tapeeno - the first mobile card reader to use Faster Processing payments has launched in the UK.

Developed by card machine specialists UTP Group and the credit card processing system Faster Processing, the tapeeno app instantly transforms any Android phone into a card reader that can process transactions within one hour – significantly reducing the funding delay most businesses experience when taking payments on other card machines or payment acceptance devices.

Successfully trialled in the UK for two months, tapeeno offers customers a quick, easy and flexible card payment solution without the need for investing upfront in additional hardware or committing to long-term contracts.

With no fixed costs or hidden charges, customers who are approved by tapeeno will pay a 1.50% transaction fee for any card payments, making it ideal for start-up businesses, growing ventures and transferring money between friends.

Jaime Lowe, Sales Director of UTP Group, said:

“tapeeno was developed as a quick, convenient and secure card payment solution for small businesses that are just starting out and don’t want to commit to upfront costs or long-term contracts. It’s ideal for hobbies, mobile traders or businesses turning over less than £2,500 a month and need a reliable and safe way to process customer payments.

“tapeeno’s utilisation of Faster Processing’s technology means there’s the huge advantage of receiving funds far more quickly than other card machines or payment acceptance devices, making it a cost-effective and flexible choice for sole traders and individuals who need to manage cash flow carefully.”

Customers who sign up to tapeeno will need to complete an online application form via the tapeeno website, provide the required ID, and download the tapeeno app to their phone. Approvals are processed within 24 hours.

tapeeno accepts all contactless payments made by Mastercard and Visa and is currently available to download from the Google Play Store on Android phones. tapeeno will be available to use on Apple phones later this year.

InsuranceDekho, India’s leading Insurtech player, today said it has raised $150 million in Series A funding consisting of a mix of equity and debt, the largest ever series A round by an Indian Insurtech company. The equity round was led by Goldman Sachs Asset Management and TVS Capital Funds with participation from Investcorp, Avataar Ventures and LeapFrog Investments. 

InsuranceDekho was founded by Ankit Agrawal and Ish Babbar in 2016. Since its inception, the company has seen significant premium growth and aims to achieve annualized premium run-rate of INR 3,500 crores by March 2023.

The latest funding will be used to scale up InsuranceDekho’s product and technology functions, expand to new markets, launch new innovative products in the health and life categories, grow the company’s Micro, Small & Medium Enterprise (MSME) insurance business, strengthen its leadership team and pursue inorganic growth opportunities.

Ankit Agrawal, CEO and Co-founder, InsuranceDekho, said: “We need to go beyond the urban regions when it comes to insurance penetration in the country. To realize our goal of democratizing insurance for the general public, we are expanding our reach and will continue to build on our tech-based solutions and empowered advisors so that they can serve every village and region of India by the end of the year. India is on the verge of a revolution in insurance, and InsuranceDekho is well positioned to meet the insurance needs of every Indian.” 

Ish Babbar, CTO and Co-founder, InsuranceDekho, said: “Insurance distribution in India is a complex problem that needs innovative solutions. The fundraise will enable us to deploy scalable Insurtech solutions in the areas of data analytics, Artificial Intelligence, last mile servicing and claims management while keeping customer experience at the core of everything.”

India’s current insurance penetration is 4.2% of GDP compared to 12% in the USA and 7%2 globally. Almost 85%1 of India’s existing insurance premium is centered in the metros and Tier 1 cities. InsuranceDekho aims to change that. As part of its mission to provide access to insurance throughout the country, InsuranceDekho gets 82% of its premium from Tier 2 and beyond regions. It is present in more than 1,300 towns covering 98% of pin codes in India and is working towards establishing 100% penetration in the country. 

By the end of this calendar year, InsuranceDekho aims to have more than 200,000 insurance advisors active on its platform. Typically, most InsuranceDekho insurance advisors observe a threefold increase in total household income within six months of being associated with the company. The advisor's ability to earn more allows them to significantly improve the quality of living for their families.

InsuranceDekho works with most insurance providers and has direct integration with 46 insurance companies across India offering more than 380 insurance products including 175 products for health and life. InsuranceDekho intends to expand its portfolio by offering more products in near future. 

Haitong Securities India acted as the sole financial advisor to the fundraise.  

