Fintech Tuesdays

Beyond the Mic: What Season 3 of Couchonomics with Arjun Taught 🧑🎓 Us About the Pulse of Progress in Finance 💰 & Technoogy ⚡️ Season 3 wasn’t just another lap around the #couchonomics track—it was a backstage pass to the boldest shifts reshaping the world of finance, tech, and everything in between What started as a series of conversations soon became a mirror 🪞 to the real world—where decentralized dreams collide with regulation, where SuperApps sprint ahead, and where AI 🤖 (not so quietly) rewrites the rules. But behind every headline, it was our guests who brought the story to life. Strategists. Executives. Founders. Policy shapers. Each one pushing boundaries across MENA and the wider world. To our partners— Adyen Mastercard Thunes ToYou | تويو and M2P Fintech —you didn’t just back a season, you believed in the mission. And to our collaborators at Singapore FinTech Festival and Jeel —you helped stretch the horizon of what’s possible. As the curtain falls on Season 3, take a moment to dive into the carousel—packed with insights from voices that are already shaping tomorrow. Goodbye, from the couch 🛋️ to the world! #Couchonomics #SeasonFinale #VoicesThatMatter #FintechUnplugged #MENAInnovation #GlobalFinance #FutureCast #OnwardAndUpward

One API. 140+ Countries. Unlimited Possibilities. At Digit9, we’re redefining global payments with a single, powerful #API that connects you to 140+ countries. Introducing the Digit9 World API – your gateway to seamless payments! -Instant access to major payment rails worldwide -Fiat & stablecoin settlements with smart processing -#AI-powered treasury for intelligent management -No complex integrations – just plug in and scale globally Watch the video to see how Digit9 is powering the future of payments & visit www.digitnine.com to find out more. How do you see global payments evolving? Share your thoughts below! LuLu Financial Holdings | Adeeb Ahamed | Osama Al Rahma | Joseph Cleetus | Hashim Rasheed | Shyam Prasad Chandrasekaran | Leah Villasis Togle | Arjun Vir Singh | Fintech Tuesdays | NPCI International Payments Limited (NIPL) | Careem | Linas Beliūnas | Jeen Jose Akkanath | Simon Taylor | Daniel Webber | Panagiotis Kriaris | Marcel van Oost | Nitin Mathur | Shafeez Fazel | Circle | Sanjiv Purushotham | Theodora Lau | Checkout.com | Sameer Singh Jaini | MENA FINTECH ASSOCIATION | April Rudin #FintechInnovation #DigitalPayments #OpenBanking #CrossBorderPayments #FintechAPI #FinancialInclusion #Remittances #Stablecoins #AI #FutureOfPayments

🚨 Fintech Update: Checkout.com and Tabby team up to bring BNPL to more businesses in the UAE and Saudi Arabia The BNPL wave in MENA is only getting bigger. 62% of shoppers in the past year are demanding flexible payment options (per Checkout.com’s latest Digital Commerce Report – link in the comments 📌). Now, Checkout is integrating Tabby’s BNPL solutions into its platform. This gives merchants direct access to over 15 million active BNPL shoppers and makes flexible payments easier to offer at checkout. 🔹 For merchants, it’s a smoother way to reach high-intent customers. 🔹 For shoppers, more more ways to pay on their own terms. Where do you see BNPL heading next in the region? #fintech #BNPL #Tabby #Checkout

Embedded Finance, Banking As A Service and a lot more. I am proud to share Arthur D. Little’s “Embedded Finance” Journal, a wide exploration of the evolving world of embedded finance and related topics. This journal 📓 includes several viewpoints and reports authored by several members of ADLs Financial Services Practice over the past couple of years. As we stand at the crossroads of finance and technology, the convergence of emerging regulations, innovative business models, and disruptive technologies is reshaping our industry profoundly - across the globe. I invite you to delve into the perspectives captured in this journal. Together, these contributions illuminate the pathways to a future where financial services are not an isolated function, but rather a vibrant, integral part of our emerging digital ecosystem — an ecosystem that is as dynamic and innovative as the world we live in. #embeddedfinance #baas #bankingasaplatform #invisiblefinance #disrutivetechnologies #openbanking #superapps #bnpl

