Soon after announcing the creation of a global startup engagement program dedicated to digital assets, blockchain, and cryptocurrency companies, Mastercard CEO Michael Miebach discussed the company’s fintech future on the company’s Q2 earnings call. In particular, he laid out the company’s strategy on CBDCs, stablecoins, and cryptocurrencies more generally, noting that the company planned to engage in all three sectors.

“Right now, many bureaucrats view CBDCs as a way to stymie the emergence of stablecoins. It is interesting that Mastercard views all three segments --- CBDCs, stablecoins, and cryptocurrencies --- as a centerpiece of a strategic objective in the digital payments space. What that says is that the company sees value in each segment, and, while CBDCs are definitely moving forward as a gamechanger in finance, there is still a place for all of the new innovations associated with blockchain technologies --- including those which surely haven’t even yet emerged,” opined Richard Gardner, CEO of Modulus, a US-based developer of ultra-high-performance trading and surveillance technology that powers global equities, derivatives, and digital asset exchanges.

“We also said in the first quarter call that as far as stablecoins are concerned, we are getting ready to technologically enable our network to carry these stablecoins as settlement currency, provided they meet one of our - all three of our criteria, which is regulatory compliance, consumer protection, and stability. So, none of that has changed… nothing much different, other than up engaging with private sector players as well as regulators on what does good policy look like around private sector stablecoins because this question about regulatory compliance is still unresolved and regulators do need to weigh-in and we're a part of that dialog.,” Miebach stated on the call.

“What’s intriguing about Miebach’s commentary on stablecoins is the emphasis on regulatory compliance. Obviously, a company like Mastercard is going to be very interested in staying compliant, but that he made special note of it within the call, and that’s a signal that players across fintech should be looking more at their own compliance strategy. I’ve long believed that the biggest thing holding digital assets back is a fragmented approach to compliance. Regulatory guidance and compliance really are key,” Gardner said.

“[O]n the Central Bank digital currency front, things are definitely continuing to move forward. We see a lot of central banks engaged on the topic. The ECB has just recently announced that they will actually move forward with the digital euro after a period of industry consultation,” Miebach noted.

“For only two sentences, there’s a lot to unpack here. CBDCs are rising, and it seems like every day that another central bank is committed to launching a CBDC. It isn’t a trend. It’s a looming certainty. There’s no time left to wait and see. The time to prepare is now,” said Gardner.

Modulus is known throughout the financial technology segment as a leader in the development of ultra-high frequency trading systems and blockchain technologies. Over the past twenty years, the company has built technology for the world’s most notable exchanges, with a client list which includes NASA, NASDAQ, Goldman Sachs, Merrill Lynch, JP Morgan Chase, Bank of America, Barclays, Siemens, Shell, Yahoo!, Microsoft, Cornell University, and the University of Chicago.

“On falling cryptos here, the point of currency stability is not solved. So, we won't be enabling that as settlement currency on our network, but clearly people want to invest in that and want to sell their investments and we're going to make this as easy as possible,” Miebach said.

“Miebach’s commentary is in response to questions asked on the call, but it really doubles a response to those naysayers who said that cryptocurrency’s resurgence earlier this year was only a blip, and that it was going to crash once and for all. Mastercard’s investment into the segment is in categorical opposition to that theory,” said Gardner.

• Paysme launches £1 million funding round on Globacap platform  • Paysme is a single platform that delivers FinTech services such as mobile payments, e commerce, digital banking, accounting, lending and insurance via a Super App • Paysme is designed to support the UK’s six million underserved SME companies 

Paysme, a new FinTech platform for small businesses, has today launched its £1 million funding round on the private capital platform Globacap to expand Europe’s first-ever business-to-business Super App. 

Paysme is already partnering with significant payment providers including Barclays, Railsbank, TOQIO, Bambora, and Cybersource to deliver a combination of mobile  payments, e-commerce, digital banking, accounting, lending, and insurance services in a  single app. Its FinTech platform currently powers financial services for over 3,000  underserved small businesses to accelerate their transition to the digital economy. 

