Connect with us

Fintech

Australian fintech investment in 2020 remains strong through COVID at US$1.4 billion

Avatar

Published

on

Investment in Australia’s fintech sector was strong at US$1.4 billion in 2020, despite a fall from a record $2.09 billion in 2019 as the COVID-19 pandemic impacted activity across Venture Capital (VC), mergers and acquisitions (M&A) and Private Equity. A very strong fourth quarter of 2020 included the US$577 million acquisition of B2B payments company eNett by US-based WEX, a US$209 million funding round by neobank Judo Bank, and a US$84 million raise by solar power financing company Brighte.

The KPMG Fintech Landscape 2020 showed an increase in the number of fintechs active in Australia, with 733 fintechs recorded – up from 629 at the end of 2019. Fintech ventures in Australia continued to see strong interest from investors, particularly in areas like payments and business lending. Instalment finance (Buy Now Pay Later) has also seen substantial growth with leading Australian players such as AfterPay and Zip continuing their expansion offshore in markets such as the US, UK and Canada.

“Fintech investment across venture capital, private equity and M&A has increased dramatically over the past five years, from just US$130 million in 2015 to US$1.3 billion in 2020,” said Dan Teper, KPMG Australia Head of Fintech. “This growth has been possible thanks to a number of factors, from government and industry support for innovation to the maturity and complexity of Australia’s financial services sector.  We have seen the momentum built up at the latter end of 2020 continue into this year, with major acquisitions taking place in the market and continued support for the sector helping to spur innovation from startups and incumbents. Overall, we expect to see more investment fuel the emergence of Australia’s fintech ecosystem in both the short and long term.”

2020 Global fintech investment highlights  

  • Global fintech investment was us$105 billion in 2020 – the third highest year on record despite a significant drop compared to US$165 billion in 2019.
  • While M&A deal value dropped in the first half of 2020 (US$10.9 billion), it rebounded to over $50 billion in the second half of the year, led by the US$22 billion acquisition of TD Ameritrade by Charles Schwab and the US$7.1 billion acquisition of Credit Karma by Intuit.
  • VC investment in fintech globally rose year-over-year – from US$40 billion over 2,834 deals to over US$42 billion investment across 2,375 deals.
  • Corporate-participated venture investment in fintech was extremely strong in 2020 at US$21 billion, with both the Americas (US$9.7 billion) and EMEA (US$4.8 billion) seeing record annual levels of CVC investment.
  • Global investment in cybersecurity quadrupled – from US$500 million in 2019 to over US$2 billion in 2020.

A bright future for global fintech projected, with exits on the horizon

Given the increase in demand for digital payments, contactless payments and e-commerce platforms, global fintech investment is expected to remain robust well into 2021. Corporate investment is expected to be particularly strong as incumbent businesses continue to work to accelerate their digital transformation efforts.

In addition to payments and platform models, B2B solutions are likely to attract investment globally in 2021, including areas such as embedded finance and ‘buy now, pay later’ solutions. Blockchain is also expected to gain traction as blockchain-based solutions and digital asset offerings become more mainstream. In October 2020, Australia-based investment platform STAX complete the first cryptocurrency backed IPO on for West Coast Aquaculture Group – a marine farming business with operations in Malaysia.

“Given the strong valuations that tech companies are getting in the public markets, exit activity is going to increase significantly in 2021, particularly in terms of IPOs. Already in H1’21, we’ve seen a number of unicorn fintechs looking to go public – whether through traditional IPOs or through SPACs – and we’re likely to see more,” said Ian Pollari, Global Fintech Co-Leader, KPMG. “We’re also going to start seeing a rebound in M&A activity across the board as smaller fintechs consolidate, incumbents look to acquire capabilities to speed up their digital transformation efforts and larger fintechs embrace M&A as a mechanism for growth.”

All figures referenced in this article are in USD

Checkout PrimeXBT
Trade with the Official CFD Partners of AC Milan
The Easiest Way to Way To Trade Crypto.
Source: https://australianfintech.com.au/australian-fintech-investment-in-2020-remains-strong-through-covid-at-us1-4-billion/

Fintech

Innovative middleware platform Doshii signs up three new POS partners

Avatar

Published

on

Australian middleware cloud platform and hospitality app marketplace provider Doshii has signed on three new Point of Sale (POS) partners, giving more venues the opportunity to cut through the app chaos and streamline their operating systems.

