Jan. 30, 2019

Varo Money Inc., a San Francisco-based mobile banking startup, has raised the annual percentage yield on its savings account to 2.8 percent, which it claims is the highest in the industrye

The rate increase is for customers with a balance of up to $50,000, have a qualifying direct deposit on file of up to $1,000 per month and use their debit card at least five times per month, according to a press release.

For accounts with balances over $50,000 or accounts that do not otherwise meet the qualifications, that portion will be paid at 2.12 percent. The accounts are provided by The Bancorp Bank, with FDIC insurance up to $250,000.

Varo, which was granted preliminary approval in August 2018 for a national bank charter by the Office of the Comptroller of the Currency, charges no fees or overdraft charges and has no minimum balance requirement. The mobile app is available for download on iOS or Android. The bank was founded in 2015 and has raised $144 million led by Warburg Pincus and the Rise Fund.

Topics: Mobile Apps, Mobile Banking

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Jan. 30, 2019

Fundbox is planning to extend its B2C credit feature to create an AI-based B2B platform for e-commerce checkout that will allow instant decisions on financing, according to company officials.

The company cited data showing that the average medium-size company has 24 percent of monthly revenue tied up in accounts receivable or trade credit.

"Fundbox has a legacy of creating breakthrough solutions for businesses in the U.S.," said Prashant Fuloria, COO of Fundbox, said in an announcement. "With checkout capabilities for Fundbox Pay customers now have more ways than ever to tap into their Fundbox credit, and partners have new ways to contextualize access to credit in their workflows."

The company did not disclose details about sales, but the company has been eight digits and nine digits in annual revenue, Fuloria said in an interview. He added the company has been doubling in size on an annual basis.

The company has raised $140 million since it was founded in 2013. Investors include Khosla Ventures, General Catalyst, Spark Growth Capital and Amazon's Jeff Bezos..

Fundbox has been testing the platform with a California-based toy marketplace called Fitzroy.

"The woman who built this company had this marketplace of toys and gifts and so on," said Fuloria, in an interview. "The missing link was credit."

He said the firm typically worked with brands and buyers that were mom and pop retailers or small chains with five or 10 stores. Before working with Fundbox the prime approach for small retailers handling transactions was through Stripe.

Topics: Mobile Apps, Mobile Banking, Online Purchasing, POS, Retail

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Jan. 29, 2019

Visa Inc. announced a renewed agreement with the National Football League to be its official payments service technology partner through the year 2025, and also is working on a plan to expand the use of contactless concessions including Super Bowl LIII on Sunday, according to a company announcement.

Visa said it plans to offer more than 30 cashless concessionaires at the game in Atlanta, and will have an MVP checkout line that encourages the use of contactless cards, wearables or mobile devices.

Visa also plans to host a special interactive, augmented reality demo that allows fans to simulate checkout by kicking their purchases through a virtual goalpost. Some of Visa’s commercial campaign stars during the NFL will reprise their roles at the game to help promote contactless payments.

"Over the years, we have evolved our relationship with the NFL from a sponsorship to a partnership that provides invaluable payment experiences for fans," said Lynne Biggar, chief marketing and communications officer at Visa, said in the announcement. "Looking ahead, we see a cashless future for NFL fans where events, including future Super Bowls, are digital, creating a more secure and seamless payment environment for fans and concessionaires alike."

Topics: Card Brands, Contactless / NFC, Mobile Payments, Restaurants, Retail

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Jan. 29, 2019

Revolut, the London-based digital bank, plans to hire a global licensing team as part of a plan to expand internationally, with plans for the U.S., Canada, India, Japan, Australia, Singapore and Hong Kong, according to a company blogpost.

The team will be led by a global head of licensing operations, who will report to the CEO. The role will include securing e-money and banking licenses around the globe, including licenses for credit, trading and acquisition.

The company also plans to hire a manager of capital, liquidity and financial modeling. That person will be responsible for creating internal capital adequacy assessments, liquidity assessments and other financial modeling.

Another position will be the license business planning manager, who will be responsible for writing licensing applications in the U.K., Europe and other locations and license project managers.

Topics: Mobile Banking, Region: Americas

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