DoJ Claims Apple Prevented the Rise of Super Apps in the West
Hey FinTech Fanatic,
Super apps haven't caught on in the West, partly because the DOJ accuses Apple of blocking their growth to prevent users from easily switching to competitors. Apple denies this, highlighting the success of apps like WeChat in China on its devices, arguing that the lack of super apps in the US isn't due to its policies.
The DOJ claims Apple's restrictions on mini programs—light apps within larger ones—hindered super apps' success in the US, a stark contrast to situations in Asia where WeChat thrived under different conditions.
Apple's recent changes to in-app purchase rules for mini programs, amid European regulatory pressures, suggest challenges ahead in maintaining its app ecosystem's exclusivity.
Developers like Snap have tried to introduce mini programs, but consumer disinterest and possibly Apple's regulations led to their discontinuation. Yet, there's a growing interest in bundled services, hinting at potential shifts if a US super app arises, making it easier to switch from iPhones to Androids.
The DOJ's lawsuit against Apple, part of wider antitrust actions against tech giants, signifies increasing regulatory scrutiny, with significant implications for the industry's competitive dynamics.
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Now let's dive into the news of today:
BREAKING NEWS
🚨 BREAKING: Sam Bankman-Fried has been sentenced to 25 years in prison for masterminding the $8bn fraud that led to the collapse of cryptocurrency exchange FTX. He was found guilty on 7 charges of wire fraud and conspiracy in November 2023.
FEATURED NEWS
🇺🇸 This company created a digital wallet for global workforces: Papaya Global is one of Fast Company’s Most Innovative Companies in finance. Read on
#FINTECHREPORT
📊 The March edition of Finch Capital’s Monthly Market Pulse FinTech report is out. In the Market Pulse, Finch Capital looks at recent trends and performance within each theme and the outlook for the future. Click here to learn more
INSIGHTS
🇬🇧 Monzo COO Sujata Bhatia on US expansion, AI and the time she felt like an outsider. In April 2020, Sujata Bhatia said goodbye to her 16-year career at American Express and swiftly transitioned to City FinTech Monzo as chief operating officer. Amid the pandemic, she made the move without having a single in-person interview. Read the full story here
FINTECH NEWS
📉 Global Mapping of players in Embedded Finance & Banking-as-a-Service (BAAS) by The Paypers.
Which FinTech companies are we missing in this overview?
🇸🇬 Singapore-based payments FinTech Nium has been busy expanding internationally as it seeks to put itself in the most favorable position possible ahead of a planned IPO in 2025. In recent months, Nium has expanded on multiple continents, from South America to different parts of Asia.
🇮🇳 GoldPe will cease to exist precisely one year after its inception on April 1, 2023. Speaking with Inc42, the cofounder of the investment tech startup Parth Shah said that the decision has been taken in the absence of revenues, a flawed business model, and cash flow issues
PAYMENTS NEWS
🧾 What is changing in PSD3? How will it affect Platforms and Marketplaces?
The Key Changes in PSD3/PSR explained👇
🇹🇷 Worldline first global online payment service provider to be authorised by the Turkish Central Bank for international payments in partnership with Lidio. The strategic partnership between Worldline and Lidio will help global online businesses to gain competitive advantage in Turkish expanding e-commerce.
🇦🇪 Embedded payments firm additiv expands in Middle East. The appointment of Niraj Naetsawan as the new Middle East General Manager, plays a pivotal role in the growth engine for additiv, this strategic move underscores the company’s commitment to strengthening its presence in this dynamic market.
🇦🇪 UPI-powered PhonePe App is now accepted at Mashreq’s NEOPAY terminals in UAE. Indian customers travelling to UAE, as well as NRIs with Indian bank accounts can enhance their payment convenience by downloading their preferred UPI-enabled app. Once installed, the app allows users to make payments at NEOPAY terminals.
REGTECH NEWS
🇺🇸 Visa launches AI-powered fraud prevention tools. Visa has added a trio of AI-powered risk and fraud prevention tools to its suite of products for businesses. The new products for business clients are part of the Visa Protect suite and designed to reduce fraud across immediate account-to-account and card not present payments, as well as transactions both on and off Visa’s network.
DIGITAL BANKING NEWS
🇺🇸 JPMorgan bets on new wealth planning tool to draw investments. JPMorgan Chase seeks to expand the reach of its wealth management business and bring in more investments by offering a new planning tool to its 54 million Chase retail customers. Keep reading
🇺🇸 A focus on new products may push Varo to profitability in 2024. Varo Bank founder Colin Walsh thinks 2024 will be the year that his neobank finally crosses into the black. He won’t be pinned down to a specific quarter. But he says this will be the year that the bank, which began as the FinTech Varo Money, will “join the “Post-Profit Club.”
🇦🇺 Westpac announces multibillion tech upgrade. The bank has pledged to devote 30% of its annual budget, estimated to be between A$1.8bn to A$2bn, for the next four years to upgrading its tech. The move is part of Project Unite, 85 separate tech projects designed to reverse a decade of under-investment.
🇧🇷 Nubank reached 4 million business customers and launches new tools. This number represents a ~50% increase YoY, making them the financial institution with the highest number of open corporate accounts in Brazil. Growth follows the launch of multiple products, including the more recently the first loan solution: Working Capital.
BLOCKCHAIN/CRYPTO NEWS
🇬🇧 EToro adds 12 tokens to crypto lineup. “These new listings complement eToro’s existing crypto offering by expandinginto the Cosmos and Solana ecosystems, paving the way for new listings representing these rapidly growing communities of developers,” said Omri Ross, Chief Blockchain Scientist at eToro.
🇫🇷 French FinTech ditches remittances in favour of DeFi. Tempo France claims it is the first FinTech in the money transfers market to suspend classical remittances in order to focus exclusively on decentralised finance (DeFi). According to Tempo, the time has come to give priority to the development of "radically new" business payment services.
US and UK probe $20 billion of crypto transfers to Russian exchange. The payments under scrutiny went through Moscow-based crypto exchange Garantex using the dollar-pegged cryptocurrency Tether, people familiar with the matter said, speaking on the condition of anonymity to discuss a matter that hasn’t yet been made public.
DONEDEAL FUNDING NEWS
🇺🇸 NewRetirement completes $20m funding round. With this funding, the company will expand its enterprise offerings, scale onboarding and support for new partners, enhance R&D efforts aimed at helping its user base, integrate LLMs and AI to provide more personalized recommendations, and build capacity to meet growing demand.
MOVERS & SHAKERS
🇺🇸 Ally Financial names Michael Rhodes as CEO. He will take over as chief executive officer of the company from April 29, according to Ally Financial. Rhodes, who most recently served as the CEO of Discover Financial Services, has previously worked at Bank of America and TD Bank in his career spanning 25 years across retail and consumer banking.
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