The three new partners – Abacus, Splitability, and MSL (SwiftPOS and Infogenesis) – will provide their venues with direct access to Doshii’s growing range of ordering, delivery, reservation, loyalty program, payment, rostering and other business apps.

Doshii CEO Justin O’Donnell said the partnerships will make it easier for venues to manage and maximise the performance of their online channels.

“These new partnerships will enable hospitality businesses to use Doshii to connect and sync with a multitude of information software platforms and apps needed to run a hospitality business, all through their partnered POS systems,” Justin said.

“Doshii effectively creates an integrated ‘one-stop-shop’ for all the home delivery and in-venue ordering, business management, data, and customer loyalty program apps with venues’ POS system.

“It assists with reducing labour costs involved with rekeying orders, and helps minimise mistakes that lead to product wastage and unhappy customers.

“Ultimately, it improves revenue, reduces operational costs and increases efficiency.”

Justin said the new partnerships would reduce development, maintenance and support expenses for the partners by leveraging Doshii as an integration provider along with 24/7 monitoring and proactive support.

“Giving our partners’ venues access to the Doshii ecosystem ultimately enhances the increasingly tech-savvy consumer experience – and happy customers lead to a more successful hospitality business,” he said.

“Doshii also has a full menu management system to allow venue operators to manage their menus from a central platform. All styles of hospitality operator will benefit from less time managing menus across multiple apps.

“We have experienced unprecedented uptake following last year’s COVID-19 restrictions, largely due to Doshii’s ability to help venues seamlessly ‘tech up’ and allow businesses to focus on what they’re actually good at – be it making and serving burgers or mixing cocktails – without distraction or delay.”

Doshii’s partnership with MSL’s POS venues will enable those venues to connect directly to the likes of Deliveroo, Mr Yum, OrderUp and Mobi2Go, along with their existing partner me&u, and reservations apps including OpenTable and Resy.

Justin said as venue operators emerged from COVID-enforced lockdowns, they were increasingly looking for ways to increase their revenue streams.

“These new partnerships will help venues achieve this, while also allowing them to digitally manage their menus via Doshii.”

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://australianfintech.com.au/innovative-middleware-platform-doshii-signs-up-three-new-pos-partners/

Continue Reading

Fintech

Splitit partners with UnionPay, the world’s largest card network of 9 billion cardholders

Avatar

Published

on

Splitit, a global payment technology company, announces a new global partnership with UnionPay International, part of China UnionPay, the provider of bank card services and a major card scheme in mainland China.

UnionPay International will be integrating Splitit to make it available to its network. This will give UnionPay cardholders and those accepting UnionPay the opportunity to utilize Splitit’s installment payments product.

The UnionPay global acceptance network has expanded to 180 countries and regions, covering over 55 million merchants. Outside the Chinese Mainland, UnionPay is accepted at over 32 million merchants. To date, over 9 billion UnionPay cards (debit and credit) are issued in 68 countries and regions, among which over 150 million are issued outside mainland China. All UnionPay credit cardholders will be able to use Splitit’s interest- and fee-free installment payment option at any merchant offering Splitit from June FY21.

“The cooperation with Splitit is a remarkable milestone for UnionPay to further deepen its cooperation with partners in the South Pacific region,” said Jiangtao Jian, General Manager, UnionPay International South Pacific branch. “We’re excited to bring this partnership with Splitit to UPI customers globally so they can benefit from increased flexibility in how they pay.”

“Partnering with UnionPay opens up our solution to UnionPay credit card holders, building on our existing card partner networks. It combines our unique installment solution and global reach, with UnionPay’s powerful card holder base to allow countless more shoppers to better use their existing credit,” commented Brad Paterson, CEO of Splitit.

“The partnership is another significant milestone in Splitit’s Asia Pacific expansion strategy to boost consumer adoption and merchant acceptance. This increased relevance to more cardholders and merchants will, in turn, accelerate our merchant sales volume,” he concluded.