Amit Jain, CEO and Co-founder, CarDekho Group, said: “Celebrating the spirit of entrepreneurship and thriving on the robust value system, CarDekho Group has promoted the culture of being a ‘House of Founders’ who have fostered various disruptive ideas and propelled these businesses to the orbit of sustainable growth with profitability. It’s heartening to see that InsuranceDekho under Ankit’s leadership, has come a long way as it continues to disrupt the Insurtech space in India by leveraging its unparalleled unit economics, the best technology, phenomenal partner practices, and innovation to set new benchmarks in stakeholder experience.”

Rajat Sood, a Managing Director at Goldman Sachs Asset Management said: “Technological innovation is transforming the Indian insurance industry by making coverage more accessible and affordable. InsuranceDekho has demonstrated a proven ability to bring new-to-insurance channel partners to their platform, while empowering them through technology-based solutions and working closely with insurers. We look forward to leveraging our global domain expertise and supporting the management team in its expansion to provide broader coverage and more solutions nationwide.”

Praveen Sridharan, Partner, TVS Capital Funds said: “Though insurance is vital for financial security of everyone, its penetration is still at 4.2% of Indian GDP compared to global overage of 7.4%.  The key for this is to access the middle and lower middle income class—the next 400 million—living in the next 1000 towns of India. InsuranceDekho, with its agency model and digital DNA, offers a powerful mechanism for this penetration to expand.  We are convinced on the InsuranceDekho model. Of course, we always back founders who can demonstrate bringing alpha and were impressed with Ankit and the team basis their execution capability, operational excellence, and superior technology skills. We are delighted to partner in their journey of enabling access to insurance products to the 600,000 villages of India.”

Klarpay AG, a pioneering Swiss financial institution, is proud to announce that it has achieved profitability in its first operational year. The company's profitability and the interest from venture capitalists are a testament to its team's hard work and dedication. Klarpay is well-positioned to continue its growth and success in the future.

Despite the challenging economic conditions in the fintech industry and global markets, Klarpay has established a solid foundation and implemented its business model to achieve results. Klarpay experienced steady growth throughout the year, derived from strong demand for its services, closing the year with more than 120 corporate clients. The company reached monthly profitability only six months from launch in August 2022 and sustained this until the end of the year to close with an overall substantial annual profit.

"We are thrilled to have reached this important milestone," says Martynas Bieliauskas, CEO and Co-founder of Klarpay. "Our focus on a sustainable business model sets us apart from many of our peers in the fintech industry who struggle to achieve profitability, especially so early in a company's lifecycle. We are excited to continue building on this success in the coming year."

Klarpay's focus for 2023 will be on continuing its organic operating model as well as maintaining the efficiency of its products and overall service, which has proven to be a key driver of its success. The company has an elegantly designed product built on proprietary software that fills a gap in the market and is committed to delivering innovative solutions that meet the evolving needs of its customers and partners. As evidenced by the recently announced expansion of its international payments offering with the launch of 13 new foreign currency accounts. Klarpay's product roadmap for 2023 and beyond aims to sustain demand and growth to help realise its projected targets.

UK-based: Akoni Hub has formed a partnership with Gatehouse Bank to make its savings products available on Akoni’s cash management platform.

Akoni’s customers are now able to place money in Gatehouse Bank’s ethical Fixed Term Deposit accounts via Akoni’s online system.

Enhanced Savings Management Services constitute a fully digital Cash-as-a-Service solution because the Financial Adviser zone, Open Banking and Open Finance tools as well as digital onboarding are all completely online.

Akoni Hub, part of the Stubben Edge Group, is a cash management platform for SMEs and IFAs. It has a client base comprising corporates, charities, and high-net-worth individuals. The platform enables the easy opening and management of multiple savings accounts, providing customers with a single view of their cash.

Those opening an Akoni account can access a range of products from multiple banks, now including those from Gatehouse Bank.

Ravi Kumar, Senior Product Manager at Gatehouse Bank, commented: “The Akoni Hub platform is recognised by clients as a powerful cash management tool, and we believe that the combination of Akoni’s platform and Gatehouse Bank’s range of competitive and ethical products is a great opportunity to extend our position in the UK savings market.

“We look forward to working closely with Akoni Hub to make our savings solutions available to their vast client base.”

Chris Kenning, CEO of Stubben Edge Group, added: “We’re delighted to welcome Gatehouse Bank to the Akoni Hub platform, this partnership will further enhance our offering to our clients. With 22 Bank Partners on our platform, clients now have access to a wide range of cash savings products and can spread their risk across these providers through Akoni Hub.”

