Payment Expert’s Fintech Unwrapped delivers the latest and developing news that has shaped the sector over the course of the week.
This week, Barclays has sold its 50% stake in Entercard to Swedbank, with the Swedish bank now becoming the majority owner. Elsewhere, Gemini and Ripple are aiming to grow XRP payments with a new credit card.
Swedbank takes over Entercard from Barclays
Swedbank confirmed the acquisition of Barclays’ 50% stake in Nordic card company Entercard on August 28 for $275m.
The Swedish bank now owns 100% of Entercard having shared ownership with Barclays since 2005. This co-ownership has seen the card company gain 1.5 million customers through its range of debit and credit card products, as well as consumer loans across the Nordic region.
“Today we are forming the largest card business in the Nordics and Baltics. Through this acquisition, Swedbank continues to invest in and develop our business,” said Tomas Hedberg, Deputy CEO of Swedbank. “This creates even greater opportunities to strengthen our customer offering.”
Swedbank stated it expects the acquisition to negatively impact its common equity Tier 1 capital ratio by approximately 30 basis points. The acquisition is subject to approval by relevant authorities.
Gemini and Ripple seek XRP growth with new credit card
Gemini launched a new Mastercard-branded XRP credit card in partnership with Ripple on August 26.
Card users will be able to make purchases with XRP directly from within the credit card, while also earning rewards for every purchase. The Gemini card also supports payments for Ripple’s stablecoin RLUSD.
“We’re giving customers and the XRP Army new ways to earn XRP and express their passion, loyalty, and excitement,” said Tyler Winklevoss, Co-Founder and CEO of Gemini.
For Ripple, the expansion of XRP and RLUSD on the Gemini credit card aims to further grow the exposure of both the cryptocurrency and stablecoin.
Pipe enables greater capital to SMEs with Airwallex
Airwallex announced the integration of Pipe on August 26, enabling the payment platform to offer embedded capital products to Pipe’s small businesses.
Through the integration, Airwallex intends to scale Pipe’s client base globally by offering same-day or next-day payouts for small businesses in need of working capital.
“Our global payments infrastructure was built to help leading businesses like Pipe reach new heights, expand access to new markets and verticals, and help them better serve their customers around the world,” said Kai Wu, CRO at Airwallex.
UK banks to spend £1.8bn on GenAI by 2030
Zopa Bank revealed in a new study UK banks are expected to invest over £1.8bn on generative AI (GenAI) by 2030.
In partnership with Juniper Research, the study revealed banks are becoming increasingly more reliant on enhanced automation for staff productivity, cutting costs and streamlining the user experience through large language models.
“GenAI marks a paradigm shift in applied computing. Its influence on productivity, software creation, and decision-making systems could rival the advent of the Internet or cloud computing,” said Peter Donlon, Chief Technology Officer at Zopa Bank.
AstroPay implements cross-currency payments to Rappi
Latin American superapp Rappi embedded AstroPay’s wallet-on-file service on August 26, enabling users across the continent perform payments in multiple currencies.
Rappi users in Argentina, Brazil and Peru will be able to make payments without the need of cards. AstroPay’s wallet-on-file enables payments in local currencies, as well as USD and EUR, and an instant checkout experience.
“This is a direct bridge between two massive ecosystems,” said Ella Viana, Business Development Director at Rappi. “Our users gain instant access to Latin America’s top super-app, and Rappi taps into a high-value audience earning globally and spending locally.”
If you would like to read from Payment Expert this week, sign up to our weekly LinkedIn newsletter, ‘This Week In Payments’, featuring the biggest news stories and in-depth features from within fintech, payments, crypto and more
