Account-to-Account (A2) Payments; Network Tokenization for Merchants; Navigating the Future of Fintech in Asia;

Sam Boboev
5 min readApr 10, 2024

Hi Fintech Fans, welcome to another edition of Fintech Wrap Up:

Insights & Reports:

1️⃣ Account-to-Account (A2) Payments

2️⃣ Network Tokenization for Merchants

3️⃣ Mobile money fraud typology and fraud schemes

4️⃣ B2B Commerce — What Markets Matter Most Today?

5️⃣ The power of Banking-as-a-Service: Buy-Now-Pay-Later (BNPL)

6️⃣ Navigating the Future of Fintech in Asia

Curated News:

1️⃣ Nubank Ultravioleta enters the travel segment

2️⃣ Fintech representation in YC’s Demo Days is definitely shrinking

3️⃣ Klarna Boosts Profits With ChatGPT as BNPL Firms Tap AI


Insights & Reports Analysis:

A2A payments are having a moment in markets where governments and banks are giving them a big thumbs-up, especially in places like Brazil and India where they’re shaking up how payments are done. But, they’re hitting some snags in countries like Australia and the USA, where folks aren’t jumping on board as quickly, even though businesses are all for it. Over in Europe, they’re trying to smooth things out with Open Banking. Meanwhile, Network Tokenization is stepping in to help merchants tighten up security and save some cash compared to Processor Tokenization. Mobile money fraud is also causing headaches with its quick transactions, making it clear we need better fraud protection. In B2B commerce, things are getting a digital makeover with easier checkouts and loans built right in. And don’t even get me started on Banking-as-a-Service (BaaS) — it’s shaking up retail credit, especially with Buy-Now-Pay-Later (BNPL) options that let you split payments without any interest. All this shows how fintech is turning Asia into a hub of innovation, blending money and tech like never before.

News Highlights:

In the latest news, Nubank Ultravioleta, a special offering for high-income customers, is diving into the travel scene by introducing its Global Account through a partnership with Wise Platform, allowing customers to prepare for the service’s launch soon. Meanwhile, at Y Combinator’s Demo Days, fintech representation seems to be dwindling, with only 8% of the 260 companies classified as fintech, down from 10% last year and significantly lower than previous years. On the bright side, Klarna is leveraging AI, particularly ChatGPT, to boost profits amidst the challenges faced by buy now, pay later (BNPL) firms in maintaining profitability.

Insights & Reports

Account-to-Account (A2) Payments

A2A is thriving in markets with strong government and bank support…

In 2023, A2A was the leading e-commerce payment method in Finland, Malaysia, The Netherlands, Nigeria, Norway, Poland, Sweden and Thailand. A2A payments built on real-time payment rails are revolutionizing payment landscapes in major emerging economies such as Brazil and India.

A2A schemes are succeeding in emerging markets where they receive strong government support as a means to achieve financial inclusion and promote digital payments. In advanced markets, collaborative initiatives between banks promote the use of A2A schemes.

… Yet A2A remains challenged in card-dominated markets

A2A growth has been considerably slower in established card markets such as Australia, Canada, the UK and the USA. Merchant incentives are clear — they crave A2A’s lower cost of payment acceptance.

However, incentives for consumers to adopt A2A payments are less obvious. Cards work for consumers, as evidenced by the more than $20 trillion in global credit card and debit card spending in 2023.

Insight continues…

Network Tokenization for Merchants

❓ What is network tokenization?

Network Tokenization is an evolution in payment card data protection and transactional services for remote commerce and wallet-based transactions. Network Tokenization is an industry standard published by EMVCo and open to anyone in the payment ecosystem. First introduced with the launch of Apple Pay and the payment networks, Network Tokenization is gaining traction in the Card on File and wallet markets.

✅ Processor vs. Network Tokens:

Processor Tokenization is a proprietary service offered by PSPs, Acquirers, and Processors to minimize a merchant’s PCI scope. The generated token, which is a replacement for a PAN, is restricted to the merchant and PSP limiting its value in the event of a data breach. Network tokenization goes further by generating tokens in cooperation with the Card Issuer and Card Network to offer additional benefits to the merchant and protect the PAN throughout the value chain.

✅ What are the benefits of Network Tokenization?

🔸 Cost Optimization

Network Tokenization offers cost optimization through two avenues. Visa has recently announced that CNP transactions not using network tokens are expected to be charged 10 Bps higher — an encouragement to use network tokens for CNP use cases. Additionally, storing card data increases security and compliance costs associated with protecting payment data, stopping breaches, notifying customers, and the brand damage a business might suffer in a breach were to occur

Insight continues…

Curated News

Nubank Ultravioleta enters the travel segment with the launch of Global Account for customers

Nubank Ultravioleta, the exclusive experience for high-income Nubank customers, announces its entry into the travel segment with the pre-launch of its Global Account, in partnership with Wise Platform, Wise’s market-leading global infrastructure solution for banks and large companies. Starting today, Ultravioleta customers can sign up in advance for first-hand access to the service, which will be launched in the coming weeks.

News Continue…



Sam Boboev

I am a fintech enthusiast and product leader passionate about crafting simple solutions for complex problems. Subscribe