Solvo, an EU-based cryptocurrency startup, announced today the official launch of the Solvo app, which is now live and available to download on the App Store for users in the EU and United Kingdom. Solvo is seeking to turn crypto-curiosity into crypto-capability by bringing the best of the best of crypto to everyone with a straightforward, transparent and easy-to-use entry point. Through Solvo, users can purchase easy-to-understand financial products and build their understanding of cryptocurrencies.

“Current product and service offerings used to invest in crypto assets are too complex and unwelcoming to those who are just starting out their crypto journey,” said Ayelen Denovitzer, Co-Founder and CEO of Solvo. “By providing an easy-to-use, trusted and transparent platform we believe we can get the ‘crypto-curious’ to embrace the world of cryptocurrencies, turning them into ‘crypto-capable’ users.”

A 2022 survey by 451 Research, a technology research group within S&P Global Market Intelligence, reported 32% of non-crypto users cited “lack of understanding of blockchain” as the reason they had not participated in trading cryptocurrency. Meanwhile, 26% of non-users cited crypto as being “too complicated to purchase” as the inhibitor to start trading. (1) (1) https://cdn.roxhillmedia.com/production/email/attachment/1030001_1040000/4c8a079f0fc7cd5b7fe7fb07bb7d9f031285f120.pdf

Solvo eliminates complex and intimidating processes that typify other crypto platforms by providing clear and focused products that manage the myriad of choices a new investor needs to navigate. Through the app users can use three core products:

• Bundles: Baskets with sector-specific tokens without the user having to choose from thousands of projects and tokens and invest significant amounts of money. The user can choose what sector to invest in: blue-chip crypto projects, DeFi, or Metaverse & Gaming. Solvo identifies top projects for each and defines the mix of among them.

• Vaults: Solvo’s app allows users to earn a yield based on their risk appetite. The user deposits FIAT, selects what token they want to earn in, and Solvo takes care of the rest. Solvo looks for the best protocols and investment opportunities and connects to them for the user to earn the yield. The user can choose between ADA, NEAR, MATIC, among others.

• NFTs: Users are able to create their own NFTs using a generative AI. By describing in writing what image they want, uploading or taking a photo, the users can create their personalised NFTs. This can also be minted on-chain for free on Optimism. In the coming releases, the user will be able to withdraw and deposit this and other NFTs.

“Solvo sees decentralized finance as the future of finance, but recognizes the massive barriers that are currently holding back millions from entering the crypto space,” said Shailendra Sason, Co-Founder and CTO of Solvo. “We want to deconstruct those barriers by providing straightforward, transparent, and easy-to-use technology so that everyone can experience the benefits of decentralized finance, regardless of their expertise.”

On top of the products described above, Solvo is making buying and selling crypto easier. The app offers the ability for users to buy, sell, and hold crypto through a curated list of the 10 best tokens, to avoid the need to review +20,000 tokens. Users can also transfer money anywhere in the world, deposit and withdraw BTC and ETH, and deposit GBP and EUR, through open banking and bank transfer. 

Solvo is committed to maintaining best-in-class trust and transparency with its users. To that end, Solvo is proud to integrate with industry leaders to provide technical excellence and expertise: 

• The number one institutional digital asset custodian, Fireblocks; 

• Blockchain compliance analytics provider, Elliptic;

• And Know Your Customer (KYC) identity verification engine, Passbase. 

The launch of Solvo’s app comes after the close of a $3.5 million fundraising round in late 2022.

Payment company compliance teams are being pushed to their limit as new research from regulatory intelligence specialists VIXIO reveals 90 per cent are frequently overwhelmed. 

The impact of Russia’s invasion of Ukraine, paired with poor economic conditions in the wake of the Covid-19 pandemic, has left many payment companies in a precarious position. Half (50 per cent) listed fraud as their biggest challenge over the last 12 months. Countries worldwide have implemented restrictive sanctions, which led to the highest number of regulatory events ever recorded by VIXIO, at 243 in March 2022 alone (with the monthly average standing at 165). Rising levels of fraud are now forcing firms to alter their plans.

Increased fraud was a particular concern for teams in the UK (20%) and Brazil (21%) – two countries where instant payments and, consequently, authorised push payments (APP) fraud have both become a growing issue.

The 2023 Payments Compliance Outlook: Surviving and Thriving in Uncertain Times surveyed 202 senior and executive compliance and regulatory professionals at global payments companies in the UK, US, Germany, and Brazil across multiple sectors. It found that, despite the threat of recession and the need to cut business expenditure, payment company executives are increasingly willing to commit additional resources to avoid trouble from regulators.