USA 🇺🇸 government interest expense up 2x past 5 years…. brace for a bumpy ride ahead! 🔹 US Treasury’s annual interest expense has surged past $1.2 trillion as of 2024 which is twice the level of five years ago, indicating a rapid increase in debt servicing costs. 🔹 From 1988 to the mid-2000s, interest payments remained relatively stable, fluctuating around $0.4-$0.6 trillion. A slow increase occurred post-2015, but the steepest rise started around 2021-2022, aligning with rising interest rates and increased government borrowing 🔹 A dramatic spike is visible from 2022 onward, likely due to the Federal Reserve’s interest rate hikes to combat inflation and a higher national debt burden, leading to increased debt servicing costs. 🔹 Higher debt costs may (will) limit government spending on critical areas like infrastructure, defense, and social programs 🔹 The #government may need to either increase taxes, cut spending, or issue more debt, which could have long-term economic consequences 🔹 As the U.S. government issues more debt to cover rising interest expenses, bond supply increases, pushing Treasury yields higher 🔹 Investors will demand higher returns to compensate for rising risks, making borrowing more expensive for both the government and corporations (banks are happier) 🔹 Persistent high yields on shorter-term Treasuries relative to longer-term bonds could keep the #yieldcurve inverted, a classic recession signal (Don’t say the “R” word) 🔹 Potential for a #selloff on equity, especially growth stocks, particularly tech companies, may suffer the most since their #valuations are based on future cash flows (Nasdaq is gonna get rockier) 🔹 Higher Treasury yields would make U.S. assets more attractive, leading to #capital inflows into the U.S., boosting the dollar (USD). This could hurt emerging markets that rely on #dollar denominated debt, making #repayments more expensive 🔹 Investors might pull money out of riskier #emergingmarkets in favor of higher-yielding, safer U.S. Treasuries. A stronger USD will reduce global liquidity, tightening financial conditions worldwide (When the US gets a cold, the world gets a sniffle 🤧) 🔹 If interest expenses keep rising, the Fed may have less room to cut rates even in a downturn. A prolonged period of high interest rates could increase the risk of a #recession ❓In the near term #bitcoin prices may suffer but in the mid term we could see a massive demand surge as a #hedge against government debt instability and fiat devaluation (both from retail and #institutional investors) but a lot of it will depend on whether it continues evolving into a digital gold-like #storeofvalue rather than a speculative asset

Ever wondered how Klarna makes money? 🚀 Behind Klarna’s Multi Billion-Dollar Revenue Engine Here’s a quick breakdown from their S1 filing. Klarna’s 2024 Monetization Model includes these primary revenue streams: ------------ 🔹 Transaction and Service Revenue: $2,136 million (76% of total revenue) 🔸 Merchant Revenue: ~75% of transaction revenue. Merchant-led fees dominate revenues. Merchants pay when customers buy now and pay later (interest-free for customers). 🔸Consumer Service Revenue (late fees): ~17% of transaction revenue 🔸Advertising Revenue: 8% of transaction revenue ($180 million, 6% of total revenue) from Klarna app interactions. 🔸 Klarna Plus, a subscription model, adds recurring revenue through exclusive consumer deals. Features an AI powered shopping assistant plus other features. -------------- 🔹 Interest Income: $675 million (24% of total revenue) 🔸 "Fair Financing" offers longer-term installments (up to 36 months), earning Klarna interest income. Why Klarna’s winning: • Low acquisition costs due to seamless signup. • AI-driven underwriting reduces credit risk significantly. • Short-term loans (40 days average) mean quicker adjustments. • Cost-effective funding, leveraging consumer deposits. Their S1 is an instructive read, especially for those who seek to understand the BNPL model in detail. Klarna’s revenue per employee skyrocketed from $344K to $821K in just two years.  Efficiency pays off big-time. AI powered BNPL? (image from S1) Fintech Tuesdays #Fintech #Payments #Startups #BNPL #BusinessStrategy #ipo #klarna