Paysme’s services are personalised for specific industry channels and the Company is  working across a range of traditional enterprises that are part of the history and fabric of  the UK’s local communities such as: 

• Fanslive - digitising football and rugby matchday experiences 

• Marketti - creating an online shopping community for the high street traders • Cab:app - a national taxi booking app for iconic black cabs and licensed taxis with  professional drivers in more than 50 locations across the UK and Ireland 

Proceeds from Paysme’s fundraising will be used to continue enhancing and expanding its services to support over 1.3 million companies across the UK and Ireland with untapped  potential due to insufficient digital infrastructures. This represents a marketplace of almost  six million businesses in the UK and Ireland with a value of £111 billion, and a further 25  million small businesses across Europe. The funding round on the Globacap platform can  be accessed directly from the following link or indirectly via the Paysme website 

(https://www.paysme.co.uk/).  

Derek Stewart, Paysme’s Founder and CEO, commented:  

“Paysme is at the core of the circular economy, championing the needs of local businesses  and the communities they serve. These companies are the beating heart of our high streets  and have been decimated by the pandemic – with almost 30 per cent of all small businesses  closing for good. Our mission is to bring the high street and local communities back to life  by giving them easy access to embedded digital financial services and reinvesting capital  back into small independent operators through a customer ownership business model.  

“The Paysme platform hosts everything a small business needs to run its business in the  digital economy in an integrated, easy, and cost-effective way with one point of personal  contact from a team with a deep understanding of their industry. It eliminates the need to  use a multitude of different unconnected suppliers for mobile payments, e-commerce, digital banking and administrative tools saving SMEs time, money and stress, and solving  sector fragmentation and relationship marketing.” 

Commenting on better-than-expected US nonfarm payrolls and increased likelihood of Fed tapering, Caleb Thibodeau, Associate at Validus Risk Management, said: “In the last Fed meeting, we heard Powell brushing off labor market sluggishness, indicating the employment recovery was on a strong, very robust path that will catch-up to inflation – this was definitely the feeling from today’s change in nonfarm payrolls and drop in the unemployment rate.

“Looking ahead, the market may struggle to balance competing forces. On one hand this release is certainly a sign of good and continued economic growth, though it also much-increases the probability of the Fed tapering their $120bn monthly asset purchases.

“With the inflation box considered ticked, strong labour market data releases such as this contribute toward ticking the second box of maximal labour market participation. Once progress is identified toward this second goal in the Fed’s eyes, it will most likely prepare for tapering and has already prepared the market for this – perhaps by the end of the year.

“This change in payrolls fits in with a larger labour market recovery story playing out, seen from higher services PMI earlier this week and a high amount of job openings. While it is unusual to have unemployment numbers at their current levels in tandem with high job openings, transitional labour market frictions appear to be reducing along with COVID restrictions.

“Importantly, Powell was very deliberate in specifying there is no quantitative threshold which the Fed is looking for on jobs reports, leaving the door open for what defines ‘substantial progress’. The market seems to be in agreement today that this release will almost certainly fit the definition of further progress.”

New research from Okta finds that the remote work economy has accelerated a Zero Trust culture, but the majority of companies are still relying on passwords

Organisations have become more security conscious over the course of the pandemic, leading them to invest heavily in Zero Trust, according to a new study from identity firm Okta. The State of Zero Trust Security 2021 report surveyed over 600 global security leaders about their initiatives and found that remote work has led to a change in how organisations view the importance of Zero Trust, with financial services, healthcare organisations and the software industry seeing the most significant progress.

More than three-quarters (78%) of companies globally say that Zero Trust has increased in priority and nearly 90% are currently working on a Zero Trust initiative, up from just 41% a year ago. In 2019, Zero Trust was a priority for only 18% of European companies. Now, two years later, the region is the most mature globally when it comes to Zero Trust adoption, with 90% either having fully implemented the strategy or planning to do so in the coming months. 

As such, 82% of European organisations have increased their Zero Trust budgets in 2021, while not a single business in Europe says their budget has decreased. This comes during a period where cuts have been widespread, indicating the importance of Zero Trust as a security measure. 

