Today in FinTech news, Australian startup Zepto uses its Series A funding to fuel growth, while Cornerstone picks up Paydrop to facilitate cryptocurrency compensation. Plus, FinPay raises $15 million to continue expanding its fully managed patient engagement firm.
Account-to-account (A2A) merchant payments startup Zepto has closed a Series A funding round. “… Zepto has grown to become a market leader in the payments industry,” said Zepto CEO Chris Jewell. “We intend to use this capital to grow our team and technology in a meaningful, empowering way as we meet the demands of an ever-evolving domestic market, as well as accelerate our expansion into international markets.”
Cornerstone’s purchase of Paydrop will enable employers to empower workers to convert part of their payroll compensation into crypto and deposit it into their chosen wallets. Cornerstone uses Hedge as a pay conversion engine so that neither side has a taxable event. The tie-up will see Paydrop’s senior leadership team join Cornerstone.
Patient engagement and financial management FinTech platform FinPay Holdings raised $15 million in a growth round. FinPay’s revenue has grown more than 360% in the last two years due to its focus on proprietary analytics, data-driven technology and fully managed patient engagement.
International payroll management company Papaya Global is snapping up the global digital cross-border payments service Azimo for undisclosed terms. The acquisition is intended to help expand Papaya’s payroll payments capacity and assist companies in managing their remote workforces.
Wells Fargo is collaborating with Bilt Rewards to let cardholders earn points, without transaction fees on any rental property in the U.S. Tied to rent, cardholders can earn 1x points on rent, up to 50,000 points annually. The rental payments themselves will come from a linked bank account. Bilt Rewards is also the first program that will allow members to redeem points toward a down payment on a home through Fannie Mae and the Federal Housing Administration.
Mike Jia, growth director for eCommerce platform CASETiFY, told PYMNTS that supporting alternative payments like buy now, pay later (BNPL) is a big opportunity for merchants to boost customer acquisition. With that boost also comes an increase in fraudsters unless retailers take extra precautions.
The true impact of BNPL is how it is changing how people view getting and using credit, Nandan Sheth, CEO of BNPL FinTech Splitit, told PYMNTS. Sheth said he believes that BNPL is returning to its roots and will ultimately lead to a cleaner experience and that “ … 3.0 will evolve to consolidate and unleash consumer buying power in ways only possible with deep data and 5G speeds.”