VCs Play a Different Game — Founders Need to Stop Playing Along Venture capital isn’t broken—but it’s deeply #misaligned for most founders. I have always held that fear , and that is now increasingly turning into a reality: a significant percentage of VCs (in the #Fintech space) have harmed the startups within their portfolios, driven by a lack of sectoral #competence and the sole purpose of maximizing their earnings. Some suggest, and I agree, that the VC sector is undergoing a #reset phase (following the euphoria that prevailed until the early 2020s), and that requires founders to undergo a period of reflection and change as well. The sooner founders stop optimizing for their VCs playbook and start focusing on their startups long-term success, the better off they will be. If you’re raising money, here’s what you need to remember: ✅ VCs want unicorns 🦄; you might just want a great business. Know the difference ✅ Valuations 💰 don’t matter. Liquidity does. Don’t fall for paper wealth. ✅ A massive TAM makes you look fundable, but a precise TAM makes you actually successful 🌟 ✅ Many investors care more about markups than outcomes. Pick your partners 🤝 wisely ✅ Early and growth investing are different sports. Work with specialists, not generalists ✅ The best investors think like founders, not bankers. Surround yourself with them. ✅ CVCs can be valuable but may have shifting strategic priorities ✅ Family offices offer an alternative to traditional VC, with longer time horizons and fewer strings attached. ✅ LPs demanding liquidity means many VCs are feeling the pressure, which could lead to further misaligned incentives for founders. Some VCs are complete gems 💎 , they know their game and also know how to strike a healthy balance between what they need to achieve and what the startups within their portfolio need most. Still, there are an equal number of VCs who fall short (some might even be successful VCs from a financial perspective, but that doesn't mean they are effectively nurturing the startup ecosystem); it's those VCs that the startup founders need to be wary off and not lose sight of the bigger picture. I appreciate it's easier said than done. Ultimately, founders build companies, not venture capitalists. Rahul Banerjee Milind Sanghavi Christian K. Saeed A. Assiri George Harrak Omair Ansari Kabeer Naqvi FCCA, BFP ACA Mo Aziz Gozde Demir Amith Rajan Elias Yazbeck Eyad Albayouk, CPA, CFA Paul Melotto Mehdi El Amine Fichtali Morrad Irsane Panagiotis Kriaris Vaanathi Mohanakrishnan Abdulla Almoayed #venturecapital #angelinvestors #corporateventurecapital #privateequity #privatecredit #debtfunding

Against the Odds: How American Express Thrives Amid Age Old Skepticism at 175 year of age 👏 AMEX as we all like to call it, has often faced scrutiny over its distinctive business model. Despite periodic questioning from so called payments futurists, banking analysts and investors, Amex has continually defied the odds—innovating, expanding strategically, and consistently posting impressive financial results. This resilience highlights how a focused approach on premium services and a loyal customer base can drive long-term success. Here are some interesting milestones till the turn of the century: 🔹 1850 – The Birth of American Express as an express mail business. 🔹 1891 – The Launch of Traveler’s Cheques - a groundbreaking innovation that offered international travelers a safe and convenient way to manage their funds, pioneering secure payment solutions worldwide. 🔹 1958 – The Introduction of the Charge Card. A product which set American Express on a path to becoming a household name in payments. 🔹1984 – The launch of the Platinum Card with their exclusive rewards, travel benefits, and personalized concierge services, the Platinum Card redefined luxury 🔹 1999 – The Unveiling of the Centurion Card (popularly known as the Black Card)—represented the pinnacle of exclusivity and is still the most conveted metal card in the wallet 💳 🔹 2001-2002 (not sure of the exact date) - My first AMEX Card (and I have been a customer for nearly 25 years 🤣🤣🤣). Very keen to see what happens with them over the next decade as Payments disruption goes into hyperdrive driven by multiple forces Happy Birthday 🥳 Graziela Martins Sabine Khalil Fares Usman Arif Mazin Khoury Fahad Al Guthami Emir Ardic Mohammad Nikkar, PhD Francesco Cotrone #amex #mastercard #visa #chargecard #payments

Only 12% of growing market businesses feel ready for AI adoption. Even though the technology race is not slowing down, most companies are still struggling with the fundamentals needed to keep going. This report from Economist Impact looks at some of the ways companies across seven emerging markets are preparing for AI adoption and the barriers they face. Here are my key takeaways: 🔶 Only 12% of businesses describe themselves as completely ready for AI, though just 7% admit they're not ready at all. 🔶 81% of businesses can't access the quality data AI needs to function properly. 🔶 Most companies are playing it safe. 71% are sticking with free AI tools instead of building custom solutions. 🔶 Only 14% of companies have created internal AI usage policies, despite 90% planning to hire tech leadership to oversee deployment. 🔶 Governments and businesses are teaming up to build better digital infrastructure and train workers. Seems like everyone's still figuring AI out as they go. #AIReadiness #EmergingMarkets #couchonomics #payments #fintech #embeddedfinance #digitalassets #futureofmoney #futureoffinance - ⁠- - - - - - - - - - - - - - - - - - - - - - - - - - - 👍 Hit like ♻️ Share it with your network 📢 Drop a comment 🎙️ Check out my podcast Couchonomics with Arjun on YouTube 📖 Get my weekly newsletter on LinkedIn: Couchonomics Crunch 🕺💃 In the MENA region? Join our Fintech Tuesdays community! 🤝 Let's connect! - ⁠- - - - - - - - - - - - - - - - - - - - - - - - - - -

‘Open Banking Change Curve for Incumbent Banks’ 🎢 Scribbled this on my note pad 📝 in the summer of 2021! Nearly 4 years later, I guess 😶🌫️ I got this wrong (at least for the time being; but then even a broken clock ⏰ shows the right time twice a day) #openbanking #openfinance #bankingasaservice #fintechrevolution #embeddedfinance #regulation #predictions