The greatest challenges for European organisations in adopting a Zero Trust infrastructure include:

• Cost concerns (26%)
• Technology gaps (22%)
• Stakeholder buy-in (19%)
• Awareness of solutions (15%)

“This research comes as cybersecurity remains a key challenge for organisations, following the heightened risk landscape created by the pandemic,” comments Ben King, Chief Security Officer, EMEA at Okta. “To avoid becoming the next victim of a data breach or attack, organisations are moving towards a more robust and comprehensive security posture that is centred around the Zero Trust principle of ‘never trust, always verify.’ Businesses must recognise that people are the new perimeter, and adopt strong authentication across all services, everywhere — from on-premises, to cloud, to mobile, and for employees as well as customers, partners, contractors, and suppliers.”

The most used security factors: the steady rise of biometrics

Okta’s research also reveals that companies are continuing to use low assurance factors, with the majority of companies still relying on passwords (95%) and security questions (68%). However, compared to the rest of the world, Europe has more widely implemented mature security factors, like biometrics, hardware one-time passwords (OTPs), and push notifications. 56% of organisations in Europe are already utilising biometric technology, compared with 43% for the rest of the world. 

Globally, biometric technology has continued to skyrocket, with 45% of global companies, and over 50% in financial services and software, using biometrics as a high assurance factor. 

“Overcoming the reliance on passwords is not going to happen overnight, but organisations can start with adopting contextual factors to ease authentication processes,” Ben King comments. “By embracing passwordless technologies such as biometrics and contextual factors, businesses can increase security and tackle data breaches more effectively.”

Paya Holdings Inc., a leading provider of integrated payment and commerce solutions, today reported financial results for its second quarter ended June 30, 2021.

“Paya’s solid second quarter results continue to build upon the momentum we’ve seen this year across the business,” said Jeff Hack, CEO of Paya. “Strong card volume growth and continued outperformance from our proprietary ACH solution, coupled with the strength we’re seeing in our B2B and Government verticals reinforces our confidence for the remainder of the year. Furthermore, recent partner wins, a strong pipeline of actionable organic and inorganic opportunities and an even stronger balance sheet, position us well to deliver against our growth initiatives over the medium term,” Hack concluded.

Second Quarter 2021 Financial Highlights

• Payment volume was $10.7 billion, an increase of 36.8% from $7.8 billion for the second quarter of 2020.
• Total revenue was $63.9 million, an increase of 25.2% from $51.1 million for the second quarter of 2020.
  • Integrated Solutions segment revenue was $39.6 million, an increase of 31.3% from $30.1 million for the second quarter of 2020.
  • Payment Services segment revenue was $24.4 million, an increase of 16.5% from $21.0 million for the second quarter of 2020.
• Gross profit was $33.8 million, resulting in a gross profit margin of 52.8%, as compared to $26.2 million with a gross profit margin of 51.2% for the second quarter of 2020.
• Net income was $(3.1) million, compared to $0.6 million for the second quarter of 2020.
• Adjusted EBITDA was $16.8 million, an increase of 18.3% from $14.2 million for the second quarter of 2020.
• Adjusted Net Income was $13.7 million.
• Earnings per share was $(0.02).
• Adjusted earnings per share was $0.11.
• Ended June 30, 2021 with $135.6 million of cash and $250.0 million of total debt.

These financial highlights include non-GAAP measures. See below for definitions and reconciliation.

2021 Outlook

Paya provides the following updated revenue, gross margin, and Adjusted EBITDA guidance for the full year 2021, which replaces previously issued guidance. This outlook assumes no further unanticipated impacts from the COVID-19 pandemic or other factors outside of Paya’s control.

Conference Call

The Company has scheduled a conference call for August 6, 2021 at 8:00 a.m. Eastern Time to discuss the second quarter 2021 results.

The conference call will be available by live webcast through Paya’s Investor Relations website at https://investors.paya.com or by dialing in as follows:

Please register for the webcast or dial into the conference call approximately 15 minutes prior to the scheduled start time.

A replay of the conference call will be available for approximately 14 days and can be accessed through the Investors section of Paya’s website or by dialing 1-855-859-2056 (for Domestic callers), or 1-404-537-3406 (for International callers), with passcode 7296603.

