Stripe reaches all-time high while Tencent takes a plunge
By most of the situation, the company’s fintech output is now worth practically nothing; its stock’s value has been “obliterated” after falling 8.4% since Friday 12 March. Inside sources consider that Tencent will, in all likelihood, form a holding company for its banking, insurance and payment services.
Estimated to have been previously worth between $105bn and $120bn, with payments services alone valued at $70bn to $80bn, and with wealth management, credit, and insurance capabilities contributing a further $35bn or $40bn, Tencent’s current position is precipitous.
"All else equal, we think it could be argued that Tencent's fintech business is now valued at almost zero," stated analysis from . "This is significant, as it implies any further declines from here would essentially imply a de-rating of the Tencent multiple."
Stripe: The US’ most valuable startup
“We’re investing a ton more in Europe this year,” John Collison, President and Co-Founder of Stripe. “Whether in fintech, mobility, retail or SaaS, the growth opportunity for the European digital economy is immense.“
What could the future hold?
Although Tencent has experienced a devastating blow to its business, Bernstein still remains optimistic about its chance of a recovery; it compares the company’s present woes to be “in a very different light to the situation facing Alibaba,” for instance.
As such, it could be shortsighted to read these latest events as the ultimate downfall of a Chinese tech giant.
Stripe’s trajectory, however, seems less ambiguously positive. Not content with simply achieving success in the short-term, the company has made it clear that progressive, forward-thinking expansion remains its core goal. Dhivya Suryadevara, CFO, commented:
“The pandemic taught us many things about society, including how much can be achieved—and paid for—online, but the internet still isn’t the engine for global economic progress that it could be. We’re laser focused on helping ambitious businesses grow faster.
“While Stripe already processes hundreds of billions of dollars per year for millions of businesses worldwide, the opportunity ahead is much larger for Stripe than it was when the company was started 10 years ago.”
Zopa and CreditLadder Partner to Help Improve Credit Scores
For people who rent, getting access to finance and loans at competitive rates can be made harder as monthly rental payments are not recorded on their credit file. However, using Open Banking technology, Zopa customers will now be able to use CreditLadder to ensure their rental payments are recorded on their credit files. In turn, these payments are taken into consideration in Zopa’s credit score tool and loan eligibility checker, Borrowing Power.
Borrowing Power is a free tool in the Zopa app that calculates a customer’s financial health score, recommends targeted actions to help them improve it and links directly to their eligibility for Zopa products. By joining forces with CreditLadder, Zopa app users that rent will have the opportunity to improve their Borrowing Power score and gain better access to cheaper Zopa loans.
Offering renters a more accurate credit score
“We at Zopa are proud to be teaming up with CreditLadder to enable our customers to report their rent payments and use them to help build their credit score. We believe that as many people as possible should have access to fair, simple and transparent products. Partnering with CreditLadder and using its Open Banking technology via our app makes it possible for us to offer those that rent a more accurate credit score, tailored tips on how to improve their credit health and access to more affordable Zopa loans in the future.” said Clare Gambardella, Chief Customer Officer at Zopa Bank.
Data from Equifax shows that just under 70% of users with a ‘thin credit file’, which is where users have two or fewer credit accounts, saw an increase in their credit score when 12 months of rental payments were added.
Sheraz Dar, CEO and Co-Founder of CreditLadder said; “There are over 10 million households in the UK who rent and our mission is to ensure they can benefit from reporting their rent payments to improve their credit score - just like home owners do when it comes to their mortgage. The partnership with Zopa is a great use of technology that can help its customers access finance at better rates simply by using CreditLadder to report their rent payments each month.”