since the start of the Coronavirus pandemic, investor interest in the online payments sector has grown as expected, highlighting the demand for digitalisation of financial services. On Wednesday, fintech unicorn TransferWise announced that it is now valued at $5bn, an impressive spike from its valuation last year of $3.5bn.
The London-based money transfer company has become a tough challenger to giants like Western Union and MoneyGram in the payment services industry. With 8 million global customers and processing a monthly total of $5.2bn across borders, it’s easy to see why.
Founded in 2010, TransferWise was based around a vision of making international money transfers cheap, fair and simple. The vision belonged to founders and , who came up with the concept for the business after rethinking the high fees of transferring money to their home in Estonia from the UK.
Kristo Käärmann, CEO and Co-Founder of TransferWise said: “We’ve been funded exclusively by our customers for the last few years and we didn’t need to raise external funding for the company. This secondary round provides an opportunity for new investors to come in, alongside rewarding the investors and employees who’ve helped us succeed so far.”
TransferWise is of course not the only fintech company to have succeeded during the Coronavirus pandemic after its 43% jump in valuation. London-based Revolut recently obtained $80mn from TSG Consumer Partners, a private equity group based in San Francisco.
The future of payments and banking, especially post-pandemic, appears to lie with financial institutions that are ready to adapt and digitalise. With ATM transactions in the UK dropping by 60% on average during the lockdown, mobile banking and mobile payments have rocketed in popularity. A cashless society suddenly feels more imminent.
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