RING certified as SEC 17a-4(f) compliant

Scality announced today that compliance auditing firm Cohasset Associates has certified Scality RING as SEC 17a-4(f) compliant — a data security milestone achieved by only a handful of storage systems. Cohasset's report is available for download here.

The Scality RING object storage solution is now certified as compliant for use cases that require specific capabilities and features needed for highly secure data storage in banks, brokerage firms and other financial institutions. These include:

• WORM (write once read many) storage – WORM protection makes data immutable, preventing it from being modified or deleted, allowing it to be read as many times as needed while adhering to user access control policies.
• Data retention – The system provides policies for how long data should be stored.
• Legal holds – Administrators in the financial industry can override a data retention policy for a legal reason. For example, if data is stored for five years, in the sixth year it remains locked for legal reasons as specified by the legal hold.
• Auditing – The system provides extensive audit trails to see who accessed the system, when and what actions they performed to enable forensic analysis for all events.

Scality has seven of the world's largest banks as customers, and this SEC compliance certification means those customers can build on their existing big data analytics, backup, archive and private-cloud use cases to also store compliance-related data. Cohasset's third-party certification broadens the use cases for RING in financial companies beyond normal backup and archival use cases, to include data that the Securities and Exchange Commission deems as requiring special data protection — for instance, customer financial and trading records and histories, including backups of this data.

Paul Speciale, chief product officer, Scality, said: "RING provides bulletproof security features that our financial industry customers need by law. RING can now consolidate normal backup and archival data, as well as specialised compliance data. This further reduces silos by eliminating the need for another specific storage system for compliance data only. This certification creates trust that some of the world's most sensitive data from financial institutions can be stored on RING, so it can also be trusted in other regulatory compliance use cases, such as the healthcare and government sectors."

Tallinn based fintech startup Income has launched a seed funding round by signing lead investor Tolaram Fintech, part of Tolaram, a Singapore-based enterprise with investments in consumer products, fintech, and infrastructure and over USD 1.2 billion in annual revenues.

Income plans to raise a total of €1.3 million of fresh equity during this round. It will use the proceeds to make key hires, continue product development of its retail investor marketplace, and further develop its institutional investor onboarding capabilities.

Income is a marketplace for investing in loans, with a strong focus on investor security. Income is disrupting the marketplace investing and private debt industry by using technology, advanced data analytics, and security structures previously reserved for large institutional investors.

Income was founded in 2020 and raised €1 million from angel investors in a pre-seed round to launch the business and develop its product. Since the launch, Income has reached recurring revenue and gained early traction with retail and institutional investors, who have already invested over two million euros through the platform at www.getincome.com.

According to Income's CEO Kimmo Rytkönen, "Investing in loans as an asset class is growing at a record pace globally, and we see increased demand from both retail and institutional investors. At the same time, there is almost an unlimited need for liquidity among fintech lenders, especially in emerging markets, enabling access to credit where it was previously missing. We are well-positioned to benefit from these trends, and we see marketplace data transparency and the innovative use of technology as the future of marketplace investing. Our goal is to become one of the largest and best-recognised marketplaces for investing in loans globally. We are very pleased to welcome Tolaram Fintech, with their extensive experience in emerging markets and fintech, as the lead investor in our seed round."

"We are pleased to have the opportunity to invest in the growth of Income, as we believe that it has a unique business model that centres around investor protection. Furthermore, Income's innovative offering is closely aligned with our fintech ambitions to enable access to credit in emerging markets, and we look forward to cultivating a strong partnership in this respect," added Navin Nahata, Managing Director, Fintech, and Infrastructure, Tolaram.

MiFinity, the global payment provider, today has announced the roll out of Bitcoin, BitCoin Cash, Ethereum, Ripple and Litecoin as additional funding and withdrawal options within the MiFinity platform. The solution is powered by Cryptopay, a 3^rd party cryptocurrency payment service provider that enables Bitcoin, BitCoin Cash, Ethereum, Ripple and Litecoin holders to convert cryptocurrencies real time into Fiat currency. The equivalent Fiat or cash amount is then credited to the users eWallet. This balance can then be used to fund transfers to Merchants or consumers real time. Furthermore, consumers can now also withdraw funds in fiat converted to equivalent value in cryptocurrency from their MiFinity eWallet to their crypto wallet.

