FGS and Paytechs of Canada, today co-released an in-depth report on the Canadian Paytech landscape, offering the first ever comprehensive overview of the impact and pace at which technology is driving disruptive change.
The Canadian Paytech Report provides a data-driven view on Paytech in Canada, analysis and deep insights on all participants in the payments ecosystem. The report highlights innovation in the payments space, emerging trends in Canada [and globally], and includes future considerations for tech giants, non-financial companies and traditional financial institutions.
“The Canadian financial services market is experiencing a dramatic increase of fierce competition driven by the availability of new technology. There is sustained pressure coming from consumers and business for the industry to innovate,” says Sue Britton, CEO & Founder of FGS. “With great confidence, I can say that the majority of incumbent companies, given their size, are unaware of the scale and speed of change happening around them, nor are they able to move quickly enough to respond.”
FGS and Paytechs of Canada, the newly formed trade group for Paytechs in this country, wanted to provide information about the Paytech ecosystem to create awareness, conversation and ideas for collaboration. Together they believe, Canada needs more bold moves and less incrementalism by financial institutions to continue to be viable long term and support the acceleration of innovation in Canada. The report aims to shed light on Canada’s current position in the payments ecosystem, and introduce ideas for future opportunities.
“Payment innovation has and will continue to pave the way for FinTech adoption in Canada. Little is known about the group largely driving that innovation – Paytech,” says Ben Harrison, Partner, Head of Partnerships & Policy at Portag3 Ventures. “We recognize that a lot of great work has been done so far but there’s still work to do. This report gives us a benchmark to start tracking progress at an industry level.”
Highlights of the report include:
- The number of Paytech Companies in Canada has increased by 136% in the last 5 years (2014-2018) and by 233% in the last 10 years (2009-2018).
- There are 633 Paytech companies in Canada – including startups, incumbents, tech giants, non-financial entrants and challenger banks.
- Of these 633 companies, 420 are headquartered in Canada. The rest are Canadian subsidiaries of companies headquartered elsewhere.
- These 633 companies employ more than 80,000 people in Canada.
- The report analyzed the global tech giants with a Paytech offering and found that 12 out of the 14 tech giants analyzed have a Paytech product for the Canadian market.
- FGS research located public data on 244 deals for a total of $2.86 billion funding into Paytech companies in Canada.
- There have been 28 acquisitions of Paytech companies in Canada since 2010.
- The use of digital, demand for convenience, choice and increased need for access to financial services by all Canadians is driving new entrants to the Canadian market. There are now more than 25 Challenger Banks operating in Canada.
Overall, the objective is to inform Canadians, as well as broad financial and non financial institutions, such as retailers and telcos, on how to adapt and embrace emerging opportunities to stay competitive. FGS and Paytechs of Canada also believe this report will be incredibly helpful for those outside the payments industry, particularly key government stakeholders like the Dept of Finance, and Bank of Canada to understand changes to date and where Paytech is going.
At its core, the FGS, Paytechs of Canada report uncovers a Canadian payments market in the midst of numerous changes, all of which are indicators of positive movement towards innovation. The newly announced Paytechs of Canada is a harmonized voice of Paytechs working to improve payment experiences for Canadians by creating competition and innovation through solutions-oriented advocacy and education.
SOURCE FinTech Growth Syndicate
Fintech Startup, Paramount Financial Technologies, Announces Company Launch, Community Banks Sign-on as First Investors
Paramount Financial Technologies (PFT), a newly formed fintech startup, publicly announced today its company launch in New England with community banks as its first investors.
PFT helps community banks solve critical challenges like growing core deposits, improving branch network performance, increasing business relationships, and managing performance. One of PFT’s most popular tools, under the umbrella of its flagship product, MarketOpp 360, is their Branch Opportunity Grid, which helps clients understand which branches have the greatest opportunities for deposit and loan growth and provides a detailed guide for actions to take.
“Community banks are investing in us because our solutions have been market-tested for twenty years,” said Michael Purchia, President and Founder of Paramount Financial Technologies. “Since the early days of banking analytics, we’ve been building and refining our tools to provide time-sensitive solutions. We integrate client data with AI-based market intelligence and analytics so our clients can make the best business decisions.”
Timothy Felter, Chief Financial Officer of Newburyport Bank, said, “Our executive team is partnering with PFT for our New Hampshire expansion. Their commercial and consumer market intelligence, and on-the-ground insights, are invaluable.”
SOURCE Paramount Financial Technologies
Velotrade completes first cross border trade financing transaction into Mainland China with QEX
Velotrade, the account receivables financing platform, announces that it is actively executing cross border trade receivables transactions involving mainland Chinese companies.
The first deal involved trade financing for a transaction between a Chinese SOE and a medical equipment manufacturer, made accessible to Velotrade through the collaboration with Qianhai Financial Assets Exchange (QEX) owned by Ping An Group. It is also the first transaction which gives institutional investors on the Velotrade platform exposure to accounts receivable in the PRC. Velotrade is the first company of its type to obtain a Type 1 Regulated Activity licence from the Hong Kong Securities and Futures Commission.
