๐The Fintech Wave(#36)
We are welcoming 4 new members of the Fintech Wave community who have joined us since Monday.
TLDR: Learn how BNPL companies make money. New fintech unicorn. Manage your NFT portfolio from a single app.
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Europe News and Funding
How do โBuy Now Pay Laterโ companies make money๐ฐ?ย
From online merchants: sellers usually pay 2-5% of the purchase price. Sellers offset that cost because BNPL offers a new marketing channel and leads to higher value transactions as people spend more (because they can pay in more installments).
From consumers: they charge anywhere from 0% to 30% APR. Also, they make money from late payment fees.
BNPL can be used as an entry-level financial service - once the company learns the person can be โtrustworthyโ to pay off the BNPL loan they will then offer them more lines of credit.
Americas News and Funding
Banking-as-a-service startup became unicorn๐ฆ
Unit just raised $100M at a $1.2B valuation, led by Insight Partners. In short, Unit helps other businesses to build banking products. Iโm always happy to see new financial infrastructure companies because they will help launch hundreds of new fintech startups.
The first year startup was in stealth mode just building the product, and now they support all kinds of neobank features - account, cards, payment, lending.
In terms of regulations, Unit is not the bank, they also used traditional banks in the backend for regulations and licenses.
Crypto โฟites
An app that helps you manage NFT๐ผ๏ธ portfolio
Having few NFTs on different blockchains and wallets can be annoying, so I like the idea to have everything in one app. Also, the app allows you to discover new NFTs collections which you can buy directly from the app.
The most expensive pizza๐ever
Tweets and Threads of the Week