This two-way solution will allow all global Crypto users to maintain their ‘wallet’ of choice. This meets the demands of the crypto community and provides additional funding and cashout options to these users. It also enhances the overall MiFinity offering and recognises that crypto is becoming one of the most popular “alternative payment methods” on cashiers across the world. This new payment solution will provide a higher acceptance rate for consumers.

Some key benefits of integrating Cryptopay include:

• Ability to convert Bitcoin, BitCoin Cash, Ethereum, Ripple and Litecoin into Fiat real time
• Ability to convert Fiat into Bitcoin, BitCoin Cash, Ethereum, Ripple and Litecoin real time
• Extensive global coverage
• Low fees - no expensive FX conversion fees and charges when settling like for like
• Provides MiFinity consumers with additional loading and withdrawal options
• Convenient, fast, secure and seamless across borders
• Simple to use with customer friendly interface

The MiFinity eWallet is a fast, simple and secure way for customers to perform payment transactions. Enhanced additional local payment options will support deposit, withdrawal and transfer functionality in different currencies across the platform.

“We are super excited about this latest payment partnership. This additional payment option, which supports both payin and payouts, will complement the MiFinity payment platform and allow our Merchants to better target their client base with this global solution. This latest product release coupled with the weekly onboarding and rollout of new Merchants onto the platform have helped move the MiFinity offering onto a new level. We fully appreciate and acknowledge the belief shown by our current and future Merchants and payment partners in our product and look forward to the continued roll out and evolution of the platform “, said Kieron Nolan, Chief Financial Officer, MiFinity.

Nucleus Commercial Finance, the fintech revolutionising how UK SMEs access finance, today announces that Sam Percival has joined as Business Development Manager for London and the South East. The appointment comes at a crucial time as SMEs show increased demand for finance following the removal of Covid-19 lockdown restrictions.

Sam, who previously worked for Nucleus in 2016, rejoins after serving as Regional Director at asset-backed lender Ultimate Finance for four years. Before these positions, he held various Regional Sales roles for lenders Aldermore Bank and Credit Agricole.

Sam will be responsible for driving growth and building SME relationships in London and the wider area, working across the whole of Nucleus’ product range, from Cash Flow Finance to asset-back loans. As the UK economy reopens, Sam will help scale Nucleus and meet SMEs’ evolving financing needs to not just ride out the remaining effect of lockdowns but make investments to thrive in the new, more digital economy.

Sam Percival, Business Development Manager comments: “It’s a really exciting time to be joining as the business continues to ramp up innovation across its products. As a fintech, Nucleus is leading the pack in harnessing technology to ensure SMEs get the critical working capital facilities they need fast. Having played a vital role lending £200 million to businesses as part of the Coronavirus Business Interruption Loan Scheme (CBILS), Nucleus’ broad product range puts the lender in a strong position to provide flexible finance as SMEs are eager to kickstart their businesses.”

Chirag Shah, CEO, Nucleus Commercial Finance adds: “We’re delighted to have Sam return to Nucleus. Having always focused on the South East, he brings with him a strong network and passion for helping SMEs access financing that fits their needs. Sam’s appointment is testament to our commitment to the market, continuing to build relationships with key introducer networks to get our tailored solutions into the hands of businesses that need them.”