To tackle future threats, almost 40 per cent of compliance teams are prioritising new market entry in 2023 (44 per cent in the US), with 35 per cent supporting new product licensing (45 per cent in the UK).

Andrew Neeson, Managing Editor and Research Director at VIXIO, says: “Payment companies are going through a particularly hard time, but we are seeing great innovation in response to the pressure. Many firms are harnessing new and alternative payment technologies, with 93 percent looking to achieve growth through M&A. This is to increase revenue, resolve compliance and security problems, and protect their core customer base from competitors and risks. Additionally, 49 percent of compliance teams are investing in greater internal regulatory monitoring systems to manage the burden they’re facing.”

Whilst tackling fraud remains the biggest priority for almost half (47 per cent) of compliance teams going into 2023, 43 per cent cite data protection and anti-money laundering as their biggest concerns.

Andrew Neeson believes that in these challenging times, firms will have to grow more inventively: “Firms that are willing to take a risk and focus on new payment technologies such as open banking, new payment options, instant payments and cryptocurrency can gain an edge. It will protect and enhance their core customer base and future-proof their business.”

As a result, Jan Van Vonno, Head of Industry Strategy at Sweden-based open banking specialist Tink, believes that the next 12 months presents a tipping point for the adoption of opening banking across Europe: “If we look at the UK, Open banking payments have grown 500% year on year, as more institutions have realised the benefits open banking can bring, such as reduced costs, low fraud and a better user experience. In tandem, the regulatory environment is becoming increasingly accommodating of open banking payments – for example, the EU’s latest rules for Eurozone banks to offer instant payments.

“Open banking is set to become mainstream faster in some markets such as the UK, Germany, France and the Nordics.”

Fime’s test suite can now help vendors and schemes address all areas of the EMV® 3DS ecosystem and specifications. By offering a full complement of EMV 3DS pre-compliance and compliance services through its accredited laboratories, Fime is able to support customers with an accelerated, streamlined and properly guided testing journey.

Its EMV 3-D Secure (EMV 3DS) Test Platform already supports 3DS Server, Access Control Server (ACS), Software Development Kit (SDK) testing and has now been qualified by EMVCo to support 3DS Directory Server (DS) testing in line with both the V2.1 and V2.2 test plans.

To achieve this qualification, Fime worked alongside Swiss-based software solution provider Netcetera, testing the compliance of its solution against multiple market and payment network requirements.

Daniela Noveska, Senior Scrum Master at Netcetera, comments: “When choosing the right partner for testing and certifying our 3DS products, we needed a flexible, collaborative and experienced partner. Fime brings all these qualities. Together with Fime and their team of developers who boast years of experience in the 3DS field, the project for the compliance of the Netcetera 3DS Directory Server was successfully implemented in the planned time.”

Raphaël Guilley, VP Solutions at Fime, adds: “Our partnership with Netcetera allowed us to qualify our platform for Directory Server testing. This means that Fime is able to provide payment networks and other stakeholders with a full scope of services to meet their EMV 3DS testing compliance needs. This marks another step forward for Fime in providing a fully end-to-end service in the ecosystem, supporting both domestic and international schemes in achieving alignment against the 3DS framework with a simplified and accelerated process.”

Fime’s EMV 3DS test platform is powered by the Fime Test Factory - a cloud-based and future-proof testing platform. It provides customers with an automated, digitized and fully customizable tool that streamlines the testing process, helping reduce both costs and time to market.

Fime was recently qualified to support ACS and 3DS Server testing in line with EMV 3DS V2.3.1 as part of EMVCo’s Early Adopter Program. Fime plans to support V2.3.1 for all modules in the coming months. Learn how Fime helped Netcetera achieve compliance for multiple 3DS modules.

To find out more about Fime’s EMV 3DS services, visit our website.

Demand for finance from the UK’s 5.5m small and medium-sized businesses1 is on the rise at the same time as banks are reducing their lending appetite, according to iwoca’s latest SME Expert Index. 

More than eight in ten SME finance brokers (82%) agree that major banks have reduced their appetite to fund SMEs, while nearly half of brokers (49%) report that more of their clients’ applications for finance were rejected compared to the previous month.

The new data of UK brokers who submitted over 2,000 SME finance applications in December also finds that funding experts think current macroeconomic pressures will have a worse impact on SMEs than the pandemic did.

SME demand for finance soars as banks retrench

The findings suggest demand for lending is set to increase dramatically over the next six months; four in every five brokers (79%) believe that demand for SME finance will rise, with just 6% predicting demand will fall. 

