Starbucks Accused of $900M Unfair Earnings from App Payments

Starbucks Accused of $900M Unfair Earnings from App Payments
Starbucks Accused of $900M Unfair Earnings from App Payments

Happy Monday FinTech Fanatic!

A survey by Febraban reveals that the instant payment method, Pix, has become the most used by the Brazilian population. In terms of transaction volume during the same period, Pix totaled R$ 7.3 trillion, only trailing behind TED (Transferência Eletrônica Disponível).

As it celebrates its third anniversary, Pix continues its upward trajectory. In the first half of 2023, Pix recorded 17.6 billion transactions, accounting for 93% of all operations (18.8 billion) - including credit card, debit card, TED/DOC/TEC, checks, and billets. This information comes from a Febraban survey, based on data from the Central Bank and Abecs (Brazilian Association of Credit Card and Service Companies).

In the same period, Pix's transaction volume reached R$ 7.3 trillion, second only to TED, which accumulated R$ 20.5 trillion.

Meanwhile, Revolut is aiming for a $60 billion opportunity in Brazil, focusing on foreign investment services and enhancing app usability according to Glauber Mota, the Country Manager of Revolut Brazil.

Targeting Brazilians involved in foreign travel, income, and remittances, the company plans to grow its team and introduce new features like expanded currency options and streamlined processes in 2024.

Despite a diverse user base, Revolut's strategy in Brazil prioritizes financially sustainable products and superior customer experience.

With a robust global financial standing, including $1.1 billion in revenue in 2022, Revolut's Brazilian expansion is part of its wider ambition for growth and market penetration, including plans to extend into Chile.

Talking about expansion: Nu Colombia, a subsidiary of Nubank in the country, announced that the Financial Superintendence of Colombia (SFC) has officially approved its application to operate as a financing company. 

This achievement not only marks a significant milestone for Nu Colombia but also paves the way for the expansion of its product portfolio into savings with the upcoming launch of Cuenta Nu, a pivotal move for its long-term vision for the country. 

Read more global FinTech industry updates below👇 and I'll be back tomorrow!




🇧🇷 Pix 🆚 UPI 🇮🇳 - Both are instant payment systems, but how do they work? Let's dive in👇


🇺🇸 Starbucks is in hot water after a consumer protection group alleged that the coffee chain profited from its unfair app payment system to the tune of $900 million over five years. The Washington Consumer Protection Coalition asked the state attorney general to investigate Starbucks’ gift card and app payment systems that steer customers into handing the company more money than required.

🇺🇸 Neobank Dave will pay $71 million to FTX liquidators by acquiring a convertible promissory note from FTX Ventures, valued at $100 million. The completion of this transaction is subject to the approval of a bankruptcy court, with a critical hearing slated for Jan. 25.


Wipfli’s annual research report into the state of banking reveals a slowdown in aggressive growth, a reluctance to embrace AI and a surprising number of cybersecurity instances. Check out the full report to learn more


The State of Embedded Finance by WhiteSight. Let’s dive into the evolution of embedded finance in 2023: According to Bain & Company, financial services integrated into e-commerce and various software platforms represented $2.6 trillion, equivalent to almost 5% of the total US financial transactions in 2021.


Nanopay partners with National Bank of Pakistan to provide the fastest and cheapest way for the Pakistani community in Canada to send money to family and friends. Nanopay introduced nanopay Foree Remittance which provides an expedited and cost-effective solution for sending money to Pakistan.


What are the 5️⃣ different models of Buy Now Pay Later (BNPL)? Let's dive into each one:

🇬🇧 Nearly quarter of Londoners turn to buy now, pay later services as cost of living crisis bites. The Centre for Financial Capability has warned of the risk of using "wild west" credit services such as Klarna and Laybuy, as 34 per cent of Londoners who use the payment schemes fork out for late fees. 

🇺🇸 A Stripe secondary deal worth paying attention to. TechCrunch+ survey: VCs expect exits to rebound in 2023. The consensus is that Stripe will go public this year. According to secondary data tracker Caplight, there has been an absolute flurry of buyers looking to get shares in the company in recent months.

Holiday shoppers spent $16.6B online using BNPL according to Adobe. BNPL usage hit an all-time high during the season, with Cyber Monday as the largest day on record for the payment method. The rise in 2023 BNPL sales signals a continuing trend of consumers turning to the installment payment method to finance their holiday purchases. 

🇮🇳 Google Pay has 67 million users in India, by far its largest single market – Google Pay has roughly 150 million users globally, as reported by Watcher Guru. It has the second-largest market share on the paramount United Payments Interface payments rail and is now pushing into consumer and merchant lending.


🇿🇦 Why SA’s digital banking outperforms other nations. The country’s financial services landscape ranks second on Oliver Wyman’s digital banking index, which was recently updated and is now in its second iteration. Discover more by reading the full article 

🇮🇩 Indonesian neobank KoinWorks enhances customer service using Freshdesk. This all-inclusive system for customer service has allowed KoinWorks’ agents to efficiently manage queries through phone, live chat, messaging apps such as WhatsApp, Facebook Messenger, social media, and email from a single platform.

🇧🇷 Nubank gets Colombia license: Brazilian fintech plans to expand its financial products in the South American country. Currently, the company has customers in 100% of the country’s departments, and as of September 2023, it had reached 800,000 customers, only with its credit card product.

🇧🇷 Revolut Targets $60B in Brazil with Focus on Foreign Investment Services. The firm identifies three primary customer profiles in Brazil: those planning foreign travel, earning income abroad, and engaging in peer-to-peer remittances, particularly targeting the segment of Brazilians traveling for extended periods who traditionally rely on cash.


🇿🇦 Crypto progress in South Africa. In October 2022, the FSCA declared cryptocurrencies a financial product, allowing crypto trading platforms to become licenced and placing them under its regulatory purview. Read more


🇸🇦 Saudi fintech start-up Tameed raises $15m Series A. The platform says it will use the new funding to fuel its growth and help “meet the increasing demand” for its digital lending products. This will enable the platform “to serve investors and SMEs requiring funding” while also further developing its products.


🇮🇳 PhonePe appoints Ritesh Pai as CEO of International Payments. In his last role at TerraPay, Pai was responsible for launching and implementing payment products and solutions globally. At PhonePe, he will lead the firm’s international growth and expansion plans.

Revolut ramped up remote hiring as pay fell. A report says "roughly 50% of new joiners were remote, compared to 36% in 2021." This growing demand for remote roles at Revolut is at odds with other fintech giants. More here

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