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First-ever Canadian Paytech Report Offers Insight on Emerging Canadian Paytech Market

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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

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Wirex Launches Enhanced Cryptoback™

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Today, payments platform Wirex launched a supercharged update of their revolutionary Cryptoback™ rewards programme. Customers can now earn up to 1.5% back in Bitcoin on Wirex Visa card purchases.

Released in 2018, Cryptoback™ was the world’s first rewards programme that paid out 0.5% in cryptocurrency for all in-store spending with the Wirex Visa card. Thanks to the recent launch of the Wirex Token (WXT), customers can now triple the amount of BTC they earn – making investing in cryptocurrency easier than ever before.

Depending on the amount of WXT held, in-store Wirex card purchases now generate up to 1.5% in Bitcoin. There are three levels of crypto rewards available:

  • 500,000 WXT = 1.5% Cryptoback™
  • 100,000 WXT = 1.0% Cryptoback™
  • 50,000 WXT = 0.75% Cryptoback™

Wirex have calculated that the average UK consumer stands to earn more than £300 in Cryptoback™ every year, just by using their Wirex Visa card for day-to-day spending. Unlike many other cashback programmes, Wirex doesn’t impose restrictions on what customers can do with their rewards. Cryptoback™ can be redeemed instantly into their Bitcoin accounts, or quickly and easily exchanged into fiat for spending.

Enhanced Cryptoback™ is just one of the ways that holding Wirex Tokens allows customers to get even more out of their account. They can also enjoy heavily discounted fees based on the same structure, with access to premium products, merchant offers and airport lounges coming soon. As Wirex co-founder Pavel Matveev explains:

“We created the Wirex Token to be something that provides tangible value and benefits for holders beyond its market trajectory. Enhanced Cryptoback™ is the perfect example of this, as it allows customers to earn and invest in digital currency with a minimum of fuss. We’re looking forward to introducing even more benefits for WXT holders soon.”

 

SOURCE Wirex

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Aegis Capital Corp. is pleased to announce its commitment to Equity Research

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Aegis Capital Corp. continues to expand its equity research platform with the addition of Benjamin Zucker and James Jang. Benjamin joined in May 2019 as Head of Specialty Finance and James joined in June 2019 to head up the Maritime & Special Situations. These new coverage areas will bolster Aegis’ existing research footprint in the Internet/TMT and Healthcare sectors.

Mr. Zucker joined Aegis from BTIG LLC, where he was a Director and lead analyst covering Mortgage REITs and real estate finance companies. Prior to BTIG, Mr. Zucker was a Vice President at JMP Securities LLC where he covered similar sectors. Benjamin began his career in equity research at Pritchard Capital Partners. At Aegis, Mr. Zucker’s coverage will span across several Specialty Finance sub-sectors including Mortgage REITs, Equity REITs, Business Development Companies (BDCs) and Financial Technology firms (FinTech). Benjamin’s current coverage list includes: Medalist Diversified REIT (MDRR), Sachem Capital Corp. (SACH), and Saratoga Investment Corp. (SAR).

Mr. Jang joined Aegis from Maxim Group LLC, where he was a Senior Vice President and lead analyst covering the Industrials, Infrastructure and Clean-Technology sectors. Previously, Mr. Jang was a senior analyst at Sidoti & Co. covering furniture and textiles and was an equity research associate at Canaccord Genuity covering Maritime and Upstream E&P companies. Since joining, Mr. Jang has expanded Aegis’ research platform into the Agriculture, Oilfield Services, and Industrial Technology sectors with coverage of Profire Energy (PFIE), Marrone Bio Innovations (MBII), Yield10 Bioscience (YTEN) and Sigma Labs (SGLB).

Michael Pata Aegis’ Head of Business Development commented: “Hiring Benjamin and James continues to show Aegis’ commitment to equity research, which brings institutional quality analysis to the small and mid-cap universe.”

 

SOURCE Aegis Capital

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LexinFintech Announces US$300 Million Private Placement of Convertible Notes with PAG

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LexinFintech Holdings Ltd. (NASDAQ: LX) (“Lexin” or the “Company”), a leading fintech platform for educated young adults in China, today announced that it has entered into a convertible note purchase agreement with PAG, a leading Asia-focused private equity firm with over US$30 billion in capital under management, pursuant to which the Company will issue and sell convertible notes in an aggregate principal amount of US$300 million to PAG through a private placement. The private placement is subject to satisfaction of customary closing conditions and is expected to close on or around September 16, 2019. The gross proceeds raised from this placement will be approximately US$296.4 million.

The convertible notes will mature in seven years, bearing interest at a rate of 2.0% per annum. The notes will be convertible into fully paid Class A ordinary shares of the Company or ADSs at a conversion price of US$14 per ADS at the holder’s option from the date that is six months after the issuance date.  The holder of the notes will have the right to require the Company to repurchase for cash all or any portion of the notes on the fourth anniversary of the issuance date.

At closing, the Company will appoint to its Board of Directors one person designated by PAG.

Mr. Jay Wenjie Xiao, Founder, chairman and chief executive officer of the Company, said, “We are excited to have PAG as our new investor. This investment will enable Lexin to further develop and enhance our consumption-based ecosystem, improve product offerings to our educated adult customers, continue to invest in technology, build up additional consumption scenarios, and provide more consumer benefits to our customers.”

“PAG has a strong commitment to and deep understanding of China’s financial services industry, and we have a demonstrated track record of seeking out and engaging with the industry’s leading companies,” said PAG Chairman & CEO Weijian Shan. “Lexin has an unparalleled platform for meeting young consumers’ credit needs while strictly controlling and minimizing credit risks, which makes it unique, and we are looking forward to supporting the company as it embarks on its next stage of growth.”

Goldman Sachs (Asia) L.L.C., BofA Merrill Lynch and China Renaissance acted as the private placement agents to Lexin on the transaction.

 

SOURCE LexinFintech Holdings Ltd.

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