NET PROFIT OF 14.9 MILLION EURO IN THE SECOND QUARTER OF 2021 (+18% OVER 1Q21) 

TAKING THE NET RESULT FOR THE HALF-YEAR TO 27.4 MILLION (+85% VS. 1H20) 

GROWTH IN VOLUMES, SIGNIFICANT PROFITS FROM DYNAMIC MANAGEMENT OF  DISTRESSED CREDIT, IMPROVEMENTS IN OPERATING LEVERAGE DRIVE THE RESULTS 

2021-25 STRATEGIC PLAN TARGETS PRESENTED IN JUNE CONFIRMED 

➢ Growth Credit Division: highly dynamic quarter with net customer loans rising by 16% over  the previous quarter (+64% y/y) to 1 billion euro and a tangible contribution coming from the  initiatives launched at the beginning of the year 

➢ Distressed Credit Division: strong progression in economic results also thanks to credit  management generating very significant profit from closed distressed credit positions and  investments driven by the dynamism of the Energy sector 

➢ Direct Banking Division: solid operating progress in the development of the new initiatives  envisaged by year end: “New HYPE” and B-ILTY 

➢ Liquidity of 0.8 billion euro and robust capital base with CET1 Ratio of 17.2% (17.6% pro forma) 

Milan, 6 August 2021 – Chaired by Rosalba Casiraghi, the Board of Directors of illimity Bank S.p.A.  (“illimity” or the “Bank”) approved yesterday the illimity Group’s results at 30 June 2021. 

illimity reports solid financial and operating performance in the second quarter of 2021, a strong  foundation to develop the trajectory of achieving its short and medium-long term targets set out  in its 2021-25 Strategic Plan presented on 22 June 2021. 

In detail: 

• net profit for the second quarter reached 14.9 million euro, up by 18% over the previous  quarter. Net profit for the half year totalled 27.4 million euro (14.8 million euro in the first half  2020), corresponding to an ROE1 of ca. 9% on an annualised basis; 

• the generation of new lending and investments remained robust and in acceleration  in the second quarter, driven by corporate lending with public guarantees, factoring and  investments in distressed credit especially in the Energy segment. In total, net customer  loans exceeded 2.3 billion euro at 30 June 2021, a rise of 4% over the first quarter and 32%  

1 ROE – Return On Equity: calculated as ratio between net profit annualised for the period and average half-year equity (1/1-30/6/2021)

1 

over the same period of the previous year; 

• the quarter benefited from the early contribution from the initiatives launched during  2021- capital markets activity for SME customers, illimity SGR, the purchasing of tax credits  arising from the government’s Ecobonus scheme – which led the considerable progress in  fees and commissions, which were up by 76% over the previous quarter; 

• the dynamic management of distressed credit portfolio once again made a significant  contribution to the quarter’s profits, generating income of 26 million euro, of which 3.7  million arising from credit revaluation already recognised in the first quarter; 

• also due to these significant profits, and with a gradual increase in the scalability of the  Bank’s operating structure as business volumes increase, the quarterly Cost income ratio  fell to 58% (62% for the first half year); 

• the Bank made real operating progress in the development of the new initiatives  envisaged in the Plan: a pilot project was launched for B-ILTY, the new fully digital direct  bank designed for small corporates, while the offer of the “New HYPE” is currently being  finalised; 

• the Bank’s risk profile once again proved itself very robust: the CET1 Ratio stood at 17.2%  at the end of June 2021 (17.6% pro-forma including special shares), despite the rise in  volumes; the ratio between gross organic doubtful loans and total gross organic loans to  customers remained at 3%, and would fall to below 1% if the loan portfolio of the former  Banca Interprovinciale is excluded. Liquidity was abundant at approximately 800 million  euro at the end of June 2021. 

Corrado Passera, CEO and Founder of illimity, commented: “We are very pleased with the  results delivered, which confirm the trajectory of reaching the targets for the short and medium-long  term set in the Strategic Plan presented in June. All the growth drivers included in the Plan are  moving in the right direction: the increase in loan and investment activity, the quality of our  portfolios, the scale effect that is becoming increasingly visible and the first sizeable contributions coming from the initiatives launched during 2021. 

In the quarter just ended and in July we also laid real operating foundations for the development of  the initiatives related to the launch of B-ILTY, an innovative digital bank designed for small  corporates, and we are finalising activities for the launch of the “New HYPE”. 

Lastly, with the unanimous vote of our shareholders at the general meeting held at the end of July,  we have added another step to our partnership with the ION Group, which we hope, starting with  the licensing of our IT platform, which we will already benefit from this year, will be extended to new  important collaboration in other areas”.