Vittorio De Angelis, Executive Chairman & Co-Founder of Velotrade commented, “This is a transformational deal for Velotrade. We are the first company offering cross-border access to Chinese invoice financing. The deal was completed very soon after we announced our SFC licensing and underscores the pace at which the company is developing. We are building out our team in Greater China, and our relationship with QEX, also thanks to the synergies given by us being part of the Ping An fintech accelerator program, means that we are now able to offer a stream of similar transactions to institutional investors on our platform. We are delighted that Velotrade has been able to open the door for foreign institutional investors to Chinese trade receivables.”
Velotrade is a trusted source of non-domestic money with a streamlined onboarding process as it offers international investors on its platform an alternative channel of investment. At the same time, it also means mainland Chinese companies can now access this channel as well through QEX, which is beneficial for all parties.
The Vice General Manager of QEX, Zhan Yu Hong, commented, “Through launching cross-border trade transactions of debt-based assets such as accounts receivables factoring, QEX supports ‘One Belt One Road‘ and the development of Guangdong-Hong Kong-Macao Greater Bay Area, to provide better services for the real economy. The collaboration with Velotrade is an excellent example.“
Prior to this cross border offering by Velotrade and QEX, foreign investors have been unable to participate in onshore Chinese trade financing due to capital controls. However, the partnership between Velotrade and QEX means foreign investors can access Velotrade’s regulated platform. Through QEX, investors are participating as regulated Hong Kongentities, recognised by the People’s Bank of China, gaining direct access to the domestic PRC market.
Gianluca Pizzituti, CEO and Co-founder at Velotrade, added, “Since commencing operations in 2017, Velotrade has handled cross-border financing deals in Hong Kong, Mainland China, Singapore, Taiwan and Vietnam across a range of sectors, including the automotive, electronics, healthcare, retail and clothing industries. This transaction is an exciting example of our continued growth and a signal of things to come as we break into one of the largest and fastest growing markets in the world.”
Velotrade’s internet-based platform incorporates modern technologies to create efficiencies in the approval process that expedite financing. Additional identity verification and due diligence is conducted via the same technology platforms used by banks, meeting today’s strictest compliance standards.
Turkish Merchants Can Now Connect With Chinese Visitors via Alipay and ininal Partnership
Leading fintech company ininal becomes Alipay’s first partner in Turkey. ininal, Turkey’s leading new-generation payment platform and a subsidiary of Multinet Up, today announced its collaboration with Alipay, the world’s leading payment and lifestyle platform operated by Ant Financial Services Group, a related company of Alibaba, that Alipay will be available for Chinese mainland visitors at bricks-and-mortar stores in Turkey.
This service will be first available in the facilities of Dorak Holding, the tourism company who plans all activities for tourists and manages numbers of merchants throughout Turkey, serving more than 85% of Chinese tourists visiting Turkey. Merchants accepting Alipay include Turkish specialty retailers, hot-air balloons in Cappadocia, shops, hotels, and Turkish restaurants. Merchants can connect with Chinese customers with digital marketing via the Alipay app while Chinese tourists visit Istanbul and Cappadocia, and those customers can make payments by using the same Alipay app to scan an Alipay QR code displayed on card terminals at the checkout.
Through the collaboration between ininal and Alipay, while Alipay users pay in Chinese Yuan during their visits to Turkey, Turkish merchants will be able to receive payments from Chinese visitors in US Dollars at Dorak Tour locations. Later this summer, Turkish merchants will be able to receive payments in Turkish Lira at existing and new Multinet Up merchants including global chain restaurants and retailers. Multinet Up, ininal’s parent company and the leading financial services company in Turkey maintaining over 40,000 merchants, will utilize its experience in building a network and infrastructure to expand Alipay acceptability. ininal and Multinet Up will work in collaboration with Alipay to further expand the network across Turkey. Jewelers, luxury clothing stores, museums and duty free shops are expected to join in the near future.
“The collaboration with Alipay proves the success of our brand has attained in the last six years. Alipay is the most preferred payment method in China and is widely used by Chinese tourists overseas. The fact that Alipay is used more than cash, credit cards and debit cards is an important data demonstrating the satisfaction it creates. ininal will continue to work with powerful partners globally to bring advanced technology and services to Turkey,” says ininal CEO Ömer Suner.
Stating that the Chinese provided the highest increase in terms of not only the figures but also the tourist spending in Turkey, Ömer Suner continued: “We believe the payment convenience provided through this collaboration will increase the foreign currency that will enter our country and provide contributions to the reanimation of the economy.” In January 2019, a Nielsen report titled 2018 Trends for Mobile Payment in Chinese Outbound Tourism finds that Chinese tourists paid for 32% of transactions using mobile payment, overtaking cash for the first time, and that nearly 60% of merchants surveyed experienced growth in both foot traffic and sales after adopting Alipay.
“Alipay is finally coming to Turkey! We are excited to work with ininal to connect Turkish merchants with Chinese visitors before, during, and after their visit to this beautiful country, overcoming barriers of language and currency. We know our customers are attracted to the ancient and modern sights of Turkey, and the many different experiences it offers, from balloons, to bazars and beaches. As Chinese users’ preferred payment and lifestyle platform, we are always happy to introduce the best offers and must-visit locations of Turkey to our users through our platforms,” said Roland Palmer, Alipay’s Head of Europe, Middle East and Africa.
SOURCE Alipay; ininal
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