The economic materiality of the agreement with UnionPay International is unknown due to the contingent nature of results that may be generated. At this point in time, Splitit considers the UnionPay partnership is unlikely to yield a short-term economic benefit for Splitit, however, Splitit considers that the UnionPay partnership supports Splitit’s strategic growth plans.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://australianfintech.com.au/splitit-partners-with-unionpay-the-worlds-largest-card-network-of-9-billion-cardholders/

Continue Reading

Fintech

Flybuys and Klarna take the points game to the next level

Avatar

Published

on

Australia’s most popular rewards program, Flybuys, and global shopping app, Klarna, today announced a new upcoming partnership set to launch in May – allowing members of both to earn more reward points and elevate their shopping game.

The Flybuys-Klarna partnership will offer members of both even greater flexibility and accelerate their ability to collect rewards.

Flybuys members can now use the Klarna app online and in-store across thousands of brands and start collecting Klarna rewards club vibes that can be converted to Flybuys points. For each $1 repaid on purchases, Klarna rewards club and Flybuys members can collect 1 vibe that can be converted to 3 Flybuys points, once enough vibes are collected.

To celebrate the partnership and receive 1,500 Flybuys bonus points, Flybuys members need to download the Klarna phone app, join the Klarna rewards club, make their first payment, then link their Flybuys account through the Klarna app.

John Merakovsky, Chief Executive Officer, Flybuys, said, “This partnership with Klarna opens up new opportunities for our members to collect points, and even more ways to be savvy with their shopping and be rewarded for it. We’re incredibly proud to welcome Klarna into the fold as our first buy now, pay later partner.”

The Klarna shopping app, which launched in Australia in January 2020, enables customers to shop and pay in 4 instalments at any participating retailer, both in store and online. Users can browse top brands, create curated wish lists, receive price drop notifications, and have access to shopping inspiration, exclusive deals and discounts from global and local Australian retailers, all from one app.

Fran Ereira, General Manager for ANZ, Klarna, said, “This is a revolutionary partnership bringing together the world’s fastest growing shopping app with Australia’s most popular loyalty program. Our partnership has been proudly designed for modern consumers. Shoppers want more flexibility in payment options so they can get what they want now, but they also want to be rewarded for taking this option. Klarna’s partnership with Flybuys rewards both our customers by tripling their points collection and rewards potential.”

Over the past year there have been significant changes in how Australians shop. Klarna has been able to respond to changing consumer behaviour over the past 12 months and offer consumers a full shopping experience from wish lists, price drop notifications and the recently launched Klarna rewards club.

Meanwhile Flybuys has continued to diversify and expand on how members can collect points on things they’re already buying, at places they’re already shopping at. Flybuys members can collect points to treat themselves with products from the Rewards Store, great travel deals, or savings towards their shopping.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://australianfintech.com.au/flybuys-and-klarna-take-the-points-game-to-the-next-level/

Continue Reading

Fintech

Australia’s first virtual card technology of its kind secures a further $1.7 million in Series A funding

Avatar

Published

on

DiviPay, Australia’s first all-in-one virtual corporate card and expense management platform, has announced a second instalment of $1.7 million in its Series A funding round led by ANZ Bank’s venture capital arm, ANZi.

Founded in 2017 by CEO Daniel Kniaz and CTO Russell Martin, DiviPay enables finance teams to better manage, control and streamline spending across their organisation.

DiviPay solves a common pain point for small and large businesses alike: issuing corporate cards to staff while staying in control of spending and collecting receipts and accounting data. DiviPay enables businesses to instantly issue virtual corporate Mastercards to employees to make online and in-store purchases via Apple Pay – the first business of its kind to do so in Australia – and Google Pay. Businesses control spending through pre-approved budget limits, smart payment rules that lock cards to approved amounts and merchants, and live transaction feeds. Businesses can also automate their expense management: once a transaction occurs, DiviPay automatically creates and populates an expense report with details such as merchant data, GL codes and budgets, and exports the information into the business’s accounting system.

Its recently launched feature, Automatic Bill Payments, enables organisations to extract, code, approve and automatically pay bills from the DiviPay platform, as well as instantly send remittance advice to suppliers. DiviPay integrates with an organisation’s accounting software to automatically turn invoices into bills, saving finance teams hours per week on manual invoice data entry. Organisations can set scheduled payment dates as well as approval rules, based on its suppliers, invoice amounts and budgets, enabling staff to process their own bills autonomously. The seamless integration of its virtual card technology and invoice payments has ensured DiviPay is the first all-in-one business spend management platform of its kind in Australia.

