AI and Behavioral Finance in Wealth Management; Payment orchestration: Finding the right solution for your size business; A Look at the 2025 Fintech IPO Pipeline;
This week, we’re diving into payment orchestration for global scalability, the resurgence of fintech IPOs, and AI’s growing role in banking and wealth management
Insights & Reports:
TL;DR:
Welcome to the latest edition of Fintech Wrap Up, let’s dive in!
Payment orchestration is becoming a game-changer for businesses scaling their operations, offering merchants the flexibility to navigate global markets, integrate multiple PSPs, and optimize cross-border transactions. Meanwhile, fintechs in Latin America are pivoting towards profitability by diversifying revenue streams, refining their B2B offerings, and leveraging AI for fraud prevention and customer engagement.
Speaking of AI, the Blueprint for Intelligent Banking explores how financial institutions can embed AI across their operations — from automating workflows to leveraging behavioral finance for personalized wealth management. With AI-powered decision-making, banks can enhance risk profiling, optimize portfolio management, and even predict customer behaviors. Wealth managers are tapping into this trend, using AI to personalize financial planning, refine risk models, and create more data-driven investment strategies.
Embedded payments are also evolving, moving from a simple value-add to a core monetization strategy. A new framework highlights the three key phases — Acquisition, Retention, and Growth — to help businesses maximize the impact of their embedded payment offerings. And as fintechs gear up for a potential IPO resurgence in 2025, heavyweights like Chime, Klarna, and Stripe are making headlines, with valuation adjustments reflecting the new market realities.
In global news, European payment wallets are expanding beyond P2P into ecommerce and in-store payments, posing a potential challenge to Visa and Mastercard’s dominance. With initiatives like Vipps, TWINT, and Swish leading the way, we could see a more fragmented, localized payments landscape in the coming years.
On the corporate front, Mastercard’s new One Credential is making waves, allowing users to pre-set how they pay for different types of purchases — splitting payments between debit, credit, and installment plans seamlessly. Monument Bank is reportedly raising £200M ahead of a potential Nasdaq IPO, and PayPal has ambitious plans for Venmo, targeting $2B in revenue by 2027 through in-store adoption and merchant engagement.
That’s a wrap for this edition! Let me know what you think — are we heading into a new era of fintech IPOs?
Insights & Reports
Payment orchestration: Finding the right solution for your size business
Businesses have unique challenges and objectives based on their size, making it crucial to select a payment solution that aligns with their specific needs and growth stage
As merchants grow, the complexities of managing their operations, infrastructure and payments does, too. In the start-up phase, turnkey payment solutions from a single traditional acquirer or full-service PSP are practical payment solutions that support everything the smaller merchant needs (POS terminals, gateway to technical processing, and value-added services, such as fraud management, multi-currency solutions, loyalty, etc.).
As the merchant expands their operations across new channels, use cases, or geographies, dependency on fragmented technology solutions imposes capability limitations and implies high risk. Scaling manifests in many ways that can impact the approach to payments, such as:
1. Acquiring new businesses that expand their scale (new physical/online stores) and increase internal commerce system complexity
2. Creating new customer shopping experiences: unattended (self-checkout) kiosks, QR-code payments, loyalty-linked digital wallets, etc. Connecting online to in-person/in-store shopping experiences (e.g., click-and-collect model)
3. Passporting online commerce channels to new markets and adding new alternative payment methods
LatAm’s Fintechs Fast-Track to Profitability: Key Strategies for Sustainable Growth
1. Diversifying Revenue Streams
With financial inclusion gaps narrowing, fintechs can no longer rely solely on providing basic banking services to underserved populations. Instead, they are expanding into alternative financial services such as investment products, insurance, cryptocurrency, and foreign currency accounts.
Many companies are integrating value-added services to boost customer engagement and increase revenue per user. Stori, a Mexican fintech, launched a premium credit card (Stori Black) to serve consumers with limited banking access, while Kueski evolved from microloans to include bill payments and BNPL financing.
2. Refining Value Propositions
Fintechs are broadening their B2B (business-to-business) offerings to complement traditional B2C (business-to-consumer) services. Some companies that initially focused on consumer lending are now offering credit scoring and loan management tools to banks and financial institutions.
For example, Brazilian fintech Creditas expanded into B2B by providing its credit risk technology to financial institutions, while RappiPay moved beyond its B2C delivery payments to offer small businesses financial management tools.
Curated News
Mastercard rolls out One Credential for multiple scheduled checkout choices
With One Credential, consumers can tailor their payment preferences, choosing to pay for daily expenses under $100, like groceries and fuel, from their current account; charge expenses over $100 to credit; and pay for the occasional larger purchase via installments. Users can set their preferences online or in an app, with full control over how each transaction is funded and a holistic view of spending.
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