Four in ten brokers (39%) say they’ve already seen a rise in applications for finance over the last month, with just one in seven brokers (14%) seeing applications fall.

Current macroeconomic pressures set to have worse impact on SMEs than the pandemic did, brokers say

One of the key drivers of rising demand for SME finance is the soaring cost of doing business. More than eight in ten brokers (84%) report their SME clients are concerned about their businesses surviving increased energy prices. 

Over half (51%) also expect the potential recession’s impact on SMEs will be worse than that of the pandemic, twice the rate of those who think it will be better. 

iwoca increases funding line to match demand

iwoca recently extended its funding line from £125m to £170m with long-term partner Pollen Street Capital. The company will use the additional £45m to provide loans to meet the growing demand for SME financing, having seen a 50% increase in the number of businesses it funded across the UK and Germany in 2022.

Colin Goldstein, Commercial Growth Director at iwoca, said: “With brokers predicting that the impact of current macroeconomic pressures this year will be worse than the pandemic for small businesses, it’s clear that SMEs across the UK are in need of financial support. And – as our data shows – traditional banks just aren’t offering this.  

“Alternative lenders are once again proving just how crucial they are to protecting small businesses from this financial shock. Our funding extension with Pollen Street Capital has helped us match increased appetite for SME finance, and now our focus will be to secure further financing so we can continue to  service this rising demand.”

SME Expert Index

This SME Expert Index from iwoca provides a snapshot on what’s driving small business owners to borrow, the trends seen in the types and value of finance being accessed, and how these patterns change as the country navigates economic shifts in the market. iwoca publishes this index every quarter to capture the experience of brokers working with small businesses. 

iwoca is reaching 2.3 million businesses across the UK and Germany through its embedded lending technology, which allows businesses to access loans through a range of platforms such as accountancy software apps and digital neo-banks. As well as its original Flexi-Loan, the lender offers an omni-channel B2B payment solution (with built in B2B BNPL) – iwocaPay, and a Revenue Based Loan, where repayments are a percentage of a business’s monthly sales. The company offers free mental health support for all small businesses in the UK, in partnership with online therapy platform Spill.

SME Bank, the neobank startup that offers banking and financial services specifically for small- and medium-sized enterprises, is announcing today the addition of SEPA Instant Credit Transfers as well as becoming a member of SWIFT – a vast messaging network used by banks and other financial institutions around the world. The increased scope of service means that SME Bank will better address the needs of its customers, already numbered at almost 700 EU businesses. 

As the backbone of Europe’s economy, small- and medium-sized enterprises make up over 90% of all companies across Europe, and more than half of the working population is employed by an SME. Yet more than a quarter of SMEs have had trouble accessing finance from their bank, while 35% are getting no other service or support beyond lending. As a result, many SMEs remain under-financed, under-advised and at risk of serious business challenges. 

SME Bank is a neobank for businesses leveraging a single, digital platform for all small- and medium-sized businesses’ finance and daily banking needs. Founded in 2021 in Vilnius, Lithuania, and already operating in five European countries, it is a flexible, fast, digital bank for business. SME Bank offers SMEs a full range of bank services and a number of lending products. Together with its partner SME Finance, SME Bank also offers growth financing for startups and small- and medium-sized enterprises. 

The Society for Worldwide Interbank Financial Telecommunications (SWIFT) is a member-owned co-op that provides a safe and secure network for the transmission of financial transactions. SWIFT is the largest payment network in the world. The Single Euro Payment Area (SEPA), an initiative that facilitates seamless transfers and payments in the EU zone, is approved and regulated by the European Payment Council (EPC).  By joining SWIFT, SME Bank is able to provide secure, transparent, and accessible financial services through vast messaging networks utilized by financial institutions, while SEPA Instant Credit Transfers enable to move money between two cross-border bank accounts in the eurozone.

Ieva Naudžiūnaitė, COO of SME Bank said, “Instant and seamless customer experience is very important to us. SWIFT and SEPA are key upgrades to our services that will impact customers directly and indirectly in positive ways. These new services represent increased convenience, better fraud protection, and a more mature level of service overall. SWIFT is basically the standard international wire between all banks – an absolute ‘must have’ for any serious institution, and SEPA gives our customers that full EU advantage for the entire Euro payments zone. With this foundational service portfolio, SME Bank is committed to making financial services accessible to SMEs and helping them overcome business challenges and achieve success.”