Paystone Acquires Ackroo for $21M
Marcel van Oost - FinTech News USA
Connecting the dots in FinTech...
👀 NEWS HIGHLIGHT
Wise, the global technology company building the best way to move and manage the world’s money, announced that it has been selected by Morgan Stanley, a leading global financial services firm, to facilitate Morgan Stanley’s foreign exchange international settlement capabilities for its corporate customers.
Morgan Stanley will offer clients high-speed cross-border settlements through Wise Platform, Wise’s global payments infrastructure for banks. This integration will also make Morgan Stanley the first investment bank to enable these corporate payment capabilities on Wise Platform.
NOW, ON TO THE SUMMARY OF LAST WEEK'S NEWS
🇺🇸 NATIONAL HIGHLIGHTS
⭐️ Taktile welcomes Stephen Brandes as VP of Sales to drive global growth.
⭐️ Ripple USD (RLUSD) is now live on global exchanges.
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FINTECH
Affirm signs $4 billion loan deal with private credit firm Sixth Street. The deal, which will ramp up over time, is expected to result in over $20 billion in loans by 2028. This partnership reflects the growing trend of FinTech firms seeking non-bank financing options.
MANTL enhances platform for unified deposit and loan origination, creating an all-in-one solution for banks and credit unions. This integration enhances cross-sell opportunities, improves customer and employee experiences, and boosts operational efficiency. Read More
PAYMENTS
Visa Direct to make funds available in U.S. cardholders’ bank accounts in one minute or less. Starting in April 2025, consumers, businesses, and governments can use Visa Direct for real-time deposits into bank accounts linked to eligible debit cards.
Mercia exits card payments specialist in sale to US company. Shift4 has acquired Grimsby-based Card Industry Professionals, a provider of card terminals, POS, and online payment solutions to SMEs like retailers and salons. The deal marks an exit for Mercia Ventures, which backed the firm in 2022 via NPIF and MEIF funding.
equipifi and Synergent partner to expand Credit Union access to buy now, pay later platform. As a result of this partnership, Synergent credit unions will be able to launch their own BNPL programs through their digital banking apps, helping members split their larger purchases into flexible installment loans.
Slope taps Marqeta to power BNPL Card, enabling brands and marketplaces to offer flexible loan options. By integrating with Marqeta, Slope enables its customers to make in-store purchases when needed and spread payments over time, enhancing cash flow and allowing for faster access to working capital. The Slope Card offers cost-effective, modern business capital at checkout.
Remote adds USDC payouts for contractors. In partnership with Stripe, Remote supports USDC, a stablecoin pegged to the U.S. dollar, ensuring stability and eliminating cryptocurrency volatility risks. Payments are fast and reliable, avoiding delays common in international transfers.
REGTECH
SEC Charges Cantor Fitzgerald for securities law violations. The charges involve antifraud and proxy provisions of securities laws. The firm, led by CEO Howard Lutnick, who was nominated by Trump for the Commerce Department, settled by paying a $6.75 million penalty without admitting or denying the charges.
DIGITAL BANKING
Interactive Brokers introduces AI-generated news summaries. This advanced feature, available at no additional cost, enables clients to access concise summaries of news articles, streamlining insights from leading providers and making it easier for investors to stay informed.
TD Bank upgrades retail card business with Backbase Engagement Banking platform. Through this collaboration, TD Bank will utilize Backbase’s Engagement Banking platform to deliver an enhanced, digital-first experience for retail cardholders, according to the vendor.
CRYPTO
Stable, transparent, trusted. Ripple USD. Ripple USD combines fiat stability with blockchain efficiency: Instant global payments, 24/7, Seamless on/off ramps, and access value in real-world assets.
Bitcoin rally outpaces Crypto ETFs. Canadian crypto ETFs have recorded C$578 million ($405 million) in net outflows this year, according to TD Securities, while U.S. Bitcoin ETFs attracted $36 billion in inflows through December 16. Read more
PARTNERSHIPS
Morgan Stanley partners with Wise for corporate payments. This team-up makes Morgan Stanley the first investment bank to offer these corporate payment solutions via Wise. The solution complements Morgan Stanley's existing foreign exchange services for corporate and institutional clients.
CARD.com & Visa team up for global payments. The partnership aligns with CARD.com’s mission to provide innovative financial solutions. This expansion marks a significant step in enhancing its international financial services. Continue reading
DONEDEAL
Current reports record growth in 2024, secures capital for expansion and innovation. The capital will support strategic member acquisition, efficient expansion, and deepen Cross River’s partnership to enhance Current's financial products. This investment will enable Current to provide more accessible solutions like faster paycheck access, savings pods, and credit-building tools.
Parafin secures $100M to boost small business finance. This funding reflects growing confidence in Parafin’s approach to embedded financial services, an area that continues to transform how small businesses access capital and manage their operations.
Hedera Hashgraph raises $100M. The funds will focus on improving Hedera's public ledger and addressing challenges hindering mainstream adoption. This funding follows an earlier $18 million raised through a private token sale. Read more
A2A Payments face headwinds, Volume raises seed round. The company has raised $6 million in a seed round led by United Ventures. It had previously raised a pre-seed round of $2.4 million in 2022. The company now plans to obtain FCA approval in the U.K. and expand internationally.
M&As
Upbound Group acquires FinTech Brigit in $460M deal. Brigit offers financial tools like cash advances and credit building, serving over two million users.Brigit’s tech will enhance Upbound’s brands, including Acima Leasing and Rent-A-Center, which provide lease-to-own options. The deal is expected to close in Q1 2025.
Demica acquired by FIS for $300M. A decade after its sale to private investors, Demica now manages $40bn in assets and has grown steadily, with 40% annual growth since 2016. Key banking partners include HSBC, Lloyds, and Standard Chartered.
Canadian FinTech Paystone acquires Ackroo, for $21 million in an all-cash transaction. The acquisition, set to close in February 2025, includes the purchase of Ackroo’s shares at $0.15 each, a 25% premium over its December 11 closing price. The move aligns with Ackroo's strategic goals given current market conditions.
MOVERS & SHAKERS
Broadridge names Ashima Ghei as CFO. Ghei has led Broadridge’s global Finance team as Interim CFO since July 1, 2024, and has been instrumental in driving the company’s financial strategy and execution forward in the first half of FY25. Read More