Today, DiviPay has issued more than 20,000 virtual cards to 7000-plus users and more than 650 customers. Its customers range from small businesses such as consultancies and trades, to not-for-profits and large organisations with 500-plus employees. Customers include Western Sydney University, Xero, Canva, Michael Hill and the Autism Association of WA. Businesses have used the DiviPay platform to process $45 million in business payments – including $24.3 million spent in 2020 alone. DiviPay won Emerging App of the Year at the Xero awards in 2019, and soon after launched DiviPay Rewards to give customers discounts from Google, Canva, Shopify and Amazon Web Services, among others.

In 2016, Daniel and Russell attracted $100,000 in funding for DiviPay from H2 Ventures when they joined its fintech accelerator program. In September 2019, DiviPay received a first instalment of $2.3 million in a Series A funding round from a consortium of investors led by ANZi and which includes Seed Space ventures and former Pepper Money CEO Patrick Tuttle. The funding enabled DiviPay to build its engineering team and execute its product vision.

Recently, the investment was topped by an additional $1.7 million as part of the same funding round, bringing the total investment to date to $4 million. The funding will allow DiviPay to build its marketing, sales and engineering teams, and ensure it has the resources needed to grow and broaden its customer base.

Daniel Kniaz, DiviPay CEO, says: “Up until this year, DiviPay’s customer growth has been mainly through word of mouth. We have built strong advocates of our product because we involved customers in our business journey and truly built a product that solves a common problem. This year, we plan to attract larger customers and will continue to grow our non-profit customer base. Not-for-profits are a sector in need of our product, as their budgets are tight, they have a short reconciliation cycle, and they are unable to get cards from traditional providers. One not-for-profit that we worked with used to drop-off envelopes of cash to their caregivers. Now they save hours by instantly issuing virtual corporate cards while tracking every dollar spent from our intuitive online platform.”

Ron Spector, ANZi Managing Director and DiviPay board member, says: “We are pleased to continue to support DiviPay as they move to their next stage of growth. DiviPay delivers an innovative solution for a major pain-point for businesses of all sizes and aligns with ANZi Ventures’ mission to invest in and partner with leading Fintech companies that support solutions for ANZ customers, bankers and partners.”

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://australianfintech.com.au/australias-first-virtual-card-technology-of-its-kind-secures-a-further-1-7-million-in-series-a-funding/

Continue Reading
Esports2 days ago

chessbae removed as moderator from Chess.com amid drama

Esports4 days ago

Dota 2 Dawnbreaker Hero Guide

Esports4 days ago

Dallas Empire escape with a win against Minnesota at the Stage 2 Major

Esports3 days ago

Why did Twitch ban the word “obese” from its predictions?

Esports4 days ago

A detailed look at Dawnbreaker, Dota 2’s first new carry in four years

Esports5 days ago

Dota 2 new hero: A list of possible suspects

Esports1 day ago

Hikaru Nakamura drops chessbae, apologizes for YouTube strike

Esports4 days ago

Dota 2: Patch 7.29 Analysis Of Top Changes

Esports1 day ago

DreamHack Online Open Ft. Fortnite April Edition – How To Register, Format, Dates, Prize Pool & More

Esports3 days ago

Dota 2: Team Nigma Completes Dota 2 Roster With iLTW

Fintech2 days ago

Australia’s Peppermint Innovation signs agreement with the Philippine’s leading micro-financial services provider

Esports5 days ago

Apex Legends tier list: the best legends to use in Season 8

Blockchain5 days ago

Krypto-News Roundup 9. April

Esports4 days ago

xQc calls ZULUL supporters racist for wanting Twitch emote back

Esports4 days ago

Dota 2 patch 7.29: Impact of Outposts, Water Runes and other major general gameplay changes

Esports4 days ago

Geely Holdings’ LYNK&CO Sponsors LNG Esports’ LPL Team

Esports3 days ago

Fortnite: Blatant Cheater Finishes Second In A Solo Cash Cup

Esports3 days ago

Hikaru Nakamura accused of striking Eric Hansen’s YouTube channel

Esports4 days ago

Mission Control, Tripleclix Team with Hollister for Fortnite Event/Product Launch

Blockchain4 days ago

Revolut integriert 11 neue Kryptowährungen

Trending